Key Takeaways
Budget 2025–26 focused more on continuity than transformation
Farm incomes remain under pressure despite multiple schemes
MSP, climate resilience, and market reforms remain unresolved
Incremental funding cannot offset structural weaknesses
Budget 2026 is a critical opportunity to reset priorities
Why is agriculture still a critical concern for India’s economy?
Agriculture remains the backbone of India’s rural economy, supporting over 60% of the rural population and employing nearly half the workforce.
Yet, it contributes only around 18% to GDP. Erratic monsoons, climate shocks, rising input costs, and stagnant farm incomes have intensified distress, making meaningful policy intervention unavoidable.
What did Union Budget 2025–26 promise for agriculture?
The Budget allocated ₹1.52 lakh crore to agriculture and allied sectors a modest 5% increase. The government emphasized productivity, sustainability, and self-reliance, positioning agriculture as the “first engine” of growth.
Key initiatives included
PM Dhan Dhaanya Krishi Yojana for low-productivity districts
Crop-specific missions for pulses, oilseeds, cotton, and seeds
Expansion of natural farming to 1 crore farmers
Higher Kisan Credit Card limits (₹5 lakh)
Continued PM-KISAN support at ₹6,000 per year
Why do experts call these measures “too late, too little”?
Because the Budget largely relied on incremental extensions of existing schemes rather than bold structural reforms.
While intent was visible, scale and impact were inadequate compared to the magnitude of rural distress.
Did the Budget meaningfully improve farm incomes?
Not substantially. PM-KISAN payments remain unchanged since 2019 despite rising inflation. With farm input costs rising 8–10% annually, ₹6,000 per year offers limited relief.
Economists argue income support must be significantly higher and inflation-linked to protect purchasing power.
What happened to MSP-related promises?
Although political assurances around MSP continue, the Budget did not provide legal backing for MSP based on the Swaminathan Commission formula (C2 + 50%).
Without guaranteed procurement, many farmers still sell crops below MSP, particularly in pulses, oilseeds, and cotton.
Is climate resilience adequately funded?
No. While climate-resilient seeds and natural farming were highlighted, allocations fall far short of the estimated ₹10 lakh crore annual climate-related agricultural losses.
Crop insurance delays and limited coverage further weaken farmers’ safety nets during floods, droughts, and pest attacks.
Have market reforms and diversification progressed?
Progress remains limited.
e-NAM adoption is low due to APMC barriers
Most Farmer Producer Organizations struggle with profitability
Budget focus remains cereal-heavy despite higher value potential in horticulture, dairy, fisheries, and allied sectors
Structural bottlenecks continue to restrict farmers’ access to competitive markets and better price realization.
What are farmers and industry demanding ahead of Budget 2026?
Key demands include:
Inflation-indexed income support
Legal MSP across crops
GST relief on fertilizers and inputs
Higher agri-infrastructure spending
Stronger insurance and disaster compensation
Incentives for agri-startups and rural youth employment
These demands reflect a shift from survival support to sustainable income generation
What reforms are essential for real transformation?
Experts recommend:
Higher direct income transfers linked to inflation
MSP enforcement with private procurement participation
Doubling public agri-capex to 5% of GDP
Market liberalization and e-NAM 2.0
Large-scale climate adaptation funding
Greater budget share for allied sectors
Such reforms would treat agriculture as an economic growth engine rather than a welfare obligation.
Final Thought
India’s ambition to become a developed nation by 2047 cannot rest on an economically vulnerable farming community. The Union Budget 2025–26 acknowledged agricultural challenges but lacked the scale and urgency needed to address them. Budget 2026 must move beyond symbolism toward systemic reform because empowering farmers is not just a rural issue, it is a national economic imperative.