Agriculture took centre stage in the Union Budget 2026-27 as Finance Minister Nirmala Sitharaman outlined a clear push towards high-value crops, allied activities and technology-driven farming.
Farming is an essential part of the Indian economy, reportedly employing nearly 55–56 per cent of the workforce and contributing around 18–19 per cent to the country’s Gross Value Added (GVA) in recent years.
Push for high-value crops
To help farmers earn more from their land, the Budget has prioritised diversification towards high-value crops. Support will be extended to coconut, sandalwood, cocoa and cashew in coastal regions, agarwood in the North East, and nuts such as walnuts, almonds and pine nuts, Nirmala Sitharaman said on Sunday as she presented the Union Budget 2026-27.
Also read| Budget 2026: Full text of Nirmala Sitharaman's Union Budget speech here
''To diversify farm outputs, increase productivity, enhance farmers’ incomes, and create new employment opportunities, we will support high-value crops such as coconut, sandalwood, cocoa and cashew in our coastal areas,'' the finance minister said.
Special focus on coconut
{{/usCountry}}''To diversify farm outputs, increase productivity, enhance farmers’ incomes, and create new employment opportunities, we will support high-value crops such as coconut, sandalwood, cocoa and cashew in our coastal areas,'' the finance minister said.
Special focus on coconut
{{/usCountry}}India, the world’s largest coconut producer, will get a new coconut promotion scheme. The initiative will focus on boosting productivity by replacing non-productive trees with improved varieties in key coconut-growing states.
"India is the world’s largest producer of coconuts. About 30 million people, including nearly 10 million farmers, depend on coconuts for their livelihood,'' the FM said.
Boost for cashew and cocoa
The Budget has also prposed a dedicated programme for Indian cashew and cocoa. The aim is to reduce dependence on imports by strengthening domestic raw material production and processing.
''A dedicated programme is proposed for Indian cashew and cocoa to make India self-reliant in raw cashew and cocoa production and processing, enhance export competitiveness and transform Indian Cashew and Indian Cocoa into premium global brands by 2030,'' Sitharaman said in the Budget speech.
Revival of sandalwood farming
Sandalwood cultivation will receive focused support through partnerships with state governments. The plan includes promoting scientific farming methods and improving post-harvest processing.
The initiative is expected to help revive the traditional Indian sandalwood ecosystem and increase farmer participation in this high-value crop.
''Sandalwood is closely linked to India’s social and cultural heritage. Our Government will partner with State Governments to promote focused cultivation and post-harvest processing to restore the glory of the Indian Sandalwood ecosystem,'' FM said.
Fisheries and animal husbandry get lift
In the fisheries sector, the government has proposed the integrated development of 500 reservoirs and other water bodies. The focus will be on strengthening the fisheries value chain, improving market access and supporting start-ups, women-led groups and fish farmer producer organisations.
AI tools to support farmers
The Budget also announced the launch of Bharat Vistar, a multilingual AI-based platform for farmers. The tool will integrate AgriStack portals and the Indian Council of Agricultural Research’s package of agricultural practices with artificial intelligence systems.
With its wide-ranging focus — from coconut groves and sandalwood farms to cocoa, fisheries and AI tools — the Union Budget 2026 signals a shift towards value-led and technology-supported agriculture, aimed at making farming more profitable and future-ready.