New Delhi, 02 Feb 2026 | Nirmesh Singh: The Union Budget 2026–27, presented on 1 February by Finance Minister Nirmala Sitharaman, has once again placed agriculture at the centre of the government’s long-term growth narrative. With an allocation of ₹1.63 lakh crore for agriculture and allied sectors — a roughly 7 per cent increase over the previous year, the budget emphasizes diversification, technology adoption and expansion of allied activities such as livestock and fisheries.

However, farmers’ groups, agricultural economists and opposition leaders argue that the budget prioritises future-facing reforms while leaving unresolved the sector’s most pressing concerns: income security, price assurance, crop insurance and debt relief. On the ground, many see Budget 2026 as a continuation of incremental policy shifts rather than a decisive response to an agrarian economy under stress.

Government Pushes Modernization and Diversification

In her budget speech, Sitharaman underscored agriculture as a “key pillar” of India’s development strategy. The government highlighted investments in high-value and plantation crops such as coconut, cashew, cocoa and sandalwood, projecting these as avenues to boost farm profitability and global competitiveness.

The budget also reinforced digitization efforts, including the rollout of the Bharat VISTAAR platform, which integrates artificial intelligence to provide advisories on weather patterns, pest outbreaks, soil health and market prices. Allocations for livestock and fisheries rose by over 26 per cent, reflecting a policy push to diversify rural incomes beyond crop cultivation.

Supporters of the budget describe these measures as forward-looking and necessary to modernise Indian agriculture. But critics argue that the emphasis on technology and niche sectors masks stagnation in core support mechanisms. Agricultural economist Avinash Kishore pointed out that “crucial schemes such as price support, insurance and interest subvention have not received any meaningful enhancement, while research funding has been cut even as productivity growth slows.”

MSP and Income Security Remain Unaddressed

For many farmers, the absence of concrete measures on income assurance has overshadowed the budget’s broader vision. A key demand a legal guarantee for Minimum Support Price (MSP) at least at cost of production plus 50 per cent (C2+50 per cent) remains unmet.

Farmer leader Ajay Vir Jakhar, chairperson of the Bharat Krishak Samaj, had warned during pre-budget consultations that without assured prices and effective risk mitigation, farming would remain economically precarious. Budget 2026 does not introduce a statutory MSP framework or expand guaranteed procurement mechanisms.

Krishnaprasad of the Samyukta Kisan Morcha said the government had failed to address exploitation in agricultural markets. Citing instances where farmers were forced to sell onions for as little as ₹0.50 per kg while retail prices soared, he argued that “profit is captured by intermediaries, not producers, and MSP without enforcement is meaningless.”

Crop Insurance and Climate Risk Overlooked

Crop insurance — increasingly critical amid climate volatility — remains another flashpoint. Despite repeated farmer demands and rising losses from erratic weather, the budget does not significantly expand funding or announce structural reforms to the Pradhan Mantri Fasal Bima Yojana (PMFBY).

Farm leaders have called for direct compensation models to replace what they describe as delayed and unreliable insurance payouts. In states like Madhya Pradesh, farmers told reporters they had expected stronger support for climate-related losses. “The budget talks about the future,” one farmer said, “but our question is simple — who will stand with us this season?”

Political and Regional Backlash

Discontent over the budget has spilled into political discourse. In the Cauvery delta, farmer organizations criticized the government for ignoring long-pending demands such as MSP implementation and loan waivers, noting that agricultural debt relief has been absent for nearly two decades.

Punjab Finance Minister Harpal Singh Cheema described the budget as neglecting essential agricultural infrastructure and market support, arguing that its selective focus on certain crop categories does little for farmers in major grain-producing regions. Aam Aadmi Party MP Sanjay Singh echoed similar concerns, pointing to the lack of transparent measures to increase farm incomes or fulfil earlier reform commitments.

The All India Kisan Sabha (AIKS) went further, accusing the government of sidelining both agriculture and rural labour, citing stagnation — and in some cases decline in real terms — in allocations for research and traditional support schemes.

Economic Survey Recommendations Left Unused

The criticism has been sharpened by comparisons with the Economic Survey 2025–26, tabled just days before the budget. The Survey identified deep structural challenges in agriculture, including productivity stagnation, climate vulnerability, distorted input use and inefficient markets and proposed pragmatic reforms to address them.

Several key recommendations did not find reflection in Budget 2026:

• Fertiliser Subsidy Reform: The Survey suggested a modest increase in urea prices, offset by direct per-acre transfers to farmers, to correct usage distortions and improve soil health. The budget retained existing price subsidies without recalibration.

• Targeted Crop Diversification: While the Survey proposed state-specific incentives for pulses, oilseeds and maize — especially in rain-fed regions — the budget’s diversification push focused more narrowly on plantation and high-value crops.

• Research and Climate Resilience: Despite calls for higher R&D spending and climate-resilient technologies, the allocation for agricultural research was reduced from ₹10,281 crore to ₹9,967 crore.

• Balanced Nutrient Use: The Survey’s recommendation for nutrient-based pricing and direct farmer transfers was not adopted, reinforcing concerns about long-term soil degradation.

Vision Without Relief

Taken together, Budget 2026 exposes a widening policy disconnect. While the government emphasises structural transformation, digital tools and diversification, many farmers continue to seek basic economic safeguards — assured prices, reliable insurance, debt relief and guaranteed procurement.

The budget’s long-term investments may yield dividends over time. But critics argue that without strengthening immediate safety nets, agriculture’s vulnerabilities risk deepening. As farmer groups across regions warn, ambitious rhetoric without tangible relief may further alienate the communities that sustain the country’s food security.
_______________________________________________________________________________________________