Budget 2026: Are allied sectors the key to boosting farmers’ income? Key highlights inside

Union Budget 2026–27: Finance Minister Nirmala Sitharaman said the government’s third Kartavya focuses on inclusive growth. The aim is to ensure that every family, region, and sector gets access to resources, opportunities, and means to grow.

As part of this vision of Sabka Sath, Sabka Vikas, the Budget places strong focus on increasing farmers’ income by improving productivity and supporting allied agricultural sectors. The government has outlined a broad roadmap that links farming with fisheries, animal husbandry, horticulture, technology, and entrepreneurship.

How does Budget 2026 plan to increase farmers' income?

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The Budget establishes particular methods that will increase farmers' incomes by improving their productivity and creating new income sources for small and marginal farmers. The government revealed its intention to construct 500 reservoirs together with Amrit Sarovars through its initial major funding program.

These water bodies will support fisheries and strengthen the value chain in coastal areas. The government also plans to improve market links by involving start-ups, women-led groups, and Fish Farmer Producer Organisations (FFPOs). This is expected to help farmers earn more by reducing losses and improving access to markets.

Why is animal husbandry a key focus area in Budget 2026?

Animal husbandry has been identified as one of the main pillars for raising farmers’ income. The government plans to support this sector to create quality jobs in rural and peri-urban areas.

The Budget announces support for entrepreneurship in animal husbandry through a Credit-Linked Subsidy Programme. It also plans to scale up and modernise livestock enterprises. In addition, the government will work on building integrated value chains focused on livestock, dairy, and poultry. The creation of Livestock Farmer Producer Organisations will also be encouraged to help farmers get better prices and support.

Which crops will get Budget support?

The Budget 2026 puts special focus on high-value agriculture to improve farm income. Crops like coconut, cashew, cocoa, and sandalwood in coastal regions will be supported. In hilly areas, walnuts, almonds, and pine nuts will receive attention. Agar trees in the North-East will also be promoted.

India is the world’s largest producer of coconuts, with around 30 million people depending on coconut farming for their livelihood. To improve productivity, the government has proposed a Coconut Promotion Scheme. This scheme will focus on replacing old and non-productive coconut trees with new and better varieties in major coconut-growing states.

Budget 2026: Focus on cashew, cocoa, and sandalwood?

To move towards self-reliance, the Budget proposes a dedicated programme for Indian cashew and cocoa. The goal is to increase raw material production, improve processing, boost exports, and build Indian cashew and cocoa as premium global brands by 2030.

The government will also work with state governments to revive the Indian sandalwood ecosystem. This will be done through focused cultivation and post-harvest processing to restore its earlier importance and create better income opportunities for farmers.

The Budget suggests a new dedicated program which will fund the restoration of existing orchards and the development of high-density walnut, almond, and pine nut farming methods. The project will focus on involving young people while creating additional value.

How will fisheries and water resources help farmers earn more?

The fisheries sector is expected to play a big role in income growth. The integrated development of reservoirs and Amrit Sarovars will support fish farming. The Budget aims to strengthen fisheries value chains in coastal areas and improve market access for these value chains.

The government established ties between fisheries operations and start-ups and women-led organisations to benefit fishing communities through enhanced income and permanent employment opportunities.

What is Bharat-VISTAAR, and how will it help farmers?

The Budget announcement about Bharat-VISTAAR(Virtually Integrated System to Access Agricultural Resources) represents a significant technology-related part of its announcement. The system will function as an AI-based tool that supports farmers through multiple languages.

Bharat-VISTAAR will integrate AgriStack portals and ICAR’s agricultural practice packages with artificial intelligence. The platform is expected to help farmers make better decisions, increase productivity, and reduce risks by offering customised advice.

What do the tax proposals mean for the agriculture sector?

The Budget also includes tax proposals linked to agriculture and cooperatives. Fish caught by Indian fishing vessels in Exclusive Economic Zones or the high seas will be made duty-free, treating it as an export of goods.

Primary cooperative societies will be allowed deductions for supplying cattle feed and cottonseed to members. Inter-cooperative society dividends will also be allowed as deductions. In addition, income received by a notified national cooperative federation from investments in companies will be exempt from tax until March 31, 2026, if dividends are distributed to member cooperatives.