India's 2026-27 Budget Cuts Agri Funding Amid Farmers' Criticism

Finance Minister Nirmala Sitharaman presented the Union Budget for 2026-2027 on February 1, 2026, in New Delhi, outlining initiatives to boost agricultural productivity and farmer incomes while facing sharp criticism from farmers' organizations for reduced funding and perceived neglect of the sector.

The budget allocates Rs 1.63 lakh crore to agriculture and allied sectors, a decrease of about Rs 9,000 crore from the previous year's Rs 1.72 lakh crore allocation. This brings the sector's share of the total Rs 53.47 lakh crore budget to 3.04 percent, down from 5.44 percent in 2019-2020, continuing a pattern of year-on-year declines. Actual spending last year fell short at Rs 1.52 lakh crore, raising concerns that the sector's share in expenditures could dip below 3 percent this year.

Sitharaman highlighted several measures aimed at diversifying farm outputs and enhancing competitiveness. These include a Coconut Promotion Scheme to replace old, nonproductive trees with new saplings in major growing states, supporting India's position as the world's largest coconut producer, which sustains livelihoods for about 30 million people, including 10 million farmers. The minister also...