Union Budget 2026: Just one day is left for the Union Budget 2026 to be presented in Parliament. From healthcare to aviation, every sector is hoping for a significant boost in the budget. The agriculture sector is eagerly awaiting the Union Budget, as more than half of the country’s population is still connected to agriculture in some form or another. Farmers are not just providers of food, they are also the backbone of the rural economy. However, with changing times, farming has become increasingly difficult. Sometimes the weather is unpredictable, and at other times, the costs rise so high that no profit is seen. Seeds, fertilisers, diesel, pesticides, and labor – everything is becoming more expensive.
Union Budget 2026: Will this year’s Budget be game-changer for farmers?
In such a situation, the agriculture sector has high hopes from the upcoming budget. This budget is not just about financial allocations, it will determine whether farmers will be strengthened in coming years or their difficulties will increase. Union Finance Minister Nirmala Sitharaman will present the budget in Parliament on February 1, 2026. The Economic Survey 2025-26, was tabled on Thursday, January 29. Through this report, the government outlined the performance of the economy in the past year and provides future projections. GDP growth is projected to be 7.4 percent in the financial year 2026.
The average growth rate of agriculture and allied sectors has been 4.4 percent over the past five years. India’s agriculture and allied sectors are advocating a move away from short-term, annual schemes toward long-term structural reforms aimed at boosting productivity, strengthening value chains, and enabling farmers to achieve more stable and sustainable incomes. According to experts, the budget needs to emphasise technology, climate resilience, credit flow, value-added production and better supply-chain systems to strengthen this sector.
Government’s focus on technology and water in agriculture
The government has acknowledged that traditional farming methods alone are no longer sufficient. In Jharkhand, the focus is on Geographic Information System (GIS) -based climate-smart agriculture, digital records, weather information, and land management. In Uttar Pradesh, the emphasis is on better water utilization through groundwater legislation, while in Assam, there has been a more than 24 percent increase in the irrigated area, along with the promotion of solar pumps and irrigation schemes. Therefore, it will be interesting to see how the government aligns all these.
What farmers expect
PM-Kisan scheme: Farmers are expecting increase in the annual amount of Rs 6000 under this scheme. The payment process could be simplified, and more farmers could be included in the scheme.
Strengthening of the crop insurance scheme: A system for faster compensation, accurate assessment of losses, and relief for farmers affected by weather-related damage is expected in this budget.
More funds for irrigation: Repair of canals, promotion of drip and sprinkler irrigation, leading to water conservation and better crop yields.
Strict laws against counterfeit seeds: A new seed bill may be introduced. Penalties of up to Rs 30 lakh and imprisonment for up to 3 years for selling counterfeit seeds, preventing significant losses at the time of sowing is expected to be included in this bill.
Relief in agricultural loans: Cheaper and easier loans, with a target that could exceed Rs 32.50 lakh crore. This will reduce dependence on moneylenders.
Special agricultural schemes in 100 districts: Several schemes are expected to be announced prioritising promotion of soil testing, local crop planning, and sustainable farming.
Preparation to increase agricultural exports: Better storage facilities, support for food processing, and preparation for farmers to access markets with better prices.
