Pre-Budget 2026-27 Discussion: Strengthening Indian Agriculture for Inclusive Growth
Kisan serves as the backbone of a country, anchoring its economy, food security, and societal well-being. Their deep-rooted connection to the land and traditions enriches the cultural fabric of the nation, reflecting a heritage passed down through generations. It is extremely important to acknowledge the vital role of kisans, as they embody the resilience, ingenuity, and dedication required for the country’s progress and prosperity. Promoting agriculture means investing in the foundation on which the nation’s success and resilience rests.
A New Vision for Rural India; India stands at the threshold of a historic transformation, With the economy racing toward the $5 trillion mark, agriculture—long seen as a traditional livelihood—must now be reimagined as a modern, high-value, export-oriented enterprise. At the heart of this change is agriculture commerce: the dynamic flow of farm produce, technology, investment, and knowledge that can make rural India the engine of national growth. The Kisan Chamber of Commerce envisions a future where every Indian farmer is not just a producer, but a competitive market player—directly connected to domestic consumers, global buyers, and emerging agri-industries.
As India prepares for the Union Budget 2026-27, the agriculture sector stands at a critical juncture. Representing nearly half of the rural workforce and contributing substantially to national food security and GDP, agriculture is central to sustainable economic growth and farmer welfare. Pre-budget consultations involving farmers’ associations, agricultural economists, industry stakeholders, and policymakers have formed the backbone of recommendations feeding into the budget formulation process. Goals for the Agriculture Budget; The overarching aim for FY 2026-27 is to enhance farmer incomes, resilience, and productivity while addressing structural impediments that limit the sector’s performance. Stakeholders have emphasized: Sustainable Income Support & Risk Management: Strengthening market interventions like MSP coverage and crop insurance to protect farmer incomes amid price volatility. Affordable Inputs & Credit Access: Improved access to cheaper credit, input subsidies, and financial services to reduce cost burdens and increase investments in farm activities. Infrastructure & Value Chains: Investments in storage, cold chains, transport networks, and modern rural infrastructure to reduce post-harvest losses and improve market access. Farmer Producer Organisation (FPO) Empowerment: Enhancing capacity, market linkage, and financial robustness of FPOs to unlock economies of scale for small and marginal farmers.
Climate Resilience & R&D: Boosting climate-resilient agriculture through targeted funding for agricultural research, drought-tolerant seeds, water-use efficiency, and risk mitigation tools.
Key Stakeholder Expectations; Farmers & Farmer Groups Farmers’ representatives and grassroots chambers have articulated several priority demands: Cheaper Long-Term Credit: Calls for further lowering interest rates on agricultural loans — with some groups proposing rates as low as 1% — to reduce debt burdens and unlock investment in productivity-enhancing technologies. Doubling Income Support: Suggestions to enhance flagship direct benefit schemes like PM-KISAN by increasing the per-annum transfer to farmers, thereby strengthening income stability. MSP Expansion & Market Reform: Expansion of the Minimum Support Price (MSP) mechanism beyond traditional staples to include a wider basket of crops and ensure assured procurement. Tax & Regulatory Incentives: Requests for rationalization of GST and tax structures that disproportionately affect farm inputs or equipment, helping reduce production costs.
Economists & Sector Experts Economic planners and subject experts participating in pre-budget forums have underlined: Agricultural Research & Innovation: Increased budgetary allocation for research institutions, digital agriculture tools, and climate-smart technologies to drive productivity and resilience in the long term. Strengthened Insurance Mechanisms: Redesign of crop insurance schemes to improve coverage, simplify claims, and account for weather-indexed risks. Digital Agri-Economy Integration: Leveraging the Agri Stack and digital platforms to improve access to credit, inputs, insurance, price signals, and data-driven decision making for farmers and FPOs.
Recommendations for Budget Priorities; based on consultations and expert consensus, the following priorities emerge for FY 2026-27: Financial Support & Risk Management. Expansion of MSP & Procurement: Broaden MSP coverage to include pulses, oilseeds, and high-value crops, with robust procurement mechanisms to stabilize farmer revenues. Credit & Insurance Reforms: Enhance Kisan Credit Card (KCC) schemes with higher limits, easier collateral norms, and deeper interest subvention. Revisit crop insurance frameworks to offer meaningful protection against climate and market risks.
Infrastructure & Post-Harvest Efficiency; Cold-Chain & Storage Investment: Allocate funds for modern cold storage hubs, warehouse receipt financing systems (e.g., eNWRs) to enable farmers to time sales for better prices. Market Access & Logistics: Strengthen rural logistics networks to link production centers with urban markets, lowering transaction costs and food waste.
Research, Innovation & Climate Action; R&D Funding: Increase allocations to agricultural research bodies and digital innovation programs focused on climate-resilient seeds, precision farming, and sustainable practices.
Water & Soil Health Initiatives: Programs supporting micro-irrigation, soil health cards, watershed development, and nutrient management to optimize input use and productivity.
Institutional Strengthening; FPO Capacity Building: Support FPOs with financial incentives, training, and market facilitation to enhance bargaining power and value chain participation.
Extension Services: Reinforce extension networks to deliver knowledge, technology adoption support, and risk advisory services at the grassroots level.
Policy Implications; Aligning the budget with the above priorities will not only improve farmer welfare but also: Promote inclusive growth by increasing rural incomes and reducing regional disparities.
Strengthen food security through diversified production and resilient supply chains.
Bolster export potential by improving competitiveness in high-value agricultural segments.
Enhance climate resilience, ensuring long-term sustainability of agriculture in the face of increasing environmental risks.
Kisan Chamber of Commerce – The pre-budget dialogue for FY 2026-27 underscores a broad consensus: Indian agriculture requires targeted financial support, structural reforms, and innovation-led growth strategies to uplift farmer livelihoods and energize rural economies. As the Union Budget takes shape, meaningful incorporation of these insights can transform agriculture into a more resilient, profitable, and sustainable engine of India’s economic progress.
In essence, pre-budget talks gather input to shape policies that address farm distress, modernize farming, and integrate farmers into value chains, aligning with national food security and income goals, as seen in recent budgets.