Agriculture Remains Core Focus as Budget Nears Amid Rural and Food Security Priorities

Agriculture continues to hold a central position in India’s economic and social framework as the Union Budget approaches on February 1. In the previous Union Budget (FY2025–26), the government allocated approximately ₹1.52 lakh crore to the Ministry of Agriculture and Farmers’ Welfare, reflecting sustained emphasis on farm income support, productivity enhancement, and rural resilience.

A significant portion of this allocation was directed toward flagship schemes. The PM-KISAN scheme alone received an allocation of around ₹60,000 crore, providing direct income support to over 11 crore farmer families. Additionally, funds were allocated for crop insurance under PMFBY, irrigation projects, and agricultural infrastructure development, including warehousing and cold-chain facilities.

Expectation: As the country heads into the next budget cycle, stakeholders expect continuity rather than major restructuring. Focus is likely to remain on ensuring timely income support, improving irrigation coverage, and strengthening agricultural supply chains to reduce post-harvest losses.

Economic Context: Agriculture supports nearly 45% of India’s workforce and plays a crucial role in controlling food inflation and sustaining rural demand. Variability in monsoons and rising input costs have underscored the need for policy stability and targeted intervention.

Prediction: While a sharp increase in headline allocations may be limited due to fiscal considerations, the budget is expected to prioritise efficient utilisation of funds, faster disbursement under existing schemes, and improved implementation of irrigation and storage projects.

National Outlook and Hope: Sustained investment in agriculture is viewed as essential for rural stability and food security. Continued policy support could help improve farm productivity, stabilise farmer incomes, and strengthen the rural economy, which in turn supports overall economic growth.