💼Agriculture Budget 2026-27: Key Highlights for IBPS AFO, NABARD & Agri Exams

Budget — Constitutional Framework

Concept	Detail
Prepared by	Budget Division, Department of Economic Affairs, Ministry of Finance
Constitutional term	Annual Financial Statement (not “Budget”)
Key article	Article 266 — Parliamentary approval needed to withdraw from Consolidated Fund of India
Financial articles	Articles 112 to 117
Appropriation Bill	Article 114(3) — no withdrawal without enactment of law

[!TIP] Exam mnemonic — “112-114-266”: Budget procedure starts at Art 112, spending needs Appropriation Bill (Art 114), funds come from Consolidated Fund (Art 266).

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Overview

The Union Budget 2026-27 was the first budget prepared in Kartavya Bhawan, guided by three core duties (Kartavyas): accelerating economic growth, fulfilling people’s aspirations, and the vision of Sabka Sath, Sabka Vikas. With a focus on Poor, Youth, Women, and Farmers, the budget positions agriculture not merely as a welfare sector but as an investment-led growth engine aimed at innovation, competitiveness, and climate-resilient growth.

[!IMPORTANT] The total allocation for the Ministry of Agriculture and Farmers Welfare in 2026-27 stands at ₹1,40,529 crore — a 5.4% increase over 2025-26 revised estimates. The overall agriculture & allied activities budget is approximately ₹1,62,671 crore (7% increase).

[!NOTE] The Fertilizer Subsidy of approximately ₹1,70,944 crore falls under the Ministry of Chemicals & Fertilizers (Department of Fertilizers), not the Agriculture Ministry. However, it directly impacts farmer input costs and is frequently asked in exams alongside agriculture budget figures.

Key Macroeconomic Indicators (Budget 2026-27)

Indicator	Value
GDP Growth Rate	~7%
Fiscal Deficit (BE 2026-27)	4.3% of GDP
Revenue Deficit (BE 2026-27)	0.3% of GDP
Debt-to-GDP Target (by 2030)	50±1%
Public Capital Expenditure	₹12.2 lakh crore
Total Transfer to States	₹26.2 lakh crore
16th Finance Commission — Vertical Devolution	41%

[!TIP] Exam Tip: The Economic Survey 2025-26 highlighted that growth in the agriculture sector has been primarily driven by livestock and fisheries, rather than traditional crops. This context explains why the budget has record allocations for allied sectors.

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Major Agricultural Scheme Allocations (FY 2026-27)

The budget earmarked record allocations for key agricultural schemes:

Scheme	Full Form	Allocation (₹ Crore)	Purpose
PM-KISAN	Pradhan Mantri Kisan Samman Nidhi	63,500	Income support of ₹6,000/year to farmers
MISS	Modified Interest Subvention Scheme	22,600	Subsidized short-term crop loans
PMFBY	Pradhan Mantri Fasal Bima Yojana	12,200	Crop Insurance
Krishionnati Yojana	Green Revolution — Krishionnati Yojana	11,200	Umbrella scheme (horticulture, soil health, mechanization)
PM-AASHA	Pradhan Mantri Annadata Aay SanraksHan Abhiyan	7,200	Price support & deficiency payments
AIF	Agriculture Infrastructure Fund	910	Post-harvest infrastructure
Namo Drone Didi	—	677	Drones for women SHGs
High-Value Agriculture	—	350	Crop diversification
Digital Agriculture	Bharat-VISTAAR	150	Multilingual AI advisory

Key Observations

• PM-KISAN remains unchanged at ₹63,500 Cr — effectively treated as a basic farmer entitlement. Since inception in 2019, over 10 crore beneficiaries have received >₹3.7 lakh crore in direct transfers. Target for FY27: 9.5 crore eligible farmers.

• PMFBY at ₹12,200 Cr is its lowest allocation in 8 years — a 15.7% reduction vs actual expenditure of ₹14,473 Cr in FY25. Despite this, crop insurance coverage is expected to reach 4 crore farmers. A new Fund for Innovation and Adoption of Technology (FIAT) supports tech initiatives like YES-TECH and WINDS under PMFBY.

• Krishionnati Yojana received a massive 64% increase over FY26 revised estimates. It subsumes schemes for: agricultural marketing, National Food Security Mission, National Mission on Horticulture, Soil Health & Fertility, agricultural mechanization, crop diversification, and rainfed area development.

[!IMPORTANT] Critical Exam Fact: Several missions announced in Budget 2025-26 — the Cotton Technology Mission, Mission for Pulses, Mission for Vegetables & Fruits, and National Mission on Hybrid Seeds — received no separate funds in the 2026-27 budget. They may have been subsumed under the Krishionnati Yojana umbrella or discontinued.

[!TIP] Exam Tip: PM-KISAN at ₹63,500 Cr is the single largest scheme under the agriculture ministry. Remember the top 5 allocations: PM-KISAN > MISS > PMFBY > Krishionnati > PM-AASHA.

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High-Value Agriculture Mission

Allocation: ₹350 Crore

A major new initiative aimed at shifting farmers from traditional low-value crops to high-value alternatives to boost income and diversify India’s export basket.

Target Crops by Region

Region	Target Crops	Key Initiative
Coastal Areas	Coconut, Cashew, Cocoa	Coconut Promotion Scheme: Replace old, unproductive trees with high-yielding varieties. Indian Cashew & Cocoa programmes to create premium global brands by 2030
Hilly Regions	Walnuts, Almonds, Pine Nuts	Focus on temperate nut crops suited to cold climate
North East	Agarwood (Oud)	High-value aromatic wood — good quality agarwood can fetch up to ₹70 lakh/kg
Pan-India	Sandalwood	Collaboration with state governments for focused cultivation and post-harvest processing

Coconut — Key Facts for Exams

• India is the world’s largest producer of coconuts
• Approximately 30 million people are dependent on the coconut economy
• The new scheme aims to replace old trees and improve yield per tree
• Major producing states: Kerala, Karnataka, Tamil Nadu, Andhra Pradesh, Goa

[!IMPORTANT] The High-Value Agriculture Mission represents a strategic shift from production-oriented subsidies to income-oriented diversification. However, experts note that vegetables, fruits, and spices — which form a large part of horticultural output — received less attention.

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Digital Agriculture: Bharat-VISTAAR

Allocation: ₹150 Crore

• Bharat-VISTAAR stands for Virtually Integrated System To Access Agricultural Resources
• A multilingual AI tool designed to integrate AgriStack portals and the ICAR (Indian Council of Agricultural Research) package on agricultural practices with AI systems
• Makes knowledge accessible to farmers in their native languages
• Provides real-time, data-driven advisory services — customized to local conditions
• Bridges the gap between research (ICAR) and field-level implementation

Additional Digital Agriculture Initiatives

• Boosted Digital Agriculture Mission continues with AgriStack development: Farmers’ database, crop sown registry, geo-referenced land records
• eNAM (Electronic National Agriculture Market): 1,656 mandis integrated across 23 states and 4 UTs. Over 1.80 crore farmers and 2.72 lakh traders registered. Cumulative trade value: ₹4.82 lakh crore since inception. Government provides up to ₹75 lakh per mandi for integration.

[!TIP] Exam Tip: eNAM stats are a frequently tested topic. Remember: 1,656 mandis, 1.80 Cr farmers, ₹4.82L Cr trade value.

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Namo Drone Didi Scheme

Allocation: ₹677 Crore

• Launched: November 2024
• Beneficiaries: Women Self Help Groups (SHGs)
• Purpose: Provide drones for agricultural use — applying fertilizers, pesticides, and crop monitoring
• Subsidy: Up to 80% of drone cost, capped at ₹8 lakh per SHG
• Target: 14,500 Women SHGs to receive drones
• Total Scheme Outlay (2023-26): ₹1,261 crore
• Women earn income by providing drone-as-a-service to neighboring farmers

[!TIP] Exam Tip: Namo Drone Didi combines 3 key themes: women empowerment (SHGs), technology adoption (drones), and precision agriculture (efficient fertilizer/pesticide application). The 80% subsidy cap of ₹8 lakh is frequently asked.

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Animal Husbandry — Highest-Ever Support

Allocation: ₹6,153 Crore — a 21% increase over the previous year and the sector’s highest-ever budgetary support.

The broader Ministry of Fisheries, Animal Husbandry, and Dairying has been allocated ₹8,915 crore in total.

New Veterinary Infrastructure

A Credit-linked Capital Subsidy Scheme for private players (including collaboration with foreign institutions) to set up:

• Veterinary & Para-vet colleges
• Veterinary Hospitals & Diagnostic Labs
• Mobile Veterinary Units
• Breeding Facilities

Target: Increase veterinary professionals by 20,000+

Key Scheme Allocations

Scheme	Allocation
Rashtriya Gokul Mission	₹800 Cr (breed improvement)
Entrepreneurship Development	₹500 Cr (FPOs & startups in livestock)
AHIDF (Animal Husbandry Infra Dev Fund)	Extended till March 2026 (total outlay: ₹29,610 Cr)

KCC Limit Doubled

• KCC (Kisan Credit Card) loan limit for Animal Husbandry farmers increased from ₹3 lakh to ₹5 lakh
• The subsidized interest rate (effective 4% for prompt repayers) continues at the higher limit
• Collateral-free credit limit under KCC raised to ₹2 lakh per borrower
• KCC was expanded in 2019 to cover Animal Husbandry, Dairying, and Fisheries

[!IMPORTANT] The KCC limit doubling from ₹3 lakh to ₹5 lakh is one of the most impactful announcements. The collateral-free limit is ₹2 lakh. For exam purposes, remember the trifecta: limit doubled (₹5L) + collateral-free (₹2L) + effective rate (4%).

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Fisheries — Highest-Ever Annual Support

Allocation: ₹2,762 Crore (of which PMMSY: ₹2,500 Crore)

This is the highest-ever annual budgetary support for the fisheries sector.

Reservoir Development

• Integrated development of 500 Reservoirs and Amrit Sarovars to create fisheries hubs
• Targeted conversion of existing water bodies into productive fisheries zones

Value Chain Strengthening

• Strengthening coastal fisheries value chains and market linkages
• Special focus on Fish FPOs, startups, and women-led groups
• Support for approximately 200 fisheries startups

Export Boost

• Duty-free imports for inputs used in seafood processing increased from 1% to 3% of export turnover (FOB value)
• Tax Exemption: Fish caught by Indian fishing vessels in EEZ (Exclusive Economic Zone) or on the High Seas are now exempt from customs duties
• Landing of such fish on a foreign port to be treated as export of goods
• This dual provision boosts both domestic processing and export earnings

[!TIP] Exam Tip: The fish in EEZ/High Seas provision has dual impact — it exempts customs duty AND treats foreign port landing as exports. Also note: 200 fisheries startups to be supported — linking entrepreneurship with blue economy.

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Rural Employment: VB-GRAM G (Renamed MGNREGS)

MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act) has been renamed as VB-GRAM G — Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025. It is not a separate scheme — it is the successor law that replaces MGNREGA, effective 1st April 2026.

Allocation: ₹95,692 crore (for VB-GRAM G) + ₹30,000 crore (residual MGNREGS allocation)

Key Changes: MGNREGS → VB-GRAM G

Parameter	MGNREGS (Old)	VB-GRAM G (New)
Employment Guarantee	100 days per household/year	125 days per household/year
Funding Pattern	Centre bore full cost of unskilled wages	60:40 (Centre:State) for most states
NE & Himalayan States	—	90:10 (Centre:State)
UTs without Legislature	—	100% Central funding
Focus	Demand-driven employment guarantee	Budget-capped, supply-driven — asset creation, water security, rural infra
Farming Season	No pause provision	Work paused for 60 days during sowing & harvesting seasons
Vision	Rights-based employment	Aligned with Viksit Bharat @2047 — climate resilience & rural infra

[!IMPORTANT] Critical Exam Points:

1. VB-GRAM G is a renaming of MGNREGA — not a new scheme alongside it
2. Days increased: 100 → 125 days per household per year
3. Funding is now shared with states (60:40) — unlike MGNREGA where Centre paid full unskilled wages
4. 60-day pause during farming season — new provision to avoid labour conflict with agriculture
5. MGNREGS allocation reduced to ₹30,000 Cr (for transitional period) while VB-GRAM G gets ₹95,692 Cr

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Agricultural Tax Proposals

Key tax reforms specifically impacting the agriculture sector:

Reform	Detail
Fish in EEZ/High Seas	Customs duty exemption + treated as exports
Cooperative — Cattle Feed/Cotton Seed	Deduction allowed to primary cooperative society for supply of cattle feed & cotton seed produced by members
Inter-Cooperative Dividend	Dividend income from inter-cooperative investments allowed as deduction under the new tax regime (only if distributed to members)
National Cooperative Federation	Exemption on dividend from company investments (up to 31.3.2026) for 3 years — only if distributed to member cooperatives
Courier Export Cap Removed	₹10 lakh per consignment cap on courier exports removed — benefits small agri exporters
Seafood Export Inputs	Duty-free import limit for seafood processing: 1% → 3% of FOB turnover

[!IMPORTANT] These tax reforms specifically strengthen cooperatives in the agricultural sector — a frequently tested topic. Note the three separate cooperative-related tax concessions.

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Irrigation & Water Strategy

The budget signals a shift in irrigation policy — from large-scale canal projects to cost reduction through technology:

• KUSUM (Kisan Urja Suraksha evam Utthaan Mahabhiyan) scheme — solar pumps to reduce irrigation costs
• Energy and water management linked closely
• Focus on service reliability and cost control rather than new infrastructure
• This approach reduces farmers’ dependency on expensive diesel pumps

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Key Reforms at a Glance

Reform / Announcement	Key Detail	Value / Target
Ministry of Agriculture (Total)	5.4% increase over RE	₹1,40,529 Cr
Fertilizer Subsidy (Min. of Chemicals)	Input cost support (separate ministry)	₹1,70,944 Cr
PM-KISAN	Income support (unchanged)	₹63,500 Cr
MISS	Crop loan subsidy	₹22,600 Cr
PMFBY	8-year low allocation	₹12,200 Cr
Krishionnati Yojana	64% jump — umbrella scheme	₹11,200 Cr
VB-GRAM G	MGNREGA renamed; 125 days (up from 100)	₹95,692 Cr
PM-AASHA	Price support	₹7,200 Cr
Animal Husbandry	21% increase, highest-ever	₹6,153 Cr
Fisheries (PMMSY: ₹2,500 Cr)	Highest-ever annual support	₹2,762 Cr
AIF	Post-harvest infra	₹910 Cr
Rashtriya Gokul Mission	Breed improvement	₹800 Cr
Namo Drone Didi	Drones for women SHGs	₹677 Cr
High-Value Agriculture	Crop diversification	₹350 Cr
Bharat-VISTAAR	AI advisory	₹150 Cr
KCC Limit (Animal Husb.)	Doubled	₹3L → ₹5L
eNAM	Mandis integrated	1,656
500 Reservoirs	Fisheries hubs	500
Fisheries Startups	New support	200
New Vet Professionals	Target increase	20,000+
Women SHG Drones	Target SHGs	14,500

[!IMPORTANT] Budget 2026-27 marks three major shifts:

1. Technology-led agriculture — Bharat-VISTAAR (AI), Namo Drone Didi, eNAM expansion
2. Allied sectors over traditional crops — Record support for Animal Husbandry + Fisheries (combined ₹8,915 Cr), while several crop-specific missions from 2025-26 received no funds
3. Income enhancement over production — High-value crop diversification, cooperative tax reforms, KCC enhancement

Summary Cheat Sheet

Concept / Topic	Key Details / Explanation
Budget constitutional basis	Annual Financial Statement; Articles 112–117; Appropriation Bill Art 114(3); Consolidated Fund Art 266
Budget prepared in	Kartavya Bhawan (first time)
Budget 2026-27 core duties	Accelerate economic growth, fulfil aspirations, Sabka Sath Sabka Vikas
Ministry of Agriculture total	₹1,40,529 crore — 5.4% increase over 2025-26 RE
Overall agri & allied budget	~₹1,62,671 crore (7% increase)
Fertilizer subsidy	₹1,70,944 crore (under Ministry of Chemicals & Fertilizers — separate)
GDP growth target	~7%
Fiscal deficit (BE 2026-27)	4.3% of GDP
PM-KISAN allocation	₹63,500 crore (unchanged); 9.5 crore eligible farmers; >10 crore beneficiaries since 2019
MISS allocation	₹22,600 crore
PMFBY allocation	₹12,200 crore — 8-year low (15.7% reduction); ~4 crore farmers covered
PMFBY tech fund	FIAT (Fund for Innovation and Adoption of Technology) — supports YES-TECH, WINDS
Krishionnati Yojana	₹11,200 crore — 64% jump; umbrella scheme subsuming marketing, NFSM, horticulture, soil health, mechanization
PM-AASHA allocation	₹7,200 crore
Top 5 allocations (agri ministry)	PM-KISAN > MISS > PMFBY > Krishionnati > PM-AASHA
High-Value Agriculture Mission	₹350 crore — coconut, cashew, cocoa (coastal); walnuts/almonds (hilly); agarwood (NE); sandalwood (pan-India)
Agarwood value	Good quality can fetch ₹70 lakh/kg
India coconut production rank	World’s largest producer
Bharat-VISTAAR	₹150 crore; multilingual AI tool integrating AgriStack + ICAR knowledge
Bharat-VISTAAR full form	Virtually Integrated System To Access Agricultural Resources
eNAM (Budget 2026-27 stats)	1,656 mandis, 1.80 crore farmers, 2.72 lakh traders, ₹4.82 lakh crore cumulative trade; govt provides ₹75 lakh/mandi
Namo Drone Didi	₹677 crore; launched November 2024; 80% subsidy capped at ₹8 lakh/SHG; target 14,500 women SHGs
Animal Husbandry allocation	₹6,153 crore — 21% increase, highest-ever
Ministry of Fisheries, AH & Dairying	Total: ₹8,915 crore
Rashtriya Gokul Mission	₹800 crore (breed improvement)
AHIDF total outlay	₹29,610 crore (extended till March 2026)
KCC limit enhanced	Animal Husbandry: ₹3 lakh → ₹5 lakh; collateral-free raised to ₹2 lakh
Fisheries allocation	₹2,762 crore (PMMSY: ₹2,500 crore) — highest-ever annual support
Fisheries – 500 reservoirs	Integrated development as fisheries hubs
Fisheries startups	200 startups to be supported
EEZ/High Seas fish	Customs duty exempt; landing at foreign port treated as export of goods
Seafood processing input limit	Duty-free imports raised from 1% → 3% of export turnover (FOB)
VB-GRAM G	MGNREGA renamed; 125 days (up from 100); effective 1 April 2026
VB-GRAM G funding	60:40 (Centre:State); NE/Himalayan: 90:10; UTs without legislature: 100% central
VB-GRAM G farming pause	Work paused for 60 days during sowing and harvesting seasons
VB-GRAM G allocation	₹95,692 crore + ₹30,000 crore (residual MGNREGS)
Cooperative tax reforms	3 provisions: cattle feed/cotton seed deduction; inter-cooperative dividend deduction; National Cooperative Federation exemption
Courier export cap	₹10 lakh/consignment cap removed — benefits small agri exporters
New vet professionals target	20,000+ (via Credit-linked Capital Subsidy Scheme for private vet infrastructure)

Full text of FM Nirmala Sitharaman's budget speech with all agriculture sector announcements Ministry-wise expenditure statements including Dept. of Agriculture, Animal Husbandry, and Fisheries Official PIB release on Union Budget 2026-27 covering sustainable economic growth and all key announcements PIB release: 500 reservoir development, EEZ fish duty-free, seafood processing input limit raised to 3% Fiscal deficit at 4.3% of GDP, total expenditure ₹50.65L Cr, capital expenditure ₹11.2L Cr PRS analysis of ₹1,40,529 Cr allocation — PM-KISAN, Krishionnati Yojana, PMFBY scheme-wise breakdowns