Will The Budget 2026-27 Double Farmers' Incomes? Experts Are Hopeful!
Experts said a significant increase in fund allocation for agricultural research to develop innovative indigenous seed varieties and reduce dependence on imported seeds.
Published : January 25, 2026 at 6:16 PM IST
By Chanchal Mukherjee
New Delhi: Ahead of the Union Budget, farmers across the country are looking to the government with renewed hope. Farmers and agriculture experts are urging higher investment in agriculture research, expansion of Minimum Support Price (MSP) coverage to more crops, increased subsidies on farm machinery and equipment, and the creation of a robust and farmer-friendly mechanism to strengthen Farmer Producer Organisations (FPOs).
The farmers believe these measures will not only reduce input costs but also improve incomes and long-term sustainability of farming. Over half of the country’s population depends on agriculture for their livelihood; farmers argue that budgetary allocations must reflect this reality. They say the agriculture budget needs a substantial overhaul, calling for at least a threefold increase in allocations.
As per farmers and farm leaders, a significantly enhanced agriculture budget would not only help raise farm incomes but also generate better wages and more stable employment for agricultural labourers, strengthening the rural economy as a whole.
Expressing his hopes for the upcoming budget, Ashok Baliyan, a farmer and agriculture expert from Uttar Pradesh, told ETV Bharat that the agriculture ministry recently held a pre-budget meeting with farmers’ associations and allied sector workers. “I was also part of the meeting, where we raised several issues that need to be addressed in the budget to provide relief to farmers,” he added.
Baliyan said farmers had called for a significant increase in fund allocation for agricultural research to develop innovative indigenous seed varieties and reduce dependence on imported seeds. “Such seeds will not only lower costs but also help enhance farm productivity,” he added.
He further stressed that MSP coverage should be extended beyond the existing 23 crops to include more produce, noting that this is a policy decision that can be addressed through the Budget.
“Krishi Vigyan Kendras must play a more proactive role in ensuring farmers receive fair prices for their produce, which is essential to doubling farmers' income,” Baliyan stressed.
Another farmer, Amarpal of Uttar Pradesh, said they expect continued and increased subsidies on fertilisers, urea and agricultural machinery, which will provide major relief to farmers struggling with rising input costs.
“I am sure the government will make adequate provisions in the budget for the development of more farm produce storage warehouses and modern infrastructure, which are crucial to reducing post-harvest losses and ensuring better returns for farmers,” he said.
Sanjeev Kumar Premi, a farmer and FPO member, told ETV Bharat that while GST has been reduced on agricultural equipment, subsidies on small machines and implements need to be increased to provide real relief to small and marginal farmers.
He also said that to promote natural farming, the budget should include incentives for farmers engaged in chemical-free and sustainable farming practices.
Dr Vinayak Nikam, an agriculture economist, told ETV Bharat, “For the overall growth of farmers, the government must simplify the lengthy and complex paperwork involved in Farmers Producer Organisations (FPOs). The current compliance process creates serious difficulties for farmers and adds to their financial burden.”
He pointed out that farmers are not comfortable with cumbersome documentation, especially since many corporate laws are applied to FPOs. “These procedures need to be simplified to make FPOs more farmer-friendly and accessible.”
In the previous year's budget for 2025–26, the government, it announced several agriculture-focused initiatives aimed at improving productivity and farmers’ incomes. One of the key proposals was the launch of the Prime Minister Dhan-Dhaanya Krishi Yojana — Developing Agri Districts Programme, to be implemented in partnership with states. The programme was designed to cover 100 districts identified for low productivity, moderate crop intensity and below-average access to credit, to benefit around 1.7 crore farmers.
The government had also proposed a six-year “Mission for Aatmanirbharta in Pulses”, focusing on key pulses such as tur, urad and masoor. Under the mission, NAFED and NCCF were to procure these pulses from farmers over the next four years to ensure price support and market stability, it mentioned.
In addition, a Comprehensive Programme for Vegetables and Fruits was announced, with the objective of boosting production, strengthening supply chains, promoting processing, and ensuring remunerative prices for farmers. The programme was to be rolled out in partnership with the state, it stated after the budget.
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