The allocation for the Department of Agriculture and Farmers’ Welfare, the key nodal ministry for farming and allied activities, has grown significantly over the past decade, reflecting the government’s focus on strengthening India’s agricultural backbone.
Amit Vatsyayan, Partner and Leader,Social & Skills Sector, EY India, said, “The Budget reflects a strategic shift from allocation-driven spending to acceleration-oriented reforms, aimed at closing structural gaps while strengthening India’s export competitiveness in a challenging global environment.”
“The emphasis on high-value crops such as coconut, cashew and walnuts signals a forward-looking diversification strategy with strong income potential, contingent on improvements in quality, post-harvest management and value chain integration,” he added.
The ministry’s outlay increased from about ₹21,933.50 crore in 2013-14 to approximately ₹1,51,853 crore in the 2025-26 Budget Estimates, underscoring the rising fiscal support to the sector.
Agriculture Budget allocations over past five years (₹ crore)
The agriculture budget encompasses a range of schemes and initiatives aimed at enhancing farm production, boosting farmer incomes, strengthening rural infrastructure, and ensuring food security. This includes flagship programmes such as income support to farmers under PM-Kisan, crop insurance schemes like Pradhan Mantri Fasal Bima Yojana, price support mechanisms for key commodities, and investments in irrigation, storage, and supply chain infrastructure.
The government had earlier described agriculture as the “first engine of development,” aligning budget priorities with initiatives that span crop productivity, rural resilience, animal husbandry, dairying and fisheries.
In recent years, the focus has also broadened to include mission-mode programmes aimed at improving agri research, technology adoption and climate-resilient farming practices.
Angshuman Bhattacharya, Partner and National Leader, Consumer Products and Retail Sector, EY-Parthenon said, “Boost to agriculture segments such as dairy, poultry, fisheries and MSMEs have been well aimed to drive inclusive development. Overall, the budget demonstrates a strong resolve to invest today in long term capacity building towards the mission of Visit Bharat and Atmanirbhar Bharat.”
Despite the sector’s increasing budget size, agriculture still faces structural challenges, including fragmented landholding patterns, variable monsoon patterns, access to credit and market linkages. These issues continue to shape policy priorities and the design of new programmes.
