The Government has allocated ₹1,40,528.78 crore to the Ministry of Agriculture and Farmers Welfare in Budget 2026-27, reaffirming its continued focus on farm income support, agricultural infrastructure, research, and technology-led growth.
The allocation, presented as part of the Union Budget, will be overseen and implemented by Union Minister for Agriculture and Farmers Welfare Shivraj Singh Chouhan.
 The Expenditure Budget 2026-2027 released by the Ministry of Finance shows ₹1,30,451.62 crore designated for the Department of Agriculture and Farmers Welfare, with an additional ₹9,964.95 crore for the Department of Agricultural Research and Education. Capital expenditure accounts for ₹112.21 crore, bringing the total ministry allocation to ₹1,40,528.78 crore.
Farmer Welfare Schemes
The budget maintains funding for the  Pradhan Mantri Kisan Samman Nidhi (PM-Kisan), which provides ₹6,000 annually to eligible farmers through three equal instalments transferred directly to bank accounts. The Pradhan Mantri Fasal Bima Yojana continues to offer crop insurance coverage against non-preventable natural risks from pre-sowing to post-harvest stages.
The Modified Interest Subvention Scheme (MISS) provides concessional short-term agricultural loans for crop husbandry, animal husbandry, dairying, and fisheries. Farmers accessing crop loans up to ₹3 lakh receive 7% annual interest rates for one year, with an additional 3% subvention available for timely repayment, according to budget documents.
Infrastructure Financing
The Agriculture Infrastructure Fund (AIF) will continue providing medium-term financing to Primary Agricultural Credit Societies, Marketing Cooperative Societies, Farmer Producer Organizations (FPOs), Self Help Groups, and individual farmers. The scheme covers infrastructure development including technology and IT-based support systems.
The budget maintains support for the Formation and Promotion of 10,000 Farmer Producer Organizations, launched in 2020 to enable economies of scale and reduce production costs.
Research and Technology
The Department of Agricultural Research and Education allocation covers strengthening of Krishi Vigyan Kendras (KVKs) for technology demonstration and dissemination at grassroots level. Funding includes Bharat-VISTAAR (Virtually Integrated System to Access Agricultural Resources), a multilingual AI chatbot integrating ICAR agricultural practice recommendations.
Natural resource management programmes address soil health deterioration, water productivity, and ecosystem services. Research focuses on improving farm productivity, nutrient use efficiency, and agricultural sustainability, the budget document states.
Price Support Mechanisms
The Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) continues with four components: Price Support Scheme (PSS), Price Stabilization Fund (PSF), Price Deficit Payment Scheme (PDPS), and Market Intervention Scheme (MIS).
High-value agriculture support targets coconut, sandalwood, cocoa, and cashew in coastal areas, along with almonds, walnuts, and pine nuts in hilly regions to diversify production and create employment, according to the budget provisions.
Food Processing
The Ministry of Food Processing Industries has been allocated ₹4,064.16 crore. This includes the Prime Minister’s Formalisation of Micro Food Processing Enterprises Scheme targeting 2 lakh micro units, and the Production-Linked Incentive Scheme for the Food Processing Industry.
The budget prioritises post-harvest infrastructure, credit access expansion, and technology integration in agricultural operations.
Broader investments across the Food & Agriculture ecosystem are expected to strengthen product manufacturers and verified suppliers involved in processing equipment, storage systems, and value chain infrastructure, reinforcing long-term capacity development.
