Expectations from Union Budget 2026: Advancing access to agri finance

Focusing on self-sufficiency and farmer prosperity

The government’s ongoing missions, such as the National Mission on Edible Oils–Oilseeds (NMEO-Oilseeds) and the Aatmanirbharta in Pulses Mission, highlight a clear push toward self-reliance. NMEO-Oilseeds, with an outlay of INR10,103 crore until 2030–31, aims to raise output from 39 million tons to nearly 70 million tons, partly by bringing 40 lakh hectares of rice-fallow land under oilseeds. Similarly, the pulses mission, backed by INR1,000 crore, targets self-sufficiency in select pulses by 2027 through the distribution of 126 lakh quintals of certified seeds and 88 lakh free seed kits.
 

Budget 2026–27 must strengthen these efforts, especially because India still imports a significant share of its edible oil (India currently imports 60% of its edible oil requirement) and pulses. Improving domestic capacity is not just an economic goal; it is essential to enable long-term food security.

Push for crop diversification policy

India’s food basket, dominated by wheat and rice, is no longer aligned with climate realities or nutritional needs. Schemes like the Shree Anna (Millets) initiative have shown how diversifying the food basket strengthens nutrition equity and farmer incomes. More than 406 LMT of fortified rice distributed through Public Distribution System (PDS) since 2019–20 and the inclusion of millets in PDS, PM POSHAN and ICDS reflect a strong push toward better nutrition. However, millets still account for only 5% to 6% of the national food basket. Budget 2026–27 should enhance incentives for millet procurement, establish processing units and market linkages — especially in states that have shown success, such as Odisha, which scaled millet cultivation across districts and benefited more than 1.5 lakh farmers.
 

Enhancing infrastructure and supply chains

Despite strong grain production, India loses a significant volume (15% to 20% for fruits and vegetables) of perishables to inadequate storage and logistics. The PDS continues to grapple with leakages, infrastructure gaps, and wastage, which are major challenges to farm productivity. The upcoming budget must accelerate investment in agricultural infrastructure for post-harvest management, such as cold chains, modern warehouses, processing units and digital supply-chain management.
 

Complementary measures such as expanding the Price Stabilization Fund (PSF)—already used to stabilize onion and dal prices — and strengthening the network of affordable staples like dal, atta and rice will help maintain affordability for low-income groups.

Climate-resilient agriculture and agri-tech upskilling

Since nearly 72% of oilseeds and 80% of pulses are grown in rain-fed areas, climate disruptions pose a major threat to food security. Budget 2026–27 should scale climate-smart practices — micro-irrigation, soil health restoration, drought-tolerant seeds — and expand digital agriculture initiatives. Integrating advisory services, satellite-based crop monitoring and risk mitigation tools into flagship schemes can significantly boost productivity and resilience.
 

A budget that should look beyond grain security

India has transitioned from food scarcity to food surplus, evolving from a global concern to a contributor to global food security. The role of agriculture reforms in nutrition security will continue to grow with the right allocations and effective execution in Budget 2026-27. India can transform food security from a grain-distribution model into a holistic system that enables availability, accessibility, affordability and nutrition for all.