Union Budget 2026 on 1 February: How the Budget May Impact Indian Farmers

Key Highlights:

• Union Budget 2026 to be presented on 1 February with strong focus on farmers.

• PM-Kisan, crop insurance, and farm credit may get higher support.

• More funds expected for irrigation, pulses mission, and soil health.

• New Seed Bill may bring strict action against fake seeds.

• Agriculture exports and long-term farm income growth in focus.

Every year, the Union Budget sets the direction for India’s economy. This time, expectations are especially high from the farming community. On Sunday, 1 February 2026, Finance Minister Nirmala Sitharaman will present the Union Budget 2026–27 in Parliament.

While salaried and middle-class families are waiting for tax relief, farmers and rural households are closely watching the budget announcements. For them, this budget is about more than seasonal support. It is linked to farming costs, crop safety, market access, water availability, and long-term income stability.

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Why Union Budget 2026 Is Crucial for Farmers

Farming conditions across India have changed rapidly in recent years. Many challenges have become more serious and now directly affect farmer income and confidence.

Key issues faced by farmers include:

• Uncertain rainfall and sudden climate changes

• Rising prices of seeds, fertilizers, diesel, and farm labour

• Crop damage due to heatwaves, floods, pests, and diseases

• Poor storage facilities and limited access to large markets

• Low prices after harvest

Although agriculture supports a large part of India’s population, its share in GDP remains around 18–20%, showing slow income growth despite high effort. Because of this gap, Budget 2026 is expected to focus on productivity, income protection, and long-term stability.

Expected Focus Areas in the Union Budget 2026 for Agriculture

The government is likely to move beyond short-term relief and strengthen the farming sector for the future. The following areas may see major attention in the budget.

PM-Kisan Scheme: Possible Boost in Direct Support

The PM-Kisan scheme provides direct income support to farmers, helping them manage farm and household expenses.

In Budget 2026, experts expect:

• Higher budget allocation

• Smoother and faster payments

• Wider farmer coverage

This support is especially useful during sowing seasons and high-cost farming periods.

Crop Insurance and Fasal Bima Yojana

Weather-related crop losses have increased across regions. To address this, the Pradhan Mantri Fasal Bima Yojana may receive stronger backing.

Possible improvements include:

• Faster claim settlement

• Better coverage

• Improved crop damage assessment

These steps can reduce debt pressure and help farmers recover after losses.

Irrigation Push Under Krishi Sinchai Yojana

Water availability remains a major challenge in many farming areas. The Pradhan Mantri Krishi Sinchai Yojana may get additional funds to support:

• Canal repair

• Drip and sprinkler irrigation systems

• Water storage infrastructure

Better irrigation lowers farming risk and improves crop planning.

New Seed Bill to Control Fake Seeds

The Agriculture Minister has indicated that a new Seed Bill may be introduced during the budget session to stop the sale of fake and low-quality seeds.

Proposed penalties include:

• Fine up to ₹30 lakh

• Jail term up to 3 years

This move can protect farmers from losses at the sowing stage.

Agriculture Credit and Loan Support

In the 2025–26 Budget, the agriculture credit target was set at ₹32.50 lakh crore. This focus on affordable farm loans is expected to continue in Budget 2026.

Easy access to credit helps farmers:

• Buy inputs on time

• Avoid private moneylenders

• Plan crops better

PM Dhan-Dhaanya Krishi Yojana Expansion

The government has launched the PM Dhan-Dhaanya Krishi Yojana in 100 districts, focusing on:

• Soil health improvement

• Area-based crop planning

• Better farming practices

Additional support for this scheme may be announced to improve productivity at the local level.

Pulses Mission for Self-Reliance

India still depends heavily on pulse imports. To reduce this, a six-year pulses mission has been launched.

Budget 2026 may support this mission through:

• Better quality seeds

• Farmer training and guidance

• Storage infrastructure

This can increase farmer income and reduce import dependence.

Agriculture and Food Export Support

India’s agriculture and food exports are valued at $50–55 billion annually. The budget may focus on:

• Faster export approvals

• Better storage facilities

• Promotion of processed farm products

Improved exports can help farmers access higher-paying markets.

Expert View on Agriculture Growth

According to Amit Vatsyayan, Partner and Social Sector Leader at EY India, agriculture is emerging as a strong growth driver. The agriculture market is expected to grow from ₹31 lakh crore in FY25 to ₹38 lakh crore by FY30, with an annual growth rate of around 4%. This growth can support jobs, rural demand, and overall economic strength.

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CMV360 Says

The Union Budget 2026 is expected to address real farming challenges such as rising input costs, climate risks, water scarcity, and income safety. Stronger support for PM-Kisan, improved crop insurance, better irrigation, strict action against fake seeds, and export growth can bring meaningful relief. For rural India, 1 February 2026 could play a key role in shaping farming income and stability for the coming years.

FAQs: Union Budget 2026 for Farmers

Q1. When will Union Budget 2026 be presented?

The budget will be presented on Sunday, 1 February 2026.

Q2. Why is Budget 2026 important for farmers?

It may address rising costs, crop losses, water issues, seed quality, and income protection.

Q3. Is the agriculture budget likely to increase?

Experts estimate it may rise from ₹1.37 lakh crore to around ₹1.5 lakh crore, though this is not confirmed.

Q4. Will PM-Kisan payments increase?

There is a possibility of higher funding and smoother payments, with clarity expected on budget day.

Q5. What changes are expected in crop insurance?

Faster claim settlement, better coverage, and improved damage assessment are expected.

Q6. What is the new Seed Bill?

It aims to stop fake seeds through strict penalties, including fines and jail terms.

Q7. Will irrigation receive more funds?

Yes, higher funding for Krishi Sinchai Yojana is expected.

Q8. How will pulse farmers benefit?

Support may come through better seeds, training, and storage under the pulses mission.

Q9. Will agriculture exports get a boost?

The budget may improve export processes and promote processed farm products.

Q10. What should farmers watch on budget day?

Key announcements on agriculture spending, PM-Kisan, crop insurance, irrigation, seed laws, and market access.