UP Budget 2026: ₹10,888 Crore Allocated to Boost Agriculture and Farmer Welfare

Key Highlights

• ₹10,888 crore allocated for agriculture and allied sectors.

• ₹18,290 crore proposed for irrigation and flood control.

• ₹3,04,321 crore paid to sugarcane farmers in nine years.

• ₹30 per quintal increase in sugarcane price for 2025–26.

• ₹94,668 crore transferred under PM-KISAN to 3.12 crore farmers.

The Uttar Pradesh government presented its 10th budget under Chief Minister Yogi Adityanath. Finance Minister Suresh Khanna tabled the 2026–27 Budget in the state Assembly and announced a major allocation of ₹10,888 crore for agriculture and allied sectors.

The budget highlights the state’s strong focus on farmers, higher crop production, better procurement, irrigation development, and financial support schemes.

Uttar Pradesh Emerges as India’s Top Agricultural State

While presenting the budget, Finance Minister Suresh Khanna said that Uttar Pradesh has achieved record growth in agriculture. He stated that sugarcane farmers have received historic payments, and farm production has reached new highs.

According to the government, UP leads the country in the production of:

• Wheat

• Paddy

• Sugarcane

• Potato

• Banana

• Mango

• Guava

• Amla

• Mentha

Over the last nine years, the state has paid ₹3,04,321 crore to sugarcane farmers. This amount is ₹90,888 crore more than what previous governments had paid.

₹18,290 Crore for Irrigation and Flood Control

To strengthen water management, the government has proposed ₹18,290 crore for irrigation and flood control schemes in 2026–27. This is a 30% increase compared to the previous financial year.

The aim is to ensure better water supply for crops and reduce losses caused by floods. The state has also been providing free electricity for irrigation through tubewells since 1 April 2023, helping farmers reduce input costs.

Higher MSP and Strong Government Procurement

The government has taken steps to ensure better income for farmers through higher rates and procurement.

For the 2025-26 sugarcane season, the price was increased by ₹30 per quintal. This decision is expected to provide farmers with nearly ₹3,000 crore in additional income.

In Rabi 2025–26:

• 10.27 lakh metric tonnes of wheat were procured.

• ₹2,512 crore was paid to farmers.

In Kharif 2025–26:

• 42.96 lakh metric tonnes of paddy were purchased.

• More than ₹9,710 crore was disbursed.

The state also bought 2.14 lakh metric tonnes of bajra from 54,253 farmers and paid ₹595 crore.

Loans and Crop Insurance Support

The budget also highlighted strong financial support through crop loans and insurance schemes.

Under short-term crop loans (2025-26), ₹10,257 crore was given to 15.01 lakh farmers till 19 December 2025.

Under long-term loans, ₹205 crore was released to 6,870 farmers against a target of ₹600 crore (till 30 November 2025).

In Kharif 2025-26 (till December 2025), 2.69 lakh insured farmers received ₹215 crore under crop insurance.

Under the PM Fasal Bima Yojana (2017-18 to 2024-25), about 62 lakh farmers were paid ₹5,110 crore as compensation.

Under PM-KISAN (FY 2025-26 till December 2025), ₹94,668 crore was directly transferred to 3.12 crore farmers through DBT.

Agri-Export Hub Under World Bank Project

Finance Minister Suresh Khanna also announced the setting up of an agri-export hub under the World Bank-assisted UP-AGREES project.

The hub will focus on boosting agricultural exports, improving market access, and helping farmers get better prices in domestic and international markets. This move is expected to increase farmers income and promote value-added agriculture.

Focus on Storage and Farmer Empowerment

After the budget presentation, Chief Minister Yogi Adityanath said that the government is closely monitoring farmers’ needs.

He announced subsidies for building warehouses and storage facilities under the state’s largest food storage scheme. This will reduce post-harvest losses and improve income security.

The Chief Minister added that farmers are the backbone of India’s development. The government aims to make them active partners in economic growth and transform them into agri-entrepreneurs through various schemes and support systems.

Also Read: Rajasthan and UP Budget 2026: Big Boost for Farmers, Irrigation and Rural Growth

CMV360 Says

The UP Budget 2026 clearly shows the state government’s strong commitment to agriculture and farmer welfare. With ₹10,888 crore allocated for agriculture, increased irrigation funding, higher procurement, record sugarcane payments, loan support, and an agri-export hub, Uttar Pradesh is focusing on income growth and rural development. The budget aims to make farmers financially stronger and position the state as a leader in agricultural progress.