Budget 2026: Agriculture Sector Seeks Long-Term Reforms to Boost Productivity and Farmer Incomes

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Budget 2026: Agriculture Sector Seeks Long-Term Reforms to Boost Productivity and Farmer Incomes

As Budget 2026 approaches, India’s agriculture and allied sectors are urging the government to move beyond annual schemes and focus on structural reforms. Industry leaders want greater emphasis on technology, climate resilience, value-chain development, credit access and value-added production to improve farm productivity and ensure stable farmer incomes. From seeds and soil reforms to dairy digitisation and food processing, stakeholders see agriculture as a long-term growth engine for the Indian economy.

Published by Somesh | January 30, 2026

Ahead of Budget 2026, industry leaders across agriculture, dairy and food processing are calling for deep, long-term reforms to unlock the sector’s true potential. With agriculture contributing nearly 18% to India’s GDP and employing over 45% of the workforce, experts believe the focus must shift from short-term subsidies to productivity-driven, technology-led solutions.

Stakeholders have highlighted the need for reforms in seeds, soil health, water management and input subsidies that reward efficiency rather than consumption. Greater use of direct benefit transfers, mechanisation through certified equipment, digitised land records and climate-resilient farming practices are seen as critical to improving farm incomes and resource efficiency.

Leaders from the dairy and food processing sectors are also urging targeted policy support to strengthen cold chains, promote value-added exports and reduce dependence on imports such as edible oils. Across the board, the demand is for a Budget that treats agriculture as a strategic growth sector capable of driving sustainable economic expansion, rather than a welfare-led segment.