From Coconut to Fisheries: How Union Budget 2026 Could Raise Farmer Incomes

Editor’s note: Budget announcements are still evolving as more fine print and official notifications come in. This explainer captures the key agriculture-related highlights reported so far and what they could mean for farmers.

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For years, India’s farmers have grown the food that feeds the country, but many have struggled to earn enough from it.

Most farmers still depend on crops like rice and wheat, where profits are often slim, costs are rising, and climate risks are growing sharper each season. For millions of families, farming has remained a livelihood of uncertainty rather than stability.

That is the challenge the Union Budget 2026–27 seeks to address with a clear new emphasis: helping farmers earn more by moving towards high-value agriculture and stronger rural value chains, especially in coastal and allied sectors such as fisheries.

Why “high-value” crops matter right now

A key reality shapes India’s farm economy: most farmers don’t have large landholdings to fall back on.

According to the Agricultural Census, nearly 86% of India’s farmers are small and marginal, cultivating less than 2 hectares. For them, income growth cannot come only from producing more — it must come from producing smarter, and earning better returns from every acre.

That is where high-value agriculture comes in.

High-value crops include horticulture, plantation crops, nuts, and spices — produce that typically earns more per unit of land than staple cereals. Over the last decade, India’s horticulture output has risen significantly, reflecting both growing demand and export potential.

Recognising this shift, the Budget has allocated Rs350 crore under “Support for High Value Agriculture” in 2026–27 — a dedicated push towards diversification beyond traditional cropping patterns.

In simple terms, the message is clear: the future of farm income may lie not just in quantity, but in value.

A coastal focus: coconut, cashew, and cocoa

One of the most region-specific announcements this year is the Budget’s focus on coastal agriculture.

In states where farming is shaped by humidity, saline soils, and plantation ecosystems, the government is backing crops such as coconut, cashew, and cocoa, all of which are naturally suited to coastal climates and have strong market demand.

The Budget highlights include a coconut promotion scheme to improve productivity, along with dedicated programmes for cashew and cocoa development.

For a farmer in Kerala, Goa, coastal Karnataka, or parts of Odisha, this could mean an opportunity to shift from lower-return crops to plantation-based farming that supports processing, exports, and long-term income stability.

Nuts as a new income opportunity

The Budget also highlights premium nut cultivation, including walnuts, almonds, and pine nuts, through orchard rejuvenation and high-density farming.

These crops may not be widespread yet, but they are increasingly valuable in India’s growing market for healthy, protein-rich foods.

For farmers in suitable hill and temperate regions, such diversification could open a new income stream, especially if supported by high-quality planting material, storage systems, and assured buyers.

Technology meets agriculture: Bharat-VISTAAR

Beyond crops, Budget 2026 also signals that farming’s future will be shaped by knowledge and technology.

The government has allocated Rs150 crore to Bharat-VISTAAR, an initiative that aims to integrate ICAR best practices with AI-enabled advisory systems and the AgriStack framework.

For farmers, this could eventually translate into better access to real-time guidance — from choosing the right crop to managing pests, improving yields, and linking produce to markets.

The success, of course, will depend on how effectively these systems reach farmers on the ground, especially in rural and remote regions.

Fisheries gets a stronger livelihood push

One of the most meaningful announcements for coastal and inland communities is the focus on fisheries.

India is already the world’s third-largest fish producer, and fisheries contribute close to 1.2% of national GDP. For millions of families, fishing and aquaculture are among the fastest-growing livelihood opportunities in rural India.

This year’s Budget proposes integrating 500 reservoirs and Amrit Sarovars into the fisheries value chain, particularly in coastal belts.

This matters because fisheries are not just about catching fish; they involve the entire chain: storage, transport, processing, and market access.

Financially, the Department of Fisheries has been allocated Rs 2,761.80 crore for 2026–27. The flagship PM Matsya Sampada Yojana has been budgeted at Rs 2,500 crore, higher than last year’s revised estimates — signalling a stronger intent to scale up fisheries development.

Women-led groups and producer collectives at the centre

A recurring challenge in both farming and fishing is that producers often earn the least, while intermediaries earn the most.

The Budget’s emphasis on startups, women-led groups, and Fish Farmer Producer Organisations could help shift that balance by enabling stronger bargaining power, better market linkages, and greater local entrepreneurship.

There is also a trade-related proposal: fish catch by Indian vessels in the Exclusive Economic Zone is proposed to be duty-free, with foreign-port landings treated as exports. This move could strengthen marine value chains.

What this Budget shift could mean

Union Budget 2026 is, at its core, a signal of transition.

From traditional farming to diversified livelihoods.
From low-return staples to high-value crops.
From fragmented markets to organised value chains.
From survival farming to rural entrepreneurship.

Yet the real impact will depend on what comes next, cold storage, processing infrastructure, assured markets, and implementation that reaches small farmers first.

If done right, this Budget’s focus could help farming families and fishing communities move closer to what they have long deserved: not just growth, but security, dignity, and better incomes.

Sources

'Agriculture Census 2015-16': by Ministry of Agriculture & Farmers Welfare

'Union Budget 2026: FM Sitharam announces coconut promotion scheme, dedicated programmes to boost high-value agriculture': by Times of India, Published on 1 February 2026

'Big agriculture push! FM Sitharaman proposes multilingual AI tool — What is Bharat Vistar': by Times of India, Published on 1 February 2026

'Budget 2026: Why do India’s farms suddenly matter?': by The Economic Times, Published on 1 February 2026