2 Feb 2026·Source: The Indian Express

3 min

EconomyPolity & GovernanceEDITORIAL

Budget 2026: Farm Sector Neglect Sparks Concerns and Debate

Budget 2026 overlooks key agricultural areas, raising questions about rural development priorities.

Photo by James Baltz

The Finance Minister's budget for 2026 has bypassed large parts of the farm sector, raising concerns about the government's priorities. Key areas such as irrigation, rural infrastructure, and agricultural research have received less attention than expected.

This has sparked debate among economists and agricultural experts, who argue that neglecting these sectors could hinder overall economic growth and exacerbate rural distress. The omission of specific measures to address farmer distress and promote sustainable agriculture is particularly concerning.

UPSC Exam Angles

GS Paper 3 (Economy): Agricultural sector, government policies, challenges

Connects to syllabus topics like food security, land reforms, irrigation

Potential question types: Statement-based, analytical, current affairs

Visual Insights

Budget 2026: Key Concerns in Farm Sector

Highlights the areas of concern in the farm sector based on the Budget 2026 announcement.

Irrigation Neglect: Less attention
Rural Infrastructure Shortfall: Less attention
Agricultural Research Underfunding: Less attention
Farmer Distress Measures Omission: Omitted

More Information

Background

The agricultural sector in India has a long and complex history, deeply intertwined with the nation's economic and social fabric. Historically, agriculture has been the backbone of the Indian economy, employing a significant portion of the population and contributing substantially to the GDP. The sector's evolution can be traced through various phases, from traditional farming practices to the Green Revolution, which introduced high-yielding varieties and modern techniques. Over time, government policies have played a crucial role in shaping the agricultural landscape. Initiatives like land reforms aimed to redistribute land ownership and empower farmers. The establishment of institutions like the NABARD (National Bank for Agriculture and Rural Development) aimed to provide credit and support to the rural sector. However, challenges such as fragmented landholdings, inadequate irrigation facilities, and market access issues have persisted. The Constitution of India recognizes the importance of agriculture and rural development. Several articles, including those related to the Directive Principles of State Policy, emphasize the state's responsibility to promote the welfare of farmers and ensure equitable distribution of resources. Various laws and regulations have been enacted to address issues such as land acquisition, water management, and agricultural marketing. The Essential Commodities Act, for example, regulates the production, supply, and distribution of essential agricultural commodities.

Latest Developments

In recent years, the Indian agricultural sector has witnessed several significant developments. The government has launched various schemes and initiatives to boost agricultural productivity, improve farmer incomes, and promote sustainable agriculture. The PM-KISAN scheme provides income support to small and marginal farmers, while initiatives like the Pradhan Mantri Krishi Sinchayee Yojana focus on expanding irrigation coverage. However, the sector continues to face challenges such as climate change, price volatility, and supply chain inefficiencies. There are ongoing debates about the effectiveness of current policies and the need for reforms in areas such as agricultural marketing and land leasing. Institutions like NITI Aayog are actively involved in formulating strategies and recommendations for the agricultural sector. Looking ahead, the government has set ambitious targets for increasing agricultural production and doubling farmer incomes. Key areas of focus include promoting diversification, improving post-harvest management, and leveraging technology to enhance agricultural practices. The adoption of digital technologies and precision farming techniques is expected to play a crucial role in transforming the agricultural sector.

Frequently Asked Questions

1. What key agricultural areas were overlooked in Budget 2026, and why is this concerning?

Budget 2026 has seemingly bypassed key areas like irrigation, rural infrastructure, and agricultural research. This is concerning because neglecting these sectors could hinder overall economic growth and worsen rural distress, as agriculture is a vital part of the Indian economy.

2. How might the neglect of the farm sector in Budget 2026 impact the average citizen?

If the agricultural sector is neglected, it can lead to increased food prices, reduced income for farmers, and potential migration from rural areas to cities. This can strain urban infrastructure and create social and economic challenges for everyone.

3. What are some potential reforms that could address the issues raised by the Budget 2026's neglect of the farm sector?

The government could increase investment in irrigation projects, improve rural infrastructure like roads and storage facilities, and allocate more funds for agricultural research to promote sustainable farming practices and improve crop yields. Specific measures to address farmer distress, such as debt relief or income support, could also be considered.

4. What is the historical background of the agricultural sector in India, and why is it important to consider when analyzing Budget 2026?

Historically, agriculture has been the backbone of the Indian economy, employing a significant portion of the population and contributing substantially to the GDP. Understanding this historical context is crucial because neglecting the sector can have far-reaching consequences on the economy and the livelihoods of millions of people.

5. What recent developments in the Indian agricultural sector should be considered when evaluating the Budget 2026?

Recent developments include government schemes like PM-KISAN, which provides income support to small and marginal farmers, and the Pradhan Mantri Krishi Sinchayee Yojana, focused on irrigation. The effectiveness of these schemes and how Budget 2026 supports or hinders them is crucial to consider.

6. What is the significance of irrigation, rural infrastructure, and agricultural research in the context of the Indian economy?

Irrigation ensures water availability for crops, rural infrastructure facilitates transportation and storage of agricultural produce, and agricultural research leads to improved farming techniques and higher yields. All these factors are crucial for increasing agricultural productivity and ensuring food security.

7. How does Budget 2026's focus (or lack thereof) on agriculture align with the government's stated priorities for rural development?

The Budget 2026's neglect of key agricultural areas raises questions about whether the government is truly prioritizing rural development. If the budget does not adequately support agriculture, it may indicate a disconnect between stated goals and actual resource allocation.

8. What are the potential implications of neglecting agricultural research in Budget 2026?

Neglecting agricultural research can hinder the development of new crop varieties, sustainable farming practices, and technologies that can improve agricultural productivity and resilience to climate change. This can lead to lower yields, increased vulnerability to pests and diseases, and reduced competitiveness of Indian agriculture.

9. What government initiatives, besides those mentioned, are relevant to understanding the context of agriculture in Budget 2026?

While PM-KISAN and Pradhan Mantri Krishi Sinchayee Yojana are key, understanding other initiatives related to crop insurance, market reforms, and promotion of agricultural exports is also important to assess the overall impact of Budget 2026 on the farm sector.

10. In the context of Budget 2026, what are the potential consequences of reduced investment in rural infrastructure?

Reduced investment in rural infrastructure can lead to poor connectivity, inadequate storage facilities, and inefficient supply chains. This can result in post-harvest losses, difficulty in accessing markets, and reduced income for farmers.

Practice Questions (MCQs)

1. Consider the following statements regarding the agricultural sector in India: 1. Agriculture contributes a minor percentage to India's GDP compared to the service sector. 2. NABARD was established to provide credit and support to the rural sector. 3. The Essential Commodities Act regulates the production, supply, and distribution of essential agricultural commodities. Which of the statements given above is/are correct?

A.1 and 2 only
B.2 and 3 only
C.1 and 3 only
D.1, 2 and 3

Show Answer

Answer: B

Statement 1 is INCORRECT: Agriculture contributes a significant percentage to India's GDP, although less than the service sector, it is not a minor percentage. Statement 2 is CORRECT: NABARD (National Bank for Agriculture and Rural Development) was indeed established to provide credit and support to the rural sector. Statement 3 is CORRECT: The Essential Commodities Act does regulate the production, supply, and distribution of essential agricultural commodities to ensure availability and prevent hoarding.