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2 Feb 2026·Source: The Hindu
5 min
EconomyPolity & GovernanceSocial IssuesNEWS

Farmers Unhappy with Marginal Increase in Agriculture Budget

Farmers criticize the Union Budget for overlooking critical demands and providing marginal support.

The agriculture sector has received a 2.6% boost in the Union Budget, translating to an additional ₹3,000 crore. Finance Minister Nirmala Sitharaman has proposed to spend ₹1.3 lakh crore for the sector in 2026-27, compared to the Budget Estimate of ₹1.27 lakh crore for 2025-26. The Fertilizer Ministry has been allocated ₹1.7 lakh crore for 2026-27, an increase of about 8.5% from the last budget. Farmers' organizations have criticized the Budget for overlooking critical demands such as statutory minimum support price, farm debt relief, and a resolution to the crisis caused by global trade and tariff problems. The allocation for Kisan Samman Nidhi has been retained at ₹63,500 crore. The allocation for Agriculture Research and Education dipped 4.8% to ₹9,967.4 crore from the previous year’s ₹10,466.39 crore. Farmers organizations, from the left-leaning All India Kisan Sabha to the Sangh Parivar’s Bharatiya Kisan Sangh (BKS), condemned the Budget. BKS general secretary Mohini Mohan Sharma said the Budget failed to live up to the government’s vows to address farmers’ problems.

Key Facts

1.

Agriculture sector boost: 2.6%

2.

Proposed spending for agriculture: ₹1.3 lakh crore

3.

Fertilizer Ministry allocation: ₹1.7 lakh crore

4.

Kisan Samman Nidhi retained at ₹63,500 crore

UPSC Exam Angles

1.

GS Paper 3 (Economy): Agricultural policies, subsidies, and their impact on farmers' income and food security.

2.

Connects to the syllabus section on Indian Economy: Issues relating to planning, mobilization of resources, growth, development and employment.

3.

Potential question types: Statement-based MCQs, analytical questions on the effectiveness of government schemes.

Visual Insights

More Information

Background

The agriculture sector in India is deeply rooted in history, with its origins tracing back to the Indus Valley Civilization. Over centuries, farming practices have evolved, influenced by factors like the Green Revolution, which significantly boosted crop production but also led to concerns about environmental sustainability. The sector's economic importance is underscored by its contribution to the GDP and employment, making it a key focus of government policies. Successive governments have implemented various schemes and policies to support the agriculture sector. The Minimum Support Price (MSP) mechanism, for instance, aims to protect farmers from price fluctuations. However, debates persist regarding the effectiveness and reach of these interventions. The sector's vulnerability to climate change and market volatility necessitates continuous policy adjustments and technological advancements. Several laws and regulations govern the agriculture sector, including those related to land ownership, irrigation, and marketing. The Essential Commodities Act, for example, empowers the government to regulate the production, supply, and distribution of essential commodities. These legal frameworks are crucial for ensuring food security and promoting sustainable agricultural practices. The Constitution of India also touches upon agriculture through entries in the State List, giving states significant autonomy in agricultural matters. Globally, agriculture faces similar challenges, including climate change, resource scarcity, and market access. International trade agreements and organizations like the World Trade Organization (WTO) play a role in shaping agricultural policies and trade flows. Comparing agricultural practices and policies across different countries can provide valuable insights for improving the sector's performance and sustainability.

Latest Developments

Recent government initiatives focus on promoting sustainable agriculture and increasing farmers' income. Schemes like PM-KISAN provide direct income support to farmers, while initiatives like the Paramparagat Krishi Vikas Yojana encourage organic farming. The government is also investing in agricultural infrastructure, such as irrigation projects and storage facilities. However, challenges persist, including issues related to land ownership, access to credit, and market linkages. Farmer protests often highlight these concerns, demanding policy reforms and greater support from the government. The ongoing debate about agricultural reforms underscores the need for a balanced approach that addresses the needs of both farmers and consumers. Looking ahead, the agriculture sector is expected to undergo significant transformations, driven by technological advancements and changing consumer preferences. Precision farming, the use of drones, and the adoption of digital technologies are likely to play an increasingly important role. The government aims to double farmers' income by 2022, a target that requires sustained efforts and innovative solutions. While the target date has passed, the focus remains on income enhancement. The agriculture sector's future depends on addressing the challenges of climate change, promoting sustainable practices, and ensuring fair prices for farmers' produce. Collaboration between the government, farmers, and the private sector is essential for achieving these goals. Policies that promote diversification, value addition, and market access can help transform the sector into a more resilient and prosperous one.

Frequently Asked Questions

1. What are the key facts about the agriculture budget increase for UPSC Prelims?

The agriculture sector has received a 2.6% boost. The proposed spending for the sector is ₹1.3 lakh crore. The Fertilizer Ministry has been allocated ₹1.7 lakh crore. The allocation for Kisan Samman Nidhi has been retained at ₹63,500 crore.

Exam Tip

Remember the percentage increase and the allocated amounts for different sectors. These figures are frequently tested in Prelims.

2. Why are farmers unhappy with the marginal increase in the agriculture budget?

Farmers are unhappy because the budget overlooks critical demands such as a statutory minimum support price, farm debt relief, and a resolution to the crisis caused by global trade and tariff problems. They feel their core issues have not been addressed.

Exam Tip

Understanding the reasons for farmer discontent helps in writing balanced Mains answers.

3. What is Kisan Samman Nidhi, and what is its current allocation?

Kisan Samman Nidhi is a scheme that provides direct income support to farmers. As per the topic, the allocation for Kisan Samman Nidhi has been retained at ₹63,500 crore.

Exam Tip

Knowing the purpose and allocation of key schemes is important for both Prelims and Mains.

4. How does the current agriculture budget reflect the government's priorities for the sector?

The budget reflects a focus on increasing overall spending in the agriculture sector, with a significant allocation towards fertilizer subsidies and income support through Kisan Samman Nidhi. However, the farmers' criticism suggests a potential gap between the government's priorities and the farmers' immediate needs.

Exam Tip

Analyzing the budget in terms of stated goals versus actual allocations is a crucial skill for UPSC aspirants.

5. What are the recent developments related to government initiatives in the agriculture sector?

Recent government initiatives focus on promoting sustainable agriculture and increasing farmers' income. Schemes like PM-KISAN provide direct income support, while initiatives like the Paramparagat Krishi Vikas Yojana encourage organic farming. The government is also investing in agricultural infrastructure.

Exam Tip

Keep track of flagship schemes and their objectives for the UPSC exam.

6. What is the significance of the Fertilizer Ministry allocation of ₹1.7 lakh crore?

The allocation of ₹1.7 lakh crore to the Fertilizer Ministry indicates the government's continued focus on subsidizing fertilizers. This is aimed at ensuring that farmers have access to affordable inputs, but it also raises questions about the long-term sustainability and environmental impact of fertilizer use.

Exam Tip

Consider the pros and cons of fertilizer subsidies when analyzing the agriculture budget.

7. What reforms are needed to address the concerns of farmers regarding the agriculture budget?

Reforms could include providing a statutory minimum support price for crops, offering farm debt relief measures, and addressing the challenges posed by global trade and tariff issues. Diversifying agricultural practices and promoting sustainable farming methods are also crucial.

Exam Tip

Think about long-term solutions and sustainable practices when suggesting reforms.

8. Why is this news about the agriculture budget important for UPSC aspirants?

This news is important because it highlights the current state of the agriculture sector, government priorities, and the challenges faced by farmers. Understanding these aspects is crucial for answering questions in both Prelims and Mains, as well as for the interview.

Exam Tip

Relate current affairs to the broader syllabus to enhance your understanding.

9. What was the percentage decrease in the allocation for Agriculture Research and Education?

As per the topic, the allocation for Agriculture Research and Education dipped 4.8%.

Exam Tip

Pay attention to specific numbers and percentages related to government spending.

10. How might the marginal increase in the agriculture budget impact the common citizen?

If farmers' concerns are not adequately addressed, it could lead to continued agrarian distress, potentially impacting food prices and overall economic stability. Conversely, effective allocation and implementation could improve agricultural productivity and rural livelihoods.

Exam Tip

Consider the ripple effects of agricultural policies on the wider economy and society.

Practice Questions (MCQs)

1. Consider the following statements regarding the recent Union Budget and its allocation to the agriculture sector: 1. The agriculture sector received a 2.6% boost in the Union Budget, amounting to an additional ₹3,000 crore. 2. The allocation for Agriculture Research and Education increased by 4.8% compared to the previous year. 3. The allocation for Kisan Samman Nidhi has been retained at ₹63,500 crore. Which of the statements given above is/are correct?

  • A.1 and 2 only
  • B.1 and 3 only
  • C.2 and 3 only
  • D.1, 2 and 3
Show Answer

Answer: B

Statement 1 is CORRECT: The agriculture sector received a 2.6% boost in the Union Budget, translating to an additional ₹3,000 crore. Statement 2 is INCORRECT: The allocation for Agriculture Research and Education dipped 4.8% to ₹9,967.4 crore from the previous year’s ₹10,466.39 crore. Statement 3 is CORRECT: The allocation for Kisan Samman Nidhi has been retained at ₹63,500 crore.

2. With reference to the Kisan Samman Nidhi, consider the following statements: 1. It is a central sector scheme providing income support to all landholding farmer families. 2. The scheme provides ₹6,000 per year in three equal installments. 3. The funds are directly transferred to the beneficiaries' bank accounts through Direct Benefit Transfer (DBT). Which of the statements given above is/are correct?

  • A.1 and 2 only
  • B.1 and 3 only
  • C.2 and 3 only
  • D.1, 2 and 3
Show Answer

Answer: D

All three statements are correct regarding the Kisan Samman Nidhi. It is a central sector scheme providing income support to all landholding farmer families, providing ₹6,000 per year in three equal installments, and the funds are directly transferred to the beneficiaries' bank accounts through Direct Benefit Transfer (DBT).

3. Which of the following statements accurately describes the role of the Essential Commodities Act?

  • A.It regulates the stock market to prevent insider trading.
  • B.It empowers the government to regulate the production, supply, and distribution of essential commodities.
  • C.It provides subsidies to farmers for purchasing fertilizers.
  • D.It promotes international trade of agricultural products.
Show Answer

Answer: B

The Essential Commodities Act empowers the government to regulate the production, supply, and distribution of essential commodities to ensure their availability and prevent hoarding or black marketing.

4. Assertion (A): Farmers' organizations have criticized the recent Union Budget for overlooking critical demands such as statutory minimum support price. Reason (R): The budget allocation for the Fertilizer Ministry saw an increase of about 8.5% from the last budget. In the context of the above, which of the following is correct?

  • A.Both A and R are true and R is the correct explanation of A
  • B.Both A and R are true but R is NOT the correct explanation of A
  • C.A is true but R is false
  • D.A is false but R is true
Show Answer

Answer: B

Both A and R are true. Farmers' organizations did criticize the budget for overlooking critical demands. The budget allocation for the Fertilizer Ministry did see an increase of about 8.5%. However, the increase in fertilizer allocation does not explain why farmers criticized the budget for overlooking demands like MSP.

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