FM flags high-value agriculture as key to boosting farm incomes, productivity and rural jobs
Targeted support for coconut, cashew, sandalwood, agarwood and hill-region nuts
Coconut promotion scheme and cashew–coconut programme to raise output, exports and build premium global brands by 2030
In her Budget FY27 speech on Sunday, Finance Minister Nirmala Sitharaman emphasised that high-value agriculture will be a key pillar in diversifying farm output, improving productivity, and creating new employment opportunities across rural India.
She announced focused support for high-value crops such as coconut, sandalwood and cashew in coastal regions, agarwood in the North East, and nuts including almonds, walnuts and pine nuts in hilly states.
3 February 2026
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Noting that India is the world’s largest producer of coconuts, with nearly 30 million people -- including about 10 million farmers -- dependent on the crop for their livelihoods, the finance minister proposed a dedicated Coconut Promotion Scheme. "The scheme will enhance productivity through targeted interventions, including the replacement of non-productive trees with high-yielding saplings in major growing states," FM said.
Further, a specialised programme for Indian cashew and coconut will aim to make the country self-reliant in raw production and processing, boost export competitiveness, and transform Indian cashew and coconut into premium global brands by 2030.
The Union Government will partner with state governments to promote focused cultivation and post-harvest processing to revive the Indian sandalwood ecosystem.
To rejuvenate ageing, low-yielding orchards and expand high-density cultivation of walnuts, almonds and pine nuts, the Budget proposes a dedicated programme to boost farmer incomes and drive value addition by engaging rural youth.
Finance Minister Nirmala Sitharaman also announced the launch of Bharat-VISTAAR (Virtually Integrated System to Access Agricultural Resources), a multilingual AI platform that will integrate AgriStack portals and ICAR’s farm practice packages. The system aims to improve productivity, support better farm decisions, and reduce risks through customised advisories.
In order to increase farmer incomes, the Budget proposes integrated development of 500 reservoirs and Amrit Sarovars, strengthening of the fisheries value chain in coastal regions, and improved market linkages through start-ups, women-led groups, and Fish Farmer Producer Organisations.
Animal husbandry has also been identified as a key growth driver. The government will support entrepreneurship in the sector through a credit-linked subsidy programme, modernisation of livestock enterprises, creation of integrated livestock, dairy and poultry value chains, and the promotion of Livestock Farmer Producer Organisations to generate quality rural employment.
