EY India expects the Union Budget 2026-27 to prioritize easier access to agri-finance, strengthening food and nutrition security and building climate-resilient agriculture. Focus areas include agricultural credit expansion, self-sufficiency of oilseeds and pulses, supply-chain infrastructure, digital agriculture and climate-smart interventions to boost farmers’ income and rural resilience.
As the Union Budget 2026-27 approaches, leading policy think tanks and industry experts are calling for stronger support to India’s agriculture sector, with particular emphasis on improving access to agri-finance, boosting food security and building climate-resilient supply chains – priorities highlighted in EY India’s analysis.
In its pre-Budget insights, EY India emphasized that although India has made progress in strengthening food security through policies such as the National Food Security Act, PM Poshan and Antyodaya Anna Yojana, persistent challenges remain. Climate risks, dependence on imports – particularly edible oil – and persistent undernutrition among children continue to highlight structural weaknesses in the agricultural system.
According to the firm, a major focus of Budget 2026 should be to increase farmers’ access to credit and finance. Noting that a stable credit environment enables investment in inputs, technology and productivity growth, experts argue that targeted financial assistance can bring resilience to the agricultural economy. This comes at a time when agricultural credit is on the rise, with projections suggesting that credit to the sector could exceed Rs 32 lakh crore in FY2026, reflecting the ongoing demand from farmers and rural enterprises.
The EY analysis also highlights the need to strengthen domestic production of edible oilseeds and pulses. Given India’s large import share in edible oils and the importance of pulses in nutritional security, missions like the National Mission on Edible Oils-Oilseeds (NMEO) and Self-Reliance Mission in Pulses are important. Budget support, purchase incentives and expanded marketing linkages for certified seeds – especially for millets – can promote diversification and increase farmers’ incomes.
Structural constraints remain another priority. With significant wastage of post-harvest perishable commodities due to gaps in cold storage, warehousing and logistics, the upcoming Budget is expected to accelerate investment in modern supply-chain infrastructure. Increasing the price stabilization fund and strengthening digital supply-chain management are also considered necessary to reduce food losses and ensure affordability.
Climate-smart agriculture and digital initiatives are additional areas for support. Since most of India’s oilseeds and pulses cultivation is rain-fed, the EY report recommends integrated advisory services with micro-irrigation, soil health programmes, drought-tolerant seeds and satellite-based monitoring to improve resilience.
EY India’s expectations emphasize that the Union Budget 2026 provides an opportunity for a shift from the traditional food distribution model to a holistic system that builds access, resilience, nutrition and prosperity across the agricultural value chain.
