Why Budget sprang a farm sector surprise

It’s all about economic growth and changing consumer demand

- SANJEEB MUKHERJEE

Though the Union Budget for 2026-27 has been panned by some critics for ignoring farm sector challenges such as falling crop prices and the climate challenge faced, one area has done rather well — the allied sectors of India’s farm economy.

From higher budgetary allocations to easing of taxes to change in definitions, the Budget had a clear tilt towards the allied sectors.

While the allocation for the Department of Agriculture and Farmers Welfare has gone up by a modest 6.07 per cent in the Budget Estimates of FY27 as compared with the Revised Estimate of FY26, money for the department of fisheries has gone up a massive 59.38 per cent and animal husbandry by 16 per cent.

The allocation for some allied sectors has gone up in the estimates despite their actual spending in FY25 being significantly lower. To be sure, the budget for the Department of Agriculture Research and Education (DARE) has in fact come down by 3.05 per cent.

Not only were allocations raised for allied sectors, but multiple proposals aimed to improve the livelihood of fishers, benefit aquaculture and harness the economic potential of India’s marine resources — even beyond its territorial waters.

These announcements included making fish caught by an Indian fishing vessel in the Exclusive Economic Zone (EEZ) — which is defined as 370 km from a nation’s coastline — or on the high seas duty free. Secondly, fish caught in the EEZ landing on foreign ports will be treated as exports.

A new section — 56 A — was proposed to be inserted in the Customs Act of 1962 to provide special provisions for fishing and related activities by an Indian-flagged fishing vessel beyond the territorial waters of India.