January 29, 2026
3 mins read
As Budget 2026 approaches, pressure on farmers continues to remain high. Rising input costs, uneven incomes, and growing climate-related uncertainties are still major concerns for rural households. Rather than major new announcements, the Budget may focus on maintaining support and continuing spending on basic rural infrastructure, given how closely farming is linked to jobs and everyday consumption.
Source: Bajaj Broking Research Report and The Economic Times
As Budget 2026 gets closer, farming has returned to the centre of discussion. The reason is simple. Many farmers are still under pressure. Their incomes are not steady, while costs keep rising.
Fertiliser prices have gone up due to higher raw material costs, making government support more important than before. The weather has become less reliable as a result of climate change; this impacts farming and farmers' spending.
There may be fewer new programs and more maintenance of current levels of support through the Union Budget 2026. Spending could continue on rural infrastructure (such as roads, storage, and basic amenities), since agriculture is the primary source of employment for many areas of India.
Agriculture still matters a great deal to India’s economy, even if other sectors now grow faster. It supports a large number of jobs and keeps money moving in rural areas. When farm incomes weaken, the effect is felt well beyond villages. This link has become clearer ahead of Budget 2026.
With costs rising and rural earnings under strain, agriculture is being looked at less as a welfare issue and more as something that helps hold economic demand together.
Fertiliser costs are still a big concern, so some form of continued support is being closely watched.
Farm incomes remain uneven, and keeping them stable is likely to stay a priority.
With rainfall becoming harder to predict, water management and irrigation may get more attention.
Storage and transport gaps continue to cause losses after harvest, something many expect the Budget to address.
There is also interest in moving slowly towards more processing, instead of selling most produce in raw form.
Budgets over the past few years have, for the most part, sought to ease strain off of farmers rather than implement large changes.
High fertiliser prices meant that ongoing assistance for agricultural inputs was more meaningful than new announcements.
There continued to be funding for rural roads, irrigation and basic services without major changes to funding.
Storage and market access were discussed more, but timelines for implementation continued to progress slowly.
Over the last few years the trend was towards maintaining a status quo; it is anticipated that this same mentality will carry through into the 2026 Budget.
In many parts of the country, farm incomes still swing sharply, especially when market prices dip or costs rise without warning.
Planning a crop has become tougher, as rainfall no longer follows familiar patterns and extreme weather shows up more often.
Access to affordable and timely credit remains a concern, especially for smaller farmers.
In many areas, a lack of proper storage and transport means farmers have little choice but to sell their produce quickly after harvest, often at lower prices.
Growing the same few crops year after year has started to take a toll on soil quality and water availability in several states.
Share this article: 
Recent Budgets have focused more on stability than big changes. Support for fertilisers, rural welfare spending, and gradual improvement in infrastructure are trends likely to continue into 2026.
The Budget can help by easing cost pressure on farmers and supporting rural demand. Continued income support, fertiliser subsidies, and spending on roads, storage, and irrigation can reduce stress across the sector.
People are expecting relief from rising costs and more consistent farm income. Also, there is an expectation that support for fertilisers, irrigation, storage and other fundamental requirements for agriculture in rural areas will not be disrupted too much.
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