Agriculture Ministry's FY27 budget at Rs 1.4 lakh crore a five-fold jump from 2013-14 level

The Department of Agriculture and Farmers Welfare received a budget allocation of Rs 1.4 lakh crore for 2026-27, representing a five-fold increase from the 2...

What Happened

The Department of Agriculture and Farmers Welfare received a budget allocation of Rs 1.4 lakh crore for 2026-27, representing a five-fold increase from the 2013-14 level.
Foodgrain production reached a record 357.73 lakh tonnes (approximately 357.7 million tonnes) in 2024-25, up from 265.05 million tonnes in 2013-14.
Under PM-KISAN, Rs 4.3 lakh crore has been directly transferred to over 9.44 crore farmer families since the scheme's inception.
Fertiliser subsidy rose to Rs 2.21 lakh crore, with the FY27 Budget Estimate at Rs 1.71 lakh crore for fertilisers alone; the Fertiliser Ministry has sought additional allocations due to rising import costs from the West Asia conflict.
Over 3,000 climate-resistant crop varieties were released to help farmers adapt to changing weather patterns.
Agricultural exports grew by 37 percent, reaching an all-time high of approximately Rs 4.51 lakh crore (USD 53.24 billion) in FY25.

Static Topic Bridges

PM-KISAN and Direct Benefit Transfer (DBT)

PM-KISAN (Pradhan Mantri Kisan Samman Nidhi) is a Central Sector scheme that provides income support of Rs 6,000 per year — paid in three equal installments of Rs 2,000 every four months — directly to eligible landholding farmer families. The scheme is delivered through the Direct Benefit Transfer (DBT) architecture, which routes funds to verified Aadhaar-linked bank accounts, eliminating intermediaries and reducing leakage.

Launched in December 2018, operational nationwide from February 2019.
Eligibility: All landholding farmer families with cultivable land; excludes constitutional post-holders, government employees, income-tax payers, and listed professionals.
eKYC is now mandatory for continued disbursement.
Scheme is 100% centrally funded (Central Sector Scheme).

Connection to this news: With Rs 4.3 lakh crore transferred to over 9.44 crore families, PM-KISAN represents one of the largest DBT programmes in the world, illustrating the shift from price support to direct income support in India's agricultural policy.

Fertiliser Subsidies and Nutrient-Based Subsidy (NBS) Policy

India's fertiliser subsidy regime aims to make chemical fertilisers affordable for farmers. The government pays the difference between the production/import cost and the Maximum Retail Price (MRP) set for farmers. Urea is governed by the New Pricing Scheme under the Essential Commodities Act, while Phosphatic and Potassic (P&K) fertilisers fall under the Nutrient-Based Subsidy (NBS) policy introduced in 2010.

Under NBS, subsidies are fixed per kilogram of nutrient (Nitrogen, Phosphorus, Potassium, Sulphur), not per bag, incentivising balanced fertilisation.
Urea MRP has remained statutorily capped; neem-coating of urea is mandatory since 2015 to reduce diversion for non-agricultural uses.
India is heavily import-dependent for DAP (diammonium phosphate) and MOP (muriate of potash), making subsidy costs sensitive to global commodity prices.

Connection to this news: The West Asia conflict driving up import costs has pushed the Fertiliser Ministry to seek a near-doubling of the FY27 subsidy allocation beyond the budgeted Rs 1.71 lakh crore, highlighting India's structural vulnerability in fertiliser import dependence.

Agricultural Exports and Trade Policy

India's agricultural exports have grown from USD 34.5 billion in FY20 to USD 53.24 billion in FY25, a CAGR of approximately 8.2%. The Agricultural and Processed Food Products Export Development Authority (APEDA) under the Ministry of Commerce promotes scheduled product exports. Export competitiveness in agriculture is governed by a mix of Minimum Export Price (MEP) notifications, export bans/duties (used for essential commodities like onions and non-basmati rice), and trade agreements.

Top export commodities include marine products, rice (basmati and non-basmati), spices, fresh vegetables, and buffalo meat.
APEDA has set a long-term target of USD 100 billion in agri-exports by 2030.
Agricultural exports as a share of total merchandise exports have grown, making agriculture a significant foreign-exchange earner.

Connection to this news: The 37% growth in agricultural exports signals improved market access and production surplus, though the government must balance export promotion with domestic food security, particularly for staples.

Climate-Resilient Agriculture and Crop Variety Development

The Indian Council of Agricultural Research (ICAR) and State Agricultural Universities operate under a national system to develop and release improved crop varieties. Release of varieties requires approval from the Central/State Variety Release Committees. Climate-resilient varieties — drought-tolerant, flood-tolerant, or heat-resistant — are critical under India's National Action Plan on Climate Change (NAPCC), particularly under the National Mission for Sustainable Agriculture (NMSA).

The Protection of Plant Varieties and Farmers' Rights (PPV&FR) Act, 2001 protects both breeders' rights and farmers' traditional seed-saving rights.
India's gene bank at the National Bureau of Plant Genetic Resources (NBPGR) holds over 4.5 lakh accessions — one of the world's largest.
Biofortified varieties (iron-rich wheat, zinc-rich rice) address hidden hunger alongside productivity goals.

Connection to this news: The release of over 3,000 climate-resistant varieties over the decade reflects institutional investment in adaptive agriculture, essential as erratic monsoons and extreme weather events increasingly threaten food production.

Key Facts & Data

Agriculture Ministry FY27 budget: Rs 1.4 lakh crore (five-fold increase from 2013-14).
PM-KISAN total transfers: Rs 4.3 lakh crore to 9.44 crore+ farmer families.
PM-KISAN annual support: Rs 6,000 per family in three installments of Rs 2,000.
Fertiliser subsidy allocated: Rs 1.71 lakh crore (FY27 BE); Rs 2.21 lakh crore cited as total recent figure.
Foodgrain production: Record 357.73 million tonnes in 2024-25 (up from 265.05 million tonnes in 2013-14).
Agricultural exports: All-time high of USD 53.24 billion in FY25; grew 37% in the recent period.
Climate-resilient crop varieties released: Over 3,000 in the last decade.
APEDA target: USD 100 billion in agri-exports by 2030.