Agriculture budget rose 5× in 13 years, from ₹27,663 cr to ₹1.4 lakh cr
What happened
India's Union Budget allocation for the Department of Agriculture and Farmers Welfare grew from ₹27,663 crore in 2013-14 to ₹1,40,528.78 crore in 2026-27, a five-fold increase over thirteen years. This expansion reflects scaled-up flagship schemes including PM-KISAN, PM Fasal Bima Yojana, and the e-NAM platform, alongside enhanced credit flow targets, MSP revisions, and investment in digital and infrastructure support for farmers across allied sectors.
Why it matters
India's agriculture budget trajectory is a window into the government's shifting priorities for the rural economy. The 5x expansion from 2013-14 to 2026-27 is not simply an inflation adjustment — it represents structural additions through new direct-benefit schemes, expanded crop insurance coverage, and digital agriculture infrastructure.
Three pillars drive this increase:
1. Direct Income Support: PM-KISAN (launched 2019) alone disburses ₹6,000 per year to ~11 crore farmers, requiring a recurring annual outlay of roughly ₹60,000 crore.
2. Risk Management: PM Fasal Bima Yojana (2016) replaced older crop insurance schemes with a farmer-premium-capped model (2% for Kharif, 1.5% for Rabi, 5% for horticulture), with the government bearing the actuarial premium balance.
3. Market Reform: e-NAM, the electronic National Agriculture Market, now links over 1,000 mandis across states, improving price discovery for farmers.
Allied sectors — animal husbandry, fisheries, and dairy — received dedicated budget boosts, reflecting the government's push to double non-crop income streams. NABARD's agricultural credit target also scaled in tandem, rising to ₹25 lakh crore for 2025-26.
For exam purposes, the critical skill is distinguishing the scheme names, launch years, implementing ministries, and financial parameters — because examiners blank out exactly those numbers in fill-in-the-blank and statement-matching questions.
Three pillars drive this increase:
1. Direct Income Support: PM-KISAN (launched 2019) alone disburses ₹6,000 per year to ~11 crore farmers, requiring a recurring annual outlay of roughly ₹60,000 crore.
2. Risk Management: PM Fasal Bima Yojana (2016) replaced older crop insurance schemes with a farmer-premium-capped model (2% for Kharif, 1.5% for Rabi, 5% for horticulture), with the government bearing the actuarial premium balance.
3. Market Reform: e-NAM, the electronic National Agriculture Market, now links over 1,000 mandis across states, improving price discovery for farmers.
Allied sectors — animal husbandry, fisheries, and dairy — received dedicated budget boosts, reflecting the government's push to double non-crop income streams. NABARD's agricultural credit target also scaled in tandem, rising to ₹25 lakh crore for 2025-26.
For exam purposes, the critical skill is distinguishing the scheme names, launch years, implementing ministries, and financial parameters — because examiners blank out exactly those numbers in fill-in-the-blank and statement-matching questions.
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