Share this
Summary
India Budget 2026-27 reveals a strategic shift hidden in the fine print. Faced with a steady decline in Agriculture GVA, the government is placing a strong bet on Cooperatives, digital infrastructure, and export-led rural growth. New allocations to NCEL, NCDC, and primary agricultural societies point to a coordinated attempt to rebuild farm incomes through scale, data, and global market access.
Agriculture Decline Triggers Policy Rethink
Agriculture GVA has been a growing concern for the government.
The sector’s contribution dropped to 17.7 percent in 2023-24 from 20.21 percent in 2020-21. This decline prompted intervention from the Prime Minister’s Office, pushing the Finance Ministry to rework priorities. The result is visible in the budget’s fine print, where agriculture-linked institutions see sharper focus than headline schemes.
Cooperatives Take Centre Stage
Cooperatives emerge as the biggest structural theme in this budget.
For the first time, ₹450 crore has been allocated to the National Cooperative Export Ltd, a venture backed by Amul, Kribhco, Nafed, IFFCO, and NCDC. In parallel, the government has retained its ₹500 crore allocation to NCDC, taking total cooperative sector funding beyond ₹1,400 crore, significantly higher than last year.
This signals a clear intent to revive rural growth through cooperative-led scale and coordination.
Digital Push Through PACS Computerisation
Digital Agriculture is being quietly strengthened at the grassroots level.
The budget has earmarked ₹364 crore for the computerisation of 67,930 Primary Agricultural Cooperative Societies. While lower than last year’s allocation, utilisation has improved focus. The government has also trimmed funding for non-performing schemes, indicating a sharper emphasis on execution rather than announcements.
Once digitised, these societies will provide real-time intelligence on crop supplies, demand, prices, and input availability.
Exports Strategy Gets a New Anchor
Agri Exports are set to be driven increasingly through NCEL.
The demand note highlights goals of higher efficiency, transparency, and profitability at the cooperative level. NCEL’s exposure to global markets and its ongoing exports of rice, wheat, and coarse cereals position it as a future export heavyweight. With Amul’s backing, the institution is expected to expand rapidly across commodities.
Notably, NCEL’s allocation is nearly five times higher than APEDA’s, underlining a shift in export strategy.
Conclusion
India Budget 2026-27 signals a long-term structural play rather than short-term farm relief. By aligning Cooperatives, Digital Agriculture, and Agri Exports, the government is attempting to rebuild agriculture’s economic relevance and strengthen rural incomes. If coordination between NCEL, NCDC, and primary societies works as planned, this fine print could redefine India’s farm economy over the next few years.