Budget 2026 Pushes Coconut and High-Value Agriculture

Union Finance Minister Nirmala Sitharaman has announced a series of targeted initiatives to promote high-value agriculture in the Union Budget 2026, with a focus on coconut, cashew, cocoa, sandalwood, and select horticultural crops. The measures are aimed at improving productivity, reducing import dependence, enhancing export competitiveness, and raising farm incomes through diversification and value addition.

Coconut Promotion Scheme Announced

The Budget unveiled a new Coconut Promotion Scheme to enhance production and productivity in major coconut-growing states. The scheme will focus on replacing old, senile, and non-productive coconut trees with high-yielding varieties, improving farm practices, and strengthening India’s position in global coconut markets. The government sees coconut as a high-value crop with strong export potential across food, oil, fibre, and value-added segments.

Dedicated Programmes for Cashew and Cocoa

Sitharaman also announced a dedicated programme for the cashew and cocoa sectors. The initiative aims to make India self-reliant in raw cashew and cocoa production, reduce dependence on imports, and strengthen domestic processing capacity. The programme targets transforming Indian cashew and Indian cocoa into premium global brands by 2030, supported by productivity enhancement, quality improvement, and export-oriented strategies.

Sandalwood Revival and Orchard Rejuvenation

Highlighting sandalwood’s cultural and economic significance, the Finance Minister said the Centre will work with state governments to revive the Indian sandalwood ecosystem. The focus will be on planned cultivation and improved post-harvest processing. In addition, the Budget proposes rejuvenation of old and low-yielding orchards and promotion of high-density cultivation of walnuts, almonds, and pine nuts to boost productivity and farmer incomes.

Important Facts for Exams

• Coconut Promotion Scheme focuses on replacing non-productive trees.
• Dedicated programmes announced for cashew and cocoa sectors.
• Sandalwood revival includes cultivation and post-harvest processing.
• High-density horticulture promoted for nuts like walnut and almond.

Livestock and High-Value Agriculture Linkages

Beyond crops, the Budget also emphasised high-value agriculture through animal husbandry reforms. A credit-linked subsidy programme will support modernisation of livestock enterprises and integrated dairy and poultry value chains, alongside promotion of livestock farmer producer organisations. Together, the crop- and livestock-focused measures are intended to diversify farm output, generate rural and peri-urban employment, engage youth in agriculture, and shift Indian farming towards higher-value, market-oriented production systems.