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New Delhi: Agriculture and allied sectors broadly welcomed the Union Budget 2026 on Sunday, February 1, praising government plans to add 20,000 veterinary professionals, boost offshore fishing through duty cuts, and support high-value crops like cashew and walnuts, though the edible oil sector expressed disappointment over the lack of measures to curb import dependence.

Industry executives said the Budget marks a strategic shift toward technology-driven, productivity-focused farming, with new Artificial Intelligence (AI) platforms, expanded veterinary infrastructure, and targeted support for fisheries, dairy, and specialty crops aimed at raising farm incomes and export competitiveness.

Fisheries and marine products

Dr Grinson George, Director of ICAR-Central Marine Fisheries Research Institute, said the Budget introduces a strategic framework for the blue economy by incentivising offshore and high-seas fishing through critical duty exemptions.

“This move is expected to alleviate the ecological pressure on near-shore resources while significantly enhancing the global competitiveness of Indian seafood exports,” he told PTI.

By treating overseas landings as exports, the budget provides small-scale fishers with a vital gateway to premium global markets and better price realisation, he said, adding that emphasis on value chain startups, women-led groups, and fish farmer producer organisations ensures deeper value chain integration.

Dr Ram Mohan MK, Director of Marine Products Export Development Authority (MPEDA), said the duty exemption on marine fish catch in high seas will boost investment and exploit resources.

Dairy and livestock

Heritage Food Executive Director Brahmani Nara welcomed the scaling up of veterinary capacity by 20,000 professionals through new colleges, hospitals, laboratories and para-vet networks.

“This directly addresses the severe shortage we flagged: bridging the gap from 68,000 to the required 1,10,000-1,20,000 veterinarians,” she said.

For over 3,00,000 farmer partners, this veterinary infrastructure expansion, coupled with enhanced credit-linked subsidies, will unlock better animal health, improved breeding outcomes, higher milk yields, and affordable credit access for livestock investments, she added.

Milky Mist Dairy Food CEO K Rathnam said measures extending tax deductions to cattle feed supplied by primary cooperatives and rationalising inter-cooperative dividend taxation “go beyond short-term relief and address structural challenges faced by dairy farmers”.

Godrej Agrovet MD and CEO Sunil Kataria said the Budget reinforces agriculture as a key pillar in India’s journey towards Viksit Bharat, with targeted attention on livestock, fisheries and allied sectors showcasing a shift towards diversified and income-resilient farm systems.

High-value crops and diversification

Manoj Dabas, India Country Director, CIFOR-ICRAF, said the FM’s announcement of initiatives to boost farmer incomes through Trees Outside Forest commodities such as coconut, cashew, sandalwood, agarwood, and walnuts would not only empower rural livelihoods but also build long-term ecological resilience for the country.

India has lost leadership to Australia in Sandalwood and needs to reclaim its past primacy, lost due to apathy and lack of foresight in the past.

Agarwood is a high-revenue tree crop selling at a price as high as Rs 27 lakh per kg, but it requires a high level of technical inputs like inoculation and, if managed well, can transform the rural economy of the Northeast, he said.

EY India Partner and Leader (Social and Skills Sector) Amit Vatsyayan said the Budget reflects a strategic shift from allocation-driven spending to acceleration-oriented reforms.

Nut and Dry Fruit Council of India President Gunjan Vijay Jain called the focused support for cashew, almonds and walnuts “both timely and impactful”.

“The dedicated programme for raw cashew is particularly important, as it addresses challenges around domestic availability, processing capacity and value addition,” he said.

Insecticides (India) MD Rajesh Aggarwal highlighted the coconut productivity enhancement scheme as a timely intervention to strengthen farm incomes by replacing non-productive trees with high-yielding varieties.

Technology and modernisation

CNH India President & MD Narinder Mittal said the Budget signals that India’s agricultural growth will be driven by productivity and technology-led modernisation, with initiatives like the AI-enabled Bharat-VISTAAR platform and investments in irrigation infrastructure.

Simon Wiebusch, Country Divisional Head of Bayer’s Crop Science Division in India, Bangladesh & Sri Lanka, said the Budget reinforces the shift towards high-value, climate-resilient agriculture anchored in productivity, technology and value chains.

Seeds sector

Federation of Seed Industry of India Chairman Ajai Rana called the Budget “enabling and complementary” to the previous year’s, saying it brings together essential ingredients for farm growth.

However, the industry had expected measures such as restoration of the 200 per cent weighted tax deduction on R&D, GST rationalisation for seeds, and a PLI-type incentive framework to further strengthen innovation and domestic seed development, he said.

Edible oils, a missed opportunity

The Solvent Extractors’ Association (SEA) expressed disappointment that the Budget did not address India’s growing dependence on edible oil imports.

“The Budget did not touch on measures that would reduce our dependence on the import of edible oil,” SEA said, though it noted the finance minister maintained the current import duty structure.

Fertiliser sector

“We see the removal of exemptions not as a hurdle, but as a necessary step toward the self-reliance and predictable environment required for capital-intensive sectors to thrive,” Matix Fertilisers & Chemicals Chairman Nishant Kanodia said.

Fertiliser Association of India Chairman S Sankarasubramanian said the Budget allocation for fertilisers underline a steady commitment to domestic capability.

“The emphasis on customs duty rationalisation and addressing inverted GST structures is particularly important, as it helps streamline costs, improve cash flows, and create a more predictable operating environment,” he added.

Yara South Asia MD Sanjiv Kanwar said, “The continued emphasis on value addition, support for women-led rural enterprises, and long-term sustainability aligns well with the industry’s focus on responsible fertiliser use and efficient farming systems.”