Union Budget 2026 Pushes High-Value Agriculture With Focus on Coconut, Cashew and Cocoa

Budget 2026 Lays Out Strategy for High-Value Agriculture Growth

Union Finance Minister Nirmala Sitharaman has announced a set of targeted interventions in the Union Budget 2026 to reposition Indian agriculture towards higher value, better returns, and stronger global competitiveness. The measures focus on crops such as coconut, cashew, cocoa, sandalwood, and select horticultural produce, alongside allied activities, to boost farmer incomes through productivity gains, diversification, and value addition.

New Coconut Promotion Scheme

A dedicated Coconut Promotion Scheme has been unveiled to revitalise India’s coconut sector. The programme will prioritise replacement of ageing and unproductive coconut palms with high-yielding varieties, adoption of improved agronomic practices, and enhanced plantation management. Coconut is viewed as a strategic high-value crop with export potential across edible products, coconut oil, fibre, and processed value-added goods, offering farmers diversified income streams.

Self-Reliance Drive for Cashew and Cocoa

The Budget also announced a focused programme for cashew and cocoa cultivation and processing. India currently relies heavily on imports of raw cashew and cocoa beans. The new initiative aims to bridge this gap by improving domestic productivity, strengthening processing capacity, and reducing import dependence. The long-term objective is to establish Indian cashew and cocoa as premium global brands by 2030, supported by quality enhancement and export-oriented growth strategies.

Sandalwood Revival and Nut Crop Rejuvenation

Recognising the economic and cultural value of Indian sandalwood, the Centre will work with states to revive the sandalwood ecosystem through planned cultivation and improved post-harvest processing. In parallel, the Budget proposes rejuvenation of old and low-yielding orchards and promotion of high-density planting for walnuts, almonds, and pine nuts. These measures are designed to raise per-hectare productivity and encourage farmers to shift towards more remunerative horticultural crops.

Important Facts for Exams

• Coconut Promotion Scheme targets replacement of senile and non-productive trees.

• Dedicated programmes launched for cashew and cocoa self-reliance.

• Sandalwood revival focuses on cultivation and post-harvest processing.

• High-density horticulture promoted for walnut, almond, and pine nut crops.

Livestock Linkages and Rural Income Diversification

Complementing crop-focused initiatives, the Budget also strengthens high-value agriculture through animal husbandry reforms. A credit-linked subsidy scheme will support modern livestock enterprises, integrated dairy and poultry value chains, and livestock-based farmer producer organisations. Together, these measures aim to diversify farm incomes, create rural employment, attract youth to agriculture, and shift Indian farming towards market-driven, high-value production systems.