Budget 2026 Sparks Concern Over Cuts in Agri Research & Dairy Support
The Union Budget 2026-27 has drawn sharp criticism from agricultural stakeholders over a reduction in research funding that they fear will slow productivity growth and weaken long-term support for farmers. Allocations for the Department of Agricultural Research and Education (DARE) were reduced to ₹9,967 crore from ₹10,281 crore previously, raising alarm among experts who see research as essential for innovation, climate resilience and sustained income gains for farm producers.
While the Budget pushed for high-value and allied sectors — including animal husbandry, fisheries and AI-enabled platforms — critics argue that core agricultural R&D and structural investments were sidelined. The government earmarked funds to promote plantation and high-value crops such as coconut, sandalwood and tree nuts, but detractors say this strategy will unlikely translate into broad-based farmer incomes without deeper investment in productivity, storage and climate adaptation.
Kuldeep Sharma, a dairy sector expert and founder of dairy consultancy Suruchi Consultants, voiced strong concerns that the Budget fails to match dairy’s economic importance. “The Budget ignores dairy’s central role in agriculture. Dairy accounts for nearly a third of agriculture’s GVA and is the main reason farm incomes remain viable — without it many farmers would slip into losses,” Sharma said. He pointed out that despite agriculture receiving **₹1.5-2 lakh crore in support, dairy’s allocation remains disproportionately small — barely ₹4,000-6,000 crore — much of which often goes unspent.
Sharma underscored that India may be the world’s largest milk producer, yet productivity remains among the lowest globally, farmer incomes have stagnated for over a decade, and global trade share is negligible. “Marginal increases in schemes like the National Gokul Mission, processing infrastructure or dairy entrepreneurship are far too small to raise productivity, expand processing beyond the current ~20 %, or improve competitiveness,” he added.
According to Sharma, the Budget lacks meaningful support for exports, quality and traceability infrastructure, GST relief on inputs and training, or inclusion of small producers in incentive schemes — elements he says are critical for making India’s dairy sector globally competitive and financially rewarding for farmers.
The broader Budget narrative also highlighted new initiatives such as the ₹150 crore Bharat Vistaar AI platform intended to integrate farm data and advisory services, and continued backing for livestock and fisheries as drivers of rural jobs and diversified incomes. However, detractors assert that without foundational research and structural support, these measures may fall short of boosting incomes for millions of farm families across India.
Source : DAirynews7x7 Feb 2nd 2026 Read full story here
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