2026 Budget: What's in Store for Small Farmers? Reforms Needed for Sustainable Growth

• Agriculture remains India's economic backbone, employing nearly half the population, with its GDP share at 17.8% in FY 2023-24.
• Modern agricultural technologies like precision farming and drone tech are not reaching 86% of small and marginal farmers due to limited resources.
• The 2026-27 budget needs to prioritize long-term structural reforms over temporary subsidies to make agriculture sustainable.
• Farmer Producer Organizations (FPOs) and production cluster models are crucial for small farmers to access collective production, inputs, and markets.
• Investment in water management, climate-resilient agriculture, agri-entrepreneurship, and a focus on 100 low-productivity districts are vital for rural economic growth.

Why It Matters: The 2026 budget must focus on structural reforms, FPOs, and technology to empower small farmers and ensure sustainable agricultural growth.