While the Union Budget 2026–27 has reaffirmed the government’s commitment to agriculture through continued support and incremental increases in allocations, several analysts and sector experts have expressed concern over the absence of a strong, transformative push for agricultural infrastructure. According to critics, the budget’s measures largely focus on fine-tuning existing schemes rather than introducing bold new investments capable of addressing long-standing structural gaps in the farm sector.
Experts point out that agriculture continues to suffer from inadequate irrigation coverage, limited storage and warehousing capacity, insufficient cold chain infrastructure and weak rural logistics. These gaps contribute to high post-harvest losses, price volatility and reduced income realisation for farmers. However, the budget, they argue, does not announce large-scale funding or flagship programmes aimed at overhauling these critical infrastructure needs.
Several analysts have described the budget’s approach as cautious, noting that while digital initiatives, crop diversification and allied sector support are positive steps, they cannot substitute for physical infrastructure on the ground. Without significant investments in irrigation networks, rural roads, processing facilities and market yards, the benefits of technology and diversification may remain uneven and limited to select regions.
Critics have also highlighted that the modest increase in agriculture allocations may not be sufficient to meet the growing demands of a sector facing climate stress, rising input costs and increasing market risks. They argue that stronger capital expenditure in agriculture could have played a vital role in boosting productivity, improving resilience and generating rural employment.
Farmer organisations have echoed similar concerns, calling for greater support for local storage, cold chains and decentralised processing units to help farmers reduce distress sales and improve value realisation. They also emphasised the need for enhanced investment in irrigation and water management infrastructure to address recurring droughts and uneven rainfall patterns.
Despite these criticisms, some observers acknowledge that the budget maintains policy continuity and avoids disruptive changes. However, they caution that without a decisive infrastructure-led push, the pace of agricultural transformation may remain gradual.
As discussions around the budget continue, experts stress that sustained and scaled-up investment in agricultural infrastructure will be essential to unlock productivity gains, stabilise farmer incomes and ensure long-term growth of the farm sector.
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