Agriculture Must Drive Growth, Not Depend on Handouts
As India prepares its Budget 2026, the agriculture sector is demanding a fundamental shift away from welfare-based thinking toward genuine economic empowerment. Industry leaders are calling for structural reforms that prioritize productivity, personal responsibility, and market-driven solutions over government dependency.
Moving Beyond the Welfare Mentality
The agriculture sector, which contributes 18% to India's GDP and employs over 45% of the workforce, has been trapped in a cycle of subsidies and handouts that undermines long-term competitiveness. Ravindra Agrawal, Chairman of KisanKraft Ltd, argues that Budget 2026 must deliver architecture-level reforms that reward efficiency rather than consumption.
"We need scientifically designed, Package of Practice linked incentives tied to production outcomes. Performance-based support improves soil health, enhances resource efficiency and strengthens farmer incomes," Agrawal stated, emphasizing the importance of merit-based assistance over blanket subsidies.
Technology and Individual Responsibility
The call for mechanization subsidies delivered through Direct Benefit Transfer (DBT) and restricted to approved equipment reflects a conservative approach to government spending. States should maintain control over beneficiary selection to ensure accountability and prevent waste.
Sanjiv Kanwar, Managing Director of Yara South Asia, stressed that agriculture should be viewed as a strategic growth engine rather than a burden on public finances. "Strengthening farmer income security through predictable markets, higher productivity, affordable credit and effective crop insurance is essential," he said.
Building Competitive Advantage
The dairy sector exemplifies India's potential when freed from excessive regulation. Ranjith Mukundan, CEO of Stellapps Technologies, noted that while India is the world's largest milk producer, its share in global dairy exports remains disappointingly low due to structural inefficiencies.
"Budget 2026 should focus on digital dairy procurement, cold-chain expansion and a shift towards export-ready value-added dairy products," Mukundan said, highlighting the need for market-oriented solutions.
Reducing Import Dependency
India's reliance on imported edible oils represents a strategic vulnerability that conservative economic policy should address. Sparsh Sachar from Nutrica advocates for increased oilseed productivity and climate-resilient infrastructure, coupled with predictable import-duty frameworks that protect domestic producers.
The emphasis on food processing and value-added products like honey and peanut butter demonstrates how traditional agricultural values can align with modern market demands, supporting both family farming operations and consumer choice.
A Vision for Self-Reliance
The consensus among industry leaders is clear: Budget 2026 must abandon the welfare approach and embrace agriculture as a driver of sustained economic growth. This requires long-term structural reforms focused on productivity improvements, supply chain strengthening, and stable income generation through market mechanisms rather than government transfers.
Such an approach aligns with conservative principles of individual responsibility, limited government intervention, and the protection of traditional industries while embracing technological advancement and global competitiveness.