Union Budget 2026: FM Sitharaman announces coconut promotion scheme, dedicated programmes to boost high-value agriculture

The Union finance minister Nirmala Sitharaman on Sunday announced a series of initiatives aimed at boosting high-value agriculture, including a new Coconut Promotion Scheme and dedicated programmes for cashew, cocoa and sandalwood, while presenting the Union Budget 2026-27.Unveiling the Coconut Promotion Scheme, Sitharaman said the initiative seeks to raise production and productivity, especially in major coconut-growing states, to strengthen India’s global competitiveness. The scheme will focus on key interventions such as replacing old and non-productive trees with high-yielding saplings. “To further enhance competitiveness in coconut production, I propose a coconut promotion scheme to increase production and enhance productivity through various interventions, including replacing non-productive trees with new saplings or plants of varieties in major coconut-growing states,” the finance minister said.The finance minister also announced a dedicated programme for the cashew and cocoa sectors, with the goal of reducing India’s dependence on imports and strengthening its position in global markets.“A dedicated program is proposed for Indian cashew and cocoa to make India self-reliant in raw cashew and coconut production and processing, enhance export competitiveness and transform Indian cashew and Indian cocoa into premium global brands by 2030,” Sitharaman said.Highlighting the cultural and economic significance of sandalwood, Sitharaman said the Centre would work closely with state governments to revive the sector through focused cultivation and improved post-harvest processing.“Sandalwood is closely linked to India's social and cultural heritage. Our government will partner with state governments to promote focused cultivation and post-harvest processing to restore the glory of the Indian sandalwood ecosystem,” she said.The budget also proposed measures to rejuvenate old and low-yielding orchards and promote high-density cultivation of walnuts, almonds and pine nuts. Sitharaman said the initiative would help enhance farmer incomes, promote value addition and create opportunities for youth engagement in agriculture.“To rejuvenate old, low-yielding orchards and expand high-density cultivation of walnuts, almonds, and pine nuts, we will support a dedicated program to enhance farmer incomes and in bringing value addition by engaging youth,” she added.In the animal husbandry sector, the finance minister said the government would focus on generating quality employment in rural and peri-urban areas through a credit-linked subsidy programme. She also outlined plans to modernise livestock enterprises, build integrated livestock, dairy and poultry value chains, and promote livestock farmer producer organisations.For high-value agriculture more broadly, Sitharaman said support would be extended to crops such as coconut and sandalwood to diversify farm output, improve productivity, raise farm incomes and create new employment opportunities.(With inputs from ANI)