Budget 2026: Coconut emerges as key growth crop as Sitharaman pushes high-value agriculture

The Union Budget 2026 presented by Finance Minister on February 1 is anchored around the theme of three Kartavya, or national duties, with a strong push towards strengthening agriculture, rural livelihoods and value-added growth. A highlight this year is the government’s renewed focus on coconut and other high-value crops as engines of income, exports and self-reliance.

Finance Minister Nirmala Sitharaman announced a series of measures to promote high-value crops, placing coconut at the centre of the government’s agricultural and livelihood strategy under the Union Budget 2026.

Presenting her ninth Budget in Parliament, Sitharaman said the government will support high-value crops such as coconut, sandalwood, cocoa and cashew in coastal areas, agar trees in the North East, and nuts such as almonds, walnuts and pine nuts in hilly regions. She said India is the largest producer of coconuts globally, with nearly 30 million people, including around 10 million farmers, dependent on coconut-based livelihoods.

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“To further enhance competitiveness in coconut production, I propose a Coconut Production Scheme to increase output and productivity,” Sitharaman said, adding that the scheme will include the replacement of non-productive trees with new saplings, plants or improved varieties in major coconut-growing states.

The Finance Minister said a dedicated programme will also be launched for Indian cashew and cocoa to make the country self-reliant in raw cashew production, strengthen coconut-based processing, and enhance export competitiveness. “Our aim is to transform Indian cashew and cocoa into premium global brands by 2030,” she stated.

Highlighting the cultural and economic significance of sandalwood, Sitharaman said sandalwood is closely linked to India’s social and cultural heritage. She informed Parliament that the Centre will partner with state governments to promote focused cultivation and post-harvest processing to restore the Indian sandalwood ecosystem.

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The Budget also proposes support for rejuvenating old and low-yielding orchards and expanding high-density plantations of walnuts, almonds and pine nuts. Sitharaman said a dedicated programme will be rolled out to enhance farmer incomes while bringing value addition by actively engaging rural youth.

The measures are aimed at boosting productivity, strengthening value chains and positioning Indian agricultural produce more competitively in global markets, while reinforcing livelihoods across coastal, hilly and northeastern regions.