Union Budget 2026: Government's Strategic Push for High-Value Nuts in Agriculture
Presenting the Union Budget 2026-27 in Parliament, Finance Minister Nirmala Sitharaman emphasized the government's commitment to Sabka Sath, Sabka Vikas through the third Kartavya. A key highlight was the focus on High Value Agriculture, with specific support for crops like coconut, sandalwood, cocoa, and cashew in coastal regions. Additionally, the budget outlined support for Agar trees in the Northeast and nuts such as almonds, walnuts, and pine nuts in hilly areas.
This initiative aims to increase farmers' incomes and enhance India's global competitiveness. A dedicated program for Indian cashew and cocoa was proposed to make the country self-reliant in raw production and processing by 2030, transforming these products into premium global brands. Below, we explore the six nuts that garnered government attention and the reasons behind this strategic focus.
Walnuts: A Temperate Nut with Export Potential
According to the Ministry of Commerce and Industry, walnuts are the most important temperate nut fruit in India. They thrive at altitudes of 900 to 3000 meters and are categorized into four types: paper-shelled, thin-shelled, medium-shelled, and hard-shelled. Native varieties include Lake English and Opex Caulchry in Jammu and Kashmir, and Gobind in Himachal Pradesh.
Jammu & Kashmir leads in area and production, with 86.44 thousand hectares under cultivation in FY24 and a production of 307.11 thousand tonnes. India exported 2134.22 MT of walnuts worth USD 7.80 million, with key destinations being the United Arab Emirates, Turkey, and Iraq.
Coconut: India's Global Leadership in Production
India is the world's largest producer of coconut, holding a 30.93% share in global production (2020-21). Karnataka emerged as the top state in 2023-24, contributing 28.5% of the total yield. Coconuts are a rich source of healthy fats, particularly medium-chain triglycerides (MCTs), making them an integral part of Indian diets and a valuable export commodity.
Cashews: Boosting Production and Reducing Imports
India ranks 4th globally in the export of cashew nuts (shelled), with a 6.60% market share, but is also the 12th largest importer of raw cashews. Production increased from 782 thousand tonnes in 2022-23 to 795 thousand tonnes in 2023-24, a growth of 1.66%. Cultivation is mainly in peninsular regions, including Maharashtra, Kerala, and Tamil Nadu.
Government initiatives under MIDH and RKVY aim to expand cultivation and adopt high-yield varieties to meet growing domestic and international demand, reducing reliance on imports.
Almonds: Addressing Import Dependency with Local Support
The USDA Post forecasts a 3% rise in India's almond imports for MY 2025-26, reaching over 1.9 lakh tonnes, due to increasing consumption. Domestic production is projected to decline to 4,100 tonnes from 4,150 tonnes, impacted by adverse climate conditions in Jammu and Kashmir and Himachal Pradesh.
Almonds are rich in healthy fats, protein, fiber, vitamin E, and minerals like magnesium, supporting heart health, skin vitality, and energy metabolism. Government support aims to enhance local production and reduce import dependency.
Cocoa: Leveraging Synergies with Perennial Crops
Cocoa is a commercial plantation crop that is often grown alongside coconut and arecanut palms, utilizing shared alley spaces and microclimatic conditions. Native varieties include cocoa beans, powder, and butter. Major cultivation areas are Andhra Pradesh, Kerala, Karnataka, and Tamil Nadu.
In FY25, India exported 45,489.28 MT of cocoa products worth USD 295.58 million. The budget's focus aims to boost production and processing, enhancing India's position in the global cocoa market.
Pine Nuts: Niche Crop with Health Benefits
Pine nut production is concentrated in Himachal Pradesh (Kinnaur), Jammu & Kashmir, and Uttarakhand. These nuts are rich in monounsaturated fats, plant-based protein, iron, magnesium, and zinc. They contain pinolenic acid, which promotes satiety and aids weight management.
Government support for pine nuts in hilly regions aims to tap into their health benefits and export potential, contributing to regional economic development.
In summary, the Union Budget 2026-27's focus on these six nuts underscores a strategic move to strengthen high-value agriculture, increase farmer incomes, and position India as a global leader in nut production and exports by 2030.
