Budget 2026's Sectoral Push Holds Promise for Uttarakhand's Agricultural Landscape
The Union Budget 2026-27 has placed a strategic emphasis on sectors including Ayurveda, medicinal herbs, dry fruits, modern horticulture, artificial intelligence tools, and hemp, which analysts are hailing as a significant and potentially transformative move for a mountainous state like Uttarakhand. The state's challenging terrain, characterized by remote villages and fragmented small landholdings, has historically limited economic returns for its agrarian community. This budget's focus is seen as directly targeting products and activities that could uplift small and marginal farmers in hill regions.
High-Value Herbs Offer Path to Prosperity on Small Plots
Experts point out that medicinal herbs central to Ayurvedic formulations—such as Ashwagandha, Giloy, Tulsi, Kalmegh, Sarpagandha, Jatamansi, Kutki, and Atis—can be cultivated effectively even on limited plots of land. A systematic integration of these high-value crops into Uttarakhand's agricultural planning is believed to have the potential to substantially boost farmer incomes. This aligns with the state's natural landscape, which is conducive to such cultivation.
Professor Anjal Prakash, an IPCC author and research director at the Bharti Institute of Public Policy, ISB Hyderabad, provided insight into the budget's execution framework. "The budget signals a decisive shift from policy announcement to rigorous execution, framed by the Reform Express agenda, which has already operationalised over 350 reforms," he stated. "The rollout of Bharat-Vistaar in agriculture illustrates a move from generic aid to customised, AI-driven risk mitigation for farmers."
Cautious Optimism Among Local Farmers
On the ground, farmers in Uttarakhand are expressing a mix of hope and caution. Neeraj Baunthiyal, a small farmer from Gopeshwar in Chamoli district, shared his perspective. "Uttarakhand's landscape is inherently suitable for cultivating high-value herbs and medicinal plants. We are hopeful that government officials will provide the necessary support to help us maximise the benefits from such schemes and realise the vision outlined in this budget," he remarked.
Criticism from Farm Leaders Highlights Unaddressed Core Issues
However, the budget has also drawn sharp criticism from farm union leaders who argue it fails to tackle fundamental rural distress. Bharatiya Kisan Union (BKU) national spokesperson Chaudhary Rakesh Tikait, speaking on Sunday, asserted that the budget neglected the core issues facing rural India, including farmers, labourers, and tribal communities.
Tikait highlighted several key shortcomings:
- The absence of provisions for a farm loan waiver or a legal guarantee for Minimum Support Price (MSP), offering no concrete relief against rising input costs, inflation, mounting debt, and falling incomes.
- No announced measures to boost employment, raise minimum wages, or ensure social security for agricultural labourers, with a warning that rural youth unemployment could worsen.
- Disappointment over the unchanged annual income support of Rs 6,000 for farmers under the PM Kisan Samman Nidhi scheme. "There was hope that it would be increased to Rs 12,000 considering inflation. This is our right. We submit our demands in writing every year, but there has been no significant change," he said.
Opposition to Seeds Act and Broader Tribal Neglect
Tikait also declared opposition to the upcoming Seeds Act, citing a lack of government monitoring leading to the sale of adulterated seeds and inadequate compensation for crop losses. He criticized the existing crop insurance scheme as ineffective, particularly when crops are destroyed by water-related issues.
Furthermore, he contended that critical issues concerning water, forests, land, education, health, and the livelihoods of tribal communities were not given due priority in the budget. Instead, he accused the budget of favouring urban and corporate interests. "The budget appears detached from ground realities," Tikait stated, urging the government to reconsider its policies with farmers and rural India at the core.
The Union Budget 2026-27, therefore, presents a dual narrative: one of targeted opportunity for hill state agriculture through niche sectors and technology, and another of perceived neglect of broader, systemic rural challenges. Its ultimate impact on Uttarakhand's farmers will depend heavily on the effectiveness of its implementation and the government's response to the criticisms raised.
