Budget 2026: Government Targets Global Markets with Coconut, Cashew, Cocoa and Sandalwood Push [Read Finance Bill 2026]

The Union Budget for the Financial Year 2026–27 was presented by Finance Minister Nirmala Sitharaman in the Lok Sabha today (Sunday, 1 February 2026), with a strong focus on promoting high-value agricultural crops such as coconut, cashew, cocoa and sandalwood to boost farmer incomes and strengthen India’s presence in global markets.

The Finance Minister announced a series of targeted initiatives aimed at diversifying farm output, enhancing productivity and generating employment, particularly in coastal, hilly and forest-linked regions. The measures form part of the Government’s broader strategy to move Indian agriculture towards higher value addition and export competitiveness.

India, the world’s largest producer of coconuts, supports nearly 30 million livelihoods, including around 10 million farmers, through the crop. To further enhance competitiveness, the Budget proposed a Coconut Promotion Scheme to increase production and productivity, including the replacement of old and non-productive trees with improved varieties in major coconut-growing states.

A dedicated programme for cashew and cocoa was also announced to make India self-reliant in raw cashew and cocoa production and processing. The initiative aims to enhance export competitiveness and transform Indian cashew and Indian cocoa into premium global brands by 2030, while expanding domestic value addition and employment opportunities.

Emphasising the cultural and economic importance of sandalwood, the Finance Minister said the Government will partner with state governments to promote focused cultivation and post-harvest processing, with the objective of restoring the Indian sandalwood ecosystem and improving farmer returns.

The Budget also highlighted support for high-value agriculture across regions, including plantation crops in coastal areas, tree-based crops in the North-East, and nuts such as almonds, walnuts and pine nuts in hilly regions. These initiatives are expected to create new income and entrepreneurship opportunities, particularly for rural youth.

The targeted push for plantation and tree-based crops aligns with the Government’s wider objective of increasing farmer incomes, strengthening agri-value chains and expanding India’s agri-exports as part of its vision of a Viksit Bharat.

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