TN allocates Rs 47,248 Cr for Agriculture in Interim Budget, focus on income security and irrigation expansion
Tamil Nadu presented a ₹47,248 crore Agriculture Interim Budget for 2026–27, up from last year, reaffirming farm-led growth. Agriculture Minister M. R. K. Panneerselvam highlighted higher irrigation coverage, MSP incentives for paddy and sugarcane, expanded crop insurance, millet and oilseed promotion, and stronger market infrastructure to boost farmer incomes.
CHENNAI: Reaffirming agriculture as the foundation of Tamil Nadu’s economy, State Minister for Agriculture and Farmers’ Welfare M R K Panneerselvam on Tuesday presented the Agriculture Interim Budget for 2026–27 in the Assembly, announcing an allocation of Rs 47,248.24 crore for the sector and allied departments.
The outlay marks a steady rise from Rs 45,661 crore in 2025–26 and reflects an increase of over Rs 11,000 crore compared to the Rs 34,220 crore allocated in 2021–22, underlining the government’s continued fiscal emphasis on farm growth and income stability.
Presenting the Agriculture Budget, the Minister said the government’s focus remains on enhancing farm incomes, expanding irrigation coverage, improving productivity and ensuring food and nutritional security.
“As agriculture forms the foundation of Tamil Nadu’s economic growth, sustained efforts are being taken to modernise the sector and increase farmers’ income,” he said.
The Minister said an additional 3.48 lakh hectares have been brought under irrigation in the last five years. Over 2 lakh new free electricity connections were provided to farmers during this period, while Rs 33,904 crore has been sanctioned towards free power supply for 23.86 lakh agricultural service connections.
Micro-irrigation systems were installed in 5 lakh hectares at a cost of Rs 4,061 crore, benefiting 5.13 lakh farmers. Desilting of canals and restoration of water bodies were also taken up to strengthen tail-end irrigation access.
To protect farmers against price volatility, the government enhanced procurement incentives for paddy and sugarcane. For the 2025–26 marketing season, a special incentive of Rs 156 per quintal for Grade A paddy and Rs 131 per quintal for common variety has been fixed, raising procurement prices to Rs 2,545 and Rs 2,500 respectively.
Over the last five years, 186 lakh metric tonnes of paddy were procured and Rs 2,118 crore was provided as incentive. For sugarcane, a special incentive of Rs 349 per metric tonne has been announced for the 2024–25 crushing season, fixing the cane price at Rs 3,500 per metric tonne.
Highlighting climate challenges, the Minister said 184 lakh acres were insured under the crop insurance scheme over five years, with the State contributing Rs 6,073 crore as premium subsidy. Compensation amounting to Rs 6,063 crore has been disbursed to 38 lakh farmers for crop loss.
An additional Rs 2,045 crore was extended as relief assistance to 25.36 lakh farmers affected by floods, cyclones and droughts during the period.
Under the Tamil Nadu Millet Mission, 12.84 lakh farmers benefited with an expenditure of Rs 178 crore. Millets were cultivated in 20 lakh acres, with the State ranking first nationally in ragi productivity.
Oilseeds cultivation was encouraged in 14 lakh acres with Rs 229 crore support, while maize area expanded from 10 lakh acres to 12 lakh acres.
In horticulture, 1.68 lakh farmers received Rs 259 crore subsidy for vegetable area expansion. Fruit crops such as mango, jackfruit and banana were expanded in 36,555 hectares with Rs 72.47 crore subsidy.
During the last five years, 137 lakh metric tonnes of agricultural produce were transacted in regulated markets. Around 30 lakh metric tonnes worth Rs 8,748 crore were traded through the e-NAM platform, benefiting 18 lakh farmers.
The government also constructed 253 modern paddy storage godowns with a capacity of 4 lakh metric tonnes and is building 130 additional facilities with a capacity of 3.30 lakh metric tonnes to prevent post-harvest losses.
The Minister said the average Gross State Value Added (GSVA) in agriculture rose from 1.36 per cent during 2012–13 to 2020–21 to 3.03 per cent during 2021–22 to 2024–25. GSVA increased by nearly 10 per cent in 2024–25 compared to constant prices of the base year 2011–12.
“With focused investments and policy support, the sector has recorded measurable growth in production, productivity and farmer welfare,” he said, adding that all existing schemes would continue in 2026–27.
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Source : DT Next
