UP Budget 2026: Govt Allocates ₹10,888 Crore to Boost Agriculture

On 11 February, the Uttar Pradesh government presented its 10th budget under the honourable Chief Minister Yogi Adityanath. Finance Minister Suresh Khanna tabled the 2026–27 budget in the state Assembly and announced an allocation of ₹10,888 crore for agriculture and allied schemes.

While presenting the budget, Mr. Khanna said that the sugarcane farmers have received record payments. He added that the farm production has reached new highs, making Uttar Pradesh the country’s top agricultural state.

UP Strengthens its Position in Agriculture

The finance minister said that UP leads the nation in the production of wheat, paddy, sugarcane, potato, banana, mango, guava, amla, and mentha.

The state government reiterated that it has paid ₹3,04,321 crore to sugarcane farmers in the last nine years. This is about ₹90,888 crore more than payments made by previous governments.

Irrigation and Flood Control Schemes

The government has proposed ₹18,290 crore for irrigation and flood control schemes in 2026–27. This marks a 30% increase compared to the previous financial year. The scheme aims to improve water supply for farming and help reduce crop losses from floods.

The Government has already been providing Free electricity for irrigation from tubewells since 1 April 2023.

Better Prices and Government Procurement

• For the 2025–26 sugarcane season, rates were increased by ₹30 per quintal, likely bringing farmers about ₹3,000 crore extra.
   
• In Rabi 2025–26, the state procured 10.27 lakh metric tonnes of wheat and paid ₹2,512 crore.
   
• In Kharif 2025–26, it bought 42.96 lakh metric tonnes of paddy, paying over ₹9,710 crore.
   
• The government also purchased 2.14 lakh metric tonnes of bajra from 54,253 farmers, disbursing ₹595 crore.

Loans and Insurance Support for Farmers

• Under short-term crop loans (2025–26), ₹10,257 crore was disbursed to 15.01 lakh farmers till 19 December 2025.
   
• Under long-term loans, ₹205 crore was released to 6,870 farmers against a target of ₹600 crore (till 30 November 2025).
   
• In Kharif 2025–26 (till December 2025), 2.69 lakh insured farmers received ₹215 crore under crop insurance.
   
• Under PM Fasal Bima Yojana (2017–18 to 2024–25), about 62 lakh farmers were paid ₹5,110 crore in compensation.
   
• Under PM-KISAN (FY 2025–26, till December 2025), around ₹94,668 crore was transferred via DBT to 3.12 crore farmers.

Agri-export Hub to Boost Farmers’ Income

Mr. Khanna announced that an agri-export hub will be set up under the World Bank-assisted UP-AGREES project. The hub aims to strengthen agricultural exports, improve market access, and help farmers earn better prices for their produce.

Special Focus on Farmers

After the budget presentation, CM Yogi Adityanath said that the government is keeping a close watch on farmers. He announced that subsidies will be provided for building warehouses and storage facilities under the state’s largest food storage scheme. 

He added that farmers are the backbone of India’s development, and the government is working to make them active participants in growth and turn them into agri-entrepreneurs through various schemes.

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