UP Budget 2026 - Bumper Package of ₹10,888 crore for Agriculture

Agri Sector Gets Major Push in UP Budget 2026 with ₹10,888 Crore

On 11 February, the Uttar Pradesh government presented its 10th budget under Chief Minister Yogi Adityanath. Finance Minister Suresh Khanna shared the 2026–27 budget in the state Assembly, announcing ₹10,888 crore for agriculture and related schemes.

Mr. Khanna said that sugarcane farmers have received record payments. Moreover, farm production in the state has reached new highs, making UP the top agricultural state in India.

UP Leads in Crop Production

The finance minister highlighted that the state is the largest producer of wheat, paddy, sugarcane, potatoes, bananas, mangoes, guava, amla, and mentha. Over the last nine years, the government has paid ₹3,04,321 crore to sugarcane farmers. This is ₹90,888 crore more than previous governments.

More Funds for Irrigation and Flood Control

The budget allocates ₹18,290 crore for irrigation and flood control in 2026–27, a 30% increase from last year. The aim is to provide better water supply for farms and reduce crop losses from floods. Free electricity for tubewell irrigation has been provided since April 2023.

Better Prices and Government Purchases

For the 2025–26 sugarcane season, rates were raised by ₹30 per quintal, helping farmers earn around ₹3,000 crore more.

• In Rabi 2025–26, the state bought 10.27 lakh metric tonnes of wheat and paid ₹2,512 crore.
   
• In Kharif 2025–26, 42.96 lakh metric tonnes of paddy were purchased, costing over ₹9,710 crore.
   
• The government also bought 2.14 lakh metric tonnes of bajra from 54,253 farmers, paying ₹595 crore.

Loans and Insurance Support

• Short-term crop loans of ₹10,257 crore were given to 15.01 lakh farmers. Long-term loans of ₹205 crore reached 6,870 farmers.
   
• Under crop insurance, 2.69 lakh farmers received ₹215 crore in Kharif 2025–26. From 2017–18 to 2024–25, about 62 lakh farmers got ₹5,110 crore under PM Fasal Bima Yojana.
   
• Under PM-KISAN, ₹94,668 crore was transferred directly to 3.12 crore farmers in 2025–26 (till December 2025).

Agri-Export Hub to Help Farmers

Mr. Khanna said a new agri-export hub will be built under the UP-AGREES project, with support from the World Bank. The hub will help farmers sell their produce abroad and get better prices.

Government Focus on Farmers

CM Yogi Adityanath said the government will provide subsidies for building warehouses and storage facilities. He added that farmers are the backbone of the state, and the government wants to turn them into successful agri-entrepreneurs.