MSP guarantee, loan waivers and PM-Kisan hike missing as unions call Budget “paper-based” and disconnected from rural India

CHANDIGARH: The Union Budget 2026-27, presented by Finance Minister Nirmala Sitharaman has triggered strong backlash from farmer organisations and agriculture experts, who say the union government has once again failed to address the deep-rooted distress facing India’s farming community-especially the guaranteed Minimum Support Price (MSP).

Although the Budget allocated ₹1,62,671 crore to agriculture a 7 per cent increase over last year and highlighted technology-driven initiatives such as the multilingual AI platform Bharat Vistar, AgriStack, precision farming, fisheries development and promotion of high-value crops like coconut, cashew and cocoa, farmer leaders said the announcements were largely cosmetic and far removed from ground realities.

They pointed out that long-pending demands including a legal guarantee for Minimum Support Price (MSP), enhancement of PM-Kisan Samman Nidhi, farm loan waivers, affordable institutional credit and adequate compensation for crop losses caused by natural disasters were completely missing from the Budget speech.

Samyukt Kisan Morcha (SKM) leader and Bharatiya Kisan Union National Spokesperson Rakesh Tikait described the Budget as “paper-based” and disconnected from rural India, saying it focused on speeches and projections while farmers and agricultural workers remained ignored.

While the Bharatiya Kisan Union (Chaduni) termed the Budget “anti-farmer, disappointing and miles away from reality,” accusing the Centre of prioritising technology platforms and future oriented schemes while neglecting farmers’ immediate economic hardships.

The union highlighted several unresolved issues, including the a legal guarantee for MSP on crops and pricing policy for vegetables and fruits, Rising costs of diesel, fertilisers, seeds and pesticides, Mounting farm debt and need for loan waivers, Proper mechanism for compensation for losses due to floods, droughts and hailstorms and simplification of crop insurance and Increase in PM-Kisan Samman Nidhi from the existing ₹6,000 per year

Calling the current PM-Kisan assistance inadequate amid rising inflation BKU said the ₹6,000 annual support had lost relevance in today’s economic conditions. While the Budget retained the scheme, it did not announce any increase in the payout.

The union demanded immediate corrective steps, including raising PM-Kisan to at least ₹12,000 annually, enactment of MSP law, farmer-friendly credit mechanisms and transparent crop insurance. It warned that continued neglect would force farmers to launch protests to protect their interests.

Agriculture experts echoed these concerns, noting that while the Budget speaks of climate-resilient farming, infrastructure expansion and high-value agriculture, it avoids addressing structural problems such as income insecurity, price volatility and escalating cultivation costs, particularly for small and marginal farmers.

Analysts said successive budgets have relied heavily on technological interventions while steering clear of politically sensitive reforms like MSP legislation and comprehensive debt relief, leaving farmers vulnerable to market fluctuations and climate shocks.

Defending the Budget, the government maintained that higher allocations and innovation-led agriculture demonstrate its commitment to rural development. However, farmer groups countered that without concrete measures on price security and debt relief, such announcements offer little relief on the ground.