High-Value Crops: Budget 2026-27 Diversification Push
Why in the news
The Union Budget 2026-27 steered farm policy toward high-value crops, especially in ecologically sensitive areas such as the Himalayas and the North East, to lift farm incomes and cut pressure on water.
Key facts
- Horticulture production: 370.74 million tonnes (2024-25), above total foodgrain output.
- Share of agricultural Gross Value Output: 37%.
- Growth over a decade: 4.45%, the fastest segment of agriculture.
- India is the largest producer of onions/shallots and second-largest in fruits, vegetables and potatoes.
| Region | Crops | Objective |
|---|---|---|
| Coastal | Coconut, cashew, cocoa | Replace ageing plantations; brand Indian cashew as a premium global product |
| North East | Agarwood (oud) | Tap the ₹2,000 crore market in Tripura and Assam through CITES-aligned exports |
| Himalayan and hilly | Walnuts, pine nuts (chilgoza) | Tribal-led high-density farming to raise income in J&K and Himachal |
| Pan-India | Intercropping | Grow cocoa under coconut or arecanut for better land use |
Concepts
- High-Value Crop: fruits, flowers, spices or medicinal plants giving much higher net return per unit of land, with higher risk and longer waits.
- Intercropping: two or more crops together; cocoa needs just 40-50% sunlight, so it suits coconut shade, giving two incomes from one plot.
- CITES: Convention on International Trade in Endangered Species; agarwood exports follow strict quotas.
- Phytosanitary standards: plant health rules; pesticide traces can mean rejection in the EU or USA, the main hurdle for the USD 369 million cashew exports.
Concerns
- Gestation: sandalwood takes 15-20 years, leaving an income gap for small farmers.
- Cold chain gap: roughly 20-30% of horticulture value is lost after harvest.
- Land fragmentation: 10 million coconut farmers on tiny plots can hardly set up processing units.
Exam angle
- Statistics: 370.74 million tonnes, 37% GVO, 4.45% growth.
- Match region with crop: North East with agarwood; Himalayas with walnut and chilgoza.
- Terms: HVC, intercropping, CITES, phytosanitary standards.