Union Budget 2026 | Government focuses on high-value crops like coconut, cashew and cocoa

Union Finance Minister Nirmala Sitharaman, during her Union Budget 2026 presentation, proposed schemes for high value crops, including coconut, walnut, sandalwood and cashew nuts.

The government proposed a Coconut Promotion Scheme aimed at increasing production and improving productivity to boost India's competitiveness in coconut cultivation.

Sitharaman said the scheme will focus on major coconut-growing states and include measures such as replacing non-productive trees with new, high-yielding saplings.

"To further enhance competitiveness in coconut production, I propose a coconut promotion scheme to increase production and enhance productivity through various interventions, including replacing non-productive trees with new saplings or plants of varieties in major coconut-growing states," Sitharaman said.

Further, she announced a dedicated programme for Indian cashew and cocoa with the objective of making India self-reliant in raw cashew and coconut production and processing, while enhancing export competitiveness.

"A dedicated program is proposed for Indian cashew and cocoa to make India self-reliant in raw cashew and coconut production and processing, enhance export competitiveness and transform Indian cashew and Indian cocoa into premium global brands by 2030," Sitharaman said.

Talking about Sandalwood, Sitharaman said it is closely linked to social and cultural heritage.

"Our government will partner with state governments to promote focused cultivation and post-harvest processing to restore the glory of the Indian sandalwood ecosystem," she said.

"Sandalwood is closely linked to India's social and cultural heritage. Our government will partner with state governments to promote focused cultivation and post-harvest processing to restore the glory of the Indian sandalwood ecosystem," Sitharaman said.

She also announced a dedicated programme to rejuvenate old and low-yielding orchards and expand high-density cultivation of walnuts, almonds and pine nuts.

"To rejuvenate old, low-yielding orchards and expand high-density cultivation of walnuts, almonds, and pine nuts, we will support a dedicated program to enhance farmer incomes and in bringing value addition by engaging youth," she added.

For animal husbandry sector, the finance minister said efforts will focus on generating quality employment in rural and peri-urban areas through a credit-linked subsidy programme.

"The government will also work on scaling up and modernising livestock enterprises, creating integrated livestock, dairy and poultry value chains, and encouraging the formation of livestock farmer producer organisations."