Union Budget 2026 | Tax relief for fisheries, cooperatives to boost farmer income

The Union Budget 2026-27 proposed on Sunday by Finance Minister Nirmala Sitharaman threw light on high value farming to increase farmer's income. It proposed measures to promote cooperative stances within the agriculture sector, in ways beyond traditional farming. The session also discussed fishing and related export.

Fisheries

One of the major highlights included that fish caught by an Indian fishing vessel in the Exclusive Economic Zone, or on the high seas, will be exempt from customs duty, and landing such fish at a foreign port will be treated as export of goods.

Agriculture

Primary cooperative societies engaged in agriculture will be allowed tax deductions on the supply of cattle feed and cottonseed produced by their members.

The Budget also proposed allowing inter-cooperative society dividend income as deduction under the new tax regime to the extent distributed to members.

Inter-cooperative society dividend income will be deductible under the new tax regime to the extent that such income is distributed to members. Dividend income received by a notified national cooperative federation from investments made in companies will be exempt from tax for a period of three years up to March 31, 2026, provided the dividends are passed on to its member cooperatives.

The measures are methods to produce high-value farming, while also seeing to it that the produce benefits the hands working behind it.

Additionally, Finance Minister announced the launch of schemes to promote coconut, cocoa, cashew, and sandalwood as a means to diversify crops, and reduce dependence on traditional farming while creating employment opportunities.