Budget 2026 Expectations LIVE: Market Price Stabilisation in Focus

Union Budget 2026 | Agriculture & Farmer Income Support

As Budget 2026 approaches, market price stabilisation has emerged as a key area of focus, especially for the agriculture sector. Ensuring fair prices for farmers while maintaining market efficiency remains a major policy challenge for the government.

Current Price Stabilisation Mechanisms

Market price stabilisation in India currently relies on multiple mechanisms, including:

• Minimum Support Price (MSP)

• Market Intervention Scheme (MIS)

• Price Deficiency Payment Scheme (PDPS)

These schemes are designed to:

• Provide targeted income support to farmers

• Offer price certainty during periods of volatility

• Allow demand-supply dynamics to function without excessive market distortion

Low Utilisation Remains a Concern

Despite their importance, the uptake of price support schemes has been lower than expected.

Under the Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM AASHA):

• Utilisation stood at ~64% in FY2022

• Improved to ~89% in FY2023, but still below potential

Additionally, price support schemes accounted for only 5–6% of the total budget allocation of the Department of Agriculture and Farmers’ Welfare in FY2026, highlighting limited fiscal emphasis.

What Budget 2026 Could Do

According to Pushan Sharma, Director – Crisil Intelligence, the Union Budget 2026 may consider several measures to strengthen price stabilisation under PM AASHA:

🔹 Higher Budget Allocation

Increasing financial allocation to PM AASHA could enhance coverage and effectiveness.

🔹 Streamlined Onboarding Process

Simplifying farmer and state participation could improve adoption.

🔹 Time-bound DBT Settlements

Faster direct benefit transfer (DBT) payments would boost farmer confidence.

🔹 State Incentives & Conditional Grants

Encouraging states through incentives or conditional funding could significantly improve utilisation.

Outlook

A stronger focus on market price stabilisation in Budget 2026 could:

• Reduce income volatility for farmers

• Improve agricultural market efficiency

• Strengthen rural demand and overall economic stability

📌 Agriculture-focused reforms under Budget 2026 will be closely tracked by markets and policymakers alike.

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