CHENNAI: The State government allocated Rs 47,248.24 crore for agriculture and allied departments in the Agriculture Interim Budget for 2026–27 that Agriculture and Farmers' Welfare Minister MRK Panneerselvam presented in the Assembly on Tuesday.
The outlay marks a rise from Rs 45,661 crore in 2025–26, and over Rs 11,000 crore compared to the Rs 34,220 crore allocated in 2021–22.
"As agriculture forms the foundation of Tamil Nadu's economic growth, sustained efforts are being taken to modernise the sector and increase farmers' income," he said, adding that the government's focus remains on enhancing farm incomes, expanding irrigation coverage, improving productivity, and ensuring food and nutritional security.
An additional 3.48 lakh hectares have been brought under irrigation in the last five years. Over 2 lakh new free electricity connections were provided to farmers during this period, while Rs 33,904 crore has been sanctioned towards free power supply for 23.86 lakh agricultural service connections.
Micro-irrigation systems were installed in 5 lakh hectares at a cost of Rs 4,061 crore, benefiting 5.13 lakh farmers. Canals were desilted and waterbodies were restored to strengthen tail-end irrigation access, he said.
To protect farmers against price volatility, the government enhanced procurement incentives for paddy and sugarcane. For the 2025–26 marketing season, a special incentive of Rs 156 per quintal for Grade A paddy and Rs 131 per quintal for common variety has been fixed, raising procurement prices to Rs 2,545 and Rs 2,500, respectively.
Over the last five years, 186 lakh metric tonnes of paddy were procured and Rs 2,118 crore was provided as incentive. For sugarcane, a special incentive of Rs 349 per metric tonne has been announced for the 2024–25 crushing season, fixing the cane price at Rs 3,500 per metric tonne.
The Minister said 184 lakh acres were insured under the crop insurance scheme over five years, with the State contributing Rs 6,073 crore as premium subsidy. Compensation amounting to Rs 6,063 crore has been disbursed to 38 lakh farmers for crop loss. An additional Rs 2,045 crore was extended as relief assistance to 25.36 lakh farmers affected by floods, cyclones and droughts during the period.
Under the Tamil Nadu Millet Mission, 12.84 lakh farmers benefited with an expenditure of Rs 178 crore. Millets were cultivated in 20 lakh acres, with the State ranking first nationally in ragi productivity.
Oilseeds cultivation was encouraged in 14 lakh acres with Rs 229 crore support, while maize area expanded from 10 lakh acres to 12 lakh acres.
In horticulture, 1.68 lakh farmers received Rs 259 crore subsidy for vegetable area expansion. Fruit crops such as mango, jackfruit and banana were expanded in 36,555 hectares with Rs 72.47 crore subsidy.
During the last five years, 137 lakh metric tonnes of agricultural produce were transacted in regulated markets. Around 30 lakh metric tonnes worth Rs 8,748 crore were traded through the e-NAM platform, benefiting 18 lakh farmers.
The government also constructed 253 modern paddy storage godowns with a capacity of 4 lakh metric tonnes and is building 130 additional facilities with a capacity of 3.30 lakh metric tonnes to prevent post-harvest losses.
The Minister said the average Gross State Value Added (GSVA) in agriculture rose from 1.36 per cent during 2012–13 to 2020–21 to 3.03 per cent during 2021–22 to 2024–25. GSVA increased by nearly 10 per cent in 2024–25 compared to constant prices of the base year 2011–12.
"With focused investments and policy support, the sector has recorded measurable growth in production, productivity and farmer welfare," he said, adding that all existing schemes would continue in 2026–27.
Total Allocation (Agriculture; Allied Sectors)
Rs 47,248.24 crore for 2026–27
Up from Rs 45,661 crore (2025–26)
Rs 34,220 crore allocated in 2021–22
Irrigation & Water Management
3.48 lakh hectares brought under additional irrigation (5 years)
Rs 4,672 crore for Canal Restoration
5 lakh hectares covered under Micro Irrigation (Rs 4,061 crore)
2 lakh new free farm electricity connections (5 years)
Rs 33,904 crore towards free power for 23.86 lakh farm connections
Price Support & Procurement
Paddy procurement price:
– Rs 2,545 (Grade A)
– Rs 2,500 (Common)
Rs 2,118 crore paddy incentive (5 years)
Sugarcane price fixed at Rs 3,500 per MT (Rs 349 special incentive)
Rs 14,000 crore allocation – Civil Supplies (DPC procurement)
Crop Insurance; Relief
184 lakh acres insured (5 years)
Rs 6,073 crore premium subsidy
Rs 6,063 crore crop loss compensation
Rs 2,045 crore natural calamity relief
Millets, Pulses; Oilseeds
Rs 178 crore – Tamil Nadu Millet Mission
20 lakh acres under millets
Rs 229 crore – Oilseeds Mission
Maize area increased from 10 lakh to 12 lakh acres
Horticulture; Value Addition
Rs 259 crore subsidy for vegetable area expansion
Rs 72.47 crore for fruit crop expansion (36,555 ha)
100 value-addition units planned (Rs 50 crore allocation)
Rs 134 crore for market promotion -amp; processing infrastructure
Marketing & Storage
137 lakh MT traded in regulated markets (5 years)
Rs 8,748 crore trade via e-NAM (30 lakh MT)
253 new paddy storage godowns (4 lakh MT capacity)
Animal Husbandry, Dairy & Fisheries
Rs 1,200 crore – Animal Husbandry
Rs 850 crore – Dairy Development