Andhra Pradesh Plans Big Spending for Farms: ₹53,753 Crore Budget for 2026-2027

The Andhra Pradesh Legislative Assembly recently convened to present the budget for agriculture and allied sectors for the fiscal year 2026-2027. Minister Kinjarapu Atchannaidu tabled a budget with a total outlay of approximately ₹53,753 crore. This presentation signifies a notable financial commitment to the state's agricultural backbone.

Budget Presentation and Overall Financial Framework

On February 14, 2026, Minister Atchannaidu presented the Agriculture and Allied Sectors Budget. This budget marks his third such presentation in the Legislative Assembly. The total outlay for this sector reached nearly ₹53,753 crore.

In parallel, Finance Minister Payyavula Keshav presented the State Budget, outlining a substantial total outlay of ₹3,32,205 crore for the fiscal year 2026–27. Within this larger financial plan:

• Revenue expenditure is estimated at ₹2,56,142 crore.

• Capital expenditure stands at ₹48,697 crore.

This broad financial picture indicates a multi-faceted approach to state development, with a specific focus on bolstering the agriculture sector.

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Key Allocations within the Agriculture Budget

The agriculture budget details specific allocations across various departments and initiatives:

• Irrigation Projects: A significant ₹14,277 crore is designated for the maintenance and construction of irrigation projects.

• Electricity Subsidy: ₹13,722 crore is allocated to meet electricity subsidy requirements.

• Agriculture Department: The department received ₹12,153 crore.

• This includes ₹250 crore for the crop insurance scheme.

• ₹250 crore is earmarked for interest-free loans.

• ₹240 crore is allocated for seed subsidies.

• ₹208 crore is designated for the A.P. Community-based Natural Farming Project.

• ₹40 crore for fertilizer buffer stock management.

• Horticulture Sector:

• The Horticulture department has been allocated ₹1,123 crore.

• Specific allocations include ₹475 crore for micro-irrigation.

• ₹204 crore for the development of oil palm plantations.

• ₹177 crore for the Mission for Integrated Development of Horticulture.

• Farmers' Financial Assistance:

• ₹6,600 crore is allocated for the ‘Annadata Sukheebhava - PM Kisan’ scheme.

• Other sources mention ₹9,400 crore for this scheme, suggesting a possible discrepancy or broader funding mechanism.

• Price Stabilization Fund: ₹500 crore is set aside for the Price Stabilization Fund.

• Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin): An equal amount of ₹500 crore is allocated for agriculture and allied works under this mission.

Investments in Agricultural Education and Research

Educational and research institutions vital to the agricultural sector have also received significant funding:

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• Acharya N.G. Ranga Agricultural University: ₹805 crore (including ₹504 crore from one source).

• Sri Venkateswara Veterinary University: ₹163 crore.

• Dr. Y.S.R. Horticultural University: ₹97 crore.

• A.P. Fisheries University: ₹39 crore.

Broader Economic Context and Initiatives

The budget presentation occurs against a backdrop of broader economic strategies and achievements:

• Agriculture's Contribution: The state contributes 10 per cent to the national agriculture output, and agriculture accounts for 33.20 per cent of Andhra Pradesh's Gross State Domestic Product (GSDP) of ₹17.62 lakh crore.

• Agricultural Growth Rate: Minister Atchannaidu stated that the state has registered an agriculture growth rate of 7.83 per cent.

• Micro-Irrigation: The government proposes to add 3.75 lakh more acres under micro-irrigation, building on a previous expansion of 5.5 lakh acres.

• Natural Farming: A sum of ₹208 crore is allocated for the A.P. Community-based Natural Farming Project, with other sources highlighting its role as a "roll model."

• Mechanization and Technology: Provisions include funds for mechanisation, with one report mentioning ₹187 crore for agricultural mechanisation and another referring to equipment offered at a 50 percent subsidy. Drone utilization is also being promoted.

Comparison with Previous Budgetary Allocations

Data from past budget presentations provides a comparative view:

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Expert Analysis and Government Stance

Minister Atchannaidu has emphasized the importance of a strong rural economy for overall state prosperity. He stated, "The State would be economically prosperous only if the rural economy is strong." He also indicated a focus on making agriculture a profitable profession to attract youth to the sector and assured efforts to provide irrigation water to every acre. The government also asserts a focus on natural farming, with Andhra Pradesh aiming to be a "roll model" in this area.

Conclusion and Forward Outlook

The presentation of the ₹53,753 crore agriculture budget for 2026-2027 underscores Andhra Pradesh's strategic focus on its agricultural and allied sectors. Significant allocations for irrigation, crop insurance, subsidies, and farmer financial assistance signal a commitment to enhancing productivity and farmer welfare. The inclusion of funds for agricultural universities and natural farming initiatives points towards a long-term vision for sustainable agricultural development. The budget also reflects the state's economic contributions, with agriculture playing a pivotal role in its GSDP and national output. The state's reported 7.83 per cent agriculture growth rate provides a positive backdrop for these budgetary plans.

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• The Hindu: (https://www.thehindu.com/news/national/andhra-pradesh/ap-minister-atchannaidu-presents-agriculture-budget-in-legislative-assembly-with-an-outlay-of-53753-crore/article70631761.ece) - Published recent analysis of the 2026-27 agriculture budget.

• The Hindu: (https://www.thehindu.com/news/national/andhra-pradesh/andhra-pradesh-state-budget-live-updates-february-14-2026/article70631317.ece) - Provided context on the overall state budget for 2026-27.

• The Hindu Business Line: (https://www.thehindubusinessline.com/economy/agri-business/ap-proposes-53752-crore-for-agri-allied-sectors/article70631758.ece) - Offered details on the proposed agriculture and allied sectors budget.

• Deccan Chronicle: (https://www.deccanchronicle.com/southern-states/andhra-pradesh/ap-registers-783-per-cent-agriculture-growth-rate-atchannaidu-1937211) - Reported on the agriculture growth rate and ministerial statements.

• The Hindu: (https://www.thehindu.com/news/national/andhra-pradesh/ap-minister-atchannaidu-presents-agriculture-budget-in-legislative-assembly-with-an-outlay-of-53753-crore/article70631761.ece) - Reiterated specific allocations for educational institutions.

• The Hindu: (https://www.thehindu.com/news/national/andhra-pradesh/andhra-pradesh-presents-332-lakh-crore-budget-for-202627-prioritises-education-welfare-and-fiscal-reforms/article70631533.ece) - Provided insights into the broader state budget's expenditure and fiscal reforms.

• NTV Telugu: (https://ntvtelugu.com/andhra-pradesh-news/amaravathi/andhra-pradesh-role-model-in-natural-farming-minister-atchannaidu-935660.html) - Contributed information on natural farming initiatives.