Published Aug 06, 2026 | 2:41 PM ⚊ Updated Aug 06, 2026 | 2:51 PM
State Agriculture and Farmers’ Welfare Minister R Vinoth with Chief Minister Vijay.
Synopsis: The TVK government has unveiled its first Agriculture Budget, prioritising Cauvery irrigation, crop insurance, organic farming and value addition while announcing a series of new schemes across agriculture and horticulture. The Budget also introduces several flagship programmes, including the Uzhavar AI Scheme, Coconut Processing Corporation and dedicated missions for key crops.
The Tamilaga Vettri Kazhagam (TVK) government on Thursday, 6 August, presented its maiden Agriculture Budget, outlining a roadmap that places irrigation, climate resilience, technology-driven farming and farmer income at the centre of its agricultural policy.
State Agriculture and Farmers’ Welfare Minister R. Vinoth presented the budget, announcing a series of new missions, subsidy schemes and long-term interventions spanning agriculture, horticulture, irrigation, organic farming and agricultural marketing.
The Budget’s first substantive announcements centred on irrigation, underscoring the government’s attempt to reassure farmers amid uncertainty over water availability.
Noting that inadequate water storage prevented the Mettur Dam from opening on June 12 (a customary practice), the minister said the government responded by announcing a Kuruvai Special Package worth ₹134.83 crore covering both delta and non-delta districts.
Vinoth told the Assembly that Chief Minister C Vijay had personally monitored the implementation through review meetings, adding that Kuruvai cultivation had already been taken up across 8.26 lakh acres.
The government also highlighted desilting works in the Cauvery delta. According to the minister, 2,509 kilometres of C and D category irrigation canals had been desilted during the current year at a cost of ₹10 crore, with the objective of ensuring that irrigation water reached even the tail-end regions of the delta.
Besides continuing canal restoration works, the government announced that it would create additional irrigation sources through farm ponds and borewells, bringing 2,600 acres of rain-fed land under irrigation. Another 50,000 acres would receive irrigation through expansion of micro-irrigation systems aimed at improving water-use efficiency.
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The minister warned that agriculture in Tamil Nadu could face another difficult year because of the expected impact of the Super El Niño weather phenomenon. He said scientific assessments indicated that 12 districts were likely to experience severe climatic stress during the Kuruvai season.
To minimise losses, district-wise agricultural contingency plans prepared by Tamil Nadu Agricultural University had already been circulated to district collectors, and departments had begun implementing mitigation measures.
The Budget also referred to the difficulties faced by mango growers this year. Farmers cultivating the Banglora variety had suffered because of low market prices.
The Minister said Tamil Nadu had, for the first time, secured Union Government approval for a Price Deficiency Payment under the Market Intervention Scheme.
Although procurement could not begin in time because operational guidelines were finalised only after the harvesting season ended, he said the government has completed the necessary procedures to respond more quickly in future.
Seeking to provide greater protection against severe weather conditions, the government announced an expansion of crop insurance.
Minister Vinoth said the government’s long-term objective was to bring the entire cultivated area under insurance coverage. During 2026-27, the Pradhan Mantri Fasal Bima Yojana (PMFBY) would be implemented across 37 districts grouped into 14 clusters, covering Kuruvai, Samba and Rabi crops.
The State has earmarked ₹648.55 crore towards premium support, enabling insurance coverage for 36 lakh acres and benefiting nearly 15 lakh farmers.
Additional funds, he added, would be made available to ensure that every eligible farmer opting into the scheme could be covered.
The government also announced an ambitious production target for the next five years.
Tamil Nadu aims to increase annual foodgrain production to 131 lakh metric tonnes over the next five years. For the current financial year, the target has been fixed at 125 lakh metric tonnes.
Simultaneously, the government intends to increase the production of pulses, vegetables and fruits to improve nutritional security and reduce dependence on imports.
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The government reaffirmed its commitment to continue free electricity for agricultural pump sets.
The Minister announced that ₹7,432.58 crore would be provided to the Tamil Nadu Power Distribution Corporation during 2026-27 towards supplying uninterrupted three-phase electricity connections for agriculture.
The government also announced incentives for organic farming. Farmers practising organic cultivation will receive an incentive of ₹4,000 per acre, while permanent vermicompost units will be established across the State.
In another new initiative linked to climate action, farmers adopting Direct Seeded Rice, Alternate Wetting and Drying irrigation methods and other greenhouse gas reduction measures will be encouraged to participate in future carbon trading mechanisms. Demonstration projects covering 2,000 acres will be taken up during the current year.
The Budget also announced that Tamil Nadu would continue subsidising paddy seed production and distribution even after the Union Government discontinued financial support from 2026-27.
The State government will provide assistance for producing 7,730 metric tonnes of certified paddy seeds and distribute another 14,570 metric tonnes at subsidised rates through an allocation of ₹34.72 crore.
The Minister said the decision was taken after considering farmers’ requests and to ensure uninterrupted access to quality seeds.
Seeking to integrate digital technology into agriculture, the government announced the Uzhavar Artificial Intelligence Scheme.
The AI platform will deliver weather forecasts, soil health advisories, pest and disease management recommendations, crop-specific guidance, market intelligence and information on government schemes through farmers’ mobile phones.
Voice-based advisory services will also be introduced. The government has allocated ₹2 crore for the scheme during 2026-27.
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Recognising Tamil Nadu’s dependence on pulses and edible oils sourced from outside the State, the government announced a Mission for Self-Sufficiency in Pulses and Edible Oilseeds with a total investment of ₹203.64 crore.
The Mission aims to increase the area under pulse cultivation from 15.19 lakh acres to 24.70 lakh acres, while doubling production from 3.88 lakh metric tonnes to 7.72 lakh metric tonnes.
Likewise, edible oilseed cultivation will expand from 9.26 lakh acres to 14.89 lakh acres, with production increasing from 8.77 lakh metric tonnes to 16.14 lakh metric tonnes.
The government also unveiled a Cotton Renaissance Mission. The minister stated that despite Tamil Nadu accounting for nearly half of India’s spinning capacity, almost 98 per cent of the cotton requirement for its textile industry continues to be sourced from outside.
The five-year mission will encourage high-density planting, ultra-high-density planting, extra-long staple cotton and intercropping practices in an attempt to increase domestic production and improve farmer incomes. During 2026-27, the programme will cover 73,360 acres, benefiting around 40,000 cotton farmers, with an allocation of ₹27.21 crore.
Similarly, recognising the increasing demand from poultry feed manufacturers and ethanol producers, the government announced a Maize Production Enhancement Scheme covering 3.47 lakh acres with an investment of ₹36 crore, benefiting nearly 1.39 lakh farmers.
As part of its climate adaptation strategy, the Budget also introduced an Agroforestry Scheme aimed at restoring cultivable fallow lands while simultaneously improving green cover.
Under the programme, 12,500 acres of fallow land will be brought back under cultivation and planted with commercially valuable tree species such as teak, sandalwood, mahogany, Malai Vembu and red sanders. Farmers will receive quality saplings free of cost under the ₹17.70-crore programme.
Responding to repeated complaints about crop losses caused by wild boars, the government unveiled a Wild Boar Damage Prevention Scheme with an allocation of ₹7.35 crore.
The programme includes subsidised distribution of wild boar repellents developed by Tamil Nadu Agricultural University, installation of solar-powered electric fencing to reduce damage from wild boars as well as elephants, gaurs and deer, and large-scale removal of Prosopis juliflora (Seemai Karuvelam) from both government and private lands to eliminate breeding habitats.
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The Budget also announced the Annal Ambedkar Agricultural Assistance Scheme, specifically designed to improve access to government schemes among Scheduled Caste and Scheduled Tribe farmers.
Recognising that beneficiary contributions often discourage small farmers from availing high-value schemes, the government announced an additional 20 per cent subsidy for SC/ST farmers.
This effectively increases assistance to 70% for components such as integrated farming systems, greenhouses, shade-net houses, solar dryers, value-addition machinery and farm machinery, while subsidy for solar-powered pump sets will rise to 80 per cent.
In addition, irrigation facilities including borewells and solar pump sets will be established with 100 per cent subsidy for selected beneficiaries who currently lack irrigation facilities. The scheme has been allocated ₹56.72 crore.
Alongside infrastructure investments, the government announced a series of awards intended to encourage higher productivity.
State-level crop competitions named after Makkal Sevagar Anjalai Ammal will reward outstanding small and marginal farmers cultivating millets, pulses and oilseeds, while district-level “Vettri Vivasayi” Awards will honour farmers achieving the highest productivity in paddy, millets, pulses, oilseeds and cotton.
The government also launched the Nammazhvar Award to recognise excellence in organic farming.
Turning to the sugar sector, the Minister announced a Seed Cane Subsidy Scheme to reduce cultivation costs and improve productivity.
Farmers associated with cooperative and public sector sugar mills adopting improved planting methods will receive planting materials at 50 per cent subsidy, with ₹9.36 crore allocated for implementation across more than 17,000 acres.
Another Sugarcane Cultivation Development Programme will provide subsidies for breeder seed cane, tissue-culture seedlings, bud-chip seedlings, micronutrients and bio-fertilisers in an attempt to reduce production costs and increase area under cultivation. The programme has received ₹9 crore in funding.
The government also announced that a Detailed Project Report and feasibility study would be prepared for establishing a 100 KLPD ethanol distillery at the Kallakurichi-I Cooperative Sugar Mill through a consortium arrangement involving neighbouring cooperative sugar mills.
Among the largest announcements was the expansion of the State’s Micro Irrigation Programme, under which 2.22 lakh acres will be brought under efficient irrigation systems during 2026-27.
The programme carries a substantial allocation of ₹785 crore and will benefit nearly 95,000 farmers. Small and marginal farmers will continue to receive 100 per cent subsidy, while other farmers will receive 75 per cent subsidy.
The government also decided to continue the Palmyra Protection Mission, aimed at protecting Tamil Nadu’s State tree while improving the livelihoods of nearly three lakh agricultural labour families dependent on palmyra-based occupations. Besides strengthening existing committees regulating tree felling, the mission will promote value-added palmyra products, establish processing units and accelerate research into dwarf and early-bearing palmyra varieties.
Another new initiative, titled “Vettri Illatharasi Veetu Thottam”, seeks to encourage home gardening in both rural and urban areas through the distribution of grow-bag kits, hydroponic units and vertical garden systems.
To improve productivity in horticulture, the government announced a ₹41-crore package promoting high-tech cultivation practices. Among the interventions is a new LED lighting scheme for chrysanthemum cultivation, intended to regulate flowering during seasonal changes and improve flower quality.
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One of the Budget’s largest horticulture announcements was a comprehensive package for the coconut sector.
The minister acknowledged that coconut farmers continue to face problems arising from pest attacks, disease, low productivity and unstable market prices.
Accordingly, the government announced a Special Scheme for Coconut with an allocation of ₹16 crore, covering productivity enhancement, pest management and value addition.
Under the programme, coconut growers will receive subsidised tonic to improve flowering and fruit setting, while biological control methods will be promoted to tackle root wilt disease and rugose spiralling whitefly infestation.
New parasite production centres will also be established in Coimbatore, Theni, Virudhunagar and Kanyakumari to strengthen biological pest management. A new coconut nursery will be established at the State Horticulture Farm in Karur to ensure a steady supply of quality planting material.
The most significant announcement for coconut farmers was the decision to establish the Tamil Nadu Coconut Processing Corporation under the Department of Agricultural Marketing and Agri Business. The corporation has been proposed to facilitate value addition, processing, packaging, certification and exports of coconut-based products, including neera. It will work alongside the Coconut Development Board and cooperative institutions to create sustainable market opportunities and improve farmer incomes.
The government also assured farmers that the Price Support Scheme (PSS) for copra procurement would be activated whenever necessary to stabilise market prices.
The government also attempted to encourage diversification into high-value crops by promoting fruits such as blueberries, rambutan, dragon fruit, avocado, kiwi, mangosteen and passion fruit.
Demonstrations and cultivation support will be extended over 930 acres, while suitable apple varieties and Thailand sweet tamarind will also be introduced in selected regions.
In drought-prone districts including Dharmapuri, Krishnagiri, Ramanathapuram, Thoothukudi, Dindigul and Tiruchirappalli, the government plans to promote grafted tamarind cultivation as an alternative crop capable of withstanding low rainfall. The five-year programme will eventually cover 1,250 acres, beginning with 250 acres during 2026-27.
The Budget also announced the introduction of new apple, plum, peach, pear, kiwi, avocado and persimmon varieties at the century-old Pomological Station in Coonoor.
The budget also sought to revive several traditional fruit and vegetable varieties that have gradually disappeared from commercial cultivation.
Financial assistance will be provided for cultivating traditional mango varieties such as Sengavarukkai, Vettaiyan and Soorankudi Vettaiyan, along with Panruti jackfruit, Matti banana, Sirumalai banana and several indigenous vegetable varieties.
Medicinal crops also found a place in the government’s diversification strategy. The minister announced support for expanding cultivation of medicinal plants, including soursop, across 1,720 acres, citing growing demand from the pharmaceutical sector.
(Edited by Fayisa CA)
