Budget 2026: Sitharaman sets 2030 target to turn Indian cashew and cocoa into 'premium global brands'

Finance Minister Nirmala Sitharaman on February 1 outlined an expanded push for high-value agriculture under the Union Budget 2026, placing coconut-led value chains alongside cashew and cocoa at the heart of the government’s farm and livelihood strategy.

Presenting her ninth Budget in Parliament, Nirmala Sitharaman said the Centre will support high-value crops such as coconut, cocoa, cashew and sandalwood in coastal regions, agar trees in the North East, and nuts including almonds, walnuts and pine nuts in hilly areas. She underlined India’s position as the world’s largest producer of coconuts, noting that nearly 30 million people, including about 10 million farmers, depend on coconut-related activities for their livelihoods.

To improve output and efficiency, Sitharaman proposed a Coconut Production Scheme aimed at increasing production and enhancing productivity across major coconut-growing states. The scheme will focus on replacing old and non-productive trees with new saplings, improved planting material and higher-yielding varieties to strengthen farm-level competitiveness.

A key announcement in the Budget 2026 was a dedicated programme for cashew and cocoa, designed to reduce import dependence and strengthen domestic processing capacity. Sitharaman said the initiative will focus on making India self-reliant in raw cashew production, improving coconut-linked processing ecosystems, and boosting export competitiveness. “Our aim is to transform Indian cashew and cocoa into premium global brands by 2030,” she said, signalling a shift from bulk exports to higher-value branding and positioning in international markets.

The Finance Minister also highlighted sandalwood’s cultural and economic importance, stating that it is closely linked to India’s social heritage. She said the Union government will work with state governments to promote focused cultivation and post-harvest processing to restore and strengthen the Indian sandalwood ecosystem.

In addition, the Budget proposes targeted support to rejuvenate old and low-yielding orchards and expand high-density plantations of walnuts, almonds and pine nuts. Sitharaman said a dedicated programme will be introduced to enhance farmer incomes, promote value addition and create opportunities for youth engagement across these regions.

Overall, the measures aim to raise productivity, strengthen agri value chains and reposition Indian farm produce in global markets, while reinforcing livelihoods in coastal, hilly and northeastern parts of the country.