Food sector hails Budget 2026-27

Experts see Budget 2026-27 as a positive move

Budget 2026–27 proposes integrated development of 500 reservoirs and Amrit Sarovars to strengthen coastal fisheries value chain. The budget proposes to raise duty-free import limit for seafood processing inputs from 1 per cent to 3 per cent. Nirmala Sitharaman highlighted high-value crops as a key part of India’s agricultural strategy, with coconut taking centre stage.

The government is expected to keep the combined food and fertiliser subsidy at around Rs 3.98 lakh crore in FY27, signalling continued fiscal discipline while maintaining support for vulnerable households and farmers.

Debarshi Dutta, Co-Founder and CEO, Ayekart mentioned, “The renewed focus on high-value crops such as coconut, cocoa, cashew, sandalwood, and horticulture opens up meaningful opportunities to diversify cropping patterns and strengthen farm incomes. When combined with aggregation, post-harvest support, and better price discovery, these measures can translate into measurable gains in rural livelihoods.”

According to Shashi Kant Singh, Partner -Agriculture – Food – Agribusiness, PwC India, Budget 2026-27 underscores India’s commitment to enhancing agricultural innovation, improving export competitiveness, and promoting women’s empowerment in agriculture—key pillars of the Viksit Bharat strategy. Focused support for high-value crops, along with special incentives for the fisheries and dairy sector, aims to augment farm incomes while strengthening India’s global agricultural competitiveness and boosting exports.

Suresh Garg, Founder and CMD, Zeon Lifesciences mentions, “The Biopharma SHAKTI initiative strengthens research and manufacturing ecosystems, which also helps nutraceutical innovation in areas like fermentation, proteins, and bio-active ingredients. Allowing SEZ units to sell more easily in the domestic market improves cash flow for export-focused manufacturers. The focus on high-value agriculture—such as coconut, cocoa, nuts—and better animal husbandry gives us more reliable, nutraceutical-grade raw materials like collagen and whey. Plug-and-play chemical parks will help local production of vitamins, minerals, and amino acids, reducing import dependence and bringing cost stability and supply security.
At the same time, tighter labelling, testing, and traceability mean manufacturers must be more disciplined. Batch consistency and raw-material traceability will matter more than ever. Overall, this Budget supports manufacturers who want to build clean, compliant, and scalable nutraceutical businesses for the long term.”

Yashna Garg, Founder, Yugap Wellness opines, “For wellness and nutrition brands, the push for Indian manufacturing, better testing, and higher quality standards reduces dependence on imports and helps control costs. It also clearly shows that brands with clean products, clear FSSAI classification, and proper scientific backing will grow faster.”

Rajiv Kumar, Vice Chairman, DS Group said, “The budget strikes a balance between fiscal stability and aggressive growth, positioning India for a resilient economic future. For the FMCG sector, the Viksit Bharat agenda serves as a vital catalyst by synchronizing demand and supply-side enablers. Specific interventions in agriculture like push for production of cocoa, fisheries and animal husbandry are poised to boost rural incomes. Simultaneously, the expansion of TReDS and improved credit access will alleviate working capital pressures for distributors and contract manufacturers, fortifying the entire FMCG ecosystem.”

Rajnish Kumar, Lead, Agriculture and Food Systems, MicroSave Consulting (MSC), “The Union Budget 2026–27 signals a decisive shift toward productivity-led agricultural growth. The emphasis on integrated fisheries and livestock value chains, development of 500 reservoirs and Amrit Sarovar lakes, and AI-enabled productivity through Bharat Vistaar with AgriStack–ICAR integration aligns well with the Economic Survey’s diagnosis. The real test will be rapid execution and demonstrable gains in productivity and farm incomes.”

Dr Prithwi Singh, CEO, Co-Founder, Khetika, “The Union Budget FY 2026–27 sends a strong and timely signal by placing farmers at the centre of India’s growth agenda. The focus on increasing farmer incomes, strengthening support for small and vulnerable farmers, and investments across reservoirs, fisheries, animal husbandry and high-value crops reflect a long-term, structural approach to agriculture.”

Arjun Anjaria, Founder and CEO, Unbox Health, “The Budget reinforces the growing recognition that food safety and nutrition are central to long-term public health and economic productivity. As packaged foods and supplements become a larger part of everyday diets, consumers need clearer, more reliable information to make safe choices. Stronger labelling standards, wider access to accredited testing and consistent enforcement can help ensure that label claims reflect product reality. Platforms like Unbox Health complement this effort by independently testing products and publishing lab-backed ratings, helping consumers navigate complexity while encouraging brands to meet higher standards of transparency and compliance.”

Paritosh Ladhani, Joint Managing Director, SLMG Beverages mentions, “The Union Budget 2026 strongly reinforces a manufacturing-first, ‘Make in India’ approach, which is encouraging for companies that are deeply invested in domestic production and local supply chains. The continued push on infrastructure, with capital expenditure raised to Rs 12.2 lakh crore, will directly benefit beverage manufacturers by improving logistics efficiency, distribution reach, and last-mile connectivity across markets. The focus on localisation across bottling, packaging and allied inputs supports greater cost stability and resilience, while sustained support for MSMEs remains critical given their integral role in our vendor and transport ecosystem. Although there were no direct tax incentives for non-alcoholic beverages, the broader pro-manufacturing and pro-consumption policy environment, along with ongoing discussions on GST rationalisation, provides a positive foundation for volume-led growth and long-term expansion of India’s packaged beverage sector.”

Shafiulla Hirehal Nuruddin, Founder and MD, Greenspace Herbs, “It is really gratifying to see the Union Budget 2026-27 place such a strong and unambiguous emphasis on the Ayush sector. We genuinely appreciate the government’s focus on this arena, as it recognises that Ayurveda is no longer just a traditional practice, but a rapidly rising sector that merits this level of national support. The proposal to build three new All India Institutes of Ayurveda and the plan to improve Ayush pharmacies and drug testing facilities are critical measures. These initiatives will help build a much-needed ecosystem of higher certification standards and bring in the skilled personnel required to move the industry forward.”

Sanket S, Founder, Scandalous Foods, “The Union Budget 2026 brings practical positives for the frozen food and manufacturing sector. The focus on cold chain infrastructure and reducing post-harvest wastage, along with the Rs 10,000 crore SME Growth Fund, will help brands like Scandalous Foods scale distribution while maintaining quality. Doubling the startup credit guarantee limit to Rs 20 crore and strengthening invoice discounting through TReDS will ease both capex expansion and cash flow challenges. The recognition of mental health through the NIMHANS 2.0 initiative, along with measures like raising the rental TDS threshold, makes this a balanced Budget that supports both business growth and the people behind it.”

Heritage Foods Executive Director Brahmani Nara welcomed the Union Budget 2026, describing it as a watershed moment for India’s dairy and livestock sectors. Nara said the budget reflects several strategic priorities highlighted in the company’s pre-budget expectations and goes beyond numbers to focus on empowering dairy farmers, strengthening rural resilience, and promoting sustainable, inclusive growth.