As the Union Budget for FY27 approaches, India’s agriculture and allied sectors are calling for tax relief, higher funding for biofuels and stronger infrastructure support to help farmers cope with climate pressures and raise rural incomes.
The demands come at a crucial time, as India moves toward its 2030 agriculture goals and prepares the foundation for its long-term Viksit Bharat 2047 vision. Industry representatives say sustained investment in innovation, market reforms and rural infrastructure is essential to make Indian agriculture more competitive globally.
In a representation to Finance Minister Nirmala Sitharaman, the All India Sugar Trade Association (AISTA) urged the government to allocate ₹2,500 crore for advanced biofuels such as sustainable aviation fuel (SAF) and green hydrogen. It also sought ₹25 billion in financial support to help struggling sugar mills set up integrated bio-energy hubs.
The association highlighted that ethanol can play a key role in alcohol-to-jet technologies for SAF, especially as India continues to import large quantities of vegetable oil. It also pointed out that producing one kilogram of hydrogen requires about 70 units of electricity, and ethanol-based infrastructure could offer a more viable pathway while strengthening the sugar industry.
Several sugar mills—particularly cooperative units in Maharashtra, Uttar Pradesh and Punjab—currently lack distilleries and rely heavily on sugar and molasses sales. This dependence, industry bodies say, makes it difficult for them to meet financial obligations such as cane payments to farmers, wages and other operational costs.
Beyond sugar, other agri segments including fertilisers and coffee are also seeking targeted policy reforms, tax rationalisation and improved infrastructure. Stakeholders argue that a focused push in the FY27 Budget could enhance farmer incomes, build climate resilience and support sustainable growth across the agriculture value chain.
