Meghalaya expands agricultural investments, but structural challenges persist  

The Meghalaya government has outlined an ambitious plan to boost agriculture and rural livelihoods, allocating Rs 618 crore to the Agriculture and Farmers’ Welfare Department for 2025-26. The focus is on high-value horticulture, value addition, and rural entrepreneurship. However, while past interventions have increased incomes for select farmers, widespread transformation remains a challenge.  

Chief Minister Conrad K. Sangma stated, “Over the past seven years, we have been investing in targeted interventions towards meeting the goal of more than doubling our farmers’ income.” While some initiatives have seen success, like mushroom and floriculture programmes where beneficiary incomes have risen by 30% to 80%, the broader rural economy remains vulnerable to market fluctuations and climate risks.  

High-value crops and CM FARM+: A solution or a niche effort?

The government has aggressively expanded high-value crop cultivation. In the past five years:  
- Black pepper cultivation has increased from 2,083 hectares (ha) to 3,254 ha.  
- Coffee plantations have grown from 337 ha to 785 ha.  
- Mushroom production has expanded from 27 metric tons (MT) in 2018 to 171 MT in 2024.  

Under the CM FARM+ initiative, the state will provide quality planting material and training for select crops, targeting a 10,000-ha expansion over three years. The budget allocates Rs 40 crore to this initiative, but scaling up remains a challenge. High-value crops benefit specific groups, while a majority of small-scale farmers remain dependent on traditional, low-yield farming.  

Floriculture and value addition: Can Meghalaya compete with bigger markets?

The Floriculture Mission, which aims to support farmers growing orchids and other high-value flowers, has so far benefitted 469 farmers, with plans to assist 1,000 more next year. With an allocation of Rs 86 crore, this programme could generate supplementary income, but Meghalaya faces competition from larger flower-producing states like Assam and Karnataka.  

To boost farm productivity and earnings, the government has also set up 164 small processing units and 13 PRIME HUBS for value addition. These facilities process around 8,000 MT of agri-produce annually, helping 10,000 farmers. While these are steps in the right direction, whether they can absorb Meghalaya’s larger farming population remains uncertain.  

Post-harvest losses and distress selling remain major risks

Despite budgetary support, post-harvest losses remain a serious issue. The government has built 44 cold storages and 202 pack houses in the past five years, with 87 warehouses (19,000 MT capacity) under construction. However, many rural areas still lack proper storage and transport, forcing farmers to sell at low prices.  

In response, the government launched the CM ASSURE program, which guarantees 22,000 small and marginal broom and areca nut farmers a minimum price for their produce. Rs 50 crore has been allocated for this in 2025-26. While this may provide short-term relief, the program needs a clearer long-term strategy to protect farmers from price volatility.  

Rural economy: Is the money reaching farmers?

With Rs 618 crore allocated for agriculture, including Rs 450 crore from state funds, the government has increased its spending by 43% compared to last year. However, past trends suggest that budgeted funds don’t always translate into direct farmer benefits. Meghalaya still lacks large-scale irrigation, mechanisation, and efficient market linkages.  

While rural entrepreneurship programs like CM-ELEVATE have supported small businesses, large-scale job creation in agriculture remains limited. Without stronger farmer cooperatives, better transport infrastructure, and greater access to national markets, Meghalaya’s goal of doubling farm incomes will remain out of reach for many.  

Will Meghalaya’s agricultural reforms work?

The budget outlines promising steps, but execution remains key. While the focus on high-value crops, value addition, and minimum price guarantees is commendable, it needs to be scaled up. Meghalaya’s agriculture sector still faces challenges in market access, post-harvest infrastructure, and climate resilience.  

Unless structural issues like irrigation, credit access, and organised supply chains are addressed, Meghalaya’s farmers may continue to struggle despite increased government spending. The state’s agricultural future depends not just on budgetary allocations, but on the successful implementation of these ambitious programmes.