New Delhi, Jan. 26 -- The Union budget for FY26 is expected to announce a substantial increase in funding for research and development of high-quality and -yield hybrid seeds for pulses, edible oils and cotton-essential commodities whose shortages have led to an import spike-two people aware of the matter said.

The Centre plans to develop climate-resilient seed varieties to boost productivity and improve farmers' incomes. The agriculture sector, employing about 42.3% of the population and contributing 18.2% to the GDP, is facing challenges such as climate change, leading to inconsistent yields.

A case in point is cotton, whose imports are set to rise by 42% to 2.5 million bales in the current financial year, even as exports drop by 37% ...