Samajwadi Party, with 22 MPs in the Lok Sabha, provides crucial outside support to Congress-led UPA-II at Centre and Yadav's statement assumes significance ahead of the 2014 Lok Sabha polls.
"Coalition government is the need of the country as no single party can come to power at Centre on its own strength," he told a public meeting here.
"It is high time that parties, having the common goal to achieve social change, come together as in Maharashtra, Bihar and Uttar Pradesh," Yadav said.
Yadav, who had served as Defence Minister in the United Front coalition government in 1996, linked "growing expenditure" on defence sector to the plight of farmers in the country.
"China which supports farmers and agriculture sector is far ahead of India. Farmers are paying the price for growing expenditure on defence sector, which is the result of not-so-cordial relations of India with neighbours Pakistan, China and Bangladesh. There is dire need to help farmers," he said.