Union Budget Strengthens Dairy, Animal Husbandry Cooperatives, Boosts Farmers’ Income: NDDB

New Delhi, Feb 2 (KNN) The Union Budget 2026–27 will provide a major boost to India’s cooperative dairy and animal husbandry sector while advancing the vision of Viksit Bharat 2047, said Dr. Meenesh Shah, Chairman, National Dairy Development Board (NDDB).

Welcoming the Budget, Dr. Shah said the measures announced focus on enhancing farmers’ incomes, promoting entrepreneurship in animal husbandry and dairying, and strengthening cooperative institutions, key pillars for inclusive rural growth.
 
Recognised as a growth engine of agriculture and allied activities, the animal husbandry sector has received an allocation of Rs 6,153.46 crore in the Budget, marking a 16 percent increase over the previous year. 
 
The Budget also proposes a Rs 500 crore Integrated Scheme for Entrepreneurship Development, aimed at expanding employment through credit-linked subsidies, modernising livestock enterprises, building integrated dairy and poultry value chains, and promoting Livestock Farmer Producer Organisations (FPOs).
 
Dr. Shah said the Budget’s announcement to add 20,000 veterinary professionals, along with a loan-linked subsidy scheme to support new veterinary and paravet colleges, hospitals, laboratories and breeding facilities, would significantly strengthen animal healthcare infrastructure. 
 
Targeting India’s livestock population of around 53 crore, including nearly 30 crore dairy animals, the initiatives are also expected to encourage global collaborations and technological innovation in the sector.
 
On the tax front, he welcomed the extension of full deduction of profits and gains to primary cooperative societies engaged in cattle feed, in addition to milk, oilseeds, fruits and vegetables. 
 
With primary cooperatives selling about 102 lakh metric tonnes of cattle feed annually, the move is expected to lower tax burdens and improve returns for farmer members. Dr. Shah noted that dairy cooperatives already pass on over 75 per cent of the consumer rupee to producers, and the measure will further enhance farmer payouts.
 
The NDDB Chairman also welcomed provisions allowing inter-cooperative society dividend income as a deductible item under the new tax regime when redistributed to members, as well as a three-year dividend income exemption for notified national cooperative federations on investments made up to January 31, 2026. These measures, he said, would strengthen multi-state cooperatives under the Sahkar se Samriddhi framework.
 
Highlighting sustainability initiatives, Dr. Shah said the Centralised Bio-CNG model, which converts dairy waste into clean transport fuel and organic fertiliser, will receive a boost following the Budget proposal to exclude the entire value of biogas while calculating central excise duty on biogas-blended CNG. 
 
This is expected to support large-scale Bio-CNG projects, advance circular economy goals and promote natural farming.
 
Overall, Dr. Shah said the Union Budget 2026–27 provides a comprehensive push to agriculture, dairy and allied sectors by improving capital efficiency, reducing tax distortions across cooperatives, and creating new opportunities for income and employment in rural India.
 
(KNN Bureau)