Vadodara: The Union Budget 2026-27 has introduced a comprehensive package of measures specifically designed to uplift the animal husbandry sector, with National Dairy Development Board (NDDB) chairman Dr Meenesh Shah welcoming the announcements as transformative for rural India. The budget focuses on direct income enhancement for farmers through increased funding, tax relief for dairy cooperatives, and substantial support for sustainable agricultural practices.
Substantial Increase in Animal Husbandry Allocation
Dr Shah emphasized that the animal husbandry sector has received a significant boost with an allocation of Rs 6,153.46 crore, marking a 16% increase over the previous year's budget. This substantial funding reinforcement underscores the government's recognition of animal husbandry as a crucial driver of rural livelihoods and agricultural growth across the country.
Major Push for Rural Entrepreneurship and Employment
The budget introduces the Rs 500 crore Integrated Scheme for Entrepreneurship Development, a visionary initiative that will support modern livestock enterprises through credit-linked subsidies. This scheme aims to build integrated dairy and poultry value chains while actively promoting Livestock Farmer Producer Organisations, creating substantial employment opportunities in rural areas and fostering economic self-reliance.
Expansion of Veterinary Infrastructure
Addressing the critical need for veterinary services, the budget proposes the addition of 20,000 veterinary professionals to the workforce. Furthermore, it includes provisions for loan-linked subsidies to establish new veterinary and para-veterinary colleges, hospitals, laboratories, and breeding facilities. This infrastructure expansion specifically targets India's massive livestock population of 53 crore animals, which includes approximately 30 crore dairy animals requiring specialized care and management.
Tax Relief Measures for Dairy Cooperatives
Dr Shah welcomed several tax relief measures that will directly benefit dairy cooperatives and farmers. The budget extends full tax-deduction benefits to primary cooperatives supplying cattle feed, in addition to existing benefits for milk and other agricultural produce. Given that cooperatives sell approximately 102 lakh metric tonnes of cattle feed annually, this move will significantly reduce the tax burden and improve financial payouts to farmers.
Strengthening Cooperative Investments
The budget also introduces tax relief on inter-cooperative dividends and provides a three-year dividend income exemption for notified national cooperative federations. These measures are designed to strengthen investments under the government's Sahkar se Samriddhi initiative, enhancing the financial viability and growth potential of cooperative structures across the agricultural sector.
Sustainability Focus: Bio-CNG Project Incentives
On the sustainability front, Dr Shah highlighted the budget's exclusion of biogas value from excise duty on biogas-blended CNG. This strategic move is expected to accelerate Bio-CNG projects by creating favorable economic conditions for converting dairy waste into clean fuel and organic fertilizer. This initiative not only addresses environmental concerns but also creates additional revenue streams for dairy farmers through waste utilization.
The comprehensive measures announced in Union Budget 2026-27 represent a holistic approach to strengthening India's animal husbandry sector, with Dr Meenesh Shah expressing confidence that these initiatives will directly boost farmers' incomes, enhance rural employment opportunities, and promote sustainable agricultural practices across the country.
