India’s Budget 2026–27 drives dairy cooperative tax reform, logistics upgrades, veterinary training and sustainability incentives, says GCMMF.
India Budget Boosts Dairy Cooperatives and Milk Logistics
The Federation also welcomed the announcement of a new Dedicated Freight Corridor connecting Surat in the West to Dankuni in the East.

Amul’s cooperative federation welcomes broad tax, infrastructure and veterinary reforms to strengthen milk value chains.

The Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF) — marketer of the Amul brand and one of India’s largest dairy cooperative bodies — has welcomed a suite of Union Budget 2026–27 initiatives designed to bolster the cooperative ecosystem and the wider dairy sector. The Federation described the fiscal measures as reinforcing the government’s “Sahakar se Samriddhi” vision, aimed at inclusive growth and greater sustainability for dairy farmers and cooperatives nationwide.

A key highlight for dairy producers is the introduction of cooperative-friendly tax reforms that GCMMF says will simplify accounting and tax compliance for a vast network of village cooperative societies. In Gujarat alone, around 18,600 Village Cooperative Societies (VCSs) stand to benefit, while similar reforms are expected to aid thousands more dairy cooperatives across India, reducing administrative burden and improving financial transparency.

The Federation also praised budget provisions for improving milk logistics infrastructure, notably the announcement of a new Dedicated Freight Corridor connecting Surat in western India to Dankuni in the east. GCMMF observers say enhanced freight capacity will support the efficient transportation of milk and other perishable dairy products, lower logistics costs, and reduce transit spoilage — factors critical to integrating regional milk sheds into a stronger national milk grid.

Budget measures extend into bio-energy and sustainability incentives, including Bio-CNG tax incentives and duty exemptions for renewable energy and biogas equipment. The goal is to support rural economic growth and help the dairy sector transition toward a 5% bio-CNG blend by 2028–29. Additionally, allocations include Rs 300 crore for cooperative education at the Tribhuvan Sahkari University in Anand, and Rs 450 crore to the National Cooperative Exports Limited (NCEL) to deepen export capabilities.

Animal health and workforce capacity are also targets of the budget’s new provisions, with a loan-linked capital subsidy scheme to establish veterinary and para-veterinary colleges nationwide. The GCMMF noted the scheme aims to add more than 20,000 veterinary professionals, addressing critical shortages in rural areas and facilitating collaboration with international veterinary institutions to adopt global best practices in dairy animal care and production support.

Source: The Indian Express – https://indianexpress.com/article/cities/ahmedabad/welcome-initiatives-for-cooperative-ecosystem-dairy-sector-milk-marketing-federation-10508122/

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