Budget 2026 Boosts Dairy Sector with Credit-Linked Subsidies, Veterinary Expansion, and Rural Growth Focus

By:- Akshali Shah, Executive Director, Parag Milk Foods

“The Union Budget 2026 recognises dairy as a key driver of farm income stability, nutrition security and rural employment. The announcement of a credit-linked subsidy programme to promote entrepreneurship in animal husbandry, including dairy, is a timely step that will support the growth of organised dairy enterprises and strengthen allied agricultural sectors.

The budget’s focus on scaling up the availability of veterinary professionals by more than 20,000, will play a vital role in supporting the dairy industry at grassroots level. It will significantly improve the overall productivity and profitability of the dairy sector in the rural regions where farmers and allied industries lose cattle in avoidable situations.

For the FMCG and dairy sector, a stronger focus on dairy-led income diversification and allied value chains reinforces the agricultural backbone that supports essential food categories such as milk and dairy products. By encouraging entrepreneurship and investment in dairy enterprises, the Budget creates a supportive environment for sustainable supply chains while contributing to inclusive rural growth.”

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