- 44% more for Department of Animal Husbandry & Dairying
- 20 billion allocated for Livestock Health and Disease Control
- Farm Credit Target increased to 18 lakh crore
- Alternative Minimum taxes for cooperative societies reduced to 15%
- Budget allocation for National Program for Dairy Development and Rashtriya Gokul Mission increased by 20%.
WHAT’S IN THE BUDGET 2022 FOR DAIRY SECTOR?
The dairy segment and the industries are likely to grow after announcing the union budget presented by honourable Union Finance Minister Smt. Nirmala Sitaraman for the year 2022-23. The increase in demand for the dairy and livestock sector has purveyed an unimaginable scope globally for the dairy industry.
Significant highlights of budget 2022 in the dairy sector:
- The government has shown the green light for encouraging dairy and livestock production by increasing the budget amount by 44%.
- The budget also highlighted an increase in allocating funds in the dairy and livestock sector amounting to Rs. 6,407.31 crore.
- The reduction in taxes for cooperative societies hopes to help millions of dairy farmers. The Alternative Minimum taxes for cooperative societies have been reduced from 18.5% to 15%.
- Increase in budget allocation for Rashtriya Gokul Mission and National Program for Dairy Development by 20% in 2022-23.
- Revival of economic activities in the Dairy sector through Rashtriya Gokul Mission and National Program for Dairy Development will also increase employment opportunities in rural and Semi-urban areas.
How can the dairy industry benefit from the presented budget?
- The budget has been considerably increased for the current dairy segment by 44% and 40% for the livestock segment. The allocated amount to Rashtriya Gokul Mission and National Programme for Dairy Development has been increased by 20% in 2022-23.
- The increase in the budget can give cattle rearing infrastructural development and lead to mass production.
- The increased budget amount can increase the productivity of the indigenous bovine population and the quality of milk production.
- The alternate minimum tax (AMT) has been reduced by 3.5%. The current AMT for cooperative society amounts to 15%, which helps the dairy industries retain a higher profit, thereby increasing dairy infrastructural needs.
- Other subsidies such as the NABARD Dairy farming subsidy scheme, Dairy Entrepreneurship development scheme, and National programme for Dairy Development can be provided under government programs for enhancing and encouraging milk production in the current year.
Mechanisms that can be used for acceleration of dairy produce
The budget has given plenty of opportunities for the dairy industry to invest in technology and intelligent techniques for increasing dairy produce. Industry experts have corroborated on how the current budget can mould Dairy industries. Being a developing country, India is yet to uphold the pillar of complete revamp of technology in dairy farming and still relies on the traditional ways of farming. Many Agri-tech start-ups have come forward and introduced new mechanisms to promote products in the dairy sector.
Artificial insemination (AI) can help monitor cattle and milk-producing breed’s abnormalities. Group calving, Farm mechanization, and management tools can prevent significant dairy issues. Cross-breeding farming and scientific breeding techniques can also lead to a strong foundation for Dairy farms. Robotic milking can also save physical labour and can reduce time-consuming physical activities.
Infrastructural development for an increase in dairy production and distribution through installation of bulk milk coolers, Milk processing plants, and Milk powder plants can work wonders in upgrading and enhancing the production.
Areas wherein the dairy industry can grow due to potential budget.
- India ranks 6th in the world for dairy production, and the capacity can be increased further by providing a proper production, storing, and distribution facility.
- The demand for milk powder has been increased, and the manufacturing unit of milk powder can still show improvement by assimilating proper infrastructure and marketing.
- The cold storage facilities can be developed for cold compressed milk and other compressed milk products.
- Transportation and handling support services could be improved through natural preservatives so that milk and milk products can be stored for a more extended period; this can also help increase exports.
Market access to Dairy Sector
The market access of the dairy sector has compounded to an important issue due to the lack of infrastructural development and connectivity in rural areas. The government looked at the loophole and constituted Infrastructure Development under Vibrant Villages Programme which will help large milk and dairy industries to connect with the remote areas. This will help generate higher productivity due to the exchange of prominent essential equipment.
The increase in productivity of dairy will ensure growth in the economy and on a global level. The cost of production can also reduce with a higher profit value to primary sectors.
By Siddhi Gupta,
Co-Editor,
Pixie Consulting Solutions Limited
