Union Dairy Budget inclusion for Industry as Declared on 1 February 2023

Introduction

The Union Budget for the Dairy Industry was declared on 1 February 2023. This budget puts forward several new initiatives for the industry, which are expected to have a major impact on the sector. “India is at the forefront of popularising millets, whose consumption furthers nutrition food security and welfare of farmers,” the finance minister said.

In this blog post, we will explore these new initiatives and their potential implications for the Dairy Industry.

Targetted Funding

The Union Budget for 2023 also proposed a targeted funding of 20 lakh crore for agricultural credit. This will help to provide access to credit for small and medium-sized farmers, enabling them to invest in their farms and increase their productivity. This will be beneficial for the entire dairy industry, as increased agricultural productivity will lead to increased milk production and higher profits for dairy farmers.

Agriculture Accelerator Fund

The Union Budget for 2023 also proposed the setting up of an agriculture accelerator fund. This fund will provide financial support to agri-startups founded by young entrepreneurs in rural areas. The aim of the fund is to bring innovative and affordable solutions to the challenges faced by the farmers. Additionally, the fund will work to bring in modern technologies to transform agricultural practices, increase productivity, and profitability. This will be beneficial for the dairy industry, as increased agricultural productivity will lead to increased milk production and higher profits for dairy farmers.

Co-operative Movement

The government’s plan to create massive decentralized storage capacity will help farmers to store their produce and get remunerative prices from the sale at the appropriate times. Additionally, the government is facilitating the setting up of a large number of multipurpose cooperative societies, primary fishery societies, and dairy cooperative societies in the next five years in villages and panchayats that are not covered. This will help to create more economic opportunities for the farmers, along with providing technical and business support to the dairy industry. This can be expected to lead to increased productivity and profitability in the sector. The government has already initiated computerization of 63,000 Primary Agricultural Credit Societies (PACS) with an investment of Rs 2,516 crore.

Increase in Government Subsidies

The Union Budget for the Dairy Industry has allocated an additional subsidies. This will benefit small and medium-sized dairy farmers, as well as dairy cooperatives. It is expected that this additional subsidy will increase the income of dairy farmers by 10-15%, which will in turn lead to an increase in milk production. This will enable the dairy industry to process more milk, thereby helping to increase production. This will also help the industry to reduce wastage, as more milk can be processed and stored in a shorter period of time.

Cluster-Based and Value Chain Approach

The Union Budget for the Dairy Industry has proposed the adoption of a cluster-based and value chain approach for the enhancement of productivity. This approach involves collaboration between farmers, the state, and the industry for input supplies, extension services, and market linkages. This will help to ensure that the farmers have access to the necessary inputs and services to increase the productivity of the crop. Additionally, this approach will help to create market linkages, enabling the farmers to access wider markets and get better returns for their produce.

Tax Relief for Dairy Farmers

The budget has also proposed a reduction in the tax rate for small and medium-sized dairy farmers. This will help to reduce the financial burden on these farmers, enabling them to reinvest their savings in the industry.

Conclusion

The Union Budget for the Dairy Industry has proposed several initiatives that are expected to have a positive impact on the sector. These include an increase in government subsidies, expansion of dairy processing capacity, and tax relief for small and medium-sized dairy farmers. It is hoped that these initiatives will help to increase the productivity and profitability of the dairy industry.

First Appreaed on Amolghodke.com & DairyPreneur.com