ANAND, 2 February 2026: Amul has welcomed the Union Budget 2026–27, calling it a transformational step for India’s cooperative movement, dairy ecosystem and rural livelihoods, with landmark reforms spanning taxation, logistics, education, energy and veterinary infrastructure.
Presented by Finance Minister Smt. Nirmala Sitharaman, the Budget reinforces the vision of “Sahakar se Samriddhi”, with measures aimed at improving financial sustainability and operational efficiency of dairy and agricultural cooperatives.
Tax reforms to strengthen cooperatives
Among the most significant announcements is the extension of income-tax deductions to cattle feed and cotton seed supplied by primary cooperative societies. The move will simplify compliance for nearly 18,600 village cooperative societies in Gujarat alone, which collectively market around 10,000 metric tonnes of cattle feed daily, with a turnover of INR 10,000 crore.
Additionally, inter-cooperative dividend income is now deductible under the new tax regime, eliminating double taxation. This is expected to provide INR 80–100 crore annual relief to Gujarat’s dairy cooperatives, enabling higher farmer payments and reinvestment in infrastructure. A three-year exemption on dividends received by national cooperative federations further boosts liquidity across the ecosystem.
Logistics boost for milk movement
The proposed Dedicated Freight Corridor from Surat to Dankuni is expected to strengthen India’s national milk grid by enabling faster transport of perishable dairy products. The corridor will reduce transit time, lower logistics costs and minimise spoilage, helping multi-state cooperatives like Amul improve supply chain efficiency.
Bio-CNG and circular dairy economy
The Budget also promotes sustainability by excluding the entire value of biogas while calculating excise duty on biogas-blended CNG. Combined with duty exemptions on renewable energy equipment, the measure encourages dung-based bio-energy plants, providing additional income streams to dairy farmers while advancing clean energy adoption.
Education, exports and animal health
A INR 300 crore allocation for cooperative education, including the Tribhuvan Sahkari University in Anand, will focus on professional management, governance and youth leadership.
Further, INR 450 crore for National Cooperative Exports Limited (NCEL) aims to boost global market access for cooperative products.
To strengthen livestock productivity, the Budget introduces a credit-linked subsidy scheme to establish veterinary colleges, hospitals and labs, targeting the addition of 20,000 veterinary professionals nationwide.