By:-  Dr. K Rathnam, Whole-time Director and Chief Executive Officer, Milky Mist Dairy Food Limited

“The dairy sector is a cornerstone of India’s food security and rural economy, directly supporting millions of farmers and allied livelihoods. Union Budget 2026 presents a timely opportunity to accelerate the next phase of growth for this vital sector.

We welcome the government’s continued support on the GST front and believe there is scope for further rationalisation of key inputs such as packaging material, refrigeration equipment, animal feed and veterinary services. This would go a long way in easing rising cost pressures and improving overall efficiency across the value chain.

A strong policy push towards strengthening cold-chain infrastructure and logistics is critical. Enhanced capital subsidies, interest subvention schemes and easier access to long-term credit will help bridge existing infrastructure gaps, reduce wastage and improve milk quality, especially in hinterland regions.

Targeted incentives for both dairy companies and farmers are equally important. Initiatives focused on productivity enhancement, fodder development, animal health, affordable cattle insurance and cold-chain logistics can significantly improve farmer incomes while ensuring consistency in supply.

From an industry standpoint, incentives for value-added dairy products, automation, advanced quality-testing laboratories and sustainability initiatives will encourage private players to invest in modern, scalable capacity aligned with global standards.

Overall, a balanced and forward-looking Budget that strengthens farmer incomes, upgrades infrastructure and enables organised dairy players to scale sustainably will create long-term value for the sector and reinforce India’s position as one of the world’s leading dairy economies.”