Ahead of the Union Budget 2026, Heritage Foods Ltd has called for targeted policy support to strengthen India’s organised dairy sector, citing improving market dynamics following the September 2025 GST rationalisation. The appeal reflects growing confidence among organised players that recent tax reforms and consumer shifts are creating a favourable environment for long-term structural growth.
Brahmani Nara, Executive Director at Heritage Foods, said the GST changes have provided a meaningful boost to organised dairy companies by improving price competitiveness and encouraging consumers to shift away from informal channels. According to the company, demand is rising steadily for protein-rich and health-oriented dairy products such as paneer, cheese, ghee and butter, categories where organised players hold a clear advantage in terms of quality assurance and traceability.
GST reforms are reshaping consumer behaviour
Industry analysts note that the September 2025 GST rationalisation has reduced distortions across key dairy categories, helping organised brands compete more effectively with unbranded alternatives. This has coincided with a broader shift in consumer preferences towards nutrition, protein intake and branded food safety, particularly in urban and semi-urban markets.
Heritage Foods sees this convergence of tax reform and consumption trends as a critical inflexion point. However, the company argues that sustained momentum will depend on continued policy backing, particularly in areas such as infrastructure, cold-chain expansion and farmer integration.
Role of government programmes in farmer integration
Brahmani Nara highlighted the role of flagship government initiatives, including the Rashtriya Gokul Mission and the National Digital Livestock Mission, in strengthening the organised dairy ecosystem. These programmes, she said, are helping integrate more than 300,000 farmers associated with Heritage Foods into formal supply chains.
Digital livestock tracking, breed improvement and productivity enhancement measures are improving transparency and efficiency at the farm level, while also supporting income stability for dairy farmers. For organised processors, such initiatives reduce supply-side risks and improve consistency in milk quality.
Budget expectations from organised dairy
As Budget 2026 approaches, organised dairy players are expected to seek further incentives aligned with value addition, nutrition-led products and farmer-centric growth. These may include support for processing capacity, product innovation, animal health and climate-resilient dairy practices.
For Heritage Foods, the message is clear: with policy continuity and targeted fiscal support, the organised dairy sector can play a larger role in meeting India’s nutritional needs, boosting farmer incomes and supporting the transition towards a more formal, transparent dairy economy.
