The Union Budget delivers a strong fiscal and infrastructure push to Gujarat’s dairy cooperative sector. It removes key tax hurdles, improves logistics, and promotes sustainability. As a result, farmers are likely to see better income realisation, while cooperatives can operate more efficiently.
At the centre of the reforms, the government has expanded income-tax deductions for primary cooperative societies. Now, cooperatives can claim deductions on cattle feed and cottonseed produced by their members. This change corrects a long-standing imbalance and supports village-level dairy institutions. Moreover, it reduces compliance pressure and allows societies to distribute higher surpluses to farmers.
In addition, the budget removes the burden of double taxation on inter-cooperative dividends. This step frees up significant capital within the cooperative system. Consequently, dairy unions can reinvest more in processing plants, chilling centres, and market expansion. For Gujarat alone, the sector could gain ₹80–100 crore in annual financial relief.
Logistics will also improve under the proposed Dedicated Freight Corridor from Surat to Dankuni. Faster and more reliable transport will reduce spoilage and cut freight costs. Therefore, cooperatives can expand their reach to eastern and north-eastern markets with better product quality and margins.
The budget also promotes green growth. The exclusion of biogas value from excise duty on biogas-blended CNG will encourage dung-based energy projects. As a result, dairy cooperatives can convert waste into clean energy and organic fertiliser. This move not only supports sustainability but also creates new income streams for farmers.
Finally, the government has strengthened cooperative education and exports. The allocation for Tribhuvan Sahkari University in Anand will boost cooperative leadership and research. Meanwhile, support for the National Cooperative Exports Limited (NCEL) will help dairy products reach global markets.
Overall, the budget shifts from short-term relief to long-term structural support. It links tax reform, logistics, sustainability, and skill development. Therefore, Gujarat’s dairy cooperatives are better positioned for growth, resilience, and higher farmer incomes.
