Vadodara: The Union budget delivered a major boost to Gujarat’s dairy cooperative sector by extending tax deductions to cattle feed, easing double taxation on inter-cooperative dividends, and announcing a new freight corridor. These measures are expected to directly benefit over 18,600 village cooperative societies, improve farmer payouts, and strengthen milk logistics in the state.Jayen Mehta, MD Gujarat Cooperative Milk Marketing Federation, said the budget addressed long-pending demands of the cooperative sector. “The cooperative taxation reforms will significantly ease compliance for village societies and enable higher surplus distribution to farmers, fully aligning with the vision of Sahakar se Samriddhi,” Mehta said.A key relief is the extension of income-tax deduction to cattle feed and cotton seed produced by members of primary cooperative societies. Gujarat’s dairy cooperatives manufacture and market nearly 10,000 metric tonnes of cattle feed daily, generating an annual turnover of around Rs 10,000 crore. The move is expected to simplify accounting and tax compliance for thousands of village-level cooperatives.The budget also allowed inter-cooperative dividend income as a deductible expense under the new tax regime, addressing the issue of double taxation within cooperative structures. This is estimated to provide Rs 80–100 crore in annual financial relief to dairy cooperatives in Gujarat, improving funds available for farmer payments and infrastructure development.A 3-year exemption on dividend income was also announced for notified national cooperative federations for investments made up to January 31, 2026.On the infrastructure front, the proposed Dedicated Freight Corridor connecting Surat in the West to Dankuni in the East is expected to enable faster movement of milk and reduce logistics costs and spoilage, strengthening the national milk grid.The budget further incentivised biogas and bio-CNG, encouraging dung-based energy projects, while allocating Rs 300 crore for cooperative education, including the establishment of Tribhuvan Sahkari University in Anand, and Rs 450 crore to NCEL to boost cooperative exports.—MILKING BENEFITS 18,600 village cooperative societies in Gujarat10,000 metric tonnes/day cattle feed produced by dairy cooperativesRs 10,000 crore annual cattle feed turnoverRs 80–100 crore/year estimated tax relief to Gujarat dairy cooperativesRs 300 crore allocation for cooperative educationRs 450 crore support to NCEL20,000+ veterinary professionals to be added nationwide MSID:: 127842339 413 |
