The budget for 2023–24 was eagerly anticipated, and it has finally arrived. Terms like dairy or animal husbandry were not used in the 38-page previous budget address. This time, we had great hopes because the budget speech was 58 pages long and had three mentions of dairy products and two mentions of animal agriculture. Nevertheless, it wasn’t primarily intended for the Indian dairy industry.
The budgetary allotment for animal husbandry and dairying increased from almost Rs. 3000 Cr last year to Rs 4327 Cr for FY 24. The epidemic of lumpy skin disease had an effect on the nation last year. The government has focused on livestock health and disease control programs only a little bit more than half of this budget.
Priorities of the 2023-24 Union Budget
The finance minister began by outlining her seven budgetary priorities: financial sector, infrastructure and investment, youth power, unleashing potential, inclusive development, and closing the gap.
The government combined all of the sector’s development funds this year and consolidated them under the Infrastructure Development Fund. One fund now includes the Animal Husbandry Infrastructure Development Fund (AHIDF) and the Dairy Infrastructure Development Fund (DIDF). Only Rs 340 Crores total has been allotted for this infrastructure development fund.
It also incorporates the program for aiding dairy cooperatives and farmers’ producers’ organizations. The program is an interest subsidy program that will be carried out by NABARD with the aim of concentrating on infrastructure for processing and chilling milk as well as testing tools for milk adulteration at the village level. Additionally, the State Cooperative Dairy Federation’s operating capital needs are supported by the budget provision (erstwhile Support to State Co-operative Dairy Federations).
National Programme for Bovine Breeding
Budgetary support for unions and state dairy federations has increased from last year’s Rs 220 Crores to this year’s Rs 323 Crores. The Rashtriya Gokul Mission’s budget, which is set at Rs 600 crores, is unchanged from last year’s amount.
Under the Rashtriya Gokul Mission, indigenous breeds and the new National Mission on Bovine Productivity plan have been combined. The program aims to boost cattle productivity by scientifically preserving and developing indigenous species.
The budget for the National Livestock Mission has increased this year from Rs 350 crores to Rs 410 crores.
The GOBARdhan Scheme
According to the minister, 500 new “waste to wealth” facilities would be built as part of the GOBARdhan (Galvanizing Organic Bio-Agro Resources Dhan) program to advance the circular economy.
There will be 300 community- or cluster-based plants, and 200 compressed biogas (CBG) plants. With a total investment of Rs 10,000 crore, 75 of these will be in metropolitan areas. In addition, she stated that the government would assist 1 crore farmers in converting to natural farming. Better manure utilization and a consequent decrease in the dairy industry’s GHG emissions would result from this.
Inclusive Development
The government launched a number of inclusive development initiatives. The concept of a digitized public infrastructure for agriculture appealed to me. The minister claimed that by providing pertinent information services for crop planning and health, enhancing access to farm inputs, credit, and insurance, assisting with crop estimation, gathering market intelligence, and supporting the growth of the agri-tech sector and start-ups, this will enable inclusive, farmer-centric solutions.
However, nobody is eager to evaluate the extent of rural India’s digital inclusion. Direct digital payment to a farmer’s account does not guarantee the farmer’s digital inclusion. Farmers who are women are not even financially included because their income goes into their husbands’ and wives’ joint accounts.
Last but not least, a few crores were given to the Indian Veterinary Council and the Animal Welfare Board. Smaller budgetary investments were also made for this sector’s talent development. However, this excludes the Indian dairy industry.
Let us Hear the Statements!
According to the rating agency ICRA, the incentives for the cooperative sector that were included in the Union budget for 2023–2024 are anticipated to help the nation’s dairy processing business.
Cooperatives that undertake manufacturing activities until March 31, 2024, shall have the benefit of a lower tax rate of 15%, as is already offered to new manufacturing enterprises. The target for agricultural financing would be raised to Rs 20 trillion, with an emphasis on dairy, fisheries, and animal husbandry.
Indian Finance Minister Nirmala Sitharaman
The establishment of new cooperatives, particularly with a view to incorporate uncovered panchayats and villages augurs well for the Indian dairy industry as more small and marginal farmers would be able to join in organized milk procurement. The competition from these cooperatives could become more intense for private dairy businesses in certain areas. Low tax rates for new cooperatives planning to build industrial facilities could promote the expansion of the dairy processing industry.
Shamsher Dewan, Senior Vice President, ICRA
Wrapping Up
It is laudable that the government came up with the idea of creating an agriculture accelerator fund. This is to support creative start-ups in rural areas. The only aspect that will become clearer in a month or two is the target funding of the Rs 20 lakh crore farm loan targeted at the animal husbandry, dairy, and fishing sectors.
The dairy industry contributes 30% of the Agri GVA and received Rs 4237 Crores in this budget. Whereas, the fishing industry contributing 7% of the Agri GVA received Rs 6000 Crores. Therefore, although there are positive sides to the dairy industry, yet, much more could have been there. Seldom, it is coming to mind that, might be, the contribution of the Indian milk and dairy industry did not receive worthy gratitude for its contribution to the economy during the global disaster – COVID-19!
