**Executive Summary**
The Union Budget 2026 allocates significant priority to the Animal Husbandry and Dairying sector to strengthen rural livelihoods and ensure sustainable growth of the livestock economy. Key provisions focus on improving productivity, animal health, and infrastructure across the livestock value chain. A credit-linked subsidy scheme aimed at boosting entrepreneurship in animal husbandry is proposed for the year 2026-27.
**Key Points / Main Content**
* **Financial and Institutional Support:**
* Financial and institutional support for Livestock Farmer Producers Organisations (LFPOs).
* Increased funding for vaccination and disease-control programs.
* **Dairy Value Chain Strengthening:**
* Emphasis on strengthening the dairy sector through improved milk collection, processing, and value-addition infrastructure.
* Special focus on supporting cooperatives and LFPOs engaged in dairying and allied activities.
* **Veterinary Infrastructure and Services:**
* Expansion of veterinary infrastructure, mobile vet units, and doorstep services.
* Launch of a credit-linked capital subsidy assistance scheme to establish private-sector veterinary and para-veterinary colleges, animal hospitals, diagnostic laboratories, and breeding facilities to increase the number of veterinary professionals to over 20,000.
* **Credit-Linked Subsidy Programme:**
* A credit-linked subsidy scheme is proposed to boost entrepreneurship and modernization in animal husbandry, benefiting livestock, dairy, and poultry enterprises.
* **Rural and Allied Agriculture Focus:**
* Modernization and scaling up of livestock, dairy, and poultry value chains to enhance productivity and rural employment.
* AI-driven agricultural tools aimed at improving decision-making for dairy and livestock producers.
* **Tax Deductions and Relief:**
* Supply of cattle feed and cotton seed by primary cooperative societies is now eligible for tax deduction.
* Dividend income earned from one cooperative by another will be allowed as a deduction under the New Tax Regime.
* Exemption for a period of 3 years allowed to dividend income received by a notified national cooperative federation, on their investments made in companies up to 31.1.2026, for dividends further distributed to its member co-operatives.
* **Other Initiatives:**
* When calculating the Central Excise Duty payable on Biogas-Blended CNG, the entire value of the biogas will be excluded.
**Impact Analysis**
**Stakeholder: Farmers (Dairy and Livestock Producers)**
* **Impact:** Enhanced income and livelihoods through increased productivity, better access to veterinary services, credit support, and technology. Modernization of farms and increased efficiency in value chains.
* **Action Required:** Adopt modern equipment, improve productivity, and create value chains across rural sectors, leverage AI-driven agricultural tools, credit and entrepreneurship support, diversification of income efforts.
**Stakeholder: Cooperatives**
* **Impact:** Strengthening of financial flows within dairy and livestock cooperatives, enhanced support for dairy farmers, and boosted livestock-based rural livelihoods.
* **Action Required:** Distribution of dividends to member co-operatives.
**Stakeholder: Veterinary Professionals & Institutions**
* **Impact:** Enhanced opportunities for private-sector veterinary and para-veterinary colleges, animal hospitals, diagnostic laboratories, and breeding facilities.
* **Action Required:** Leverage collaboration opportunities between Indian and foreign institutions.
**Stakeholder: States and Stakeholders**
* **Impact:** States contribute to the effective implementation of these initiatives.
* **Action Required:** Collaboration with the Department for effective implementation of initiatives.
Key Entities Referenced
Union Budget 2026: The Union Budget 2026, with a specific focus on Animal Husbandry and Dairying, impacting rural livelihoods and the livestock economy.
Credit-linked Subsidy Programme for Animal Husbandry Entrepreneurship: A key scheme proposed in the Union Budget 2026-27 to boost entrepreneurship and modernization in animal husbandry through credit-linked subsidies.
Livestock Farmer Producer Organisations (LFPOs): Financial and institutional support provided to these organizations to strengthen the dairy value chain.
Ministry of Fisheries, Animal Husbandry & Dairying: The central ministry responsible for the policy and initiatives outlined in the document.
Bharat Vistar: An AI-driven agricultural platform aimed at improving decision-making for dairy and livestock farmers.
Ministry of Fisheries, Animal Husbandry & Dairying
Expansion of Veterinary Infrastructure, Mobile Vet
Units and Doorstep services
Financial and Institutional support to Livestock Farmer
Producers Organisations (LFPOs)
Strengthening the Dairy value chain from Farm to Market
Increased funding for Vaccination and Disease-Control
Programme
प्रव तथ: 01 FEB 2026 6:48PM by PIB Delhi
The Union Budget 2026 has accorded significant priority to the Animal Husbandry and Dairying sector,
reaffirming the Government’s commitment to strengthening rural livelihoods, enhancing farmers’ income,
and ensuring sustainable growth of the livestock economy. Key provisions in the Budget focus on
improving productivity, animal health, and infrastructure across the livestock value chain. Enhanced
support has been extended for breed improvement programmes, expansion of veterinary services, and
disease prevention initiatives to safeguard farmers’ assets and ensure quality livestock output.
The Budget also emphasizes strengthening the dairy sector through improved milk collection, processing,
and value-addition infrastructure. Special focus has been placed on supporting cooperatives and Livestock
farmer Producer organization (LFPOs) engaged in dairying and allied activities. In line with the vision of“Atmanirbhar Bharat”, the Budget promotes innovation, use of technology, and private sector participation
in animal husbandry. Initiatives aimed at fodder development, feed security, and climate-resilient livestock
practices will help ensure long-term sustainability of the sector.
The increased thrust on Animal Husbandry and Dairying in Budget 2026 is expected to generate
employment, enhance nutritional security, and contribute significantly to rural economic growth. The
Department remains committed to effective implementation of these initiatives in collaboration with States
and stakeholders.
Key Budget Announcements:
To increase the availability of Veterinary professionals by raising their number to over 20,000, it has been
proposed to launch a credit-linked capital subsidy assistance scheme for the establishment of private-
sector veterinary and para-veterinary colleges, animal hospitals, diagnostic laboratories and breeding
facilities. Collaboration between Indian and foreign institutions will also be facilitated.
1. Credit-linked Subsidy Programme for Animal Husbandry Entrepreneurship:
The Union Budget 2026-27 proposes a credit-linked subsidy scheme aimed at boosting
entrepreneurship and modernization in animal husbandry — benefiting livestock, dairy, and poultry
enterprises. This measure is intended to help farmers adopt modern equipment, improve productivity, and
create value chains across rural sectors.2. Broader Rural & Allied Agriculture Focus:
Modernization and scaling up of livestock, dairy, and poultry value chains, enhancing productivity and
rural employment. AI-driven agricultural tools, such as the “Bharat Vistar” platform, aimed at improving
decision-making for farmers, including dairy and livestock producers. Emphasis on credit and
entrepreneurship support for dairy and livestock farmers as part of rural income diversification efforts.
3. Deduction Extended for Primary Cooperatives:
Supply of cattle feed and cotton seed by primary cooperative societies will now be eligible for tax
deduction - ensuring better support and lower costs for dairy farmers and livestock rearers.
4. Relief on Inter-Cooperative Dividends:
Dividend income earned from one cooperative by another will be allowed as a deduction under the New
Tax Regime, strengthening financial flows within dairy and livestock cooperatives. Exemption for a
period of 3 years allowed to dividend income received by a notified national cooperative federation, on
their investments made in companies up to 31.1.2026, for dividends further distributed to its member co-
operatives.
These measures will enhance financial strength of cooperatives, support dairy farmers and boost livestock-
based rural livelihoods.
5. Other Initiatives to boost Livestock Sector :
When calculating the Central Excise Duty payable on Biogas-Blended CNG, the entire value of the
biogas will be excluded. This will promote sustainable development in the dairy sector and encourage the
setting up of new biogas plants in the country.
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JP
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