Budget 2020 has triggered off investments scopes in the dairy sectors. The postulated cutback of tax on cooperative societies to about 22 percent together with surcharge and exemption from Alternative Minimum Tax(AMT)has established an opportune moment for investment in the dairy sector. There could not have been any good time to bring in this constructive measure when the country’s dairy industry is at its peak position, processing twice the estimated production.

This initiative is not only to attract gains from the cooperative space but is creating employments for the masses. The good thing is farmers are to get remunerative prices from their produce. India’s leading dairy consortium Gujarat Cooperative Milk Marketing Federation that markets Amul and other 18 district level milk unions will have the opportunity to save Rs 15 crore on account of the reduction in tax and AMT exemption. Reacting to which cooperatives have demanded level playing field by seeking lower tax on the lines of reduced corporate tax offered to companies. “This discrepancy has been eliminated. Farmers will now try to earn more profits from animal husbandry,” avers R S Sodhi, managing director, GCMMF.

With 36 lakh farmers, the Gujarat’s dairy cooperatives are currently paying nearly Rs 150 crore as taxes. Both GCMMF and the National Dairy Development Board (NDDB) had demanded reduction in tax ahead of the budget. The target to double milk processing capacity from 53.5 million tonnes(MT) to 108 MT by 2025 will create 96 lakh new jobs in rural and urban India, said industry players.“With addition of each one lakh litre milk processing capacity in the organised sector, 6,000 new jobs including 5,000 in rural India and 1,000 in urban India get created,” he states.