As Budget 2026 approaches, the dairy and FMCG sectors are closely watching policy direction, particularly around infrastructure, rural demand, and consumption growth. Sharing her perspective on the upcoming budget, Akshali Shah, Executive Director, Parag Milk Foods, emphasised the importance of sustained focus on agriculture and dairy as key pillars of India’s growth story.

She highlighted that strengthening dairy infrastructure, improving farm productivity, and expanding milk collection can significantly enhance efficiency and global competitiveness. According to her, investments in modern processing technology, organised supply chains, and better farm practices are essential to support farmers, reduce wastage, and position Indian dairy products more strongly on the global stage.

Commenting on taxation reforms and consumption trends, Akshali Shah said, “Ahead of Budget 2026, a continued focus on the dairy and agriculture sector, particularly on strengthening infrastructure, improving farm productivity, and expanding milk collection, can help the sector become more efficient and globally competitive. Investments in modern processing technology, organised supply chains, and better farm practices will not only support farmers and reduce wastage but also give the Indian dairy sector greater global reach and recognition for quality products.”

She further noted that GST and other tax reforms have played a positive role in supporting consumption patterns. While urban demand is showing signs of recovery, she pointed out that rural consumption continues to require policy support due to inflationary pressures and monsoon-related uncertainties.

Sharing her expectations from the upcoming budget, she added, “Reforms in GST and other taxation have played a positive role in supporting consumption patterns over the past year. Boosting consumption remains an important ask from the FMCG sector. While urban demand is showing signs of recovery, rural consumption, though resilient requires continued policy support, especially in the face of monsoon risks and inflationary pressures.”

Looking ahead, Akshali Shah expressed optimism that Budget 2026 will continue to strengthen agricultural and dairy infrastructure, while encouraging the adoption of modern technology. She stressed the importance of incentives for modern processing facilities, expansion of cold-chain logistics, and improved access to credit for farmers to build a more resilient and competitive sector.

She concluded, “Looking ahead, we hope Budget 2026 will continue to strengthen agricultural and dairy infrastructure, support rural development, and encourage the adoption of modern technology. Initiatives such as incentivising modern processing facilities and expanding cold-chain logistics can help improve milk availability, product quality, and overall efficiency. By building on recent progress and supporting farmers with better access to credit and resources, the sector can become more resilient, competitive, and capable of meeting growing consumer demand.”