The Government of Uttar Pradesh is ramping up efforts to solidify its dominance in the Indian dairy industry, unveiling aggressive policy incentives, tax exemptions, and development schemes aimed at boosting milk production, employment, and exports.
Speaking at an investors’ workshop organized by the Department of Animal Husbandry and Dairy Development, State Minister Dharampal Singh outlined a bold vision to elevate the state’s dairy sector to global prominence.
“Our mission is to increase milk production, enhance farmers’ income, and establish Uttar Pradesh as a national and international leader in dairy exports,” said Singh.
🔹 UP Leads in Milk Production, Targets Trillion-Dollar Economy
Currently, Uttar Pradesh ranks first in India with an annual milk output of approximately 387 lakh metric tons, contributing 16% of the country’s total milk production. The state produces around 1,062 lakh litres of milk per day, positioning it as a key driver in India’s dairy economy.
Dharampal Singh emphasized the sector’s pivotal role in achieving the state’s $1 trillion economy goal, asserting that dairy growth is intrinsically linked to rural prosperity and job creation.
“The dairy sector will be instrumental in driving inclusive economic development. Our reforms are structured to empower farmers, entrepreneurs, and investors alike,” he added.
🔹 Major Tax Reforms Under GST to Boost Dairy Industry
Principal Secretary Amit Kumar Ghosh announced a series of recent GST reforms benefiting dairy stakeholders:
- UHT (Ultra High Temperature) milk and packaged paneer are now completely GST-exempt
- GST on butter, ghee, cheese, and dairy spreads reduced from 12% to 5%
- GST on ice cream and chocolate dropped from 18% to 5%
“These tax concessions will bring significant relief to dairy manufacturers, help stabilize consumer prices, and promote domestic and export demand,” Ghosh said.
He further revealed that the government is targeting a threefold increase in milk production, the creation of over one crore rural jobs, and making UP the leading dairy exporter in India by 2047.
