New Delhi: Ahead of the Union Budget 2026, Heritage Foods Ltd has called for targeted policy support to further strengthen India’s organised dairy sector, pointing to improving market dynamics following the GST rationalisation implemented in September 2025. The company said recent tax reforms, combined with shifting consumer preferences, have created a favourable environment for long-term structural growth in organised dairy.
Brahmani Nara, Executive Director, Heritage Foods, said the GST changes have enhanced the price competitiveness of organised dairy players and encouraged consumers to move away from informal and unbranded channels. She noted that demand is rising steadily for protein-rich and health-focused dairy products such as paneer, cheese, ghee and butter, segments where organised companies have a clear edge in quality assurance, food safety and traceability.
GST reforms reshaping consumption patterns
Industry observers point out that the September 2025 GST rationalisation has reduced tax distortions across key dairy categories, allowing organised brands to compete more effectively with unbranded alternatives. This shift has coincided with growing consumer awareness around nutrition, protein intake and branded food safety, particularly in urban and semi-urban markets.
Heritage Foods views this convergence of tax reform and evolving consumption trends as a critical inflection point for the sector. However, the company stressed that sustaining this momentum will require continued government support, especially in areas such as processing infrastructure, cold-chain expansion and deeper farmer integration.
Farmer integration through government initiatives
Highlighting the role of flagship government programmes, Brahmani Nara cited initiatives such as the Rashtriya Gokul Mission and the National Digital Livestock Mission as key enablers in strengthening the organised dairy ecosystem. According to the company, these programmes are helping integrate over 300,000 farmers associated with Heritage Foods into formal supply chains.
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Digital livestock tracking, breed improvement and productivity enhancement measures are improving transparency and efficiency at the farm level, while also supporting income stability for dairy farmers. For organised processors, such initiatives help reduce supply-side risks and improve consistency in milk quality.
Budget 2026 expectations
As the Union Budget 2026 approaches, organised dairy companies are expected to seek further incentives focused on value addition, nutrition-led product categories and farmer-centric growth. Potential measures include support for processing capacity expansion, product innovation, animal health and climate-resilient dairy practices.
For Heritage Foods, the message is unequivocal: with policy continuity and targeted fiscal support, the organised dairy sector can play a larger role in meeting India’s nutritional needs, enhancing farmer incomes and accelerating the transition towards a more formal, transparent and resilient dairy economy
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