The third budget of the Government of Madhya Pradesh under Chief Minister Mohan Yadav has given a significant boost to the dairy sector, with a new scheme to provide tetrapack milk to students up to Class 8 across the state.
Announced in the ₹4.38 lakh crore budget for 2026–27, the initiative is expected to create a stable institutional market for milk while promoting dairy development as a strategic priority. The budget, presented by Deputy Chief Minister and Finance Minister Jagdish Devda, is the largest in the state’s history and is being described as India’s first “rolling budget,” with projections also presented for 2027–28 and 2028–29.
Dairy and Agriculture at the Core
Agriculture remains the dominant focus area, with an allocation of ₹1.15 lakh crore. The state has declared 2026–27 as “Krishi Year,” reinforcing its agrarian emphasis.
Key provisions include:
- ₹3,000 crore for 1 lakh solar pump connections
- Doubling of the CM Kisan Samman from ₹6,000 to ₹12,000 annually for small and marginal farmers
- ₹20,485 crore for power subsidies to farmers
- ₹720 crore for zero-interest farm loans
- Over ₹88,000 crore earmarked for farm-sector schemes
For dairy specifically, the Yashoda Milk Scheme has been allocated ₹700 crore in its first year, while ₹600 crore has been set aside to improve indigenous cow breeds. Political observers view these allocations as part of a broader strategy to strengthen the dairy economy and engage cattle-rearing communities.
Women-Centric and Welfare Spending
The Ladli Behna scheme, considered pivotal in the 2023 Assembly elections, has received ₹23,882 crore for 2026–27 — an increase of around ₹5,000 crore over the previous year. The monthly assistance under the scheme has been raised from ₹1,250 to ₹1,500.
Read More: Mother Dairy Eyes 30% Summer Sales Growth on Ice Creams, Curd and Beverages
Infrastructure, Borrowings and Fiscal Concerns
Urban infrastructure investments are planned largely through market borrowings and trust-based funding mechanisms. The budget outlines its guiding framework under the acronym “GYANII” — Garib Kalyan, Yuva Shakti, Annadata, Nari Shakti, Infrastructure and Industry. Bundelkhand has been prioritised for tourism development.
However, rising borrowings remain a concern. The government has provisioned ₹400 crore for a jet aircraft and ₹180 crore for a helicopter.
A major fiscal challenge looms with preparations for the 2028 Ujjain Kumbh, for which ₹3,060 crore has been allocated so far. Estimates suggest total expenditure could reach ₹30,000 crore, potentially requiring reallocation of funds across departments.
Strategic Dairy Expansion
The school milk distribution plan is seen as a structural intervention — ensuring nutritional support for children while guaranteeing consistent demand for milk procurement. By linking welfare with agricultural value chains, the Mohan Yadav government appears to be positioning dairy as both an economic driver and a political priority.
As the state moves into its declared “Krishi Year,” the budget signals a deliberate effort to intertwine agriculture, dairy and welfare schemes into a long-term rural growth strategy — even as financing pressures test fiscal discipline.
Join Our “Dairy & Food Jobs Updates” WhatsApp group
Follow the Agri Jobs Updates channel on WhatsApp:
Disclaimer
I do my best to share reliable and well-researched insights but occasional errors or omissions may slip through. Please view all content as informational.
Stay informed on all the latest news updates
All Agriculture Books Free Download
All Dairy Technology Books Free Download
All Agricultural Engineering Books Free download
All Horticulture Books Free Download
All Fisheries Science Books Free Download
For Daily Update follow us at:
Facebook Telegram Whatsapp Instagram YouTube
The contents are provided free for noncommercial purpose such as teaching, training, research, extension and self learning.
If you are facing any Problem than fill form Contact Us
If you want share any article related Agriculture with us than send at info@agrimoon.com with your contact detail.
