Issues of Dairy Farmers highlighted by DCFA Pakistan amid Budget 2025-26 and Taxation

Small dairy farmers across the country are already facing severe financial difficulties due to the huge increase in fodder, medicines, vaccines, electricity, and other expenses. These are major issues of dairy farmers and they are forced to close their dairy farms due to bankruptcy on a daily basis. Once again, the implementation of sales tax in the recent budget has increased their difficulties manifold. The implementation of sales tax on dairy farmers should either be completely abolished or at least, small farmers should be given the facility of adjustment in sales tax on the pattern of corporate farmers so that they do not have to bear a double burden.

Dairy and Cattle Farmers Association Pakistan – DCFA Pakistan

This demand was made by Dairy and Cattle Farmers Association Pakistan Chief Organizer Shahbaz Rasool Warraich, President Commercial Group Islam Ashraf Butt Shahid, Secretary General Imran Gondal, President Central Punjab Saqib Saleem Gujjar, Vice President Commercial Group Rana Sufyan Ahmed and others while talking to the media at the Lahore Press Club.

The participants of the press conference termed the taxes imposed on the dairy sector and government policies in the recent federal budget as open exploitation of small dairy farmers. On the other hand, a letter has also been written by the Central President DCFA Pakistan, Shakir Umar Gujjar to the Federal Minister for Commerce Jam Kamal regarding tax on dairy farmers.

Issues of Dairy Farmers and Tax on Dairy

The Dairy and Cattle Farmers Association Pakistan demanded that the price of milk be immediately fixed on the principles of demand and supply so that production can continue, and continuous supply to consumers is also possible. Subsidies and other facilities should be provided to the dairy sector so that the production and quality of milk are not affected. If the government does not pay immediate attention to these demands, there is a risk of a food crisis in the country, for which the entire responsibility will fall on the government.

The participants of the press conference further said that if the price of milk is not fixed according to the principles of demand and supply, the majority of small farmers will not be able to continue milk production. As a result, there will be a severe shortage of milk in the market. In this case, the public will have to buy milk at a price of Rs 300 per liter or even more.

The government has provided corporate farmers with sales tax adjustment facility while small farmers registered under sales tax have been put under double burden of paying sales tax on milk sales and also on raw materials (animal fodder, medicines etc.). This is a complete injustice to farmers and is tantamount to the economic murder of small farmers. The issue of tax on dairy farmers shousl be resolved.

The Dairy and Cattle Farmers Association Pakistan (DCFA) has demanded immediate corrective measures from the government to resolve the Issues of Dairy Farmers.

Importance of the Dairy Sector in the Economy

Shahbaz Rasool Warraich and Muhammad Islam Ashraf Butt informed that according to the recent national survey, the livestock sector in Pakistan’s economy accounts for about 60 percent of the agricultural GDP and the sector provides employment to millions of families. Milk, meat, and other livestock products play a key role in meeting the country’s food needs. It is a fact that the livestock sector is the backbone of the country’s food securit,y and small dairy farmers are the foundation of this entire system. Despite this, the recent budget has put its development at serious risk by imposing tax on dairy farmers and dairy sector.

Poultry and Livestock Data 2025; Pakistan Economic Survey 2024-25

Editor In Chief

Dr. Jassar Aftab is a qualified Veterinarian having expertise in veterinary communication. He is a renowned veterinary Journalist of Pakistan. He is veterinary columnist, veterinary writer and veterinary analyst. He is the author of three books. He has written a number of articles and columns on different topics related to livestock, dairy, poultry, wildlife, fisheries, food security and different aspects of animal sciences and veterinary education.

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