Channi-led panel flags fund underutilization, seeks major boost for Diary and Livestock sector
Babushahi Bureau
New Delhi, March 18, 2026: A Parliamentary Standing Committee led by Charanjit Singh Channi has flagged persistent underutilisation of funds in the livestock and dairy sector, even as it called for enhanced budgetary support to match the sector’s growing contribution to the rural economy.
Presenting the report in the Lok Sabha, Channi underlined that livestock contributes nearly 30% to India’s agricultural Gross Value Added (GVA) and supports the livelihoods of over 8 crore rural households, making it a critical pillar of farm income and nutritional security.
However, the Committee observed that a significant portion of allocated funds under various schemes is either underutilised or surrendered, and recommended time-bound utilisation frameworks, quarterly monitoring, and improved Centre-State coordination to address the issue.
The panel stressed the urgent need to strengthen animal disease control programmes, noting that outbreaks such as lumpy skin disease have caused large-scale losses in recent years. It called for ensuring 100% vaccination coverage in a time-bound manner and expanding veterinary infrastructure, particularly in rural and remote areas.
Among its key recommendations, the Committee called for:
-
Expanding livestock insurance coverage, which currently remains below 10% of total livestock population
-
Increasing subsidies and access to advanced breeding technologies such as artificial insemination to improve productivity
-
Establishing an All India Institute of Veterinary Sciences to strengthen research, education, and innovation
The report also highlighted the need for digital livestock health tracking systems, real-time disease surveillance, and better data integration to improve policy planning and response mechanisms.
In a significant welfare push, the panel suggested exploring direct income support schemes on the lines of PM-KISAN (₹6,000 annually) for livestock farmers, many of whom depend heavily on allied activities for stable earnings.
Additionally, the Committee recommended strengthening dairy cooperatives, improving milk procurement systems, and investing in cold chain and storage infrastructure to reduce post-production losses. It also called for boosting export potential, noting that India remains the largest milk producer globally with over 220 million tonnes annually, but has relatively low participation in global dairy trade.