Presenting the Budget 2026–27 in the Madhya Pradesh Legislative Assembly, Deputy Chief Minister and Finance Minister Jagdish Devda announced major allocations to strengthen the cooperative sector and rural economy.
A provision of Rs 720 crore has been proposed for interest subsidy on short-term crop loans to farmers through cooperative banks. Additionally, Rs 575 crore has been earmarked as equity contribution and share capital support to cooperative banks.
Primary Agricultural Credit Societies (PACS) will receive Rs 168 crore as managerial grant, while Rs 70 crore each has been allocated for establishment expenditure and the Audit Board. Under the Targeted Public Distribution System (TPDS), Rs 779 crore has been set aside for transport commission reimbursement.
Highlighting dairy growth, the government has partnered with the National Dairy Development Board to strengthen the Madhya Pradesh State Cooperative Dairy Federation.
With per capita milk availability at 707 grams per day, 46% above the national average, the state aims to emerge as India’s “Milk Capital,” backed by zero-interest crop loans and a Rs 25,000 crore farm credit target for 2026–27.