We Can’t Sell Expensive Milk Cheap”: Dairy Farmers Decry Budget Tax Burden, Demand Urgent Relief

LAHORE – Small-scale dairy farmers across Pakistan have raised a powerful voice against what they describe as systematic economic exploitation following the federal government’s latest budget. In a press conference held at the Lahore Press Club on Saturday, June 28, leaders of the Dairy and Cattle Farmers Association of Pakistan (DCFAP) denounced heavy taxation on the dairy sector, warning of severe consequences for the country’s food security if immediate relief measures are not introduced.

Speaking to a packed room of farmers, journalists, and stakeholders, Chief Organizer Shahbaz Rasool Warraich and Commercial Group President Muhammad Islam Ashraf Butt sharply criticized the new tax policies, calling them a direct attack on the backbone of Pakistan’s livestock economy. Citing national data, they emphasized that the livestock sector contributes nearly 60% of the country’s agricultural GDP and sustains millions of families.

Despite this crucial role, small dairy farmers are now under immense financial pressure due to skyrocketing costs of fodder, veterinary medicines, feed, and electricity. The recent imposition of sales tax has further escalated their burdens, forcing many to shut down their operations. “We are producing milk at high cost but are expected to sell it cheap. That is not sustainable,” said Warraich.

The protestors pointed to a key disparity in taxation policy: while corporate farmers are allowed input tax adjustments, small farmers—many of whom are already struggling—are now doubly taxed, both on inputs and on milk sales. Butt called this policy “economic murder” of small farmers and warned of an imminent collapse of the dairy supply chain if corrective action is not taken.

One of the starkest warnings issued during the conference was the potential for a nationwide milk shortage. The association leaders cautioned that if milk pricing is not adjusted based on supply and demand, small farmers will be unable to sustain production. The result, they predicted, would be milk selling at over Rs. 300 per liter—placing further strain on already burdened consumers.

To avoid such a crisis, the DCFAP presented the following demands to the government:

• Immediate removal or adjustment of sales tax on small dairy farmers, similar to the tax relief granted to corporate producers.

• Price regulation based on market principles, ensuring farmers can cover costs while maintaining steady supply for consumers.

• Government subsidies and support schemes to safeguard milk quality and production volumes.

The conference was also attended by Shahid Imran Gondal (Secretary General), Saqib Saleem Gujar (President, Central Punjab), and Rana Sufyan Ahmed (Vice President, Commercial Group), along with a large number of farmers. All attendees unanimously condemned the government’s policies and issued a stern warning: if the situation remains unresolved, the dairy community will launch a protest campaign.

With a possible food security crisis looming, the ball is now in the government’s court to respond swiftly and fairly to the concerns of Pakistan’s dairy farmers.