- India emerged as the largest milk producer and consumer in 2019.
- In the farm-dependent population comprising cultivators and agricultural labourers, those involved in dairying and livestock constitute 70 million.
- Moreover, in the total workforce of 7 million engaged exclusively in raising of cattleand buffalo, 69 per cent of them are female workers, which is 5.72 per cent of the total female workforce in the country, of which 93 per cent live in rural areas.
- Niti Aayog estimates that the country is expected to increase its milk production to 330 million metric tonnes (mt) in 2033–34 from the current level of 176 mt.
- Currently India has 17% of world output of dairy products, surpassing USA in 1998 as world’s largest producer of dairy. All this was achieved by operation Flood which was launched in 1970’s.
- According to market research company IMARC, the milk and dairy products industry reached Rs7.9 lakh crore in 2017.
- In 2016, the milk sector alone was valued at Rs3 lakh crore and is projected to scale Rs7.3 lakh crore by 2021.
- The per capita milk availability in India has gone up from 126 gm per day in 1960 to 359 gm per day in 2015.
- In the Gross Value Added (GVA) from agriculture, the livestock sector contributed 28 per cent in 2019-20.
- A growth rate of 6 per cent per annum in milk production provides a great support to farmers, especially during drought and flood.
Challenges faced
- Indian cattle and buffaloes have among the lowest productivity.
- Similarly, there is a shortage of organized dairy farms and there is a need of high degree of investment to take dairy industry to global standards.
- Improving productivity of farm animals is one of the major challenges
- Crossbreeding of indigenous species with exotic stocks to enhance genetic potential of different species has been successful only to a limited extent.
- The sector will also come under significant adjustment pressure to the emerging market forces. Though globalization will create avenues for increased participation in international trade, stringent food safety and quality norms would be required.
- Access to markets is critical to speed up commercialization. Lack of access to markets may act as a disincentive to farmers to adopt improved technologies and quality inputs.
Government initiatives for the diary sector:
- National Programme for Bovine Breeding
- Rashtriya Gokul Mission
- National Bovine Genetic Centre
- Quality Mark
- National Kamdhenu Bredding Centres
- E-Pashuhaat portal
- National Programme for Dairy Development (NPDD)
- Dairy Entrepreneurship Development Scheme (DEDS)
- National Dairy Plan-I (NDP-I)
- Dairy Processing and Infrastructure Development Fund (DIDF)
- Supporting Dairy Cooperatives and Farmer Producer Organizations engaged in dairy activities (SDCFPO)
Measures needed
- Increase in the market share depends on how dairy firms’ capabilities and their resources are utilised given the opportunities and threats emanating from emerging markets economies.
- Contract/corporate dairying and emerging global dairy trade are required to rope in dairy supply chains stakeholders in order to expand their outreach and “on-the-go” product positioning into the target segment.
- Digital technology-enabled dairy firms need to identify their compatible partners and competitors for co-creation through product-process innovation via relationship/value-based marketing.
- Freshness in milk, and convenience to store milk or milk products can be a technology innovation brought in by large dairy firms in association start-ups.
- Education and Training at Panchayat level for small and medium size farmers
- Subsidizing cattle production and encouraging cattle markets
- Facility of logistics for produced milk
- Improved Veterinary facility specially in artificial insemination of cattle
- Encouraging private sector firm to procure dairy produced at rural level
- Low interest loans for small and medium scale farmers for cattle purchase
- Encouraging rural women to take up animal husbandry
- Insurance of cattle against diseases like Anthrax, Foot and Mouth, Peste des Ruminantes, etc.
- Nurture dairy entrepreneurs through effective training of youth at the village level coupled with dedicated leadership and professional management of farmers’ institutions.
- Agricultural practices, sanitation, quality of drinking water & fodder, type and quality of pipelines – all of these need to be aligned to the goal of healthy milk
The Government initiatives can ensure sustainable growth of the dairy sector as well as boost incomes of millions of small and marginal dairy farmers. Linking the animal husbandry with food processing industry, agriculture, researches & patents has all the possible potential to make India a nutritional power house of the world. Animal husbandry is the imperative hope, definite desire and urgent panacea for India as well as the world.
