DAIRY SECTOR
India is the largest producer of milk accounting for 24% of the global milk production. The sector accounts for 5% of India's GDP and supports 8 crore families. The total milk production stood at around 220 MT in 2021-22.
CHALLENGES IN DAIRY SECTOR
- Feed and fodder: Even though India accounts for world's largest cattle population, only 4% of the area is used for growing fodder. Concentrates used for fodder include coarse grains, such as maize, sorghum, bajra and other cereal by-products, such as rice bran/polish. Increase in prices of feed and fodder increases the input costs.
- Poor extension services has led to poor artificial Insemination coverage (30%), ineffective cattle and buffalo breeding Programmes, traditional feeding practices that are not based on scientific feeding methods etc.
- Poor hygiene and Frequent outbreak of diseasesamong the cattle such as Foot and mouth Disease, Lumpy Skin Disease etc.
- Limited availability of credit as there is no separate sub-target for Priority sector lending for allied sector.
- Lower yield: The increase in milk production has been due to increase in number of cattle and not due to increase in yield. According to FAO, average milk yield of Indian cow (4.87 kg) is much lower than global average (7.2 kg).
- Dominated by unorganised sector: Only 34% of milk comes from the organized sector (Cooperatives and private sector). Remaining 66% of milk comes from unorganised sector (Eco Survey 2018-19). The dairy farmers in the unorganized sector are not able to realise fair price due to poor marketing in structure and presence of middlemen.
- Limited growth of cooperatives: The private sector was allowed in the dairy sector only from 2002 when the sector was completely delicensed. However, presently, the share of private sector and cooperatives. In the dairy sector is almost same. This is due to poor governance and lack of participatory character in cooperatives.
- Limited Milk processing capacity: Against the total annual milk production of 220 MT, the total processing capacity is only around 50 MT. Limited processing capacity leads to higher losses and low value addition.
- Failure to harness consumer preference such as low cholesterol ghee, low fat butter, flavoured milk etc.
- Competition from alternatives such as Soya milk and Almond milk.
- Low share in exports: Poor Quality of milk and milk products act as barrier for entry into export market, especially EU and USA.
Hence, even though, India is the world's largest producer of milk. Its share In global exports Is only around 0.62%.
STRENGTH OF DAIRY SECTOR
- Quantity of output: Higher growth rate (4%-6%) In comparison to crop sector (1.5%) in last 20 years
- Nutritional security: Per capita milk production has increased to 387 gram per person per day which is higher than average Recommended Dietary Allowance for the country.
- Promotes Inclusive growth: Pro poor and pro women
- Less Economic burden on Government: Unlike Green Revolution, Dairy sector has grown without input subsidies and output price support.
- Higher income: Contributes 25% total income generated in agriculture sector.
- Promoted development of cooperatives such as Nandini. Amul, Mother Dairy etc. and fostered grassroots movement.
- Boosts food processing Industries like Curd, cheese, paneer manufacturing etc. Benefits agriculture through promotion of natural farming and organic farming.
INITIATIVES TAKEN
- Rashtriya Gokul Mission (RGM): Breed Improvement programme for Indigenous breeds to improve the genetic makeup and increase the milk production.
- e-GOPALA app: Marketplace and information portal for managing livestock including buying and selling of disease-free germ plasm in all forms (semen, embryos, etc);
- Dairy processing and Infrastructure development Fund (DIDF): Create/ modernise the milk processing, chilling and value addition Infrastructure
- Induction of MAlTRls (Multi-Purpose Al technicians in Rural India) to meet requirement of Al technicians.
- Establishment of Gokul Gram for conservation and development of indigenous bovine breeds in a scientific and holistic manner.
- National Programme for Dairy Development (NPDD):creating/ strengthening of Infrastructure for production of quality milk. Procurement. Processing and Marketing of Milk & Milk Products by the cooperatives.
- Animal Husbandry Infrastructure Development (AHIDF): Encourage entrepreneurs to establish the dairy processing and value addition infrastructure
- National Livestock Mission for sustainable development of livestock sector, focusing on improving availability of quality feed and fodder, risk coverage, effective extension, improved flow of credit and organisation of livestock farmers.
WAY FORWARD
Recently, the Government has highlighted that India should produce 33 percent of the world's milk with about 330 MMT milk production every year by 2033-34. Hence, there is a need for White Revolution 2.0 to capitalise on the benefits of white revolution and address the present problems faced by dairy sector.