India has 10 times as many dairy-producing bovines as the US but produces only 50% more milk. Do you know why? Read more about the significance and challenges faced by Dairy Sector In India.
Who is called India’s Milkman?
Do you know India’s journey from milk deficit country to one of surplus?
Dairy is the single-largest agri-commodity in India. It contributes 5% to the national economy and employs 80 million dairy farmers directly. Learn more about this.
Dairy Sector in India
India is the world’s top producer and consumer of milk. The structured and primarily unorganized portions of the Indian dairy sector each account for 75% of the market.
With a population of almost 300 million cattle, India produces the most milk, 198.4 million tonnes in 2019–20.
According to CRISIL, the organized industry is expected to develop by 5-6%, or generate a sectoral income of Rs 1.5 lakh crore, in 2021–22 despite the limits brought on by COVID–19.
It produces over one-fifth of global milk production.
Amul, Mother Dairy, Kwality Limited, and other companies have been instrumental in increasing production.
Today, Amul has more than 3.6 million milk producers across the country.
Furthermore, the number of private dairy sector businesses has increased to the point where they currently make up more than 60% of the nation’s dairy sector processing capacity.
Due to constraints brought on by the pandemic in the prior year 2020–21, sales of VAPs (value-added products) decreased.
But in 2021–22, demand for VAPs and liquid milk is expected to soar due to continued meal delivery and rising home consumption. Additionally, higher procurement costs will result from this.
India has managed to achieve an export value of Rs 1,358.29 crores of dairy products for the years 2020–21, with the UAE serving as the country’s largest dairy sector export market, despite the export value only slightly increasing from the previous year.
To increase milk yield and maintain its quality, there is a need for investment in dairy sector farmers’ education and training as well as better infrastructure for milk collecting, transportation, and processing.
Operation Flood (White Revolution)
Dr. Verghese Kurien(India’s Milkman) came up with the idea for the White Revolution in India.
Under his leadership, numerous significant organizations were founded, including the National Dairy Development Board and Gujarat Cooperative Milk Marketing Federation Ltd. (NDDB).
The NDDB launched the White Revolution in the 1970s, and the cooperatives of local milk producers have served as its pillars ever since.
The operation flood’s foundation was set by local milk producer cooperatives. They obtained milk and offered the services while making the most use of contemporary technology and management.
Objectives of Dairy Sector in India
- Creating a flood of Milk by Increase production.
- Increase the incomes of the rural population.
- Provide milk to consumers at fair prices.
Significance of Dairy Sector in India
1. One of the most significant industries in India’s economy, the dairy sector not only supports the country’s economy but also employs millions of rural households.
2. Poor and landless farmers actively engage in dairying as a vital source of income in developing economies.
More than 500 million people live in poverty, and many of them are small and marginal dairy sector farmers, according to the FAO 2018 report.
3. 7.7 million people are employed solely in the raising of cattle and buffalo, and of those, 69 percent are women, making up 5.72 percent of all women employed in the nation. Of these, 93 percent reside in rural areas.
4. Farmers benefit greatly from a growth rate of 6% annually in milk output, especially during times of drought and flooding.
When crops fail due to natural disasters, milk output increases because farmers place more emphasis on animal husbandry during that time.
5. India has greatly benefited from milk and related products in lowering the levels of malnutrition and undernourishment there.
As a result, the dairy industry is crucial to supplying the nation’s growing population with the nutrients it needs.
Challenges of the Diary sector in India
Shortage of feed/fodder
When it comes to using the grain and fodder that are readily available, there are too many inefficient animals competing with profitable dairy animals.
The amount of grazing land is being drastically reduced each year as a result of industrial growth, which causes a shortage of feeds and fodder to meet demand.
Dairy sector animals’ performance is hampered by the widening feed and fodder supply-demand mismatch.
Additionally, providing dairy cattle with the feed of inadequate quality limits the system for animal production.
The small and marginal farmers, as well as the agricultural laborers working on the growth of the dairy sector, have limited financial resources, which leads to inadequate nutrition.
Mineral deficiency disorders are caused by a mineral mixture that is not supplemented. High-cost feeding lowers the dairy sector revenues.
Hygiene Conditions
Many cattle owners neglect to give their animals the required protection, leaving them vulnerable to harsh weather conditions.
Mastitis is brought on by the unhygienic environment in the milking parlors and cattle sheds.
Milk and other products lose quality while stored and deteriorate due to unhygienic milk manufacturing.
Health
Facilities for veterinary treatment are scattered throughout remote areas. Because of the larger ratio between the population of cattle and veterinary hospitals, animals receive insufficient health care.
An excessive amount of mortality occurs in calves, especially in buffalo, as a result of the lack of a regular and periodic immunization schedule and a regular deworming program that is not carried out according to plan.
There is not a sufficient level of protection against many cow illnesses.
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Education and Training
The production of safe dairy sector products could be achieved through intensive education and training programs on excellent dairy practices, but for this to happen, they must be participatory.
For all of the employees to grasp what they are doing and feel a sense of ownership, education, and training are crucial in this regard.
However, creating and putting such initiatives into action in the dairy sector calls for a strong commitment from the management, which can be a roadblock at times.
Fragmented Supply Chain
Maintaining quality and quantity within a diverse supply base is the primary difficulty in the dairy sector.
Dairy sector requires more intricate supply chain operations and logistics due to its perishable nature to maintain freshness and safety.
Poor returns
There is no MSP (Minimum Support Price) for milk unlike 24 major agricultural commodities in the country including wheat and rice.
Further, dairy sector cooperatives are not a preferred choice for landless or small farmers.
The cooperatives adopt a fat-based pricing policy which is 20 to 30% less than the price in the open market.
Dairy Sector: Government Initiatives
Rashtriya Gokul Mission
It was started in December 2014 to improve the genetics of the nondescript bovine population and develop and conserve indigenous breeds through selective breeding in the breeding tract.
The scheme comprises two components namely National Program for Bovine Breeding (NPBB) and National Mission on Bovine Productivity (NMBP).
The scheme aims for the development and conservation of indigenous breeds, enhancing milk production and productivity of bovine population.
Increase the number of disease-free, high genetic merit females and stop the spread of diseases. Distribute disease-free, high genetic merit bulls for natural service. Arrange for quality artificial insemination (AI) services to be provided at farmers’ doorsteps.
Gokul Gram
The Rashtriya Gokul Mission also plans to build integrated cattle development centres called “Gokul Grams” to promote indigenous breeds, up to 40% of which will be unique breeds.
Pashu Sanjivni
An animal wellness program that includes the issuance of Animal Health Cards (also known as “Nakul Swasthya Patra”), UID identification, and the uploading of information to a national database.
Advanced Reproductive Technology
To increase the supply of disease-free female cattle, assisted reproductive techniques such as in-vitro fertilization (IVF), multiple ovulation embryo transfers (MOET), and sex sorting of semen should be used.
Way forward
For the development of the dairy sector, cooperative banks and other national banks should step up and offer generous loan facilities to farmers, especially small and marginal farmers.
Creating a veterinarian service facility will increase the effectiveness of the artificial insemination program. Additionally, affordable veterinary services must be delivered right to farmers’ doors regularly.
To meet the needs of the village’s livestock population and to entice the farmer to engage in fodder farming on a commercial scale, the changing cropping pattern should generate an adequate amount of green and dry fodder.
Attempts should also be made to improve the quality and increase
the quality of manufactured feed in the cooperative sector so that
quality feed can be supplied at reasonable prices.
The dairy sector farmer will receive assistance from subsidized credit for calf rearing and feeding the cattle during dry seasons, notably from the weakest groups in society.
Primary cooperatives for milk procurement should be expanded to locations where the local market is unable to absorb the milk supply. Organizational support for milk producers through the cooperative sector should be streamlined.
Steps should be taken to reorganize and develop the rural market for milk.
Take essential steps to reduce the effect of a middleman because the middleman exploited the dairy sector farmers.
The governments have to give support to the dairy sector farmers by providing subsidies, proper prices, and market facilities.
The necessary assistance for the producers to reach value-added markets including ice cream, yogurt, cheese, and whey should be provided.
These divisions display 20% profit margins, which is significantly greater than the 3-5% margin for straightforward milk products.
A reliable market and a profitable price for the milk must be provided to the dairy sector farmers.
The quantity of milk should be given more weight in determining price than the milk’s fat content.
Article written by: Remya
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