Dairy and Livestock Sector of India

In Context

• The Union Budget 2022-23 is expected to boost the dairying and livestock sector with a host of measures to make it sustainable amid the ongoing COVID-19 pandemic.

Dairy and livestock sector of India

• India’s success story in milk production was scripted by Dr Verghese Kurien, known as the “Father of the White Revolution” in India
• Dairy: It is the single largest agricultural commodity contributing 5 percent of the national economy and employing more than 8 crore farmers directly. 
  • India is ranked 1st in milk production contributing 23 percent of global milk production. 
  • Milk production in the country has grown at a compound annual growth rate of about 6.2 per cent to reach 209.96 million tonnes in 2020-21 from 146.31 million tonnes in 2014-15
• Livestock Sector: It is an important subsector of agriculture in the Indian economy. It grew at a CAGR of 8.15 per cent during 2014-15 to 2019-20 (at constant prices). 
  • As per the estimates of National Accounts Statistics (NAS) 2020 for sector wise GVA of agriculture and allied sectors, the contribution of livestock in total agriculture and allied sector GVA (at constant prices) has increased from 24.32 per cent (2014-15) to 29.35 per cent (2019-20). 
    • Livestock sector contributed 4.35 per cent of total GVA in 2019-20.
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Image Courtesy: Economic Survey 

Budget’s role

• Total Allocation: It has allocated Rs 6,407.31 crore for the Ministry of Fisheries, Animal Husbandry, and Dairying. 
  • The budget allocation for the Ministry of Fisheries, Animal Husbandry, and Dairying has been increased by 44 percent.
• New Vibrant Villages Programme’: 
  • Border villages in northern India with a sparse population and limited connectivity, have been covered under the ‘New Vibrant Villages Programme’ in the new budget.
    • Some 95 per cent of livestock farmers are concentrated in rural India. 
    • Hence, infrastructure development under the Vibrant Villages Programme will play a significant role in enhancing market access for these livestock farmers.
• Reduction in Taxes: 
  • Reduced alternate minimum tax and surcharge reduction for cooperative societies from 18.5 percent to 15 percent will benefit thousands of dairy cooperatives in India, translating into higher income for dairy farmers.
• Allocation for Rashtriya Gokul Mission and National Programme: 
  • An increased allocation of 20 per cent in 2022-23 for the Rashtriya Gokul Mission and National Programme for Dairy Development is expected to help in increasing the productivity of indigenous cattle and quality milk production.
• The increase in allocation for the livestock sector by more than 40 per cent for 2022-23 and the enhanced allocation for central sector schemes by more than 48 per cent shows commitment by the government for the growth of livestock and dairy farmers.
• Incentivising digital banking, digital payments and fintech innovations will create a ripple effect in the livestock sector through greater transparency by streamlining payments during milk procurement and other services rendered by livestock farmers. 
  • A completely paperless, e-bill system will be launched by ministries for procurement.
• One Health Mission:
  • The implementation of the One Health Mission with almost 60% enhancement in fund allocation for Livestock Health and Disease Control for 2022-23 over the previous year will ensure healthier livestock and healthier India.

Challenges Faced By the Indian Dairy Sector

•  New regulation: 
  • Dairy analogues, plant-based products and adulteration pose a major challenge and threat to the dairy industry. The new regulation for analogues and ghee standards has been amended by the Food Safety Standards Authority of India recently.
• Shortage of feed/fodder:
  • There is an excessive number of unproductive animals which compete with productive dairy animals in the utilisation of available feeds and fodder.  
  • The grazing area is being reduced markedly every year due to industrial development resulting in a shortage of supply of feed and fodder to the total requirement.
• Education and Training:
  • Lack of vigorous education and training programmes on good dairy practices in India mostly in rural areas.
• Health:
  • Veterinary health care centres are located in far off places. The ratio between cattle population and veterinary institution is wider, resulting in inadequate health services to animals.
• Hygiene Conditions:
  • Many cattle owners do not provide proper shelter to their cattle leaving them exposed to extreme climatic conditions which further leads to mastitis conditions.
• High import duty:
  • The constraints being faced in exports i.e market access issues in China, EU, South Africa and Mexico, high import duty charged by SAARC and neighbouring countries such as Bangladesh (35%) and Pakistan (45%).

Initiatives Related to the Dairy sector

• Several measures have been initiated by the government to increase the productivity of livestock, which has resulted in increasing milk production significantly.
• “Dairy Sahakar” scheme
  • Union Minister of Home Affairs and Corporation launched the “Dairy Sahakar” scheme at Anand, Gujarat, during the function organised by Amul for the celebration of the 75th Foundation Year of Amul. 
    • The Dairy Sahakar with a total investment of  Rs 5000 crore will be implemented by NCDC  under the Ministry of Cooperation to realize the vision, “from cooperation to prosperity”.  

• Rashtriya Gokul Mission (RGM): It has been launched in December 2014 with an outlay of Rs 2025 crore for the development and conservation of indigenous breeds through selective breeding in the breeding tract and genetic up-gradation of the nondescript bovine population.

• National Animal Disease Control Programme (NADCP): It is a flagship scheme launched in September 2019 for control of Foot & Mouth Disease and Brucellosis by vaccinating 100% cattle, buffalo, sheep, goat and pig population for FMD and 100% bovine female calves of 4-8 months of age for brucellosis in five years (2019-20 to 2023-24).

• Animal Husbandry Infrastructure Development (AHIDF): It has been approved for incentivizing investments by individual entrepreneurs, private companies, MSME, Farmers Producers Organizations (FPOs) and Section 8 companies to establish 
  • The dairy processing and value addition infrastructure.
  • Meat processing and value addition infrastructure.
  • Animal Feed Plant.

• Dairy Entrepreneurship Development Scheme (DEDS): The department of Animal Husbandry, dairying and fisheries is implementing DEDS for generating self-employment opportunities in the dairy sector, covering activities such as enhancement of milk production, procurement, preservation, transportation, processing and marketing of milk by providing back ended capital subsidy for bankable projects. 
• Pashu-Aadhar: It is a unique ID on a digital platform for traceability for the animals.
• National Digital Livestock Mission(NDLM) 

• It is a digital platform being developed jointly by the Department of Animal Husbandry and Dairying (DAHD) and NDDB on the foundation of the existing Information Network for Animal Productivity and Health (INAPH).
•  The bedrock of NDLM will be the unique identification of all livestock, which will be the foundation for all the state and national level programmes including domestic and international trade. 

• Livestock Health & Disease Control (LH&DC) Scheme
  • It aims to reduce risk to animal health by prophylactic vaccination against diseases of animals, capacity building of Veterinary services, disease surveillance and strengthening veterinary infrastructure. 

• Dairy Processing and Infrastructure Development Fund (DIDF) Scheme:-

• Launched: 21st December 2017
• Objectives: To modernize the milk processing & chilling plants including value addition

• e-GOPALA: The web version of the e-GOPALA application developed by the National Dairy Development Board (NDDB) has been launched to aid dairy farmers. 

• Gopal Ratna Award 2021
  • It was launched by the Department in 2021 and is one of the highest National Awards in the field of livestock and dairy sector. 

• Nationwide Artificial Insemination Programme:
  • It was initiated in September 2019 and under the programme, AI services are delivered free of cost at farmers’ doorstep.  

• Launching of Breed Multiplication farm Portal

• Breed Multiplication Farm Portal was launched on 26th November 2021 to receive an online application from interested private individuals/ Entrepreneurs, FPOs, SHGs, FCOs, JLGs, and Section 8 companies for breed multiplication farms.

•  Launching of Dairy mark
  • The National Dairy Development Board (NDDB) and Bureau of Indian Standards (BIS) together developed a dedicated ‘Dairy Mark’ logo as a unified quality mark across India to boost the confidence of consumers in milk and milk products.
  • A unified Conformity Assessment Scheme has been chalked out by BIS with the help of NDDB after extensive stakeholder consultations.

Way Forward

• Awareness on clean milk production and various schemes by the Department of Animal Husbandry and Dairying and the new Ministry of Cooperatives will help dairy farmers evolve in the future. 

Source: DTE