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Dairying in India A medium-term Outlook. TN Datta (General Manager) National Dairy Development Board (NDDB). Indian dairying is based on the ‘low input - low output’ model. More than 80 percent of India’s farmers are marginal or small.
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Dairying in IndiaA medium-term Outlook TN Datta (General Manager) National Dairy Development Board (NDDB)
Indian dairying is based on the ‘low input - low output’ model • More than 80 percent of India’s farmers are marginal or small. • They own almost 60 percent of the female bovines with only 30 percent of farm land. • About 75 percent of the animal owners own 1-3 animals. Only 8 percent of households have herd size in excess of 4 animals.
Dairying in India is more than a business • Involves lakhs of small farmers, each with 1-3 animals • Milk is the largest contributor to Agriculture GDP • Value of milk output is Rs. 350 thousand Cr. in 2012-13 (Paddy - Rs. 182 thousand Cr. & wheat - Rs.131 thousand Cr.) • Contribution close to 70% of the output from livestock • While the share of agriculture is waning in GDP, the same for Livestock is almost constant • Offers relatively stable stream of round the year income vis-a-vis crop production, which is weather dependent
Value of output of milk group in India (₹ Crore) Source: National Accounts Statistics, CSO, GoI
Dairying as a livelihood in India • Generates 5-6% of total rural employment • Major source of rural employment, especially women employment • Major source of subsidiary income • Supports 20-30% of rural household income • Ensures inclusive growth for rural households
Female bovine ownership in rural areas Source: Land and Livestock Survey, 59th Round, NSSO, 2002-03
Size of herd owned in rural milieu Source: Land and Livestock Survey, 59th Round, NSSO, 2002-03
Milk production & per capita availability Source: Department of AHD&F, GoI
Pattern in milk consumption Based on figures for 2012-13 of 132.4 million tons +Surplus handled by organised private sector is an estimate
% Household reported milk consumption Source: Consumer Expenditure Surveys, NSSO, GoI
Importance of milk in food basket Source: Consumer Expenditure Surveys, NSSO, GoI
Factors influencing milk demand Demand Drivers
Milk demand • Publications by different researchers and analysts indicate high projected demand for milk in the years to follow. • Emerging trends indicate that milk demand is likely to be in the range of 200 to 210 million tonnes in 2021-22.
Milk supply and demand • Projected milk supply and demand scenario leaves a gap of about 10-20 million tonnes by 2021-22 • To bridge this gap, one of the initiatives taken by GoI and NDDB is National Dairy Plan (NDP) I – A project funded by the World Bank
Why NDP I ? • The major source of growth in milk production is increase in animal numbers • Due to limited availability of resources like land, water, feed & fodder; growth in milk production may not sustain in longer run • Therefore, increasing the productivity levels of animals is need of the hour
National Dairy Plan NDP, with a 15 year horizon, envisaged the following objective: • Meet the projected national demand of milk through domestic sources (not imports) by increasing production at the pace required through productivity enhancement, and • Strengthen/expand infrastructure for milk procurement, processing and marketing.
National Dairy Plan Phase I To begin with, the World Bank agreed to support Phase I of NDP for a 6 year period (2012-13 to 2017-18) with the following Project Development Objective: • To help increase productivity of milch animals and thereby increase milk production to meet the rapidly growing demand for milk. • To help provide rural milk producers with greater access to the organised milk-processing sector. These objectives to be pursued through focussed scientific & systematic processes in provision of technical inputs supported by appropriate policy and regulatory measures.
Project Components • Productivity Enhancement a) Production of high genetic merit (HGM) bulls b) Strengthening existing semen stations / starting new stations c) Setting up a pilot model for viable doorstep AI delivery services d) Improving nutrition of milch animals through Ration Balancing and Fodder Development programme • Village Based Milk Procurement Systems a) Milk weighing, testing and collection b) Milk cooling c) Support for creating institutional structure d) Training