The dairy sector in India contributes 5% to the GDP and provides direct employment to nearly 80 million dairy farmers. India's success story in milk production was scripted by Dr. Verghese Kurien, known as the "Father of the White Revolution" in India. Dairy is the single largest agricultural commodity. India ranks first in milk production, accounting for 23% of global milk production. Milk production in the country has increased at a compound annual growth rate of about 6.2%, from 146.31 million tonnes in 2014-15 to 209.96 million tonnes in 2020-21. In this article, we will discuss Dairy which will be helpful for UPSC exam preparation.

Milk Production in India

• India emerged as the largest producer and consumer of milk in 2019.
• Dairy and livestock workers account for 70 million of the farm-dependent population, which includes cultivators and agricultural laborers.
• Furthermore, of the 7 million people employed solely in cattle and buffalo raising, 69% are female workers, accounting for 5.72 percent of the total female workforce in the country, with 93% living in rural areas.
• According to NITI Aayog, the country's milk production will rise to 330 million metric tonnes (mt) in 2033-34, up from 176 mt now.
• India now accounts for 17% of global dairy output, having surpassed the United States as the world's largest dairy producer in 1998. All of this was accomplished through Operation Flood, which was launched in the 1970s.
• According to market research firm IMARC, the milk and dairy products industry was worth Rs7.9 lakh crore in 2017.
• The milk sector alone was valued at Rs3 lakh crore in 2016 and is expected to grow to Rs7.3 lakh crore.
• In India, per capita, milk availability increased from 126 gm per day in 1960 to 359 gm per day in 2015.
• In 2019-20, the livestock sector contributed 28% of agriculture's Gross Value Added (GVA).
• An annual growth rate of 6% in milk production is extremely beneficial to farmers, especially during drought and floods.

Importance of Dairy Sector

Economic Importance

• Harvesting animals for dairy and animal-based products are a major source of income for 150 million dairy farmers in India.
• The dairy industry accounts for 4.2% of the national GDP.
• After agriculture, the dairy industry employs the most people in India.

Social Importance

• Dairy products are a rich source of essential nutrients that contribute to a healthy and nutritious diet.
• With global demand for high-quality animal-sourced protein increasing, the dairy sector is well positioned to contribute to global food security and poverty reduction through the supply of dairy products.

Challenges faced by Dairy Sector

New Regulations

• Dairy analogues, plant-based products, and adulteration pose a significant challenge and threat to the dairy industry.
• The Food Safety Standards Authority of India recently amended the new regulations for analogues and ghee standards.

Feed/ Fodder Scarcity

• There are an excessive number of unproductive animals competing for available feeds and fodder with productive dairy animals.
• Every year, industrial development reduces the grazing area significantly, resulting in a shortage of feed and fodder to meet total demand.

Education and Training

• There is a lack of vigorous education and training programmes on good dairy practises in India, particularly in rural areas.

Health

• Veterinary health care facilities are scattered across the country. The ratio of cattle population to veterinary institution is greater, resulting in insufficient animal health services.

Hygiene Conditions

• Many cattle owners do not provide proper shelter for their cattle, leaving them exposed to extreme climatic conditions, which leads to mastitis conditions.

High Import Duty

• The constraints in exports include market access issues in China, the EU, South Africa, and Mexico, as well as high import duty charged by SAARC and neighboring countries such as Bangladesh (35%), and Pakistan (45%).

Government Initiatives Related to Dairy Industry

• National Programme for Bovine Breeding (NPBBDD): The Department of Animal Husbandry, Dairy, and Fisheries' four active schemes in the dairy industry were combined to create the NPBBDD.
• This has been done to integrate milk production and dairying activities in a systematic and scientific way to increase milk production and productivity and satisfy the nation's rising milk demand.
• Rashtriya Gokul Mission: It was started in December 2014 with a budget of Rs 2025 crore for the improvement and preservation of native breeds through breeding tract selection and genetic improvement of the unremarkable bovine population.
• National Bovine Genetics Center: The Rashtriya Gokul Mission concept proposes to build a national-level genomic center called the "National Bovine Genomic Centre for Indigenous Breeds" in order to start genomics among indigenous bovine breeds.
• National Kamdhenu Breeding Centers: This center's goals are to preserve and promote Indian bovine breeds, boost output and productivity, improve genetic quality, provide certified germplasm, and prevent the extinction of native breeds.
• E-Pashuhaat Portal: To connect breeders and farmers on the availability of bovine germplasm, the e-pashuhaat portal was created. The site was established as part of the "National Mission on Bovine Productivity" program.
• National Program for Dairy Development(NPDD).
• Dairy Entrepreneurship Development Scheme (DEDS): By providing back-ended capital subsidies for viable projects, the Department of Animal Husbandry, Dairying, and Fisheries (DAHF) are implementing DEDS to create self-employment opportunities in the dairy sector. These activities include improving milk production, purchasing, preserving, transporting, processing, and marketing milk.
• National Dairy Plan-I (NDP-I): The National Dairy Development Board (NDDB) is implementing the National Dairy Plan Phase I (NDP I), a Central Sector Scheme, through End Implementing Agencies (EIA) from 2011–12 to 2018–19.
• Dairy Processing and Infrastructure Development Fund (DIDF): The Government of India announced the creation of the Dairy Processing and Infrastructure Development Fund under NABARD with a total corpus of Rs. 8000 crores over a period of 3 years (i.e. 2017-18 to 2019-20) in the Union Budget of 2017-18 to ensure that dairy cooperatives maintain their competitiveness for the sustained benefit of farmers.

Current Status of the Dairy Sector

• Dairy is India's most important agricultural commodity. Its contribution to the national economy is indispensable.
• A recovery in economic activity, rising per capita consumption of milk and milk products, changing dietary preferences, and rising urbanization in India have all contributed to the dairy industry growing by 9-11% in 2021-22.
• Over the last five years ending in 2020, the livestock sector grew at a compound annual growth rate (CAGR) of 8.15%.
• Growth in the liquid milk segment, which accounts for more than half of the dairy industry, is expected to remain stable (6-7%).
• The organized dairy segment, which accounts for 26-30% of the industry (by value), has grown faster than the unorganized segment.

Conclusion

The dairy industry is important to the economy because it employs a large portion of the population in both urban and rural areas. The sector faces numerous challenges as a result of various factors, and it is critical that adequate steps are taken to ensure the sector's sustainability. Appropriate policy support, as well as the elimination of tariff and non-tariff barriers, may help the sector thrive in the future.

FAQs

MCQs

1. What is one of the primary objectives of the National Dairy Plan in India?

A. To increase milk production
B. To reduce livestock populations
C. To import foreign dairy products
D. To decrease dairy farm subsidies

2. What is a major challenge for the dairy sector in India?

A. Surplus milk production
B. Inadequate dairy infrastructure
C. Over-regulation of the market
D. High domestic demand

3. Which of the following is NOT a part of the dairy allied sector?

A. Livestock feed production
B. Milk processing
C. Veterinary care
D. Wheat cultivation

4. What does the Rashtriya Gokul Mission focus on?

A. Supporting global dairy exports
B. Improving indigenous cattle breeds
C. Promoting milk consumption
D. Setting up dairy farms in urban areas

5. Which organization is known for revolutionizing cooperative dairy farming in India?

A. Indian Dairy Association
B. Amul
C. Nestlé
D. National Dairy Development Board

GS Mains Questions and Model Answers

1. Discuss the significance of cooperative dairy farming in improving rural livelihoods in India.

Answer: Cooperative dairy farming has significantly improved rural livelihoods by empowering small farmers, enhancing milk production, and increasing income levels. By forming cooperatives, farmers gain better access to resources like quality feed, veterinary care, and technology. Organizations such as Amul have demonstrated how cooperatives can eliminate middlemen, ensure fair pricing, and promote rural development. Additionally, cooperatives provide employment opportunities, improve infrastructure, and help farmers increase their bargaining power in the market, contributing to long-term socio-economic benefits for rural areas.

2. Evaluate the impact of the National Dairy Plan on India's dairy sector.

Answer: The National Dairy Plan (NDP) has had a transformative impact on India’s dairy sector by enhancing milk production, improving cattle breeding, and upgrading the dairy infrastructure. The NDP focuses on increasing productivity through better genetics, improved animal health, and better farm management practices. It has contributed to strengthening the milk supply chain, enhancing cold chain facilities, and expanding milk processing capacities. Additionally, the plan promotes equitable growth by supporting small-scale dairy farmers, leading to greater food security and rural economic development across India.

3. Analyze the challenges and opportunities in the dairy allied sector in India.

Answer: The dairy allied sector in India faces several challenges, including inadequate infrastructure, lack of modern technology, and limited access to quality veterinary services. These factors hinder productivity and affect the overall efficiency of the sector. However, the sector also offers significant opportunities for growth, such as the rising demand for dairy products, increasing consumer awareness about milk quality, and government initiatives to promote dairy farming. By investing in cold storage, processing technologies, and farmer training, the dairy allied sector can drive economic growth and improve the livelihoods of millions of farmers in rural India.

Previous Year Questions on Dairy Industry

UPSC CSE Prelims 2018

Question: Which of the following is the primary focus of the National Dairy Plan (NDP) in India?
A. Exporting dairy products
B. Enhancing milk production and productivity
C. Reducing the number of dairy farms
D. Promoting dairy farming in urban areas

Answer: B

Explanation: The National Dairy Plan focuses on enhancing milk production and productivity through better breeding, health management, and farm practices to meet the growing demand for milk and dairy products.