Why There Is A Shortage Of Milk Products In India

Relevance: GS3 - Economics of Animal-Rearing; Agricultural Marketing; Issues Related to Development

(Source: Down to Earth, 09/21/2023)

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Why in the news?

• India, a long-standing global milk producer, has faced a significant disruption in its milk production during the COVID-19 pandemic.
• According to the Department of Consumer Affairs, the average retail price of milk has increased by 18.08% in the past two years.
• The National Bank for Agriculture and Rural Development (NABARD), an apex regulatory body for regional rural and cooperative banks, stated in its publication ‘EcoFocus,’ that the price rise is because of a sharp decline in milk production growth, from 5.3% in 2021-22 to 0.4% in 2022-23.

India’s Dairy Sector

• According to production data of Food and Agriculture Organization Corporate Statistical Database(FAOSTAT), India ranks 1st in milk production, accounting for 24% of global milk production.
• Milk production has increased by 51% in the past eight years, reaching 221.06 million.
• Top milk-producing states: Rajasthan (15.05%), Uttar Pradesh (14.93%) and Madhya Pradesh (8.06%)
• India has transformed from a country of acute milk shortage to the world’s leading milk producer. This phenomenal success is attributed to a Government initiative known as Operation Flood (1970–1996) and its intense focus on dairy development activities.

Factors Contributing to Stagnant Milk Supply

• Infectious Lumpy Skin Disease: This disease has affected 3.2 million cattle and buffaloes, leading to over 0.2 million animal deaths, causing a reduction in milk supply.
• Rebound in Consumer Demand: Following the COVID-19 pandemic, there was a surge in consumer demand for dairy products, further straining the milk supply chain.
• Stagnation in High-Yield Dairy Cattle and Buffaloes: An analysis revealed a stagnation in the number of high-yield dairy cattle and buffaloes between 2020 and 2022, contributing to the supply problem.
• Inefficient Breeding Practices: Inefficient breeding practices lead to low productivity and genetic variability, ultimately reducing milk production. Many farmers still rely on traditional breeding practices and do not have access to modern technologies for genetic improvement.

Impact of Missed Artificial Inseminations

• India missed conducting 16.84 million artificial inseminations during the pandemic, a key technology for improving breeds with low productivity.
• Expected Inseminations: Based on a calculated rate, it was expected that India would conduct 173.88 million artificial inseminations between 2020 and 2022.
• Actual Inseminations: The latest Basic Animal Husbandry Statistics 2022 report, published in June 2023, reveals that India only conducted 157.04 million artificial inseminations during this period, resulting in a gap of 16.84 million.
• Average Conception Rate: Given the average conception rate of 35 percent for artificial insemination in India, the 16.84 million missed inseminations translate to 5.88 million missed conceptions of high-yield bovines.
• Female Calf Probability: With a 50% probability of female calf births per pregnancy, India missed the opportunity to enhance its livestock inventory by 2.97 million high-yield female cattle between 2020-2022, ultimately impacting milk production in the following two years.

What is Artificial Insemination Technology?

• Artificial insemination involves using semen from genetically superior bulls to enhance reproductive rates, and it has significantly contributed to India's milk production.
• Europe and North America employ artificial insemination extensively in dairy breeding (80%), while
  • India's coverage stands at 30%, yet it has been impactful in enhancing milk production.
• A direct positive correlation between milk production and artificial insemination has been observed in India's dairy sector.
• The adoption of artificial insemination in India grew by 5.4% annually over ten years, but the pandemic disrupted this trend.
• According to the Basic Animal Husbandry & Fisheries Statistics-2014 report, as many as 50 million artificial inseminations were conducted in India in 2010-11.

What is the issue?

• The Nationwide Artificial Insemination Programme (NAIP), implemented by the Union government between 2020 and 2022, was conducted as part of the Rashtriya Gokul Mission scheme.
• This initiative aimed to enhance the genetic quality of all breeds of bovines and increase their milk productivity through advanced technologies.
• During the fourth phase of NAIP, which concluded in May 2023, an impressive 67.67 million artificial inseminations were carried out.
• However, despite these substantial efforts, there remains a significant loss in achieving the desired goals of bovine genetic upgradation in India.

Challenges faced by Dairy Sector

• Low Productivity: Most Indian dairy farms have low milk yields per animal due to factors such as poor-quality feed, inadequate healthcare, and limited access to modern farming techniques.
• Lack of Infrastructure: Inadequate cold storage and transportation facilities lead to milk spoilage and wastage, especially in rural areas.
• Smallholder Farming: A majority of dairy farmers in India are smallholders with limited resources and access to credit, making it difficult for them to invest in better cattle breeds or technology.
• Animal Health: Diseases and lack of veterinary care can significantly impact dairy cattle health and milk production.
• Government Policies: Inconsistent government policies related to subsidies, pricing, and regulation can affect the dairy sector's stability and growth.

What are the Government Initiatives?

• Rashtriya Gokul Mission
• Supporting Dairy Cooperatives and Farmer Producer Organizations
• Dairy Processing & Infrastructure Development Fund (DIDF)
• National Livestock Mission
• Animal Husbandry Infrastructure Development Fund
• Livestock Health and Disease Control Programmes
• Livestock Census & Integrated Sample Survey Scheme
• Kisan Credit Cards (KCC) for Dairy Farmers

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FAQs

MCQs

Question: Under the Kisan Credit Card scheme, short-term credit support is given to farmers for which of the following purposes? (UPSC 2020)

1. Working capital for maintenance of farm assets
2. Purchase of combine harvesters, tractors and mini trucks
3. Consumption requirements of farm households
4. Post-harvest expenses
5. Construction of family house and setting up of village cold storage facility

Select the correct answer using the code given below:

(a) 1, 2 and 5 only

(b) 1, 3 and 4 only

(c) 2, 3, 4 and 5 only

(d) 1, 2, 3, 4 and 5