Dairying in India A medium-term Outlook TN Datta (General Manager) National Dairy Development Board...

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.

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• 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

Dairying in India is more than a business

Value of output of milk group in India (₹ Crore)

Source: National Accounts Statistics, CSO, GoI

• 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

Dairying as a livelihood in India

Female bovine ownership in rural areas

Source: Land and Livestock Survey, 59th Round, NSSO, 2002-03

Size of herd owned in rural milieu

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Source: Land and Livestock Survey, 59th Round, NSSO, 2002-03

Milk production & per capita availability

8Source: Department of AHD&F, GoI

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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

13Source: Consumer Expenditure Surveys, NSSO, GoI

Factors influencing milk demand

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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.

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Change in WPI (%)

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Year2013

-2014

2012-

2013

2011-

2012

2010-

2011

2009-

2010

2008-

2009

Food 12.8 9.9 7.3 15.6 15.3 9.1

Foodgrain 9.1 14.6 3.6 4.9 14.5 11.0

Milk 6.0 7.2 10.3 20.1 18.8 7.6

Veg. & fruits 23.1 8.3 6.5 16.4 9.6 8.2

Egg, Fish &Meat

12.8 14.1 12.7 25.5 20.8 7.7

All Commodities

6.0 7.4 8.9 9.6 3.8 8.1

Trade in dairy commodity

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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

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Why NDP I ?

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• 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.

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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

Thank You

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