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REPORTOF

THEADVISORYCOMMITTEE

ONANIMALHUSBANDRY&DAIRYING

VolumeIMAINREPORT

ConstitutedbythePLANNINGCOMMISSION

GovernmentofIndiaYojanaBhawan,NewDelhi.

January 2010


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1

PREFACEThePlanningCommission,GovernmentofIndia,videitsorderNo.Q13017/2/2008Agri

dated 4th

February, 2009, constituted a Committee to look into the various

developmental programmes followed in the Animal Husbandry & Dairy Sector and

suggestedmeasures

for

accelerating

the

growth

rate

with

the

objective

of

achieving

the

targets set for the 11th

Plan. The constitution of the Committee and its term of

referencehavebeenannexed.

Themembersof theCommitteevisitedallthestatesofthecountrytostudythe field

level implementationof the various programmes.Wrapupmeetingswereorganized

with the representatives of the states at Bengaluru, Mumbai, Bhubaneshwar,

ChandigarhandLucknow,wherethefindingsofthegroupswerepresentedandfuture

developmental strategies in animal husbandry and dairying sectorwas discussed. In

thesemeetings,inadditiontovariousdevelopmentprogrammes,VentureCapitalfund

andCDAP,whichisanessentialrequirementforRKVY,werealsodiscussed.

ThreesubgroupsoftheAdvisoryCommitteewereconstitutedonFodderDevelopment,

Livestock Extension and Value Addition (Milk andMeat). They took an independent

studyvisitingvariousstatesandinteractingwiththestakeholders.

TheCommitteeplacesonrecordthecontributionmadebytheStateGovernmentsand

thehospitalityextendedtothemduringvisittotheirstates.TheCommitteealsowants

toexpressitsgratitudetoHonbleShriAbhijitSen,Member,PlanningCommission,and

ShriL.Rynjah,PrincipalAdvisor(Agriculture),fortheirguidanceandsuggestionsduring

thedeliberationsofthemeeting.ThecontributionmadebyNationalDairyDevelopment

Board,Anand;

National

Dairy

Research

Institute,

Karnal;

Indian

Grassland

and

Fodder

Research Institute, Jhansi and Guru Angad Dev University of Veterinary and Animal

Science,Ludhiana,isalsoacknowledged.

InthecapacityofChairman,Ihavegreatpleasureinexpressinggratitudeandthanksto

allmembersoftheCommitteefortheirhardworkandtheircooperation.Itwasdueto

thehardworkput inbyeverymemberthat ithasbeenpossibletocompletethetask

within the given time frame. Many others who helped in the task included Dr.

R.M.Acharya,Retd.Dy.DirectorGeneral(AS),ICAR,NewDelhi;theircontributionisalso

gratefullyacknowledged.

(N.R.Bhasin)

January6,2010 Chairman


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CONTENTS

Chapters/Annex PageNo.Preface

1

ExecutiveSummary 211

Chapter1:LivestockinNationalEconomy 1220

Chapter2:GrowthofAnimalHusbandryandDairySectors 2123

Chapter3:PotentialforGrowthinAnimalHusbandryandDairySectors 2429

Chapter4:PublicInvestment 3035

Chapter5:InputsandServices 3647

Chapter6:DevelopmentalStrategy 4871

Chapter7:ResearchandTechnologySupportforAnimalHusbandry 7279

Chapter8:LivestockCreditandInsurance 8087

Chapter9:PublicPrivatePartnership 8892

Chapter10:ReviewofCentralSectorandCentrallySponsoredSchemes 93108

Chapter11:SuggestedCentralSectorandCentrallySponsoredSchemes 109111

Chapter12:InstitutionalandStructuralReforms 112116

Chapter13:StateSpecificRecommendations 117165

AnnexureI:ReportofSubgrouponFodderProduction 166209

AnnexureII:ReportofSubgrouponLivestockExtension 210224

AnnexureIII:ReportofSubgrouponValueAddition 225269

Enclosures

1. ConstitutionoftheCommittee

2. ConstitutionoftheSubgroups


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2

EXECUTIVESUMMARY1.Livestock isan importantsubsectorofIndianAgriculturalEconomyand

plays a multifaceted role in providing livelihood support to the rural

population.Livestock

sector

apart

from

contributing

to

national

economy

in

generalandtoagriculturaleconomyinparticularalsoprovideemployment

generation opportunities, asset creation, copingmechanism against crop

failureandsocialandfinancialsecurity.

2. Eventhoughtherehasbeendeceleration ingrowthrateoflivestock

output per se aftermid 1990s, the growth in livestock sector has been

fasterthancropsector.Thecontributionoflivestocksectorinagriculturein

termsofoutput,whichwas17.3percentduring198081,increasedto26.9

percent

in

2007

08.

Similarly,

contribution

of

the

sector

to

National

GDP

hasbeenaround5.5percentovertheyearsdespitepronouncedvariation

observed in contribution of crop sector to National GDP; indicating the

stabilityofthelivestocksector.

3. NearlytwothirdsoffarmhouseholdsinIndiaareassociatedwithone

ortheotherformoflivestockproductionand80percentofthemaresmall

landholders (


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3

productivityenhancement.The futuregrowthhas to sustainprimarilyon

enhancedproductivityandnotonincreaseoflivestockpopulation.

5. Intheruralareas,mostofthelivestockrearingactivitiesarehandled

bywomen

force.

As

many

as

75

million

women

are

engaged

in

livestock

sector as against 15millionmen. There is an increasing trend towards

participationofwomen in livestockdevelopmentactivities.Thishas ledto

empowermentofwomenheadedhouseholdsintheruralcommunities.

6. Inrecentyears,agradualshiftistakingplaceinlivestocksectorfrom

resource driven systems to demand driven systems and involvement of

educated youth in livestock production activities. The increase in the

processing of especially milk and meat had provided a fillip to this

development.Livestock

production

systems

have

also

provided

much

needed diversification opportunities especially in the states like Punjab,

Haryana andUttar Pradesh and also in the poorly endowed regions like

Bundelkhand.

7. Processingandvalueadditionhasbeenprimarily limitedtothemilk

subgroup. Themeat sector continues to be handled in an unorganized

manner. For making the meat sector more vibrant, profitable, export

orientedandproviderofsafemeat,agreateremphasisneedstobegiven

onestablishment

of

modern

slaughter

and

processing

facilities.

8. Thegrowthof the livestocksectorduring the8th

Planwas4.01per

centperannum,whichdeceleratedto3.45percentinthe9th

Planand3.91

percentinthe10th

Plan.Thecontributionofmilksectortothetotaloutput

fromlivestockisabout68percentandinsomeofthestatesitisashighas

80 per cent. After the completion of Operation Flood, there has hardly

been any investment in the cooperative sector. The investment under

centrally sponsored schemes has gone to nonviable areasmainly in the

NorthEast.

The

private

sector

has

made

considerable

investment

but

mainly intheprocessingsector,whichhasnotgiventherequired impetus

for achieving higher growth rate in milk subsector; consequently the

growthhasdeceleratedto3.91percent inthe10th

Plan.Duringthesame

periodthegrowth ineggproductionwaspositiveand increasedfrom4.41

percentinthe8th

Planto7.26percentinthe10th

Plan.Thegrowthinwool


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4

subsector hasbeen seriously affected due to lack of focusedpolicy and

alsoliberalizationoftheimportpolicyforwool.

9. Withhigherpurchasingpowerdue tohigher incomeover theyears

demandfor

consumption

of

livestock

products

is

going

to

enhance

during

the 11th

and 12th

Plan. The future strategy for achieving the targeted

livestockproductionshouldbethroughproductivityenhancementandthis

is possible through innovative approach of breeding, feeding and

management aspects. The future strategy should be based on obtaining

higher return per unit of product through value addition,which in turn

wouldbenefittheprimaryproducer.

10. Over the years there has been a quantum jump after the

liberalizationin

the

export

policy

of

livestock

product

especially

meat

and

milkwhichduringthelastyearhaveachievedanexportofRs.5000crores

in the case of meat and Rs. 1000 crores in the case of milk. India is

geographicallysituatedatanadvantagesplace inSouthEastAsiaandcan

capitalizeonthegrowingmarketinAfrica,MiddleEastandSouthEastAsia

inthegrowinglivestockmarket.

11. FromthevisitsmadebytheAdvisoryCommitteeconstitutedbythe

PlanningCommission,todifferentstatesofthecountry,ithasbeenclearly

establishedthat

there

are

large

differences

in

the

potential

of

the

growth

of

sector across the states/regions. Considering the geography and natural

resourceavailability,thedairydevelopmentshouldhaveideallytakenplace

in IndoGangetic plain comprising the states of Punjab, Haryana, Uttar

PradeshandBihar,whichhasnothappenedtothedesirable level.Onthe

contrary, traditionally low potential areas like Karnataka, Maharashtra,

AndhraPradeshandRajasthanhaveshownbetterperformance.Toagreat

extent this variation can be explained due to the emphasis put in these

statesoncooperativesystemofdairydevelopmentwhichnotonlyprovides

marketbut

also

the

requisite

input

services

for

increasing

milk

production.

12. The small ruminant sector offers considerable opportunities for

providingemployment to theresourcepoor farmersespecially in thearid

and Northhilly region of the country. A focused approach with higher


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5

investmentcommunityapproachanddevelopingprocessingfacilitieswould

providetherequiredboosttothesector.Thishasbeenlackingsofar.

13. Performanceofpoultrysectorhasbeenmore thansatisfactoryand

thesector

has

emerged

from

ameager

backyard

nature

to

afully

commercialized production system, which could be attributed to

technology in the form of high producing strains, role of private sector,

efficientmarketlinkagesandadequateprocessingfacilities.

14. Thedemandforporkandotherpigproductsissignificantlyhigherin

NorthEastern states and almost 80 per cent of the production in the

country isconsumedbypeopleofNEregion.Inspiteofthis,development

of piggery sector has almost been neglected in NE region; probably on

accountof

lack

of

feed

and

other

resources.

Therefore,

it

calls

for

acomprehensivestrategyforpiggerydevelopmenttomeetthedemand.The

state governments and North Eastern Council should emphasize in

promotingthissector.

15. Theoverall investmentmade in livestockanddairysectorhasbeen

verymeager over the Plan period. The 10th

Plan outlay (20022007) for

DAHDFwasRs.2500 crorewhich constituted11.84per centof the total

budgetary outlay of agriculture and allied sector.Out of this, the outlay

allocationfor

DAHDF

(excluding

fisheries)

was

Rs.

1760

crores

accounting

for 8.35 per cent of the total outlay for agriculture and allied sector. In

termsofexpenditure theperformanceof thedepartmenthasbeeneven

poorer and was 8.02 per cent during the entire Plan period; varying

between 6.42 per cent to 10.03 per cent from year to year. On the

contrary,contributionoflivestocksectorhasbeenincreasingovertheyears

(26.9 per cent in 200708) as indicated in earlier paragraphs.With the

meagerbudgetaryallocationmadetothesector, itwouldnotbepossible

toachievethedesiredgrowthrateof6percenttargeted inthe11th

Plan.

Notonly

the

public

investment

has

been

low

there

has

also

been

serious

lackof investmentbytheprivatesector inanimalhusbandryandthattoo

limited to dairying mainly in the processing sector. In the 11th

Plan, a

provision of Rs. 11000 crores was made for DAHDF. However, the

expenditureduring thePlanperiod is likely tobenomore thanRs.6000

crores.OneofthereasonsofpoorallocationmadeinthePlanisattributed


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6

to low absorption capacity of the department, which also needs to be

improvedtoachievehighergrowth.

DevelopmentalStrategies16. The strategies during the last few Plans has been to improve the

genetic potential of indigenous cattle through crossbreedingwith exotic

breeds.Inthe10th

PlanacentrallysponsoredNationalProjectonCattleand

Buffalobreedinghasbeen takenupcovering thewholeof thecountry.A

numberofbullproduction farms, frozensemenbankandAIcentershave

beenestablished.TheprojectwasallocatedRs.375croresinthe10th

Plan,

whichhasbeenenhanced toRs.500croresduring the11th

Plan.Thishas

resulted inaquantumjump in thenumberofartificial inseminationsand

theproduction

of

crossbreds.

However,

most

of

the

bulls

used

in

the

projectsarenotprogenytested;andadequatestrategyfor fieldrecording

andprogenytestingofthebullshasnotbeenbuiltintheproject.Itiswell

known that the high producing animals can give its performance only in

comparativelybetterenvironment.However,thestrategydoesnotprovide

forsimultaneousimprovementoffeedandfodderresources,duetowhich

ithasnotbeenpossible toharness the fullpotentialof thescheme. It is,

therefore, recommended that in all areas covered under NPCBB

programmeeffortsshouldbemadetodevelop feedand fodderresources

simultaneously.

17. Thestrategyfordevelopmentofsmallruminantsectorasawhole is

lacking.Duetoanumberofreasonsthesheepproductioninmajorpartsof

thecountryisatthecrossroads.Largesheepbreedingfarmforproduction

ofexoticramswassetupinHissar,Haryana,alongwithseven largefarms

instateswhereimportedsheepofMerinoandRambouiltbreedswerekept

forproductionoframs.InthecaseofRajasthan,projectsweretakenupon

wool grading andmarketing and production of fine andmedium quality

woolfor

quality

production.

All

these

projects

have

failed.

It

is

suggested

that the future strategy should be to improve quality ofwool in sheep

limitedtoNorthernstatesofthecountrynamelyJ&K,Uttarakhandandhilly

partsofUP.Inotherpartsofthecountrythestrategyshouldbetoimprove

sheepformuttonproduction.Variousprogrammesinthestatesshouldbe

redefined and redrafted on these lines.Despite the fact that goat offers


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7

greatpotentialnostrategyhasbeendevelopedforitsimprovement.There

is no central sector or centrally sponsored schemes for development of

smallruminants.Thissectorappearstohavebeencompletelyneglected.

18.As

indicated

earlier,

in

the

case

of

Pig

production,

there

amismatch

between the consumption and production centers. While the major

demandofbaconandotherproductsisintheNE,theproductionislimited

to areas of Uttar Pradesh and Andhra Pradesh. It is suggested that the

present approach of individual farming should be replaced by cluster

approach in theNE regionwith simultaneousdevelopmentofprocessing

facilities.

19. Although the poultry sector has been completely commercialized,

backyardpoultry

offers

scope

in

the

rural

areas

for

providing

income

to

weaker sections of the community. The Central Avian Research Institute

hasdevelopedsuitabletechnologiesfordevelopmentofbackyardpoultry,

whichwould enhance its productivity and returns. Itmust, however, be

realizedthat inviewofcompetitionfromthecommercialsector,backyard

poultry has to be considered essentially as a sector limiting itself for

providinglivelihoodopportunitiestolandlessandresourcepoorfarmers.

20. In the case of animal health, the major emphasis is limited to

providingcurative

treatment

by

opening

hospitals

and

dispensaries.

The

disease investigation support is quite weak.Most of these facilities are

stationaryinnature,thereby,reducingtheirefficiency.Thepresentstrategy

shouldbereplacedbymissionmodeapproach.Anationalnetworkonthe

disease investigationand reportingshouldbeestablished.Epizooticmaps

ontheoccurrenceofvariousdiseasesinvariouspartsofthecountryshould

beprepared.Astrategytostampoutthediseasesshouldbedevelopedand

implementedfollowingtheapproachadopted ineradicationofRinderpest

disease. The existing manpower with the state veterinary and animal

husbandrydepartment

is

not

sufficient

to

provide

services

at

the

doorstep

ofthefarmers.Thisgapcanbefilledbyputtingmoreemphasisontraining

ofparavetswhowouldbeinapositiontoprovidethedesiredservicesand

relieving the veterinary doctors to assume higher responsibilities. The

production of vaccine is an area which needs to be privatized either


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8

completely or taken up on PPPmodels for efficient utilization of limited

resourcesavailabletothesector.

21. Under dairy developmentmilkproducers cooperativewill continue

toplay

amajor

role

despite

liberalization

of

the

sector.

However,

the

dairy

cooperativeswillhavetoreformthemselvesandbecomecompetitive.Milk

producersinstitutionsregisteredundercompanyslawhavebeenfoundto

bemore effective than the cooperatives.NDDB has prepared aNational

Dairy Plan, which has been submitted to theWorld Bank for financial

assistance.Under theproject theprocessingcapacitywouldbeexpanded

and also investmentmade in progeny testing and fodder production to

supportthebreedingprogramme.R&Deffortsindevelopingprocessedand

packagingtechnologyforIndianmilkproductsasalsootherinnovativemilk

productsneed

to

be

supported.

With

the

implementation

of

National

Dairy

Plan in thenear future there isaneed to relookat thevarious schemes

presently funded by DAHDF for avoiding duplication and overlapping of

investment.

22. Support should be provided to modernization of meat sector.

Registration of all slaughter houses in cities/towns is essential formeat

production and protection of environment. The establishment of rural

based abattoir in animal breeding track would reduce the need for

transportationof

live

animals

to

urban

area

for

slaughter.

In

addition,

modern abattoir/meat processingplant should be supported to promote

export.

23. Theexisting institutionalmechanism isnotsufficienttocatertothe

needs of various stakeholders of the sector. For meeting emerging

challengesbothatnationalandinternationallevelsaparadigmshift inthe

institutionalmechanismwouldbeessential.Structuralreformsarerequired

at various levels viz. national, state and production levels. For providing

comprehensiveinformation

on

livestock

related

aspects

and

drawing

long

term and short term policy/strategies, it is essential for establishing a

separateNational Body for Livestock Information and Policieswhich can

advise theMinistry in all policymatters relating to livestock sector. The

proposedbodycanestablishachannelofcommunicationandcoordination

withall the stategovernmentsand thepublic/privateorganizations,both


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nationalandinternationaldealingwithlivestock.Presently,nowelldefined

mechanism exists on import of germ plasm in the form of live animals,

frozensemenandembryos.Anadhocismprevailswhiletakingthedecision

on these issues. An authority for quality control on breeding material,

whichis

being

suggested

since

8th

Five

Year

Plan,

should

now

be

set

up

on

prioritybasis.Atpresentthevaccineproductionaswellasqualitycontrol

lieswiththestateveterinarydepartmentwhichfunctionsnotonlyasuser

but also as producer and quality controller, which is not a satisfactory

arrangement.AnindependentauthorityforQualityControlofVaccinesand

otherbiologicalproductsproducedbothinthepublicandprivatesectoras

suggestedinthe11th

Planshouldbesetup.

24. Manyofthestatedepartmentshavebeensettinguplivestockfarms

withoutassessing

their

requirements.

This

tendency

needs

to

be

discouragedandtheproductionofbreedingmales(bulls,rams)shouldbe

throughidentifiedfarmersandfarmersgroup.Theissuesofdisconnectand

nonconvergence between different departments implementing animal

husbandryanddairyingactivitiesatthestate levelneeds tobeaddressed

for harnessing full benefits of various schemes. The activity of semen

productionshouldbeplacedwiththeproposedcentralagencyforensuring

qualityandstandards.

25.The

future

strategy

should

give

greater

emphasis

on

developing

publicprivatepartnership (PPP) indifferentactivitiesofanimalhusbandry

anddairysector.Someoftheareas,whichcanbetakenmoreefficientlyin

PPPmode include: vaccine production and its delivery,meat production

andprocessing,processingoffallenanimalsandanimalbyproducts,fodder

seedproduction,managementof communitypastures and fodderbanks,

extensionandtechnologytransfer,etc.

26. Thereisaseriousshortageofqualityfodderseedsavailability inthe

country.The

State

Seed

Corporations

do

not

own

the

responsibility

of

producingfodderseeds.Fodderseedproductionisbasicallyinthehandsof

privatesectorandgroupsoffarmers.Thestrategycomparabletothecrop

sector will have to be developed for production of fodder seed, which

should incorporateproductionofbreederseed, foundationseed,certified


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10

seedandtruthfullylabeledseed.Extensioneffortswillhavetobemadeto

thetypeoftheseedsuitableforhisareaanditsavailability.

27. Livestock extension services to the farmers will be the key for

improvinglivestock

productivity

and

making

the

livestock

sector

competitive in the liberalized economy,which at present is almost non

existing.Livestockextensionservicesshouldincludetransferoftechnology

andalsostrengtheninglocallyrelevantinnovativesystems;advisoryservice

and provision of access to range of services. It is evident that extension

services need to undergo a paradigm shift. There is a need to have a

livestockextensionpolicybuilt intotheNationalAgriculturePolicy.Awell

developedknowledgeportalneedstobedevelopedandestablished.

28.Non

availability

of

credit

especially

to

landless

and

asset

less

farmers

isoneofthemajorimpedimentsindevelopmentandgrowthofthesector.

At present, short term credit to livestock farmers for meeting the

requirement for production purposes is not easily available. Livestock

Farmers Credit Card (like Kissan Credit Card) should be introduced for

providingshorttermcredittosolvetheproblemofworkingcapitalandto

avoidpayingveryheavyrateof interest tothemoney lenders. Innovative

creditfacilitiesthroughjointliabilitygroups/SHGsneedtobepromoted.

29.

The

DAHDF

is

implementing

a

number

of

centrally

sponsored

and

central sector schemes with different funding pattern. The different

components of the schemes,which are decided at the central level are

being implemented by the states and the states do not have any say in

deciding their pattern and technical contents. It is suggested that only

schemesofnational importance/relevancepertaining tobreeding,disease

control,feedandfodder,andNationalDairyPlanshouldbeplannedatthe

centrallevelandimplementedascentralsectorschemes.Asecondstream

withashelfofschemesmaybedevelopedandthestatesmaybeallowed

to

choose

relevant

schemes

based

on

state/region

specific

needs.

A

third

streamofschemetobe implementedthroughNABARDasventurecapital

fundisalsosuggested.

30. Thedevelopmentalprogrammes initiatedbyGovernmentofIndia in

therecentyearsviz.RKVY,NREGA,BRGF,WatershedProgrammes,etc.also

provide an opportunity for promoting livestock activities. Effective


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11

convergence and dovetailing of animal husbandry and dairy sectorwith

thesedevelopmentalschemesneedtobemade.

31. Consideringtheperformanceofdifferentstatesinimplementationof

various programmes of animal husbandry and dairy sectors, absorption

capacityandconstraintsofmanpowerandinfrastructure,itisunlikelythatitwouldbepossible toachieve theset targetof67percentgrowthper

annumduring the11th

Planperiod.Assuch, the target foroverallgrowth

rate in livestock sectormay have to be revised to 5 per cent during the

currentplanwitha4percentgrowthrateformilksectorand68percent

forpoultryandmeatsector.

32. Implementation of the developmental strategies suggested by the

Committeefordifferentsectorsalongwiththehigherinvestmentportfolios

wouldaccelerate

the

growth

in

the

livestock

sector.

This

would

result

in

achievingagrowthrateof67percentinthe12th

Planperiod.


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12

CHAPTER I

I. Livestock in National Economy1.1 LivestockisanimportantsubsectorofIndianAgriculturalEconomyand

plays a multifaceted role in providing livelihood support to the rural

population. Livestock sector apart from contributing to national economy in

general and to agricultural economy in particular alsoprovides employment

generation opportunities, asset creation, coping mechanism against crop

failureandsocialandfinancialsecurity.

1.2 Overtheyears,livestocksectorhasbeenmakingsignificantcontribution

tonationaleconomyaswellastotheagriculturesectoroutput.Growthratein

outputofcropsectorhaswitnessedadecelerationovertheyearsparticularly

aftermid1990s.Even though therehasbeendeceleration ingrowth rateof

livestockoutputperseaftermid1990s,thegrowthinlivestocksectorhasbeenfaster than crop sector leading to its increased share in the totalagriculture

sectoroutputfrom17.3percentduring1980/81to26.9percentin2007/08.

ThevalueofoutputfromlivestocksectorwastothetuneofRs.2,40,601crore

duringtheyear200708(atcurrentprices)accountingfor26.90percentofthe

valueofoutputfromagricultureandalliedsectors.

PercentageContributionofLivestockSectortoAgricultureandNationalGDP

(at199394prices)

PercentContributionofLivestocksectortoYear

AgricultureGDP NationalGDP

199000 24.39 5.59

200001 25.92 5.67

200102 25.91 5.70

200203 29.27 5.70

200304 27.26 5.40

200405* 24.90* 4.70*

200607 31.70 5.26

200708 26.90 5.21

At19992000prices.

1.3 The sustained economic and income growth in the country andintegrationofglobalagrifoodmarketsprovideconsiderablescope for future


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growthoflivestocksectorandopportunityofincreasedincomegenerationfor

livestock farmers, especially small holders. Nearly twothirds of farm

householdinIndiaareassociatedwithlivestockproductionand80percentof

themaresmalllandholders( 2ha).Whatisrequiredistoidentifytheexistingand emerging opportunities and develop a comprehensive road map for

harnessingtheseopportunities.

1.4 Thefactthatabout90millionfarmingfamiliesowningmilchanimalsare

involved inmilkproduction amply signifies the important roleof the sector.

Livestockprovidesa largeshareofdraughtpower,withabouthalf thecattle

populationand25percentofthebuffalopopulationbeingusedtocultivate60

million hectare of cropland. Draught animal power is making a significant

contribution to agricultural production and thus to the rural economy. The

contribution is roughlyestimated tobe to the tuneofRs.10,000 croresper

yearbesides savingapproximately sixmillion tonnesofpetroleumworthRs.

6,000crores. Draughtanimalpowerisstillrelevantandusefulduetothefact

that it issuitabletotheneedsofthefarmerswithsmall landholdingandthe

areaswheremechanized implementscannotbebroughttouse. Asignificant

outputfromsmallandbackyarddairyfarmingistheproductionofdung,which

isanimportantorganicmanure. Onanaverage,800milliontonnesofmanure

is produced. Of this, some 300 million tonnes are burnt as fuel and the

balancedusedasmanure. Eventhiscouldbeimproveduponbyscientificyet

pragmaticplanning likebiogasproduction. However,thedungcakesarethe

solesourceofenergyofthepoor,forcookingandforheatingtheirdwellings

duringwinter.

1.5 Contributionof livestock tooverallhousehold income is significantbut

differsacrossdifferentagroclimaticregionsofthecountry.Agriculturewitha

shareof44percent inhousehold income is thedominant income source in

irrigated and rain fed zones. Nonfarm income ismore than agriculture incoastal zone and almost the same in hill andmountain zone. In arid zone

contribution of livestock income is higher than agriculture income implying

greaterrisksincropproductioninthiszone.


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14

Incomebysourcesindifferentagroclimaticzones(%)

Agroclimatic

zone

Agriculture Livestock Wages Nonfarm

businessincome

Arid 31.6 36.0 17.0 15.4Coastal 28.5 7.6 24.3 39.5

Hill&mountain 33.8 13.6 23.1 29.5

Irrigated 44.5 18.0 16.1 21.4

Rainfed 43.8 11.4 21.8 23.0

Source:Brithaletal.,2007.

1.6 Livestock is considered as secondmost equally distributed source of

incomeafteragriculturewithaGinicoefficient (Gk)of0.745andcontributes

least (10.6per cent) to total incomeequalitywhich ismainlyascribed to its

weak correlation with total income and even distribution of livestock

ownership. Further, the significant contribution of livestock rearing as an

effective copingmechanism against crop failure has been amply proved in

recentyears inVidharbaregionofMaharashtraandsuicidepronedistrictsof

other states like Karnataka and Andhra Pradesh. Farmers owning livestock

asset have been able to overcome the hardships of crop failure and loan

burdenandnosuicidecaseshavebeenreportedoffarmersowninglivestock.

1.7 The demand driven growth beingwitnessed in livestock in the recent

yearsisanimportantpathwayforincreasingtheincomeofmarginalandsmall

farmers and landless labourers. However, the benefits which can accrue

depend on a) scale of production and marketable surplus b) efficiency of

production, and c) market linkages / access to domestic and international

markets. Market opportunities due to the anticipated rise in demand for

livestock products will provide an avenue for resourcepoor farmers to

increase production, improve their livelihoods, reduce malnutrition and

thereby, contribute to the goal of overall poverty alleviation. Providing anenablingenvironment inwhichsmallproducersareabletotakeadvantageof

theopportunities,overcome the challengesandmeet the threats shouldbe

accordedpriority.

1.8 The growth attained in livestock sector hitherto has been attributed

largely to increase inanimalnumbersand toa lesserextentonproductivity

enhancement. The future growth has to sustain primarily on enhanced

productivityandnoton increaseof livestockpopulation.Thecurrenttrend in

stabilizationof livestockpopulationand increasednumberofcrossbredcattle


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15

andmilchanimalpopulation isan indication that focushasgradually shifted

towards productivity enhancement. The extent towhich growth in livestock

productioncanbeacceleratedwoulddependonhowtechnology, institutions

and policies address constraints facing the livestock sector. Thiswill requireovercoming feedand fodderscarcityand improvements indeliveryofanimal

healthandbreedingservices.

Contributiontoemployment

1.9 Livestock is an important source for employment generation and

increasedproduction implieshigheremployment.Dairying is labour intensive

at farm level and participation ofwomen is substantial. It is estimated that

each610kgperdayadditionalmilkprocessed in Indiaaddsonemanday for

feedingand care.Animalhusbandry isayear roundactivityengaging labour

forceparticularlythehouseholdmembersforallthe365daysoftheyearand

this isofparticularsignificance torain fedareaswheremonocroppingbeing

theusualpractice, thenumberofmandaysengaged inagriculturalactivities

gets restricted only during the cropping season. Milk andmeat processing

sectorsalsogenerateemploymentandcontributestolimitingemigrationfrom

villages. Small scalemilk processing is labour intensive and generates both

employmentandincome.

1.10 Gender equity is more pronounced in livestock sector, as women

participation is71percentof the labour forcewhile it isonly33percent in

cropfarming.Asmanyas75millionwomenareengagedinthelivestocksector

asagainst15millionmen. Womenplayamajor role in livestockproduction

andmostof themhavegoodknowledgeabout livestockbehaviourand local

feeds. Extent and nature of their involvement varies within and between

regions.Despitevariations,womenmostlyhandleaspectslikemilking,careof

youngand sickanimals, cleaningand feeding. In thepoultry sector,womenmostly look after rural poultry. Similarly,women play a prominent role in

rearingofsheep,goatandsmallruminants. AnimalHusbandry increasesthe

earning capacity of women and ultimately leads to their economic

empowerment. There isan increasingtrendtowardsparticipationofwomen

inlivestockrearingactivities.Onereasonforthisphenomenonisthemigration

ofmenfromruralareastotownsandcitiesinsearchofpaidemployment.This

hasresultedinanincreaseintheproportionofhouseholdsheadedbywomen.

Viewed fromaneconomicdimension, thedaytodayactivitiesperformedby

women are crucial inputs for either directly through sale of livestock andlivestockproductsortheuseoflivestockinvariouslivelihoodactivities.


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LivestockproductionsystemsinIndia

1.11 Livestockproductionsystems in Indiahavebeen traditionallypracticedmainly as an extensive, low input subsistence systems integratedwith crop

production. However, with liberalisation of Indian economy, sustained

economic and income growth, opportunities for export, etc. in the last two

decades or so has also brought about a subtle but sure change in livestock

productionsystems. Themajorchangesbeingseenintherecentyearsare:

Shiftfromresourcedriventodemanddrivenproductionsystems

Shift from extensive subsistence systems to semiintensive / intensive

commercialsystems

Manyeducatedyouth takingupanimalhusbandryactivities,especially

commercialdairyfarmingasbusinessenterprises

The subtlechangeshappening in thesectoralsocalls for reorientation in

theapproachforfuturedevelopmentandgrowth.Currently,4percentof

croplivestocksystemsareexclusivegrasslandbasedandwith thedecline

in both area and quality of grasslands it is expected that these systems

wouldslowlybereduced.Mixedrainfed(46percent)andmixedirrigated

(37 per cent) are themajor existing livestock production systems. It is

anticipated that the share of these systems would see a reduction in

coming years. Semiintensive and industrialproduction systemswhich at

presentaccountfor13percentareexpectedtoexpandsubstantially.


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17

Crop - Livestock systems in India

Such change also necessitates reorientation of approach, planning and

implementation strategies for facilitating growth of animal husbandry and

dairysectors:

Futuregrowth inAHanddairysectorwouldprimarilybemarketdrivengrowthanddependsonhowwellthemarketingstrategiesareconceived

andputinplace;

Oneof thekeydrivers forthesectoralgrowth is that livestock farming

systemswouldbetechnologydriven.Itisimperativethatcosteffective,

region specific technologies need to be developed and delivered

effectivelyforadoptionatthefieldlevel;

A paradigm shift in existing input deliverymechanism system would

have to be developed and put in place for delivering the services at

farmersdoorstep; A greater role for private sector through appropriate PPP business

models;and

Enablingpoliciesof thegovernment for facilitating speediergrowthof

thesector

Diversificationopportunities

1.12 Livestockproductionsystemsprovidescopefordiversificationoffarming

systems. In recent years over exploitation of groundwater, rapid decline of


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18

watertable,unsuitabilityofirrigationwater,andstagnationincropproduction

has become an issue of concern inmany parts of the country,more so in

Punjab and Haryana. In such situations, livestock production systems,

especially commercial dairy farming are being considered and promoted asmost viable alternate diversification opportunities for traditional crop

productionsystems.

Governmentalpolicies

1.13 Foracceleratedgrowthoflivestocksector,itisimperativethatastrong

and focused government policy is required.However, the fact remains that

despite the importanceof livestock sector in the Indianeconomy,especially

towards livelihood of resource poor farmers and landless labourers,

governmentpolicyforthesectorhassufferedfromthelackofclearandstrong

thrustandfocus. Oneoftheindicatorsofprioritytoasectorcouldbejudged

from budgetary allocation under various plan periods to the sector. Even

thoughthetotalbudgetallocationforthesectorasawholehasincreased,the

allocationtoanimalhusbandryanddairyingaspercentageoftotalplanoutlay

haseitherremainedstagnantorhasdecreasedboth in thecentralaswellas

statesplanoutlay.At thenational level, theallocation toAnimalhusbandry

departmentwas0.98percentduring theFourthPlanwhichwas reduced to

about0.28percentduringTenthPlancomparedtothesectorscontributionto

thenationalGDPofover5percent.InthefirstthreeyearsoftheEleventhPlan

the allocation has varied from 0.25 per cent to 0.28 per cent of the total

CentralPlanofGOI.

1.14 Severaloftheflagshipschemes/programmesintroducedbytheCentral

GovernmentintherecentpastlikeRKVY,IntegratedWatershedManagement

Programme,NREGA,BRGF,etc.provideanopportunityforaccessingadditional

funds for promoting activities in animal husbandry and dairy sectors. Theavailableavenuesandfundshavetobeefficientlyaccessedbytherespective

states.

AlternateInstitutionalArrangements

1.15 With theperceptiblechangehappening inanimalhusbandryanddairy

sectors and to meet newer emerging challenges both at national and

international scenario, it is essential for a paradigm shift in the institutional

setup for meeting these challenges. Alternate and efficient institutionalarrangementsarecalledforatdifferentlevels.Theeffortsshouldbeaimedat


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19

promotingandnurturingthegrassroot levelparticipatorybodiesalloverthe

stateas theorganic linkbetween theanimalhusbandrydepartmentand the

smallholders. Itshouldalsoencourageandpromoteadoptionofappropriate

technologies,enhanceproductivity,increaseeffectiveness,andensurereturnsproportional to the investment of time, energy and resources that small

holders, particularly women, make for livestock development and

management.

1.16 Mostof smallanimal rearers are landless, smallandmarginal farmers

andthereisauniquecaseofscalinguptomaximizeprofits.Increasinginputs,

product developments, processing and marketing is essential to realize

economicsof scale. Formulationand implementationof innovativeandbold

policiesand institutionalmechanismspecificallysuitedfordifferentregions ishighlydesirable.Milk cooperativeson thepatternofGujarat (Anand)model

arenot inplace inmanyof the regionsespecially in rain fedareasandhave

alsonotbeenuniversally successful. Establishmentofmodels like Producers

Company in theCompaniesActwillprovide the advantagesof retaining the

basic elements of cooperation while enjoying the regulatory regime as a

privatelimitedcompany.

1.17 For achieving livestock feed security, the concept of establishing a

National Livestock FeedAgencyon thepatternof FoodCorporationof IndiaalongwiththeNationalFeedGridhasbeenmootedanddiscussedatvarious

platforms.However,thishasnotbeentranslatedintoactiontilldate.

1.18 Another important issuewhich is relevant for effective integration of

livestock is thatofcreditand insurance.Creditand insuringrisksofdifferent

kindsrequireuniqueinnovationsforcopingwithmarketfailuresanddisasters.

A total livelihood credit portfolio providing muchneeded credit facility of

resource poor farmers needs to be developed and implemented. Livestock

insurance thoughbeing implementedhasnotbeen scaledup to thedesired

level.

1.19 Someoftheareaswhichrequirefocusare:

a) Increasing involvement of community organizations in decisionmaking

hasbecomethecommonagendaofalldevelopmentalprogrammesthat

are initiatedbythegovernment.However,inanimalhusbandryschemes

it

is

more

of

a

top

down

approach

or

target

oriented

schemes.

Convergence of AH activities holistically as a significant component in


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20

natural resourcemanagementholds considerablepromise. For realising

this,aparadigmshiftisnecessaryforeffectiveinvolvementofcommunity

basedorganizations.

b) Instead of the State departments taking complete responsibility in thearea of providingAI andminor veterinary services,major responsibility

could be entrusted towell established NGOs, private institutions, etc.,

withawelldrawnmonitoringandevaluationstrategy.

c) With the amendment to Part IX of the Companies Actmade in 2002,

considerable scope exists for promoting Producer Companies in

agricultural sector. Presently,more than 150 producer companies have

beenestablishedandoperatinginthecountry.However,suchcompanies

dealing in animal husbandry sector are very few and such alternate

institutions are relevant in rainfed areas. NDDB has been working on

establishinggreenfieldproducercompaniesindairysectorforharnessing

the benefits available for a producer companywhile at the same time

retaining thebasicstructureofcooperatives.Such initiativesneed tobe

exploredforotherlivestockproductsalso.


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21

CHAPTERII

II.GrowthofAnimalHusbandryandDairySectors

2.1 The11th

Plandocumenthassetatargetofachievinganannualgrowth

of67percentinthesectorasawholewithmilkgroupachievingagrowthof5

percentperannumandmeatandpoultrygroupachievingagrowthof10per

centperannumduringthePlanperiod.Thishasbeenconsideredessentialfor

achieving an overall growth of 4 per cent in agriculture sector during the

period.

2.2 Thedeceleration ingrowthofcropsectorover theyearshasbeen the

majorconcern

which

is

limiting

the

overall

growth

in

agricultural

sector.

Fortunately, the growth rate in livestock sector has been relatively steady

compensating for the slow growth in crop sector. However, a sign of

decelerationisalsoseeninthelivestocksectorwhichcouldmainlybeascribed

tosharpdeclineingrowthofmilksector.

GrowthinvalueofOutputfromLivestockSector(at199394prices)

GrowthduringPlanPeriod(%)SlNo. Item

8th

9th

10th

1 ValueofoutputfromAgriculture 3.26 1.39 1.70

2 Valueofoutputfromlivestock 4.01 3.45 3.90

3 Milkgroup 4.25 4.07 3.19

4 Meatgroup 4.17 2.70 4.91

5 Eggs 4.41 4.44 7.26

6 Woolandhair 3.51 2.93 0.05

7 Dung 0.92 0.03 3.96

8 Incrementinstock 15.56 3.48 11.57

2.3 Considerable variation in growth rate of output of livestock sector is

seenacrossdifferentstates.Except in thestatesofAndhraPradesh,Gujarat,

HimachalPradeshandUttarPradeshwhichhaveachievedagrowthofmore

than5percentperannumbetween8th

and10th

Plan,thegrowthinremaining

stateshaveremainedbelow4percent.Aslowgrowthinpotentialstates like

Punjab,Haryana,Maharashtra,KarnatakaandRajasthanisanissueofconcern

andthereasonsforthisneedtobecriticallylookedinto.


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22

Averagegrowthinoutputoflivestockduring8th

to10th

Planperiod

2.4 Average contributionofmilk sector to the totaloutput from livestock

sector is about 68 per cent and in the states of Gujarat, Haryana,Madhya

Pradesh,PunjabandUttarPradeshthecontribution isashighas80percent.

Anyadverse impactongrowthofmilk sector is likely toadverselyaffect the

overallgrowthoflivestocksector.Sharpdeclineingrowthofmilksectorduring

10th

Planmightbedue to lower investments in this sectorpost Operational

FloodwhichwasbeingimplementedbyNDDB.


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23

2.5 GrowthinPoultrysector,especiallyintheeggproductionhasbeenquite

encouragingduringthepastthreedecades.Theaverageannualgrowthinegg

productionwhichwasaround4.5percentduring8th

and9th

Planincreasedto

7.26per

cent

during

10th

Plan

period.

The

sector

witnessed

considerable

turmoildue tooutbreakofAvian Influenzaduring2006and2007and in the

firsttwoyearsofthe11th

Planaverageannualgrowthhasbeenaround5.2per

cent.Thesectorasawholehasmadesignificantprogressovertheyearsand

thecountryranks4th

ineggproductionintheworld.GrowthinoutputofMeat

sectorhasmoreorlessremainedstagnantataround4percentannually.


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24

CHAPTERIIIIII PotentialforGrowthinAnimalHusbandryandDairySectors3.1

Potential

for

growth

in

animal

husbandry

and

dairy

sectors

varies

considerably across the states and is governed by a host of factors viz.

geographicalconditions,cropproduction,climaticconditions,socioeconomic

dynamics, outlook of the state towards development of these sectors and

financialinvestmentmade.

3.2 Futuregrowthinanimalhusbandryanddairysectorwouldprimarilybe

marketdrivengrowthanddependonhowwell themarketing strategiesare

conceivedandput inplace.Withthespeedyeconomicgrowth inthecountry

andhigher

disposable

incomes,

the

needs

and

wants

of

the

domestic

consumers have considerably changed.However, adequate efforts have not

been made to understand the emerging needs and wants. Further, the

requiredinfrastructureandstrategicplansformarketingandbrandingofdairy

andotherlivestockproductshavenotbeenputinplace.

3.3 Thestrategyforgrowthinanimalhusbandryanddairysectorsshouldbe

oriented primarily towards developing amarketled growth and exploit the

vast

potential

available

both

in

the

domestic

as

well

as

export

market.

While

creatingthenecessaryinfrastructureandputtinginplacerelevantinstitutional

mechanisms, focus has also to be made towards developing market

intelligence(bothdomesticandinternational).

MilkSector3.4 Thesuccessofgrowth inmilk sectorover theyearscouldprimarilybe

ascribed to establishment ofwell developedmarket linkages andmarketing

infrastructure.Implementation

of

Operation

Flood

Project

by

National

Dairy

DevelopmentBoard(NDDB)helped indevelopmentofmarketingaspectsata

veryfastpace.Asharpdeclineingrowthofoutputfromthemilksubsectoris

ofconcernasthissectorcontributestoabout70percentofthetotaloutputof

thelivestocksector.Itisessentialthatthepotentialforgrowthinmilksectorin

thesestatesshouldbefullyharnessedbycreatingoverallenablingconditions,

higher investments, focusedapproachand infrastructuraldevelopment. The

states of Punjab, Haryana, Gujarat, Karnataka, Tamil Nadu, Rajasthan and

AndhraPradeshhavepotentialforachievinghighergrowthratesof68per

centduring

the

remaining

part

of

11th

Plan.


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25

3.5 Forachievingthetargetedproductionof180millionMTofmilkby2020

the orientation has to be essentially directed towards productivity

enhancementofcowsandbuffaloes.Quantumjumpinproductivityispossible

throughinnovative

approach

in

breeding,

feeding

and

management

aspects.

The Punjab governments steps in encouraging setting up of hitech

commercialdairy farms,private investmentsbeingmade inAndhraPradesh,

verticalintegrationofdairyanimalsoncommerciallinesinKarnatakaaresome

of the positive indicators that the approach is slowly shifting towards

productivityenhancement.

3.6 Inthepresentdaymarketdriveneconomy,providingvalueadditionto

rawmaterialalwayspayshigherdividends.However,thiskeycomponenthas

beenaddressed

inadequately

in

the

milk

sector.

A

whole

set

of

issues

on

policy, regulatorymechanism, infrastructuraldevelopment,capacitybuilding,

institutionalsetup,etc.,havetobeaddressed. Currently,only1617percent

of the fluidmilk isbeingprocessed in thecountryofwhichbuffaloand cow

milkaccountfor55percentand45percentrespectively.Ofthetotalcowmilk

beingprocessed26per cent is from indigenous cowmilkand the rest from

crossbred cow milk. It is essential to enhance the quantum of milk being

processed tomake it safe for consumption and increase its keeping quality.

The

process

of

value

addition

begins

from

the

moment

milk

is

drawn

from

cow/buffalo;andateverystepfromproductiontoconsumptionthereisample

scopeforvalueaddition.

3.7 Almost70percentofmilkisconsumedasliquidmilkandconversionof

milkintovariousvalueaddedproductsistoaverylimitedextent,especiallyin

the organized dairy sector. Anand CooperativeMilkUnion (AMUL),Gujarat,

hasbeen thepioneer indiversificationprocessandmanufacturesa rangeof

valueaddedmilkandmilkproductsoncommercialbasis.Someof theother

CooperativeMilk

Unions

like

KMF

in

Karnataka;

MILKFED

in

Punjab;

SARAS

in

Rajasthan;andVERKAinHaryanahavealsobeenperformingconsiderablywell

inprovidingvalueadditiontomilkandmilkproducts.

3.8 Someoftheareaswhichneedtobefocusedforvalueaddition indairy

sectorare:

a) Theextentofcollectionandprocessinghastobeenhanced.Atargetof

enhancingmilk processing from current level of 1617 per cent to at

least25

per

cent

in

the

next

five

years

has

to

be

set.


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26

b) Averagecollectionofmarketablesurplusmilkbyorganizeddairies(both

cooperativeandprivate) isonly toanextentof30per cent except in

Gujarat where 85 per cent of surplus milk is collected by Dairy

Federation.Forenhancingproductionandcollectionofliquidmilk,each

ofthe

state

should

create

23new

milk

shed

areas

every

year.

c) TheNationalDairyPlanenvisagesthatforachievingthetargetedgrowth

in dairy sector, the handling of marketable surplus by private and

cooperativeinstitutionshastoessentiallyincreasefromcurrentlevelof

50millionKg/dayto160millionKg/dayby202021.Forachievingthis,

all producers/processors should develop amilk collection network on

themodelofGujarat.

d) At least 68 zones which have potential for highmilk collection and

processing facilities (like Kolar area in Karnataka) should be identified

anddeveloped

as

export

promotion

zones.

e) Traditional Indian dairy productswhich have huge potential for value

addition and export have not been focused.More research has to be

done in indigenousmilkproductsandorganizeddairyprocessingplants

shouldessentiallyharnesstheexistingopportunity.

f) Training and capacity building in the area of value addition has been

neglected.Focused trainingmechanismsatdifferent levelsneed tobe

developed and implemented. Adequate number (about 100) of

Polytechnics

may

be

established

for

imparting

a

2

year

certification

course.

MeatSector3.9 Foracceleratingthegrowthinmeatsectorthereisaneedforproviding

greater assistance to the sector in terms of more public funding through

central assistance/ schemes and enabling policy environment. Presently, no

Central assistance or schemes are available for this sector and even the

incentivesgiven

to

the

sector

in

the

form

of

export

subsidy,

etc.,

have

been

graduallywithdrawn.TherestrictionsimposedbyOIEareposinghindranceto

export.Thecertificationprocessneedstobestreamlined.

3.10 Value addition inmeat sectorhasbeen almostnonexistent except in

caseofbuffalomeatprocessingwhich isprimarilymeant forexportmarket.

The topmostpriority inmeat sector shouldbe toensureproductionof safe

and qualitymeat and promote the concept of FarmtoFork in a sustained

manner.Livestockmarketsandabattoirsaremostlyinunorganizedsectorand

formaking

the

meat

sector

more

vibrant,

profitable,

export

oriented

and


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27

providerofsafemeat,itisnecessarythataperceptibleshiftfromunorganized

to organized sector takes place. Currently, only buffalomeat export iswell

organizedand0.5million tonnesofbuffalomeatworthUS$600millionwas

exportedin200809.Thepotentialwhichexistforexportofbuffalomeatand

poultryproducts

especially

to

Asian

and

African

countries

should

be

exploited

asanimmediatestrategy.

3.11 TheMeatandPoultryProcessingBoard setup recently in2009by the

Ministry of Food Processing would provide considerable impetus for meat

processing sector. However, the production side still remains unaddressed.

Withthe likelihoodofCODEXstandardsbecomingapplicable inthenext four

years time, the traceability issuewouldbeamajor concern formeatexport

sector. For overcoming this problem, probably in future, large commercial

meatfarms

may

have

to

be

set

up

exclusively

for

rearing

animals

for

meat

purpose.

3.12 VerylittleefforthasbeenmadebyAnimalHusbandrydepartmentboth

at state and central level for development and growth of small ruminant

sector.Presently,noeffectivecentrallysponsored/centralsectorschemesare

available for providing much needed assistance. The vast potential of

developinggoatsector,whichexists insomeoftheregions likeBundelkhand,

parts

of

Rajasthan

and

Himachal

Pradesh

needs

to

be

beneficially

harnessed.

A

focusedapproachwithhigher investment,communityapproach,establishing

meatprocessingplantanddevelopingadequatemarketlinkagesistobemade.

3.13 Development of sheep sector has been at crossroads. The population

has stagnatedduring the last twodecadesexcept foramarginal increaseof

about 6 per cent between 1997 and 2003. The wool production has also

remainedconstantat40millionkg,ofwhich4millionkg isof finewool.The

trade policy of permitting import ofwool underOGL has affected domestic

traditionalmarket.

A

clear

cut

policy

direction

is

needed

on

priority

as

to

whetherthefocusshouldcontinuetoraisesheep forwoolproductionorthe

focusshouldshifttowardsmuttonproduction.

3.14 TheNorth Eastern region holds considerable potential for developing

Piggerysectorasthepighusbandryisthemostimportantactivityinthestates

ofNorthEastespeciallyinthetribalareas.Eventhoughmorethan80percent

of theporkproduced inthecountry isconsumed innortheasternregion,no

serious attempts have been made by the state governments, central


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28

government or North Eastern Council in promoting pig production on

commercialbasis.

PoultrySector3.15 Poultry sector in India,over the years,has slowly transformed from a

meagre backyard farming to a well structured, organised industry on

commercial lines.Theorganised sectorof the industryhasaddressedall the

interlinked issues like breeding farms, hatchery, feed mills, equipment

manufacture,feedsupplements,drugandvaccineproduction,etc.inaholistic

manner.However,marketingofthefinalproductistheweaklinkinthechain

and is still under the control of traders. Potential for further growth in this

organised sector has to come primarily through focusing on achieving

improvedFeed

Conversion

Ratios

(FCR)

and

tackling

of

outbreak

of

diseases

likeAvianInfluenzaandotherneweremergingdiseases.

3.16 Promotingofruralbackyardpoultryhastobeconsideredessentiallyas

a sector limiting itself for providing livelihood opportunities to landless and

resourcepoorfarmerssince it isdifficult forthissectortocompetewithwell

organisedcommercialsector.

3.17

Considering

the

performance

of

different

states

in

implementation

of

various programmes of animal husbandry and dairy sectors, absorption

capacityandconstraintsofmanpowerandinfrastructure,theCommitteeisof

theview that it isunlikely thatwewouldbe inaposition toachieve theset

targetof67percentgrowthperannumduringthe11th

Planperiod. Assuch,

thetargetforoverallgrowthrateinlivestocksectormayhavetoberevisedto

5percentduringthecurrentPlanwitha4percentgrowthrateformilksector

and68percentforpoultryandmeatsector.


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29

Annualgrowthrateinlivestocksector(currentandpotential)inmajorStatesofIndia

State CurrentAnnualgrowthrate(%) PotentialAnnualgrowthrate(%)

AndhraPradesh 5.56 68

Assam 2.19 34

Gujarat 5.47 68

Haryana 3.40 56

HimachalPradesh 4.33 56

Karnataka 2.73 56

Kerala 0.95 23

MadhyaPradesh 2.68 56

Maharashtra 3.77 67

Punjab 3.48 68

Rajasthan 3.32 67

TamilNadu 2.40 56

UttarPradesh 4.09 67

WestBengal 2.66 34


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CHAPTERIVIV PublicInvestmentTenthPlanOutlayandExpenditure4.1 Theoutlayandexpenditureduringthe10

thPlanperiodforthethree

departmentsoftheUnionMinistryofAgriculture,namelytheDepartment

of Agriculture and Cooperation (DAC), the Department of Animal

Husbandry, Dairying and Fisheries (DAHDF) and the Department of

AgriculturalResearch&Education(DARE)ispresentedinTable4.1.Asmay

be seen, a substantial increase in outlay was provided to Ministry of

Agriculture since 200405 taking the Central Government share of total

planexpenditure

on

Agriculture

and

allied

sectors

from

33

per

cent

in

2002

03to44percentin200607.Themajorexpenditurewashoweveroncrop

sector. The Ministry introduced several new programmes during the 10th

Plan aimed at diversification of agriculture, strengthening technology

validation, demonstration and dissemination, water saving and

developmentofinfrastructure.

4.2 Despite larger allocation to the agriculture and allied sector, the

share of public fund to Department of Animal Husbandry & Dairying has

beenvery

low.

The

DAHDF

accounted

for

11.87

per

cent

of

the

total

outlay

of theMinistry ofAgriculture during the10th

Plan.OutofRs.2500crores

allocated, the actualexpenditure was Rs. 2345.60 crores byDADF.Out of

this, the expenditure on fisheries was Rs. 570.33 crores and the

expenditure by Department of Animal Husbandry & Dairying was Rs.

1775.24 crores. TheDAHDaccounted for only 8.35 percent of the outlay

madeavailabletoMinistryofAgriculture.


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Table4.1OutlayandExpenditureofMinistryofAgricultureDuringthe

TenthFiveYearPlanCurrent

Price

S.No. Period

DAC DAHDF DARE TotalDAHDF

as

%of

Total

Outlay

forMoA

1.

TenthPlan

Outlay(2002

07)

13200.00 2500.00 5368.00 21068.00 11.87

2.

200203

(Expenditure)1655.94

238.90

650.75

2536.95

3.200304

(Expenditure)2050.34 271.76 748.98 3068.67

4.200405

(Expenditure)2656.26 566.22 816.01 4035.72

5.200506

(Expenditure)3817.46 589.37 1046.75 5453.37

6.

200607

(Revised

Estimate)4860.00

679.32

1430.00 7040

7.Total

Expenditure15040.00 2345.57 4692.49 22134.71

DAC=DepartmentofAgriculture

DAHDF=Deptt.ofAnimalHusbandry,DairyingandFisheries

DARE=DepartmentofAgriculture,ResearchandEducation

DAHD=DepartmentofAnimalHusbandry&Dairying

Fish=Fisheries


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Table4.2OutlayandExpenditurebyDepartmentofAnimalHusbandryDairying

&FisheriesinTenthFiveYearPlanCurrentPrice

S.No. PeriodDAHDF Fisheries DAHD DAHDas

%oftotal

outlayforMoA

1. Tenth Plan Outlay

(200207)

2500.00 740.00 1760.00 8.35

2. 200203

(Expenditure)

238.90 75.90 162.92

3.

200304

(Expenditure)271.76

68.72

203.00

4. 200405

(Expenditure)

566.22 150.51 415.12

5. 200506

(Expenditure)

589.37 109.00 480.00

6. 200607

(Expenditure)

670.32 166.12 513.20

7. Total 2345.57 570.33 1775.24

DAC=DepartmentofAgriculture

DAHDF=Deptt.ofAnimalHusbandry,DairyingandFisheries

DARE=DepartmentofAgriculture,ResearchandEducation

DAHD=DepartmentofAnimalHusbandry&Dairying

Fish=Fisheries

EleventhPlanOutlay4.3 The 11

th Plan outlay for the DAHDF is Rs. 8174 crores. The pace of

expenditureduringthelasttwoyearshasbeenslow.Againstanallocation

of Rs. 910 crores during 200708, an expenditure of Rs. 784 crores was

made.Similarly,during200809,againstanallocationofRs.1000crores,an

expenditureofRs.872.86croreshasbeenmade.Similarly, in200910the


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original allocation of Rs. 1100 crores has been revised downwards to Rs.

920crores.Itisfearedthatthetotalexpenditureduringthe11thPlanwill

notreachevenRs.5000crores.

4.4

TheAnimal

Husbandry

&

Dairying

contributes

between

25

per

cent

to30percentoftheGDPoftheagriculture.Despitethissignificantsharein

GDP,theresourcesallocatedtoDAHDhavebeenmeagerand insufficient.

This inturnhasaffectedtherateofgrowthofAHDwhichwas lessthan4

percentduringthe10thFiveYearPlan.

StatePlans4.5 The resources made available under state plans to the Animal

Husbandry&

Dairying

have

also

been

insufficient

and

small

in

almost

every

stateofIndia. Instatesalsothebulkoftheexpenditurehasbeenmadeon

the crop sector and Animal Husbandry & Dairying has not received the

adequateshareintheresourceallocation.

ExternalAssistance4.6 Dairy sector has received massive external assistance. Operation

Flood I was implemented through funds (over Rs. 100 crores) generated

from

the

sale

of

commodities

(SMP

andButter

Oil)

donated

by

European

Union. IDA of World Bank assisted state dairy projects in Rajasthan,

Madhya Pradesh and Karnataka. Operation Flood II and III also received

assistancefromIDAofWorldBank.Butfortheseassistance,itwouldhave

notbeenpossibleforIndiatomakeasignificantcontribution in increasing

milkproductionandprocessingcapacity.ANationalDairyPlanpreparedby

NationalDairyDevelopmentBoardhasbeensubmittedtotheWorldBank

forassistanceandisunderdiscussion.

4.7

Livestock

development

has

been

a

component

of

a

number

of

agricultural projects assisted by World Bank. This includes UP Diversified

Agriculture Project, Assam Infrastructure and Agriculture Development

Project, Rajasthan Agriculture Development Project, Watershed

Development projects in various states, and is currently a component in


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Assam Agriculture Competitiveness Project, Tank Development Project in

AndhraPradesh,etc.

BilateralAssistance4.8 Animal husbandry has received assistance under a number of

bilaterally assisted projects. DANIDA and CIDA have assisted projects in

variousstates, including Tamil Nadu Livestock Development Project.Most

oftheseprojectshavebeencompletedwithpositiveresults.

RashtriyaKrishiVikasYojana4.9 AnovalschemetosupportagriculturedevelopmentRKVYhasbeen

introducedin

the

11th

Five

Year

Plan

with

aprovision

of

Rs.

25,000

crores.

AnimalHusbandry&Dairying(andFisheriesalso)areeligibleforassistance

underthisscheme.However,theallocationtotheanimalhusbandrysector

has been quite poor. During 200708 the Animal Husbandry sector

(includingfisheries)receivedRs.111.25crores(9.53percent).During2008

09 the sector received Rs. 394.29 crores (14.56 per cent). The poor

allocationmadetotheAnimalHusbandrysectorisbasicallyduetoinability

toformulateprojectsfollowingtheguidelinesofRKVY.

4.10

The

Agriculture

Departments

function

as

nodal

departments

forRKVYintheStates.TheAnimalHusbandryofficerscomplainofbigbrotherly

approach of state agriculture departments in matters of allocation of

resources. The Union Minister for Agriculture, Shri Sharad Pawar has

advised all the state governments to give favourable consideration to

AnimalHusbandrysectorandallocateatleast30percentoftheresources

duringaparticularyeartoAnimalHusbandryandDairying.


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PrivateSectorInvestment4.11 There is hardly any private sector investment in Animal Husbandry

except in states like Gujarat and Rajasthan where people assist in the

developmentof

Gaushala

and

Gosadans.

In

the

case

of

dairy

development,

withthe liberalizationofeconomy,considerableprivatesector investment

has been made in the processing, value addition and marketing. The

dairying isno longeramonopolyofthecooperativesector;asamatterof

factprivatelyowneddairyplantsaccountfor51percentofthetotalmilk

processedinIndia.Thedairyprocessingwasnotincludedunderthepriority

sector lending by the banks. In his budget speech 2009, the Finance

Minister announced the Government decision to treat dairying as a Food

Processing Industry which would extend priority sector lending besides

providing

a

host

of

concessions.

However,

a

notification

is

awaited.

Withthesemeasures,itwouldbepossiblefortheprivatesectortoinvestinthe

processingandmarketingsectors.


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CHAPTERV

V.InputsandServices

Background

5.1 Animal husbandry has been recognized as an important source of

livelihoodacrossthecountry,particularlyinprovidinggainfulselfemployment

toBelowPovertyLine(BPL) families. This isbecauseofthegrowingdemand

formilkandotheranimalproductstotheextent,thattheproductionfromthe

presentlevelwillhavetobedoubledduringthenext15years. Asmostofthe

BPLfamilies

in

rural

India

maintain

livestock

for

supplementary

income,

this

is

an excellent opportunity to improve the productivity to meet the growing

demandwhileenhancingtheirincomes.However,thesuccessdependsonthe

abilitytoimprovethequalityandyieldwhilereducingthecostofproductionto

avoidpressurefromtheinternationalmarket.

5.2 Indeed, the lackofqualityand inefficiencyof livestockdevelopment in

most of the states are bottlenecks for the farmers engaged in the livestock

sector,toharnessthepotentialandtoenhancetheirincome.

5.3 The important reasons for suboptimal performance of the livestock

developmentprogrammesinIndiaare:

Lackofawarenessamonglivestockownersaboutopportunitiesandbest

practicesavailabletoimprovetheproductionandprofitmargins;

Shortageoftrainedhumanresourcestoprovidetechnicalservicesatthe

doorstepsoflivestockowners;

Inadequate

and

untimely

supply

of

critical

inputs

to

ensure

optimum

production;

Involvementofmultipleagenciesengagedinvariousaspectsoflivestock

developmentwithoutanyfocussedgoals;and

Lackof value chain approach to establish coordination among all the

playerstoenhancetheproductionandprofitability

5.4 Due to the above hurdles, livestock husbandry is not able to register

significant progress in spite of its inherent potentials and huge financial

outlays.To

overcome

this

problem,

it

is

essential

to

identify

various

activities


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and players in the value chain under different production systems in the

livestocksector.

ValueChaininLivestockHusbandry

5.5 Among various speciesof livestock,milch cattle andbuffaloesare the

major contributors to the economy as milk is the main livestock product

contributingtotheNationalGDP in India. Startingfrom livestockbreedingto

milkprocessingandmarketing,thereareseveralplayersinvolvedinthesector

betweenthedairyfarmersandthemilkconsumer. Figure1 listssomeofthe

majorplayers

in

the

value

chain

of

dairy

husbandry.

Figure1:ValueChainforDairyDevelopment

Small holder/Dairy cattle

Hub/

Local org.

Milkcollection

Milkprocessing/

marketing

ParavetVeterinarian

SeedsFertilizers

Feed/Minerals

Micro-finance

Crop residuesFodder production

Fodder producers /

Traders

Water conservation/supply

Pasturedevelo ment

Plant breedersSoil scientists

Training /Capacity building

Monitoring /Evaluation

Consumer

Breeding servicesVaccinationsDeworming

Disease InvestigationVeterinary services

Breed selectionSuperior germplasm

Performance evaluation

Lab servicesInput supply

5.6Similar

value

chains

can

be

developed

for

meat,

egg,

fish

and

wool

production. Although, we observe that the dairy farmers are availing the

breedingandveterinaryservicestoproducemilkandsupplytomilkprocessing

units through their cooperatives or middlemen, there are many agencies

involved in providing support to these farmers directly or indirectly. Dairy

farmersneedthefollowingservicesand inputsforsuccessfulmanagementof

theirenterprises:


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38

Services

Breeding

Pregnancydiagnosis

Vaccination

Deworming

Veterinaryservices

Testingagainstvariousdiseases(diseaseinvestigation)

Nutritionalanalysisofvariousfeedingredients

Adviseoffoddercultivationandbalancedfeeding

Milkcollection,chilling,marketing

Efficientuse

of

dung

and

carcass

Inputs

Fodderseeds

Fodder,feedandconcentrates

Mineralandvitamins

Dewormers,vaccines,medicines

Milkingvessels,milkingequipments

Variousfarm

equipments

5.7 Thesuppliersoftheaboveservicesandinputsarepartofthevaluechain

ofthedairy industry.Availabilityoftheseservicesand inputswell intimeare

verycriticalforensuringtheprofitabilityofdairyentrepreneurs. Introduction

ofvariousefficiencymeasureswillnotonlyenhance theproductionbutalso

reducethecostofmilkproduction. Hence,itisadvisabletodevelopasuitable

strategyfortimelysupplyofservicesandinputstolivestockowners.

Agenciesin

the

Value

Chain

5.8 Presently, the following agencies are involved in providing the above

services. Whilesomeofthemareengagedasserviceorganisationsonbehalf

of theGovernmentorotherdevelopmentorganisations,othersareengaged

forgenerationofemploymentandprofitsforthemselves.

Table5.1 indicates the roleof variousplayers involved indifferent activities

whicharerelatedtotheenhancementoflivestockproductivity.


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Table5.1:AgenciesEngaged

AgenciesActivities

AI/

PI

Minor Veterinary

Services

Major

Services

Semen

Produ-

ction

Input SupplyOther

InputsCredit Remarks

Vaccin-

ation

Deworm

- ing

DI

SurveillanceFeed

Mineral

Mixture

Fodder

Seeds

Animal

Husbandry

Departments Free

Livestock

Development

Boards Free

Dairy Federations Nominal CostPrivate Agencies /

Manufacturers On Payment

DI Laboratories /

Vaccine

Production Units Free to AHD

Universities /

Veterinary

Colleges Sponsored

Research

NGOs Free /subsidised

Private

Veterinarians On Payment

Banks / Micro

Finance Units Business

Terms

RoleofDifferentAgencies

5.9 Animal Husbandry Department: While the Animal Husbandry

Department isthemost importantagencyengaged in livestockdevelopment,

the activities carried out by the department are mainly based on the

availability of funds to cover different activities in smaller pockets. The

progressoftheseactivitiesaremeasuredonthebasisofthebudgetspentand

physicaltargets

covered

without

any

evaluation

of

the

quality

of

services

provided and the impact of the work on the overall productivity of the

livestock and the benefits derived by the farmers. In the absence of any

parametersformeasuringtheperformance,theimpactisnotvisible.

The AHD is handicapped in providing all the required services to livestock

ownersdueto lackofadequatefundstomeetthefielddemandsanda large

number of vacancies at all levels. For instance, inputs such as vaccines,

medicines and fodder minikits provided to veterinary dispensaries is not

adequateeven to cover2530per centof thedemand. With regard to the


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40

veterinary services, with over 2530 per cent posts of veterinary doctors

vacant, many veterinary hospitals are operating without any veterinarians.

Furthermore, in the absence of clear cut priorities given by the AHD, the

officersoftensettheirownpriorities,dependingontheirconvenience,inputs

available and benefits, rather than the needs of farmers. There are many

instanceswherefarmersareunabletoavailthebreedingservices fromother

agencies,whicharemoreefficientandeconomical,buttheofficersoftheAHD

continue this work instead of concentrating on major veterinary services,

allowingthebreedingservicestobeperformedbysemiskilledparavets.

5.10Livestock

Development

Boards:

Livestock

Development

Boards

are

the

latestcreationsatthe instanceoftheGovernmentof Indiato implementthe

programme under theNCPBP. Themandate of the Livestock Development

Boards is to carry out breeding, extension and management to enhance

livestock productivity. However, the implementation of the programme is

dependent on the staff, deputed from the AHD,who are partially occupied

with variousadministrativeduties. Thus, the LivestockDevelopmentBoards

havenotbeenabletomakesignificantcontributionto livestockdevelopment

in many states, while a few states have encashed this opportunity for

acceleratingthe

progress.

Although,

the

Boards

have

set

clear

targets

for

work

outputs,intheabsenceofsystematiclinkagewiththeservicesandmarket,the

impacthasnotbeenverysignificant.

5.11 Dairy Federations: Since the launching of theOperation Flood in the

1970s,mostofthestateshavepromotedDairyCooperativesandtheirState

level Federation to organise themarketing ofmilk and other products. This

programmewas launched as a viable businessmodel to organisemarketing

andalsotoestablishavaluechainthroughvariousbackward linkages. These

servicesincludedAIthroughparavets,diseasediagnosticservices,cattlehealthcamps, vaccinations, production and distribution of cattle feed, etc., which

indeed enabled the dairy farmers to improve their performances and

profitability. However,thequalityofserviceshavebeenwidelyvaryingintheir

efficiencyandcoverage. ManyoftheFederationshadtodiscontinuesomeof

the services due to constraints of finance, human resources and poor

managementof the corebusinessofmilkprocessingandmarketing. Often,

they had to discontinue to avoid duplication of similar services by other

agencies.Presently,

very

few

State

Dairy

Federations

are

in

good

financial

health to continue some of these activities efficiently. Nevertheless, their


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41

approachandoperations indicate thepotential todelivervarious services to

rebuildthevaluechain.

Indeed, this is the only sector where business planning is done to a great

extent and policy for clean and economic production to meet the future

challenges are discussed, after reviewing the present value chains.

Empowering the Dairy Federations to take a lead to reestablish the value

chain based on the business opportunities can accelerate the growth in the

livestocksectorandenablethedairyhusbandryprogrammetoprovidegainful

selfemploymenttosmallfarmersinthecountry.

However,manyoftheStateDairyFederationsinthecountryaresufferingdue

to poor administration,weak business plan and overdomination of vested

interestsatthecostofthedairyfarmers. Toovercomethis,anewgeneration

CooperativesandProducerCompanieshaveemergedonapilot scalewhose

performanceonawiderscaleisyettobeobserved.

5.12 Biological ProductionUnits:Many of the States have theirVeterinary

BiologicalUnits forproductionof vaccines,antigens,diagnostickitsandalso

forproviding

disease

investigation

services

to

farmers

through

decentralized

disease investigation laboratories. Many of these laboratories have

successfullyproducingall the required vaccines.However,providing support

servicestothedecentralizedDIlaboratoryandtakingupdiseasesurveillancein

the fieldhasbeenaweak link. Thisbeingan independentactivityproviding

critical support for animal production, additional capacity building and

strengtheningisrequired. Biologicalproductionunitsanddiseaseinvestigation

laboratoriesplayaverycriticalrole inpromotingcleanmilkproductionwhile

bringingdownthecostofproduction.

5.13 StateAgriculturalUniversities:Thepolicybehind theestablishmentof

StateAgriculturalUniversities,VeterinaryColleges andKVKswas to support

the farmers by way of transfer of technology through training and field

demonstration as well as to design research studies based on the field

problems. However,manyoftheveterinaryfacultiesinUniversitiesareoften

isolatedfromthefield. Asaresult,thiscloseinteractionbetweenthefarmers

andscientistshasbeendisconnected. Thishasseverelyaffectedthedelivery

ofservices

and

transfer

of

new

technologies.

Nevertheless,

some

of

the

Universitiesareinvolvedinbreedingofforagecropsanddevelopmentofgood


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42

productionpracticesforoptimisingthefodderyields.Goodworkhasalsobeen

donebymanyResearch Institutions indevelopmentofsuperiorquality feeds

and mineral mixtures, mineral mapping of the field areas to identify the

mineral deficiencies in different regions, etc.,with good extension services.

Thebenefitsoftheseresearchescanreachtheneedyfarmers.

There is an urgent need to understand the communication breakdown

between the farmand the laboratoriesandstrengthen the linkage toensure

thattheResearch Institutions formanactiveand importantpartofthevalue

chain.

5.14 Voluntary Organisations: There are a few important NGOs currently

engaged in promotion of livestock production in the country. Prominent

among themareBAIF, IndiaGenand JKTrustwhichareengaged inproviding

livestockbreedingandminorveterinary care services inmany States. Apart

from theseorganisations, therearealsoothers likePradan,Anthra,Nimbkar

ResearchInstitute,etc.,whichareinvolvedinpromotionofsmallruminantsin

differentpartsof thecountry. Theservicesof theseagencies,particularlyof

those engaged in providing livestock breeding services have been very

effectiveand

very

well

accepted

by

the

farmers,

even

on

payment

of

service

charges. Manyof theseagenciesareworking inclosecoordinationwith the

respective State Governments as well as the Government of India. These

agencieshavea longstandingreputationandabilitytoextendtheservices, if

financial support andwholehearted cooperation are extended by the State

AHDsandtheDairyFederations.

Apartfromprovidingbreedingservicesandanimalhealthcare,NGOscanalso

take up miniveterinary services such as deworming, vaccination, disease

investigation, disease surveillance, supply of cattle feeds, mineral mixture,fodder seeds, etc., at reasonable cost, under strictmonitoring of the State

VeterinaryDepartmentordonoragencies. Astrongcoordinationbetweenthe

AHDandtheseNGOscanhelptheStateinexpandingtheprogrammeatalow

costwhile saving precious time of the veterinary graduatesworking in the

Departmenttotakeimportantandhigherresponsibilities.

5.15 Private Veterinarians and Paravets: There are many private

veterinarianswho

are

involved

primarily

in

providing

veterinary

services

and

someofthemarealsoengaged inprovidingbreedingservices. However,the


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43

qualityofserviceisquestionableandthecostsareveryhigh,mainlybecauseof

lack ofmonitoring on the quality of their services. As their objective is to

generateincomeforthemselves,strictcontrolonthemisnecessarytoprevent

exploitationoffarmers.

ManyStateGovernmentshavepromotedtheappointmentofParavets inthe

State.However,manyof them have not been successful,particularlywhere

theyarenotabletogettheassuredandsteadysupplyof liquidnitrogenand

frozensemenattheirplacesofwork. Inmanystates,theirworking istotally

dependenton themercyof theveterinaryofficersand suchaprogramme is

notsustainable.

Promoting

the

services

of

paravets

can

be

asustainable

activity, if they are assured of regular supply of inputs and their quality of

servicesareperiodicallymonitored.

5.16 PrivateBusinessEnterprises:Therearemanypharmaceuticalsandfeed

manufacturers in the private sectorwho are primarily engaged in providing

inputsthroughsomeoftheaboveagenciesondemandbasis. Primarily,these

agencies having business motivation, require regular monitoring about the

quality and price by the Government authorities. As their operational and

overheadsare

high,

they

will

not

be

able

to

compete

with

other

agencies

in

providingbreedingandhealthcareservicesdirectly.

5.17 Banks and MicroFinance Institutions: Microfinance plays a very

significant role in livestockdevelopment in thecountry. Ithasbeen reported

that over 25 per cent of the disbursements through leadingmicrofinance

agencieshavebeeninvestedinlivestocksector. Thisindicatesthepotentialof

the sector and the scope for turning livestock husbandry into an important

income generation activity in rural India. Microfinance agencies and banks

can play a very significant role by establishing a link with various serviceproviderstoensurethatthefarmersareabletoavailtheseservicesoncredit.

StrategyforDeliveryofInputsandServices

5.18 For establishing an efficient value chain in dairy husbandry, themilk

processing unit either operated by the Federation or the new generation

cooperatives canassume theprimeposition forestablishing various support

servicesand

linkages.

There

can

be

aconsortium

of

AHD

and

milk

processing

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