Milk Production – Facts and Misplaced Controversies
Dairy is the single-largest agri-commodity in our country. It contributes 5% to the national economy and directly employs 80 million dairy farmers. — Vinod Johri
Bharat is the largest milk producer with 221.06 million tonnes production in 2021-22 contributing 23% of global milk production. The evolution of the dairy sector in Bharat and the pivotal role played by dairy cooperatives since the launch of Operation Flood formed an integral part of the country’s remarkable growth story after Independence.
Dairy is the single-largest agri-commodity in our country. It contributes 5% to the national economy and directly employs 80 million dairy farmers. Improvement in economic activity, increase in per capita consumption of milk and milk products, change in dietary preferences, and increasing urbanization in Bharat has led the dairy industry to grow by 9-11% in 2021-22. The cooperative societies have not only made the farmers self-sufficient but have also broken the barriers of gender, caste, religion, and community. The milk production in the country is sufficient to meet the domestic demand. Women producers form the major workforce of the dairy sector in the country. The sector is an important job provider, especially for women, and plays a leading role in women’s empowerment. This sector needs a strong integration with the market.
The dairy sector has been a major contributor to the growth of the rural economy. The government has facilitated the dairy farming infrastructure through its initiatives such as the development of the National Dairy Plan, a sustainable development-focused framework for the sector, along with general empowerment schemes such as the Jan Dhan Yojana and the Start-up India initiatives. In the past eight years, the animal husbandry and dairy sector have received a great deal of push under Prime Minister Modi’s vision of ‘Atmanirbhar Bharat’, and the journey of this sector is indeed a remarkable reflection of self-reliance.
Every year, since 2001, June 1 is observed as World Milk Day by the Food and Agriculture Organisation (FAO) of the United Nations to acknowledge the importance of milk as a global food and to celebrate the dairy sector. In Bharat, the birthday of Dr. Verghese Kurien, on November 26, is observed as National Milk Day.
Recent controversies emanating from WHO report and Amul - Nandini controversy in Karnataka in the dairy sector are worrisome as these adversely affect the local cattle breeding, milk & dairy production and business in every metro, city, suburb and rural area.
Milk production and per capita availability of milk in Bharat
Year Production Availibilty (Million Tonnes) Per Capita (gms/day)
1991-92 55.6 178
1992-93 58.0 182
1993-94 60.6 186
1994-95 63.8 192
1995-96 66.2 195
1996-97 69.1 200
1997-98 72.1 205
1998-99 75.4 210
1999-2000 78.3 214
2000-01 80.6 217
2001-02 84.4 222
2002-03 86.2 224
2003-04 88.1 225
2004-05 92.5 233
2005-06 97.1 241
2006-07 102.6 251
2007-08 107.9 260
2008-09 112.2 266
2009-10 116.4 273
2010-11 121.8 281
2011-12 127.9 290
2012-13 132.4 299
2013-14 137.7 307
2014-15 146.3 322
2015-16 155.5 337
2016-17 165.4 355
2017-18 176.3 375
2018-19 187.7 394
2019-20 198.4 406
2020-21 209.96 427
2021-22 221.06 444
However, it has witnessed a slowdown in output growth recently. In the three years to 2021-22, the average annual growth rate was 5.5%. In each of the preceding five years, output grew at over 6%. Preliminary indications are that output was stagnant in 2022-23. Almost half the milk produced is consumed locally. The rest enters the urban market, which is the growth area. The Government sources reveal that milk cooperatives and private players’ share of the liquid milk market is expected to touch 54% by 2026, from 41% now.
The Amul (Gujrat) vs Nandini (Karnataka) battle has taken political overtones in poll-bound Karnataka, with the opposition claiming that the ruling party seeks to merge Nandini with Amul, causing fears for the local economy and emotional connections that the people of the region have with Nandini. Amul’s milk and curd already sell in the state, as do several other dairy brands. The proximate cause is that Amul took to social media to announce online deliveries in Bengaluru. This advertisement was interpreted that cooperation between Amul and Nandini can do wonders. Such controversies are not in favour of dairy sector in our country. The dairy sector needs synergy to grow.
The Government termed a media report “false”, that said WHO has issued an advisory to the government stating if adulteration of milk and milk products is not checked immediately, 87 percent of citizens would be suffering from serious diseases like cancer by 2025. The government is taking all possible steps to help the supply of safe and good quality milk to consumers, the Fisheries, Animal Husbandry and Dairying Ministry said in a statement. The dissemination of this kind of false information created unnecessary panic among consumers. The issue has already been examined in the department in consultation with the Food Safety and Standards Authority of Bharat (FSSAI) and it has been said. “WHO country office confirmed to FSSAI that no such advisory has been issued by WHO to the Government of Bharat ever.” The Department of Animal Husbandry and Dairying and FSSAI is taking all possible steps to help the supply of safe and good quality milk to consumers across the country.
The quality of milk and milk products sold in the market is governed by standards laid down and enforced by the FSSAI. According to the nationwide National Milk Safety and Quality Survey conducted by FSSAI, out of 6,432 samples of milk taken, only 12 samples (0.19%) were found adulterated which renders the milk unsafe for human consumption. While this may be a concern, it is not true that liquid milk in the country is largely adulterated.
With a series of measures being taken by the Government as well as the growing role of the private sector in dairy development, our country is expected to sustain its growth in milk production and milk processing in the coming decades. Further, to encourage farmers to take up productivity enhancement of indigenous breeds of milch animals in a scientific manner and to motivate Cooperative and Milk producer Companies, our Government is conferring the prestigious National Gopal Ratna Awards on the occasion of National Milk Day.
Issues of backward integration in the dairy sector include reduction in grazing land, and lack of quality fodder due to rain-fed conditions, regional imbalances in transport availability and quality, and veterinary diseases with less presence of veterinary clinics in rural areas. Increasing incidence of, low productivity of indigenous breeds and nutritional deficiencies in the milk of foreign breeds, low availability of quality breeding bulls and semen and comparatively less success in the cross-breeding of indigenous and foreign breeds, antibiotics in animal growth Excessive use of agricultural produce, lack of marketing facilities for farmers are serious problems that slice away the farmers’ profit.
Market growth in the dairy sector requires basic investment in processing, cooling, logistics, animal feed, etc. In addition, there are new lucrative opportunities in sectors such as dairy products, organic/form fresh milk, and exports. To facilitate infrastructural development in this sector, various incentives have been provided by the Central/State Governments to attract investments.
Dairy is often the primary source of income of many landless households and marginal farmers. So, it’s in their best interest if successful brands like Amul, Paras, Saras, Verka, Ananda, Dudhsagar, Gowardhan, Milma, Namaste India, Param, Mother Dairy and Nandini etc. procure and sell across markets. It will be particularly helpful for farmers in states that lack both a sound cooperative movement and incentives for private players. The hilly states have better prospects of growth in dairy sector.
Vinod Johri, Retd Additional Commissioner of Income Tax.
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