India tops milk production in world

• The Prime Minister said India produces milk worth Rs 8.5 lakh crore annually, more than the turnover of wheat and rice, with small farmers being the biggest beneficiaries of the dairy sector. India produces milk worth Rs 8.5 lakh crore annually

Current State of the Dairy and Livestock Sector

• Dairy is the single-largest agri commodity in India. It contributes 5% to the national economy and employs 80 million dairy farmers directly.
• A revival in economic activities, increasing per capita consumption of milk and milk products, changing dietary preferences and rising urbanisation in India, has driven the dairy industry to grow by 9-11% in 2021-22.

India’s journey from milk deficit country to one of surplus

• Initiated in 1970, Operation Flood transformed India into one of the largest milk producers.
• The per capita availability of milk in 2018-19 was 394 grams per day as against the world average of 302 grams.
• Today with an annual production of 187.75 million tonnes India accounts for about 22% of the world’s milk production.
• However, India is yet to join the ranks of major milk exporting nations, as much of what we produce is directed towards meeting domestic demands.

Initiatives taken in the Budget 2022-23 for this Sector

• Infrastructure Development under Vibrant Villages Programme:
  • Border villages in northern India with a sparse population and limited connectivity, have been covered under the ‘New Vibrant Villages Programme’ in the new budget.
  • Some 95% of livestock farmers are concentrated in rural India. Hence, infrastructure development under the Vibrant Villages Programme will play a significant role in enhancing market access for these livestock farmers.
  • New Vibrant Villages Programme announced in the budget aims to improve social and financial infrastructure in remote habitations, primarily along the border with China, and will be an improved version of the existing border area development programme.
• Reducing Alternate Minimum Tax:
  • To provide a level playing field between co-operative societies and companies, alternate minimum tax has been reduced from 18.5% to 15%.
  • Government has also proposed to reduce the surcharge on co-operative societies to 7% from 12% at present for those having total income of more than Rs. 1 crore and up to Rs. 10 crore.
• Enhanced allocation for Central Sector Schemes:
  • Allocation for the Rashtriya Gokul Mission and National Programme for Dairy Development has been increased by 20% in 2022-23.
  • It is expected to help in increasing the productivity of indigenous cattle and quality milk production.
  • Allocation for the livestock sector has been increased by more than 40% for 2022-23 and the enhanced allocation for central sector schemes by more than 48% shows commitment by the government for the growth of livestock and dairy farmers.
• Enhancement in allocation for Livestock Health and Disease Control:
  • An almost 60% enhancement in allocation for livestock health and disease control for 2022-23 over the previous year will ensure healthier livestock.
• Incentivising Digital Banking:
  • Incentivising digital banking, digital payments and fintech innovations will create a ripple effect in the livestock sector through greater transparency by streamlining payments during milk procurement.
  • A completely paperless, e-bill system will be launched by ministries for procurement.

Current issues

• Dairy analogues, plant-based products and adulteration pose a major challenge and threat to the dairy industry.
• Shortage of fodder resources and ineffective control of animal diseases.
• Absence of field oriented conservation strategy for indigenous breeds.
• Lack of skills and quality services to farmers for improving productivity and improper infrastructure to support the sector.

Making India milk exporting nation

• Indigenous cows produce 3.01 kgs of milk per cow per day, while the yield of exotic crossbred cows is 7.95 kgs.
• Crossbreeding has taken off in a big way because of the advancements in reproductive technologies like In vitro fertilisation (IVF), embryo transfer process, and artificial insemination.
• Out of these processes, IVF and artificial insemination have proven to be the most popular and effective methods.
• The NAIP (Nationwide Artificial Insemination Programme) Phase-I was launched in September 2019.
• Every animal in the programme was assigned a 12-digit unique identification number under the Pashu Aadhar scheme.
• NAIP Phase-II was initiated on 1 August 2020 with an allocation of ₹1,090 crore in 604 districts covering 50,000 animals per district and is on track to be completed by 31 May 2021.
• Under the programme, 9.06 crore artificial inseminations will be performed and is expected to lead to the birth of 1.5 crore high yielding female calves.
• Consequently, 18 million tonnes of additional milk will be produced as average productivity will be enhanced from 1,861kg per animal per year to 3,000kg per animal per year.
• Artificial insemination (AI) technology has been the most used method in India, but its success hinges upon accuracy in heat detection and timely insemination.
• And this is where In Vitro Fertilisation (IVF) technology will prove to be more effective.

Way Forward

• There is a need to increase the productivity of animals, also ensuring better health care and breeding facilities and management of dairy animals. This can reduce the cost of milk production.
• Awareness on clean milk production and various schemes by the Department of Animal Husbandry and Dairying and the new Ministry of Cooperatives will help dairy farmers evolve in the future.

Exam Track

Prelims Takeaway

• Initiatives for dairy Sector in current budget
• Earlier schemes
• Nationwide Artificial Insemination Programme
• Operation Flood

Mains Track

Q. India is the largest producer of milk in the world. Discuss the journey of India from a milk deficit country to surplus. Also, suggest some measures India needs to take to continue its global winning streak.