India’s Unique Dairying Model And Its Challenges

India has retained its position as the world’s largest milk producer, but recent reports highlight that its low-cost cooperative-led model faces issues of productivity, labour dependence, and climate stress, questioning its long-term sustainability.

India’s Dairy Sector: An Overview

  • Largest Global Producer: Contributes nearly 25% of global milk output.
  • Production Growth: Rose from 146 million tonnes (2014-15) to 239 million tonnes (2023-24).
  • Economic Role: Accounts for 5% of GDP; provides direct livelihood to 8 crore+ farmers.
  • Livestock Growth: Expanded at 7.9% CAGR (2014–2021), faster than crop agriculture.
  • Per Capita Availability: 471 g/day (higher than world average of 322 g/day).
  • Top States: Uttar Pradesh, Rajasthan, Madhya Pradesh lead production.

Key Weaknesses in the Model

  • Low Productivity of Breeds
    • Indian cows yield 1.6 tonnes/year vs 7.3 tonnes in EU and 11 tonnes in US.
    • Indigenous breeds underperform despite resilience.
  • Land & Fodder Shortages
    • Unlike New Zealand, India lacks grazing land.
    • Heavy reliance on crop residues and purchased feed increases costs.
  • Dependence on Low-Cost Labour
    • Relies on family and unpaid labour for feeding, cleaning, and milking.
    • Rising education and non-farm jobs may reduce this availability.
  • Climate Stress & Volatile Markets
    • Heat waves cut milk yields, causing price spikes.
    • Growth slowed to 3.7% in 2023–24; buffalo milk fell by 16%.
  • Post-Harvest Losses
    • Inadequate cold storage and processing units cause wastage.

Significance of Dairy in India

  • Economic Backbone: Largest agricultural commodity; vital for rural income.
  • Nutrition Security: Key source of protein, calcium, and vitamins.
  • Export Scope: Growing demand in Asia & Africa for Indian ghee, butter, and milk powder.
  • Gender Inclusivity: 35% of dairy cooperative members are women, making it a driver of rural empowerment.

Government Interventions

  • Breed improvement through AI, IVF, and genetic conservation.
  • National Dairy Plan for productivity enhancement.
  • Rashtriya Gokul Mission for indigenous breeds.
  • Investments in cold chains, chilling centres, and organized collection systems.

Way Forward

  • Raise Productivity: Breed upgrades, better fodder, and balanced cattle nutrition.
  • Climate Preparedness: Develop heat-tolerant breeds and expand vaccination.
  • Strengthen Infrastructure: Cold storage, processing plants, and supply chains.
  • Expand Cooperatives: Cover more farmers under Amul-like models.
  • Empower Women Farmers: Targeted training, credit, and leadership roles in cooperatives.

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