India's Dairy Sector: Significance & Challenges

India’s dairy sector, crucial for rural livelihoods, faces competitiveness challenges due to US market liberalisation pressure.

India’s Dairy Sector: Status

Dairy is India’s top agricultural product, contributing 5% to the GDP and supporting over 8 crore farmers.
Milk production increased by 63.56%, from 146.30 MT to 239.30 MT between 2014–15 and 2023–24, with an average annual growth of 5.7%, while productivity also surged by 26.34% during this time.
Per capita availability has increased by 48%, reaching over 471 grams per person per day in 2023–24, compared to the world average of 322 grams per person per day.
India achieved a 27.39% increase in bovine productivity from 2014 to 22, the highest in the world, surpassing countries such as China and Germany.
The cooperative dairy sector in India is extensive and well-organised, with 22 federations and 25 Milk Producer Organisations (MPOs), covering 2.35 lakh villages and involving 1.72 crore farmers. Only about 33% of milk surplus currently flows through organised sector channels.
Women make up nearly 70% of the dairy workforce, with 35% actively involved in cooperatives; there are 48,000 women-led societies and 16 MPOs operated entirely by women.

Socio-Economic Significance

Employment Base: The Sector sustains around 80 million rural households with livelihood opportunities.
Farmer Share: Cooperatives transfer over 75% of consumer prices, boosting farmer incomes.
Women’s Empowerment: Cooperatives strengthen women’s income, assets, and decision-making.
Malnutrition Mitigation: With 12% of Indians undernourished, milk provides affordable dietary security.

Structural Challenges

Yield Deficit: Average cow yield is 1.64 tonnes annually, well below Western levels.
Labour Costs: Declining family labour increases production costs compared to corn, soybeans, or wheat.
Fodder Shortage: Green and dry fodder deficits persist across central producing states.
Automation Barrier: High capital and energy costs hinder the adoption of US-style farm mechanisation.
Health Stress: Climate pressure and diseases like lumpy skin decrease yields and incomes.
Scale Limitation: Over 50 million smallholders raise 110 million animals, limiting economies of scale.

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Government Schemes and Initiatives

Rashtriya Gokul Mission: It is a Central Sector Scheme launched in 2014 to enhance milk productivity through genetic improvements and conservation of indigenous cattle breeds.
NPDD: The National Programme for Dairy Development, launched in 2014 and restructured in 2021, develops infrastructure for milk procurement, processing, and marketing nationwide.
NLM: The National Livestock Mission, realigned in 2021–22, promotes employment, entrepreneurship, and productivity in the livestock sector.
LHDCP: The Livestock Health and Disease Control Programme (2024–26) enhances animal health through vaccination and disease prevention.
AHIDF: The Animal Husbandry Infrastructure Development Fund, launched in 2020 under Atmanirbhar Bharat, promotes investment in dairy processing and value-addition infrastructure.
White Revolution 2.0: It will be implemented over five years from 2024-25 to 2028-29 to increase cooperative milk procurement by 50%.

Way Forward

Productivity Drive: Raise yields via genetic selection, as in Brazil’s dairy improvement programs.
Genetic Upgrades: Scale AI, IVF, and sex-sorted semen technologies under the Rastriya Gokul Mission.
Mechanisation: Develop affordable milking and chilling technologies, like Japan’s automation models.
Health Safeguards: Strengthen NADCP and adopt climate-resilient housing for livestock productivity.
Scale Solutions: Support producer companies and FPOs, like New Zealand’s cooperative mega-farms.

White Revolution 2.0 must prioritise productivity, resilience, and scale to secure rural livelihoods and farmer incomes. Strengthening cooperatives and technology adoption will sustain India’s dairy leadership globally.

Reference: Indian Express | PMFIAS: Impact of Climate Change on India’s Dairy Sector

PMF IAS Pathfinder for Mains – Question 322

Q. White Revolution 2.0 envisions leveraging technology and strong market linkages to transform India’s rural dairy sector. Critically analyse its potential in augmenting farmers’ income and assess the socio-economic challenges that may hinder its realisation. (250 Words) (15 Marks)

Approach

Introduction: Write a contextual introduction for the dairy sector by mentioning the current facts.
Body: Write potential of white revolution of 2.0 in augmenting farmer’s income, socio-economic chal-lenges and way forward.
Conclusion: Emphasis on a holistic approach for the success of white revolution 2.0.