White Revolution 2.0

General Studies Paper -3

Context: The government’s latest Household Consumption Expenditure Survey (HCES) for 2022-23 shows milk emerging as India’s top food spend item.

About

• The National Sample Survey Office (NSSO) under Ministry of Statistics and Programme Implementation has been conducting household surveys on consumption/consumer expenditure at regular intervals as part of its rounds, normally of one-year duration.
• Since 1972, NSSO has been conducting the Consumer Expenditure Survey.
• It is designed to collect information on consumption of goods and services by the households.

Major Findings

• The income levels of both the Urban and Rural households have risen since the last survey, with Rural households showing a sharper growth in spending.
• Of the total expenditure,46% was spent on food items in Rural households and 39% in Urban homes in 2022-23.
• The monthly value of milk and dairy products consumed by an average person in rural India, at Rs 314, was ahead of vegetables, cereals, egg, fish & meat, fruits, edible oil, spices and pulses.
• For urban India also Milk (Rs 466) emerged as top item followed by fruits, vegetables, cereals, egg, fish & meat, edible oil, spices and pulses.

Challenges Associated with Increased Demand

• Inflation: The price of milk has gone up from Rs 42 to Rs 60 per litre in the last five years, according to the department of consumer affairs.
• Rising Input Cost: The cost of fodder, feed and raw materials/ingredients have increased significantly.
• Dairies have had to hike procurement prices paid to farmers and, in turn, pass-through the same to consumers.
• Purchasing Limit of Consumer: There’s a limit to how much more the consumer can pay for milk without it causing demand destruction.

What can be the Solution?

• If farmer incomes are to be raised without shrinking domestic demand and eroding the global competitiveness of the Indian dairy industry, the only solution is to reduce the cost of milk production.

How can the Cost of Milk Production be Reduced?

• Improved Breeding and Genetics:Investing in high-yield dairy cattle breeds can increase milk production efficiency.
• Cross-breeding programs aimed at developing more resilient and higher-yielding breeds suitable for Indian conditions can be beneficial.
• Nutrition Management:Providing balanced and cost-effective feed and nutrition to dairy animals can enhance milk yield while reducing input costs.
• Modals for Reducing the cost of Fodder:Amul is putting up a 30-tonnes-per-day Total Mixed Ration (TMR) plant at Sarsa in Anand.
• TMR will contain dry and green fodder, along with concentrates, vitamins and mineral mixtures, in a ready-to-eat mashed form for animals.
• It would save farmers the cost of purchasing and storing fodder separately, and administering it in addition to cattle feed.
• Healthcare and Disease Management:Ensuring proper healthcare and disease control measures for dairy animals can prevent losses due to diseases and improve overall productivity.
• Cooperative Farming and Collective Bargaining:Encouraging small-scale dairy farmers to form cooperatives can help them access resources, infrastructure, and markets more effectively.
• Government Support and Policy Reforms:Government policies that provide subsidies for essential inputs like feed, veterinary care, and equipment can significantly reduce production costs for dairy farmers.
• Research and Development:Investing in research and development aimed at developing innovative and cost-effective solutions for dairy farming challenges can lead to long-term improvements in productivity and cost reduction.

Steps Taken by Government for the Promotion of Dairy Sector in India

• Rashtriya Gokul Mission: It waslaunched in 2014, to conserve and develop indigenous cattle breeds.
• Aim: To enhance the productivity and genetic improvement of indigenous cattle.
• National Programme for Dairy Development (NPDD): NPDD has been in place since 2014 and aims to build or strengthen infrastructure for the production of high-quality milk as well as for the procurement, processing, and marketing of milk and milk products through the State Implementing Agency or State Cooperative Dairy Federation.
• Dairy Entrepreneurship Development Scheme (DEDS):  DEDS is being implemented by the Department of Animal Husbandry, Dairying, and Fisheries to create self-employment opportunities in the dairy industry.
• It provides financial assistance to individuals for setting up small to medium-scale dairy
• The National Bank for Agriculture and Rural Development is carrying out the programme.
• National Animal Disease Control Programme (NADCP): It is a flagship scheme launched in 2019for control of Foot & Mouth Disease and Brucellosis by vaccinating 100% cattle, buffalo, sheep, goat and pig population.
• National Livestock Mission (NLM): The NLM, launched by the Ministry of Agriculture, aims to ensure sustainable development of the livestock sector, including dairy farming.
• It focuses on increasing the productivity of livestock, improving their health, and providing support for fodder and feed resources.

Way Ahead

• Faster vaccination drives to overcome situations like Lumpy skin disease death.
• Robust and effective value chain to overcome the supply chain disruption to maintain the demand for milk and milk products.
• By implementing strategies in a coordinated manner, it’s possible to reduce the cost of milk production in India while improving the livelihoods of dairy farmers and ensuring a sustainable and thriving dairy industry.