Indian Dairy Sector Should Focus on Increasing Exports in 2024

As per data from the Animal Husbandry Ministry, India produced 230.58 MMT of milk during 2022-23. The milk production has increased by 3.83% over the previous year. The average yield per animal per day for crossbred is 8.55 kg and for indigenous/nondescript cows is 3.44 kg. The top five milk-producing states are Uttar Pradesh, Rajasthan, Madhya Pradesh, Gujrat and Andhra Pradesh. They together contribute 53.08% of total milk production. In total milk production contribution of buffalo milk is 45%, cow milk is 52% and goat milk is 3%.

NDDB Chairman said that with India set to increase its share in global milk production over the next decade, it is time to look at expanding its share in the export market. India currently accounts for 24 per cent of the world’s milk production. India’s milk production has been growing at a CAGR of 6 per cent, while the world average is at 2 per cent. If this growth trend continues, over the next 7-10 years, we will have a one-third share in the global output. Our share in the world dairy market is less than 0.5 per cent. The dairy exports are largely targeted to cater to the demand of our diaspora. India is uniquely positioned to cater to the world market, especially to the countries in Southeast Asia, Sri Lanka, Bangladesh and also in West Asia which are import-dependent for milk products. The dairy value chain could be replicated in other food value chain segments to reduce wastage and improve supplies.

The growth rate of GVA (gross value added) in agriculture and allied sectors increased from 2.10 per cent in 2018-19 to 3.96 per cent in 2022-23. The government has adopted and implemented several policies, reforms, developmental programmes and schemes for improving the agricultural growth prospects and incomes of farmers since 2014. These have led to a rise in the GVA of the agriculture and allied sectors. The Budget allocation of the Union Ministry of Agriculture and Farmers’ Welfare (including the Ministry of Cooperation, Department of Animal Husbandry and Dairying, and Department of Fisheries) was only ₹30,223.88 crore in 2013-14. This has been enhanced to ₹1,25,035.79 crore in 2023-24. As a per cent of the Government’s total Budget outlay, allocation to the Ministry of Agriculture and Farmers’ Welfare has increased from 1.8 per cent in 2013-14 to 2.8 per cent in 2023-24. The percentage of workers in the usual status engaged in agriculture and allied sector was at 45.8 per cent in 2022-23.

National Dairy Research Institute (NDRI) conducted an Interface to discuss challenges for the animal feed sector. Scientists and industry representatives brainstormed about how to increase the availability of unconventional feed and fodder resources for animal feeding. Due to the ban on the use of sugar for ethanol, more maize is expected to divert to produce ethanol. DDGS produced from this process will be available for animal feeding. Aflatoxin in feed resources results in aflatoxin in milk and milk products. The director of NDRI encouraged the industry to come forward for joint projects and to give their CSR funds to ICAR Institutes. NDRI will bring out a strategic paper about challenges and opportunities for the Indian animal feed sector. This paper will also highlight technologies available for adoption with ICAR.

Dairy Connect conducted a seminar for 1200 dairy farmers of Tamil Nadu at Erode. Speakers from all over India highlighted opportunities for boosting milk production in Tamil Nadu. Topics like feeding, breeding, housing management, and disease prevention were discussed. Tamil Nadu contributes 5% of India’s total milk production (10.32 MMT) during 2022-23. Per capita milk availability in Tamil Nadu is 369 gm per person per day against the national average of 459 gm.

Gyan Dairy has increased its milk production capacity to 15 lakh litres a day from 11 lakh litres a day. The company has set up a plant in Gorakhpur with a capacity of 5 lakh litres a day. Over 1 lakh cattle-rearing families will be benefited. Uttar Pradesh dairy market is flourishing due to the State government’s supportive policies. The government provides incentives and support for dairy development, including supporting milk cooperatives and rural milk producers and setting up greenfield dairies in cities such as Gorakhpur, Ayodhya, Kanpur, Lucknow and Bareilly. Technological advancements such as improved milk procurement networks are accelerating dairy product adoption. Road infrastructure improvements have facilitated direct milk transportation to dairy farmers, increasing income.