Dairy Sector - Significance & Challenges

Significance of Dairy Sector

Livelihood: In the farm-dependent population comprising cultivators and agricultural laborers, those involved in dairying and livestock constitute 70 million.
Women Empowerment: Moreover, in the total workforce of 7.7 million engaged exclusively in raising of cattle and buffalo, 69 percent of them are female workers, which is 5.72 percent of the total female workforce in the country, of which 93 percent live in rural areas.
Economic Growth: In the Gross Value Added (GVA) from agriculture, the livestock sector contributed 28 percent in 2019-20.
Provides Safety Net: A growth rate of 6 percent per annum in milk production provides great support to farmers, especially during drought and flood. Milk production rises during crop failures due to natural calamities because farmers bank more on animal husbandry then.

Challenges faced by Dairy farmers

High Susceptibility: Milk producers are highly susceptible to even minor shocks as the demand for milk and milk products are sensitive to changes in the employment and income of consumers.
Lacks Political Clout: Unlike sugarcane, wheat, and rice-producing farmers, cattle raisers are unorganized and do not have the political clout to advocate for their rights.
No MSP: There is no official and periodical estimate of the cost of production and Minimum Support Price for milk.
Low Prices offered by Cooperatives: Even though dairy cooperatives handle about 40% of the total marketable surplus of the milk in the country, they are not a preferred option for landless or small farmers. This is because, on average, fat-based pricing in dairy cooperatives is 20 to 30% less than the price in the open market.
Shortage manpower: In August 2020, the Animal Husbandry and Dairying Department reported a requirement of 2.02 lakh artificial insemination (AI) technicians in India whereas the availability is only 1.16 lakh.
Slow disbursal of Loans: Dairy farmers are now included in the Kisan Credit Card program. Yet their access to institutional credit facilities is low.
Inadequate measures by the government: Dairying was brought under MGNREGA to compensate farmers for the income loss due to Covid-19. However, the budgetary allocation for 2021-22 was curtailed by 34.5 percent in relation to the revised estimates for 2020-21.
Shortage of Fodder: Excessive no of unproductive animals compete with productive dairy animals in utilization of available feeds & fodder. Grazing area is reduced every year due 2 industrial development.
Breeding patterns: Late maturity in Indian cattle breeds. No effective detection of heat symptoms by the cattle owners. Increased calving interval - reduction in efficiency of performance. Abortion causing diseases - economic loss. Mineral & vitamin deficiencies lead to fertility problems.
Unhygienic conditions: Cattle owners don't provide proper shelter to cattle -exposed to extreme climatic conditions. Affects health – affects milk output.
COVID-19 impacts

Increased Cost & Reduced demand: The closure of shops had cut down the demand for milk and milk products while a severe shortage of fodder and cattle feed has pushed up the input cost.
Reduced Buyers: During the pandemic, there has been a self-imposed ban on the door-to-door sale of liquid milk by households both in urban and rural areas, forcing farmers to sell the entire produce to dairy cooperatives at a much lower price.
Reduced access to Veterinary service: Further, private veterinary services have almost stopped due to Covid-19, which has led to the death of milch animals

Way Forward

Dairy farmers need the following