In a bid to ensure that the Indian dairy sector continues to be “Atmanirbhar”, New Delhi is working on a strategy to boost dairy exports and domestic production. According to government sources, Prime Minister Narendra Modi recently reviewed the strategy to incentivise investments in dairy sector and measures to improve livestock productivity.
“Laying a special thrust on dairy sector, Prime Minister reviewed the vision of India to become a major dairy products exporter in next 3-5 years. The government is also aiming to fast-track organised off-take of milk produce to 50%. Once the organised off take increases it will, in turn, increase milk production, ensure predictability of demand and assured prices to farmers,” the sources said.
Recently, the government had launched Rs 15,000 crore Animal Husbandry infrastructure development fund to improve India's capabilities for production capacity, processing, packaging of dairy products, a review of the scheme was also part of the PM’s review, sources added.
“It will assist farmers to invest in input cost efficiency like disease prevention measures, breed improvement measures and feed cost reduction,” according to them.
To take up this task to the target, the Department of Animal Husbandry, Dairy and Fisheries is working with farmers, stakeholders and various domestic and international companies. The department is also responsible for matters relating to livestock production, preservation and protection from diseases.
The ministry of fisheries, animal husbandry and dairying is a newly-formed ministry, incepted in May 2019 by the Modi-led government from the department of Ministry of Agriculture and Farmers Welfare.
Apart from this, the government also aims to make the cost of milk production competitive in India to withstand the global market competition.
Dairy sector in last 5 years has registered a CAGR of more than 6 percent and the total value of production of milk is currently more than Rs 7 lakh crore, while wheat and paddy together amounts to only more than Rs 4 lakh crore in the country.
“Given the size of the sector, Prime Minister has assured continuous support on investments and financial assistance from Finance ministry to help the farmers expand their reach in the domestic as well as the global market,” sources added.
Finance Ministry, too, has agreed for a special assistance to dairy sector to double its productivity, sources said.
EXIM TRADE:
The enhanced productivity will help India to increase its export share in the world from 0.36 percent to 10 percent of dairy products, sources told CNBC-TV18.
India had exported dairy products worth Rs 3,39,983 lakh in (2018-19) and Rs 2,03,513 lakh in 2019-20. India also looks at reducing its import dependence as it currently has a very limited import, majority of which is protein powder. India Imported dairy products worth Rs1,58,315.69 lakh in 2018-19 and Rs 112641.43 lakh during 2019-20.
Not just products, India also imports plant and machinery that helps in dairy production, preservation, etc. India imported dairy machinery worth Rs 8,478.37 lakh during 2019-20 and exported dairy machinery worth Rs 11,195.81 lakh during 2019-20.
India plans to double its dairy products processing capacity from current 53.5 million tonnes (MT) to 108 million tonnes (MT) in next 5 years, they further added.
“India over the next 5 years will continue to have dedicated expenditure on skill training of dairy farmers to enhance productivity, product diversification and to further support dairy farmers for Feed & fodder availability to increase productivity by 30-40%.”
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