India's Distinct Dairy Farming Approach and Its Issues

Dairy Industry of India

Global Leadership: India holds the title of the largest milk producer globally, accounting for 24.76% of the world's milk production.

Production Increase: Milk output increased from 146.31 million tonnes in 2014-15 to 239.30 million tonnes in 2023-24.

Economic Contribution: Dairy represents India’s most significant agricultural product, accounting for 5% of GDP and providing jobs for more than 8 crore farmers.

Growth Performance: The livestock industry experienced a CAGR of 7.9% from 2014-15 to 2020-21, surpassing the growth of the agriculture sector.

Per Person Availability: Increased to 471 g/day in 2023–24, well above the global average of 322 g/day.

Leading states in production: Uttar Pradesh, Rajasthan, and Madhya Pradesh.

Structural Vulnerabilities in Indian Dairy Farming

Breed Productivity Discrepancies: Production levels continue to fall short of those in developed dairy countries, particularly with native breeds.

The typical production of Indian cows is 1.64 tonnes per year compared to 7.3 tonnes in the EU and 11 tonnes in the US.

Land & Fodder Limitations: In contrast to New Zealand, India does not have plentiful pasture land.

Dependence on crop byproducts and bought feed drives up dairy expenses.

Reliance on Inexpensive Labor: The dairy industry involves labor-heavy activities like feeding, milking, washing cattle, and cleaning barns. The model relies on unpaid family labor with minimal opportunity cost.

Increasing rural education and alternative employment opportunities might render such labor scarce.

Climate Effects & Market Fluctuations: Severe temperatures decrease production and increase costs.

Reduced Growth: The increase in production has diminished, falling from approximately 6% in previous years to 3.78% in 2023–24, with a 16% drop in buffalo milk production.

Post-Harvest Losses: Insufficient cold-chain and processing facilities lead to waste.

Importance

Economic Impact: India's dairy sector is the largest agricultural commodity, accounting for 5 percent of the national economy and directly providing jobs for over 8 crore farmers.

Nutritional Security: Milk serves as a key source of protein, calcium, and vitamins, enhancing dietary variety.

Export Potential: India is rising as a provider of dairy items such as skim milk powder, butter, and ghee to Asia.