INDIA’S MILK PRODUCTION GROWS AT 6.2%, EXPORT IMPROVES
For about 25 years, India has been the largest milk-producing nation in the world (Cow + Buffalo mix milk). India’s milk production has grown @ 6.2% CAGR of 2014-15 (146.31 million tons) to 209.96 million tons during 2020-21, says the IBEF report October 21, 2022, Figure 1.
India accounts now 23% of the global milk production as against 21% in the past years, while the dairy industry contributes 5% to the Indian economy and directly supports livelihood for more than 80 million farmers. However, the IBEF report should have elaborated on the growth of organized Dairy Farms in India.
Figure 1: Milk production in India (Million ton)
Source: Indiabudget.gov (reported by IBEF Report Oct 2022)
Secondary data sources report (Figure 2), that USA is top cow milk producing country in the world (if we exclude EU), India comes on 2nd and China at 3rd position.
Govt support on Dairy Development through various programs/schemes has been yielding results, however, Govt has to concentrate more on organized and scientific dairy farming in India, which might resolve the quality and traceability issues for dairy products in particular and dairy business as a whole in the country.
The already running “National Program for Dairy Development (NPDD), implemented by NDDB, got restructured in July 2021. From 2021-22 to 2025-26, the redesigned NPDD scheme will be implemented with a budget of Rs. 1,790 crores (US$ 217.3 mn). The program’s objectives include enhancing the quality of milk and milk-derived products and growing the organised market share for procurement, processing, value addition and marketing.
Exports of Dairy Products:
Good news that the India’s export of dairy products has witnessed a steady rise over the last three years, after a dip during past few years. In 2021-22, India exported 108,711 MT of dairy products to the world for a total of Rs. 2,928.79 crore (US$ 391.59 million), with key export destinations being Bangladesh, UAE, Bahrain, Malaysia, Saudi Arabia and Qatar Figure 3.
Figure 3: Exports of Dairy Products
Source: Apeda (Quoted in IBEF report Oct 2022)
Following Operation Flood, many rural households in India turned to the dairy and animal husbandry industries as their main source of income. It has produced twice as much milk in the last 20 years. The dairy industry has greatly aided the expansion of India’s rural economy, says IBEF report Oct 2022.
Commentary on IBEF report
By Dr PK Shrivastava
Dairy Business Consultant
M/s Dairy Consultancy, Bangalore, India
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