9 May 2014

3 minute read

Asia

According to the study ‘Unlocking Growth of Potential of Indian Dairy Industry' by the Associated Chambers of Commerce and Industry of India (Assocham), Gujarat has ranked third in terms of generating direct employment in the dairy sector, besides, the state is ranked fourth with a share of about 7.5 per cent in 1493 dairy factories across India.

Gujarat is ranked fifth with about eight per cent share in terms of milk production, across India in total milk production of over 120 million tonnes.

Besides, Gujarat has recorded the fifth highest growth rate of about 24 per cent in milk production which is above the all-India growth rate of about 19 per cent, the study highlighted.

In terms of per-capita milk availability, the state has ranked fifth and the state has clocked a growth rate of about 17 per cent in this regard which is well above all-India growth rate of 12 per cent.

"Milk production across India has grown at a significant rate of about 19 per cent during the aforesaid period, but despite being the largest milk producer in the world, per-capita milk availability in India at 252 grams falls below the global average of 279 grams per person per day," DS Rawat, national secretary general of Assocham said while releasing the report.

“It is imperative for India’s dairy industry to streamline its value chain processes and integrate the smallholder dairy producers into the processing value chain in order to improve the overall performance of the industry, more so as they possess inherent strengths like low production costs, lower liabilities and limited liquidity risk,” Rawat added.

"However, lack of knowledge and technical know-how, poor access to support services, limited access to credit and poor milk quality together limit the ability of smallholder dairy producers to take advantage of market opportunities," Rawat stressed.

"The increase in the income level of an average Indian is being accompanied by a change in the food basket as the monthly per-capita consumption expenditure on milk and milk products in both rural and urban areas has grown significantly at about 92 per cent and 72 per cent respectively," Rawat revealed.

Uttar Pradesh (UP) commands highest share of over 17 per cent in total milk production followed by Rajasthan (11 per cent share), Andhra Pradesh (nine per cent), Punjab (about eight per cent) and Gujarat (about eight per cent) which are amid top five states with a combined share of over 53 per cent.

The study noted that concentration of milk production in some pockets together with high cost of transportation has led to rising disparity amid states in terms of per-capita milk availability.

There is an urgent need to build up strategies to increase competitiveness in all segments of dairy chain, input supply, milk production, processing, distribution and retailing, the study recommends.

“For promotion of dairy sector in India, emphasis now needs to be more on how to involve and encourage the village population into proactively adopting dairy industry as a viable alternative to the agricultural activity.”

With a view to formulate a long-term growth strategy for the dairy sector, the study said: “Promoting dairy entrepreneurship, strengthening economic viability of dairy farms, increasing the link between rural production areas and urban markets and promotion of small quantity packaging to meet the needs of poor are certain key areas.”

TheCattleSite News Desk