2. Introduction
Dairy sector is concerned with milk
and milk products.
Initially a shy sector
Pasteurization technique and
refrigeration facility helped this sector
to grow big.
3. The growth of dairy sector in India
Initially a rural cottage industry.
-----Here production area was very near to the
consumption area.
Then semi-commercial dairying started
when military dairy farms and co-operative
milk unions were established.
-----This allowed delivering milk over regular
routes in the cities.
4. Some facts and figures
Around 100 million Milk animals are reared by 70
million farmers.
Village Cooperatives: 100 thousand.
Cooperative membership: 11 million.
Milk contributes 63% of the available animal
protein in Indian diet.
Milk would continue to be a major source of
animal protein in India.
5. Present status of dairy development
Primary catalyst –NDDB and its cooperative model.
NDDB had implemented ‘operation food’ program in
1970.
The program was implemented in different stages.
Result of initial implementation of this program is
large dairy infrastructure.
6. Flaws of O.F project of NDDB
The OF project focused mainly on most
potential milk producing areas.*
Did not address the needs of many other
areas of dairy sector.*
7. Modifications on O.F project
Focus on areas where O.F project was not focused yet.
Integrated and broad strategy to develop dairy sector
addressing maximum possible areas in concern.
Strengthening cooperatives on Anand milk
cooperative model
8. Current scenario
India is the largest producer of milk in the world (87
million tons)
Near self sufficiency in milk and milk products
Marginal and small households will continue to be the
major producer of milk in future
Current growth rates of 4-5% in milk production per
annum Current scenario
9. Current scenario
Sustained rise in per capita income and urbanization
are fuelling rapid growth in demand for milk.
The per capita availability of milk is 226 grams per day.
The world average of 285 grams per day
The minimum nutritional requirement is 280 grams
per day as per Indian Council of Medical Research.
10. Projected scenario
Milk demand is projected to rise to 121 kg/capita by
2020
Total demand projected is at 156 million tons by 2020
Intensification of dairy activities and bigger role by
private sector would be important. E.g.-Nestle India
Ltd.
11. Description
India ranks 1st in milk production with 3241 lack
lit/day and per capita availability of 281 gm
head/day .
Indian dairy industry stands at a size of U$$70
billion
Gross output of 103 million tones of milk in 2017
12. Description
Milk and milk products play a vital role in the national
economy
It is the largest contributors to the gross agril.Produce.
The value of milk and milk products is Worth
Rs.10,50,000 million/annum.
This is highest among all agril.Commodities
13. Per Capita Availability/Consumption of
milk in India is Low .why ?Reasons are
1. Though we are first in the bovine population and
total milk production in the world, our human
population is very large and it is increasing steadily.
2. Low purchasing power of people, because of poverty
and unemployment.
3. Inadequate Handling, processing and marketing
facilities for milk (a perishable commodity, which
gets spoiled much earlier).
14. However, the situation will improve
in future. How ?
1. Increase in privatization and Crossbreeding
program.
1. As per WTO, there are chances of entry of milk from
other countries into India Leading to competition, so
milk will be sold at a cheaper rate.
15. Key Challenges of Indian Dairy Industry
Storage & Logistics
Level
Lack of cold storage facilities
Gap in the cold chain and transport Facilities
Co-operative Level • Less number of member farmers
• Lower participation in the decision making
process
• Low prices of milk
• Inefficient services
• Inefficient Infrastructure
Marketing
Challenges
• Majority of the Market still unorganized
• Acceptability of the Consumer Base
• Less penetration to the rural Market
• Lack of transparent milk pricing System
16. Government Initiatives
Intensive Dairy Development Scheme :
Improve the entire dairy supply chain by providing
financial input
Pattern of assistance is 100% grant in aid with a
maximum allocation of Rs 300 Lakes/districts
A 70 % Loan and 30% basis of funding is provided for
over 20000 LPD milk processing capacity
17. Dairy Venture Capital Fund
Scheme:
Aims to promote ventures in the dairy sector
Assistance is provided to bankable projects with 50%
interest free loan component
Entrepreneur has to contribute 10% seed amount and
arrange 40% loan from local bank .Government of
India provides 50% interest free loan
18. National Dairy Plan:
Aims to increase the milk production
to about 180 million tones annually by
2021-22
Enhancing milk production in majored
milk producing areas and
strengthening and expending
infrastructure for production process
19. Conclusion
The Indian dairy trade volume is
increasing rapidly in a progressive way
due to increasing consumer demand in
India and abroad.*
20. References
References:
Redo India, 2002
Chand, R, Dairy Industry in India, NCAEPR, New Delhi
2004
Indian Dairy Study, “Opportunities in the Indian dairy
Industry” by Rabobank International
'New economic policies, the real threat’ Frontline, Vol. 19 -
Issue 07, Mar. 30 - Apr. 12, 2002
Indian Dairyman, Vol. 11- Issue 07, August, 2003
