Kurukshetra December 2019 Agro-based Industries Perspectives of Dairy Industry (Download PDF)

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Perspectives of Dairy Industry In India: Dairying provides a remunerative outlet for family labour, so farmers’ families are encouraged to take up dairying as an occupation subsidiary to agriculture. Other than income generation & livelihood security, dairying also ensures nutritional security for family addressing issues like malnutrition. Indian dairy sector that includes milk production, collection, processing, distribution & marketing plays a seminal role in rural economy, 2nd only to agriculture. Over 71 million of 147 million households in country depend on dairy for their livelihood. Indian dairy sector is uniquely characterised more by ‘production by masses’ rather than ‘mass production’ country to leading milk producing countries in world nearly 95 % of milk producers in country hold only 1 to 5 animals per household.


  • Milk production in India has come a long way over years from a low volume of 55.6 million tons in 1991 - 92 to 176.3 million tons in 2017 - 18, at an average annual growth rate of 4.5%.
  • W/record production & 1.3 billion population, Indian is world’s largest producer & consumer of milk accounting for nearly 19 % of world milk production. Most of milk production comes from over 125 million milch animals (in-milk & dry cows & buffaloes) that are generally reared under poor conditions lacking scientific requirements.

Projected Demand for Milk in India

Projected Demand for Milk in India

Projected Demand for Milk in India

Projected Demand for Milk in India

Organic Dairies: Opportunities Galore w/Challenges

  • Organic milk is free from pesticides, herbicides, antibiotics & growth hormones that are generally present in conventional milk although in residual quantities. But sometimes, these obnoxious chemicals cross permissible levels posing a danger to well being of consumer. Hence, people are willingly paying premium prices to overcome fear of being contaminated. This has spurred a wave of organic dairies specially in & around metros to serve people having greater purchasing power.
  • Organic dairies are mostly owned & operated by tech-savvy young entrepreneurs who have made significant investments on organic milk production, distribution & marketing.
  • Grazing requirement makes milk more costly because it requires a certain acres of posture land which is scarce & because of grazing cow produces less milk than one eating a grain diet optimized for milk production. On legal side, organic certification is a mandatory requirement & yearly process to be executed by an accredited certification body or an inspection authority.
  • Challenge is to maintain & preserve quality of milk during entire supply chain. Some companies prefer to pasteurize milk soon after collection, but many of them just chill milk & distribute it to customers. As a rule. Preservatives are not added in organic milk. So milk gets spoiled w/I 8th hours.
  • Urbanization & changing food habits, milk co-operatives now need to focus on expanding their product basket to include value added products like UHT milk, cheese, ice cream etc. by creating facilities in their dairy processing plants.
  • In order to boost dairy processing & infrastructure, a special fund (Dairy Processing & Infrastructure Development fund DIDF) was created w/a total outlay of Rs. 10,881 cr. During period from 2017 - 18 to 2028 - 29. Project is being implemented by National Dairy Development Board & National Dairy Development Corporation directly thru. The end borrowers, such as milk unions state dairy federations, multi-state milk co-operatives, milk producer companies & other eligible stakeholders.

Plan for Prosperity

  • Union Govt. in pursuance to its commitment for doubling farmers’ income by 2022, prepared & implemented a holistic “National Action Plan for Dairy Development for 2022” in 2018.

Key challenges faced by dairy sector in India:

  • Low productivity of Indian bovines,
  • Imbalanced feeding to animals,
  • Limited access of milk producers to organized sector,
  • Age old infrastructure operating on absolute technology
  • Lack of organized credit system,
  • Lack of manufacturing facilities for value added products,
  • Lack of efficient chilling infrastructure at village level,
  • Lake of penetration in smaller cities/towns in terms of milk marketing, &
  • Lake of efficient cold chain distribution network.

  • National Action Plan envisions to increase milk production to 254.55 million metric ton by 2021 - 22 & 300 MMT by 2023 - 24.

  • Prime Minister has launched ‘National Artificial Insemination Program’ to cover entire country w/quality all services. Various breed development intervention are being implemented under Union Govt. schemed, such as National Dairy Plan (Phase-I) & Rashtriya Gokul Mission. Modern technologies like sexing of semen are being taken up to regulate sex ratio & to produce large number of progenies of only female sex.

Encouragement to Entrepreneurship

  • GoI. Launched an ambitious ‘Dairy Entrepreneurship Development Scheme’ w/objective to promote entrepreneurship by generating opportunities for self-employment in dairy sector. NABARD is nodal agency to implement this scheme w/financial support from Union Govt. NABARD provide financial assistance to commercially feasible & bankable dairy projects for a wider range of dairy associated activities. Some of recognized activities included establishment of small dairy unit having 1 to 10 milch animals; rearing of heifers (up to 20 calves) purchase of milk machines establishment of bulk milk chillers (up to 5,000 litters capacity purchase of milk processing equipment’s for manufacture of indigenous milk products, setting-up of milk parlours, development of cold chain & processing facilities, marketing of milk & products.

Jute Industry: Scenario & Opportunities

  • Jute industry supports around 40 lakh farm families & provides direct employment to 2.6 lakh industrial workers & 1.4 lakh in tertiary sector.
  • Production process in Jute Industry passes thru. A variety of actions which begins w/cultivation of row jute, processing of jute fibres, spinning, weaving bleaching dyeing, finishing & marketing of both, raw jute & its finished products.
  • Jute industry contributes to export earnings in range of Rs. 1.000 to Rs. 1,200 cr. annually.
  • Jute cultivation is confined to West Bengal, Eastern Bihar, Assam, Orissa, Tripura & Andhra Pradesh where mostly Mesta (jute like fibre & coarser than jute) is grown. Out of these states, West Bengal. Bihar & Assam contribute about 80 % of total production.

Problems Associated in Jute Industries

  • Advantages of jute include good insulating & antistatic properties, as well as having low thermal conductivity & a moderate moisture regain it include acoustic insulating properties & manufacture w/no skin irritations. Jute has ability to be blended w/other fibres, both synthetic & natural, & accepts cellulosic dye classes such as sulphur, reactive & pigment dyes.

Conclusions & Impending

  • India needs to work on quality by adopting new technologies (Debnath 2017a). Jute Research organizations such as ICAR-NINFET, Kolkata, IJIRA, Kolkata, Department of Jute & Fibre Technology Kolkata, Directorate of Jute Development National Jute Board, etc. must work together to utilize resources for betterment of industry.

Bamboo Industry: Crafting Livelihood of Rural People

  • Bamboo is a versatile crop & has recorded 1500 uses including food as wood substitute, building & construction material, as resource of handicraft, pulp & paper, etc.
  • According to Ministry of Agriculture & Farmer Welfare, GoI. Annual bamboo production in country is estimated at 3.23 million tonnes.
  • According to Forest Survey of India (2011), more than 50 % of bamboo species of are found in eastern India, including in states of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura & West Bengal. Bamboo utensils, fishing nets, jars, vases, & baskets make it a quintessential cultural tradition in region. Mizoram has largest bamboo cover in India as compared to geographical area covered by other states; more than half of Mizoram’s land has bamboo forests.
  • A bamboo tree matures in 4 to 5 years whereas a hardwood tree take almost 60 years to mature, Unlike hardwood trees, bamboo can be harvested w/o adverse effect on environment. Bamboo can tolerate both heavy & low rainfall.
  • Bamboo releases 35 % more oxygen than other plants, & absorbs 20 % carbon dioxide from environment. Scientific plantation of bamboo could dramatically improve air quality w/release of more oxygen & sequestering more carbon dioxide.
  • Summary of Employment Potential of Bamboo use for Silviculture is Estimated to be around 25000 ha & Corresponding Quantity per annum in million around 75 million.
  • There is vast scope for expending bamboo in areas outside forest because:
  • a) its mgmt. is easier in these lands than in natural forest &
  • B) Due to close to user agencies, economic harvesting is possible. Land degradation is a major problem confronting India. According to State of India’s Environment 2017, nearly 30 % of India’s land is degraded w/its unique ability to stitch & repair damaged soils bamboo is ideal for rehabilitating degraded soil.
  • National Bamboo Mission (NBM) which was commenced in October 2006 is an initiative of GoI. To provide a new impetus & direction to enable realization of bamboo’s considerable potential.
  • One of objective of Mission among others was to expand area under bamboo plantation by 2 million ha in 10th Plan & overall 6 million ha in 10th & 11th plan.
  • Indian Forest Act. 1927 defines bamboo as a tree –a contradiction in law that has deterred growth of bamboo plantations particularly in non-forest areas.
  • A restructured NBM is approved by GoI. In April 2018 w/an investment of Rs. 1290 cr. In coming 2 years it focuses on development of complete value chain of bamboo sector to link growers w/consumes & to support development of entire value chain starting from planting material plantation, creation of facilities for collection, aggregation, processing marketing, micro, small & medium enterprises, skill development & brand building initiative in a cluster approach mode.
  • SFURTI (Scheme of Find for Regeneration of Traditional Industries) is being implemented by Ministry of Micro, Small & Medium (MSME) in order to boost traditional industries & bamboo artisans.
  • TRIFED, an apex body, under Ministry of Tribal Affairs, GoI. Would open establishments to train tribal people in using bamboo optimally w/zero waste & make agarbatti, matchboxes & even textiles. This would help in augmenting tribal’s income & opening of markets.

Business Opportunities in Agro-Based Industry

  • Demand of processed food & other agro based products is increasing due to sustained income growth, increasing urbanization, a fast-growing middle income class, increasing entry of women in workforce, nuclearization of families, improvements in literacy & exposure to western foods.
  • By 2020, processed food products & beverages are expected to account for about 15 % share in food basket.
  • Poppy seed Business India: Globally poppy seed business is very lucrative because of its pharmaceutical uses besides mainstay of illegal trade around world. India’s heavily regulated poppy economy is witnessing a small but intense conflict over decision of Central Board of Narcotics (CBN) over import in India from exporting countries.
  • In India poppy cultivation is regulated by CBN & issues licenses to 25,000 to 30,000 farmers to grow poppy. Latex collected from plant belongs to govt. & farmers get Rs. 2000 to 2500 for per kg of latex sold to govt. poppy seeds can be sold in open market & may fetch price up to Rs. 1,00,0000 per quintal.
  • Poppy seeds are used by food & pharmacy to extract poppy seed oil.

Mission Indradhanush 2.0: Reiterating India’s Commitment to Vaccines For All

  • Govt. is poised to launch intensified Mission Indradhanush (IMI) 2.0 b/w December 2019 March 2020 to deliver a programme that is informed by lessons learnt from previous phases, & seeks to escalate efforts to achieve goal of attaining a 90 % national immunization coverage across India. Programme will be delivered in 271 districts of 27 states & 652 blocks of Uttar Pradesh & Bihar among hard-to-reach & tribal populations.
  • Govt. had launched ‘Expanded Program for immunization’ in 1978, which was later termed as ‘Universal Immunization Program’ (UIP) in 1985 aiming to reduce mortality & morbidity among children from vaccine preventable diseases.
  • Factors limiting vaccination coverage include rapid urbanization, presence of a large migrating & isolated populations that are difficult to reach & low demand from under informed & unaware populations.
  • Ministry of Health & Family Welfare has employed an effective approach-such as involving community, seeking support from other Ministries & Partner agencies, establishing an organized surveillance system, & employing mass campaign mgmt. strategies to reach every unreached child for vaccination.
  • Ministry of Woman & Child Development, Panchayati Raj, Ministry of Urban Development, Ministry of Youth Affairs, among others, will come together to make mission a resounding success & support central govt. in ensuring benefits of vaccines reach last mile.

Salient Features:

  • Immunization activity will be in four rounds over 7 working days excluding RI days, Sundays & Holidays.
  • Enhanced immunization session w/flexible timing, mobile session & mobilization by other departments.
  • Enhanced focus on left outs, dropouts, & resistant families & hard to reach areas.
  • Focus on urban, underserved population & tribal areas.
  • Inter-ministerial & inter-departmental coordination.
  • Enhance political, administrative & financial commitment, thru. Advocacy.
  • Intensified Mission Indradhanush immunization drive, consisting of 4 rounds of immunization will be conducted in selected districts & urban cities b/w December 2019-march 2020.
  • After completion of proposed 4 rounds, states will be expected to undertake measures to sustain gains from IMI, thru. Activities like inclusion of IMI sessions in routine immunization plans. Sustainability of IMI will be assessed thru. A survey.
  • W/launch of Intensified Mission Indradhanush 2.0, India has opportunity to achieve further reductions in deaths among children under 5 year of age, & achieve Sustainable Development Goal of ending preventable child deaths by 2030.

Reforms to Boost Agro-Based Industry

  • Govt. is implementing many schemes to encourage agro-based industry. These schemes range from providing collateral-free credit & access to incubation centres to providing better equipment & employment opportunities for entrepreneurs in various corners of India.
  • Term ‘enterprise’ was defined as ‘small, medium or large’ scale by quantity & amount of money invested in plant & capital An investment of below Rs. 1 cr. was treated as small industry, Rs. 1 - 5 cr. As medium based while investment above Rs. 5 cr. Was deemed as large industry.

- Published/Last Modified on: January 9, 2020


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