Milk production in India is dominated by small and marginal landholding farmers and landless labourers. Millions contribute, with an average herd size of 1-2 cows or buffaloes. This fragmented structure contributes to 70% of national milk. Though the average net income per cow is low (around $387 annually), dairying provides a stable, year-round income for millions, especially crucial for small farmers with seasonal crop production. The sector employs over 80 million rural households, with a significant role in women's empowerment as they often manage the livestock. Milk production in India has grown significantly, with a CAGR of 5.85% over the past 9 years (reaching 230.58 million tonnes in 2022-23).
However, India's dairy sector, populated as it is by millions of smallholder farmers, faces significant challenges that limit its potential. To bolster these farmers and cultivate a robust dairy industry, a comprehensive approach is imperative, with both governmental and private sectors assuming pivotal roles.
Enhancing productivity and ensuring animal health are paramount. By facilitating access to high-yielding breeds and artificial insemination services, milk output can be enhanced. Moreover, improving veterinary care, disease prevention programs, and imparting knowledge on balanced animal nutrition can bolster herd health and productivity. Embracing technology, such as affordable milking machines, milk coolers, and automated feeding systems, holds promise in enhancing operational efficiency and reducing labour-intensive tasks.
Efforts to strengthen market access and income avenues are crucial for the sustainability of dairy farming. Encouraging participation in cooperatives and Farmer Producer Organizations (FPOs) empowers farmers to collectively negotiate for fairer prices and access to processing facilities, minimizing dependence on intermediaries. Direct marketing channels like farmer markets and online platforms offer farmers greater control over pricing and direct consumer interactions. Additionally, promoting on-farm processing activities like cheese making or yoghurt production can diversify income streams and add value to dairy products.
Financial inclusion and risk management mechanisms play a pivotal role in safeguarding farmers' livelihoods. Micro-loans for infrastructure development, cattle purchase, and working capital need alleviate financial burdens, while livestock insurance schemes provide protection against unforeseen losses due to animal death or disease.
Women empowerment is a cornerstone of sustainable dairy farming. Equipping women with the necessary skills in animal husbandry, dairy farm management, financial literacy, and leadership cultivates a more inclusive and empowered farming community. Ensuring women's access to land ownership or co-ownership rights strengthens their position within the dairy farming sector, fostering economic independence and gender equality.
The private sector plays a significant role in driving innovation and development within the dairy industry. In championing herd health and productivity, private companies envision a future where advanced vaccines, medications, and diagnostics are readily accessible to rural farmers. Through investments in research and development, they pave the way for safeguarding animal health and mitigating risks associated with outbreaks. Robust distribution networks ensure these essential tools traverse the breadth of the country, reaching even its remotest corners.
The tech-driven transformation orchestrated by private companies and cooperatives abolishes the days of drudgery and inefficiency on dairy farms. They spearhead the development and investment in affordable milking machines, milk coolers, and automated feeding systems. By offering leasing or financing options, they empower farmers further. IT and telecommunication companies develop user-friendly applications, placing invaluable knowledge and resources directly into the hands of farmers, and empowering them with actionable insights.
Through robust partnerships with farmer cooperatives and FPOs, private companies foster progress. Farmers gain access to reliable milk collection networks, technical expertise, and equitable pricing structures. Investments in processing facilities closer to production areas reduce spoilage and transportation costs, amplifying benefits for farmers and consumers alike. Collaboration with large retail chains and online platforms opens doors to broader markets for farmers. Strategic investments in cold chain infrastructure by private companies ensure the seamless delivery of quality milk to consumers, fostering trust and reliability.
The spectrum of possibilities expands with value-added products like cheese, yoghurt, and ghee. Private companies forge partnerships with farmers to establish on-farm processing facilities, enriching income streams and capturing premium market value for their produce.
By actively engaging in these domains, the private sector assumes a pivotal role in crafting a sustainable and prosperous future for India's dairy farmers. This constructive collaboration fortifies the entire dairy ecosystem, empowering farmers, ensuring premium products for consumers, and propelling the nation's economic trajectory forward.
The article is authored by Dr. Kishore Indukuri, Founder, Sid’s Farm Private Limited
