8 July 2014

3 minute read

Asia

However the state per capita milk availability has dipped by about two per cent from the level of 957 grams per day as of 2006-07, the study noted.

A study titled ‘Unlocking Growth of Potential of Indian Dairy Industry,’ conducted by Assocham said, “With about eight per cent share in India's total milk production of about 121 million tonnes (MT), Punjab is ranked fourth with annual milk production of 9.4 million tonnes.

But the state registered slowest growth rate in milk production of just about three per cent during the five year period of 2006-07 and 2010-11 which is below all-India growth rate of about 19 per cent and is ranked at the last rung in the ranking of top 20 states.

Punjab state’s dairy output worth over $602 million ranked seventh with about six per cent share in total dairy output worth over $10.07 billion.

The state has a share of about four per cent in 1,493 registered dairy factories across India.

Andhra Pradesh (AP) has recorded highest growth in terms of both milk production and per-capita milk availability thereby clocking a growth rate of over 41 per cent and about 36 per cent (approx.) during the five year period of 2006-10, however the state ranked third in terms of milk production with over 1.1 million tons (mt) of milk produced annually.

Apart from AP, the states of Rajasthan (28 per cent), Kerala (24.8 per cent), Karnataka (24 per cent) and Gujarat (23.7 per cent) are amid top five states in terms of clocking high growth in milk production.

"Milk production across India has grown at a significant rate of about 19 per cent during the aforesaid period with overall milk production crossing 121 mt mark as of 2010-11, 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," D.S. Rawat, national secretary general of ASSOCHAM said while releasing the chamber’s study.

"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 adds.

“Growing at a compounded annual growth rate (CAGR) of over four per cent, milk production in India is expected to rise to about 177 mt by 2019-2020 and that would help in meeting the projected demand of 150 mt by 2016-17 that has been envisaged in National Dairy Plan Phase-1,” Rawat adds.

Uttar Pradesh (UP) has the 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.

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 recommended.

The study also noted, “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.”

The study also pointed long term strategy for dairy sector that incudes, 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.

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