Dairy sector in India: An

overview
Presented by
Sanat Singaran
Suchismita Sinha
Introduction

 Dairy sector is concerned with milk and

milk products.
 Initially a shy sector
 Pasteurisation technique and
refrigeration facility helped this sector to
grow big.
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.
The growth of dairy sector in India

 Long distance refrigerated rail-

transportation were there from Anand to
Bombay since 1945.
 Pasteurization and bottling of milk on a
large scale for organized distribution was
started in 1950’s.
 Establishment of Milk Plants come under
the Five-Year Plans for dairy
development.
Some facts and figures

 Around 100 million Milch 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.
Present status of dairy development

 Primary catalyst –NDDB and its

cooperative model.
 NDDB had implemented ‘operation food’
programme in 1970.
 The programme was implemented in
different stages.
 Result of initial implementation of this
programme is large dairy infrastructure.
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.*
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.
Anand model of milk cooperative

 Primary cooperatives are federated into

district cooperative milk unions.
 District cooperative milk unions further
joined to form state cooperative dairy
federations.
 These cooperatives form part of the
National Milk Grid
Anand model of milk cooperative

Some facts
 Operation flood covered 170 districts.
 Which is 100 thousand village dairy
cooperatives with around 11 million
producers as members.
 The network collects about 17 million
litres per day and pays an aggregate
amount of about Rs.700 billion to the
milk producers in a year
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

 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.
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.
Major forces countervailing dairy
development
 The major constraint would be the feed.
 Decline in common grazing lands.
 Shift from present approach of Curative
to prophylactic controls with respect to
livestock health services.
 Breeding services to livestock are not up
to the desired level.*
Dairy sector reforms

 The dairy industry was reserved for

cooperatives and protected till 1990s.*
 The industry was de-licensed in 1991
and opened for private participation.
 Milk and Milk Products Order (MMPO)
enacted in 1992 to regulate the
production and maintain the quality of
milk and milk products.*
Conclusion

 The Indian dairy trade volume is

increasing rapidly in a progressive way
due to increasing consumer demand in
India and abroad.*
References
 References:
 Rado 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
References
 www.indiadairy.com
 www.fao.org/
 www.punjabgov.net/
 www.banknetindia.com
 www.icar.org.in
 www.icar2005.org/
 www.ciionline.org
 www.acdi-cida.gc.ca
 www.foodprocessing-technology
 www.vetwork.org.uk/
 www.oecd.org