Introduction
- Union Home and Cooperation Minister Amit Shah recently announced plans for ‘White Revolution 2.0,’ aimed at further transforming the dairy industry.
- ย This initiative follows the legacy of Operation Flood, launched in 1970, which sparked the original White Revolution and revolutionized India’s dairy sector.
- White Revolution 2.0 emphasizes expanding the cooperative model, the cornerstone of Operation Flood.ย
- The government aims to increase milk procurement by cooperatives from 660 lakh kg per day in 2023-24 to 1,007 lakh kg per day by 2028-29. The Ministry of Cooperation also introduced standard operating procedures (SOPs) to guide the implementation of this initiative.
Current Status of Dairy Sector in India
- Milk Production: India is the largest milk producer globally, achieving a production of 230.58 million tonnes in 2022-23, up from 17 million tonnes in 1951-52. The per capita availability of milk in India stands at 459 grams per day, significantly surpassing the global average of 323 grams per day.
- Contribution in National Economy: ย Dairy is the single largest agricultural commodity contributing 5% of the national economy, witnessing 6.4% (CAGR) in the past 5 years.ย
- Top Milk-Producing States: The top five milk-producing statesโUttar Pradesh, Rajasthan, Madhya Pradesh, Gujarat, and Andhra Pradeshโcontribute over 53% of the total milk production in India.
- Milk Yield: The national average yield per animal is 8.55 kg/day for crossbred animals and 3.44 kg/day for indigenous animals. Indigenous buffaloes contribute 31.94% of the milk production, followed by crossbred cattle at 29.81%.
- Handling of Milk: About one-third of the marketable milk is managed by the organized sector, predominantly cooperatives, while the unorganized sector handles the remaining two-thirds.
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White Revolution
- The White Revolution, or Operation Flood, launched on January 13, 1970, was the world’s largest dairy development programme and a landmark project of India’s National Dairy Development Board (NDDB).
- It transformed India from a milk-deficient nation into the worldโs largest milk producer, surpassing the USA in 1998, with about 17% of global output in 2010-11 .ย
- It gave rise to AMUL, an Indian dairy cooperative.ย
- Verghese Kurien is called ‘the milkman of India’, and the ‘Father of the White Revolution’. He was the founding chairperson of National Dairy Development Board (NDDB).
White Revolution 2.0
Expansion of Dairy Cooperative Societies (DCSs):
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- There are currently 1.7 lakh DCSs covering 2 lakh villages (30% of Indiaโs total villages), but some states like Uttar Pradesh, Uttarakhand, and Madhya Pradesh have only 10-20% coverage. The National Dairy Development Board (NDDB) plans to establish 56,000 new DCSs and strengthen 46,000 existing ones in underserved areas over the next five years.
Pilot Projects:
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- A pilot project was launched in February 2023 to expand cooperative reach in Haryana, Madhya Pradesh, and Karnataka with a budget of Rs 3.8 crore. This project aims to cover uncovered gram panchayats and enhance milk procurement.
Funding and NPDD 2.0:
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- The National Programme for Dairy Development (NPDD) 2.0 will be the primary funding source for White Revolution 2.0, providing financial support for village-level milk procurement systems and infrastructure. It targets 1,000 Multipurpose Primary Agricultural Credit Cooperative Societies (MPACSs) with financial aid of Rs 40,000 each.
Significance of White Revolution 2.0
Economic Growth:
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- White Revolution 2.0 is expected to increase milk production and contribute significantly to the agri and allied sector’s GDP. Currently, the milk sector contributes Rs 11.16 lakh crore, representing around 40% of agriculture’s GDP.
Employment and Empowerment:
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- The dairy sector supports over 8.5 crore people, primarily women, offering significant employment opportunities and contributing to rural development and womenโs empowerment.
Market Access for Farmers:
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- By expanding cooperative networks, more farmers will gain access to organized markets, ensuring better prices for their milk and improved incomes.
Reducing Regional Disparities:
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- White Revolution 2.0 aims to address regional disparities in dairy cooperative coverage, particularly targeting underserved regions like Uttar Pradesh, Odisha, and West Bengal.
Food and Nutritional Security:
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- The initiative aims to increase daily milk procurement from 660 lakh kg to 1,007 lakh kg by 2028-29, thereby improving food and nutritional security in the country.
Challenges in Achieving White Revolution 2.0
Uneven Cooperative Coverage:
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- States like Gujarat and Kerala have well-established cooperative networks, but regions like West Bengal, Assam, and Jharkhand have less than 10% coverage, limiting uniform production growth.
Declining Growth in Milk Production:
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- The annual growth rate of milk production has slowed from 6.47% in 2018-19 to 3.83% in 2022-23, indicating the need for accelerated interventions.
Low Yield and Productivity:
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- There is significant variation in milk yields across states. For example, Punjab’s yield is 13.49 kg/animal/day, while West Bengal’s is only 6.30 kg. The average annual productivity of cattle in India (1777 kg) is also lower than the global average of 2699 kg.
Disease Prevalence:
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- Contagious diseases like Lumpy Skin Disease (LSD), Foot and Mouth Disease (FMD), and Black Quarter infection continue to impact cattle health, affecting milk production.
Feed and Fodder Shortages:
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- India faces a significant deficit in green fodder (12%), dry fodder (23%), and grains-based concentrated feed (30%).
Inadequate Policy Support:
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- Agricultural subsidies are primarily directed toward the crops sector, leaving limited funding for the dairy sector. The allocation for the Department of Animal Husbandry and Dairying in the 2023-24 budget was only Rs 4,328 crore, compared to over Rs 4 trillion for agricultural subsidies.
Lack of Marketing Support:
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- Dairy products lack the price and marketing support that crops receive through mechanisms like the Minimum Support Price (MSP) and procurement by the Food Corporation of India (FCI).
Institutional Finance:
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- The share of livestock in total agricultural credit remains low at around 4%, limiting access to finance for dairy farmers.
Environmental Impact:
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- The dairy sector is a significant contributor to methane emissions, a potent greenhouse gas, raising concerns about its environmental sustainability.
Technological Gaps:
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- Limited access to artificial insemination, poor-quality germplasm, and insufficient technical staff hinder the development of high-quality cattle breeds.
Government Schemes for Dairy Sector Development
- National Programme for Dairy Development (NPDD): Department of Animal Husbandry and Dairying, is implementing this scheme across the country since Feb-2014 with an objective ofย creating/strengthening of infrastructure for Production of quality milk, Procurement, Processing and Marketing of Milk & Milk Products.ย ย
- Rashtriya Gokul Mission (RGM): Focuses on the development and conservation of indigenous bovine breeds to enhance milk production and profitability for farmers.
- National Livestock Mission (NLM): Re-structured for 2021-22 to 2025-26, it promotes entrepreneurship and breed improvement in poultry, sheep, goat, piggery, and feed development.
- Dairy Processing and Infrastructure Development Fund: The objective of the scheme is to upgrade the milk processing and chilling plants, including value addition in dairy infrastructure. The total project outlay under the scheme is INR 11,184 Cr. All eligible entities would receive a 2.5% interest subsidy on the loan component.ย ย ย
- National Artificial Insemination Programme: Aims to improve cattle breeds and prevent the spread of genital diseases through advanced breeding techniques.
- National Animal Disease Control Programme: Targets the eradication of Foot and Mouth Disease (FMD) and Brucellosis through vaccination.
- Animal Husbandry Startup Grand Challenge: Encourages innovative solutions from rural areas to boost the dairy sector.
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Way Forward
- Expand Cooperative Procurement: Efforts should focus on increasing the share of marketable milk handled by cooperatives, especially in states with low cooperative presence.
- Address Feed and Fodder Shortages: Ensuring the availability of adequate feed, fodder, and drinking water is essential for increasing livestock productivity, especially in rain-shadow regions.
- Value Addition and Market Support: Dairy farmers should be supported in value-added dairy segments like cheese, yogurt, and ice cream, which offer higher profit margins.
- Promotion of Indigenous Breeds: Indigenous cattle breeds, such as the Badri Cow, should be promoted through genetic enhancement programs.
- Research and Development: Increased investment in research and development is needed to enhance livestock productivity and benefit small and marginal farmers more effectively.
