·       The National Sample Survey Office (NSSO) under the Ministry of Statistics and Programme Implementation conducts household surveys on consumption and consumer expenditure regularly.

·       The Consumer Expenditure Survey has been conducted since 1972, aiming to gather data on household consumption of goods and services.

·       India holds the distinction of being the largest producer of milk globally, contributing app  roximately 24% of the total global milk production in 2021-22.

·       Rajasthan, Uttar Pradesh, Madhya Pradesh, Gujarat, and Andhra Pradesh collectively account for 53% of India’s total milk production, underscoring the regional distribution of dairy farming.

Challenges Associated with Increased Demand

·       Inflation: The price of milk has risen significantly over the past five years, posing challenges for consumers and highlighting the need for cost-effective solutions.

·       Rising Input Costs: The cost of fodder, feed, and raw materials has increased, necessitating higher procurement prices paid to farmers by dairies, ultimately affecting consumer prices.

·       Purchasing Limits: There is a threshold beyond which consumers may not be able to afford further price increases, potentially leading to a decline in demand.

Solutions to Reduce Cost of Milk Production

·       Improved Breeding and Genetics: Investing in high-yield dairy cattle breeds can enhance milk production efficiency and resilience.

·       Nutrition Management: Providing balanced and cost-effective feed and nutrition to dairy animals can optimize milk yield while minimizing input costs.

·       Modalities for Reducing Fodder Costs: Initiatives such as Total Mixed Ration (TMR) plants can streamline fodder management, reducing costs for farmers.

·       Healthcare and Disease Management: Implementing proper healthcare and disease control measures for dairy animals can mitigate losses and improve productivity.

·       Cooperative Farming and Collective Bargaining: Encouraging cooperative structures among small-scale dairy farmers can facilitate resource sharing and market access, thereby reducing individual costs.

·       Government Support and Policy Reforms: Policy interventions such as subsidies for essential inputs and equipment can alleviate financial burdens on dairy farmers, fostering a conducive environment for sustainable dairy production.

·       Research and Development: Investing in R&D aimed at developing innovative and cost-effective solutions for dairy farming challenges can drive long-term improvements in productivity and cost reduction.

Government Initiatives for Dairy Sector Promotion

·       Rashtriya Gokul Mission: Aimed at conserving and developing indigenous cattle breeds to enhance productivity.

·       National Programme for Dairy Development (NPDD): Focused on infrastructure development for high-quality milk production, procurement, processing, and marketing.

·       Dairy Entrepreneurship Development Scheme (DEDS): Designed to create self-employment opportunities by providing financial assistance for small to medium-scale dairy ventures.

·       National Animal Disease Control Programme (NADCP): A flagship scheme aimed at controlling diseases like Foot & Mouth Disease and Brucellosis through comprehensive vaccination drives.

·       National Livestock Mission (NLM): Dedicated to sustainable development of the livestock sector, including dairy farming, by focusing on productivity enhancement, health improvement, and fodder support.

Way Forward

·       Accelerated vaccination drives to address diseases like Lumpy Skin Disease.

·       Establishment of resilient value chains to mitigate supply chain disruptions and ensure consistent milk supply.

·       Coordinated implementation of strategies aimed at reducing milk production costs, thereby enhancing the livelihoods of dairy farmers and fostering a sustainable dairy industry in India.