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White Revolution 2.0

Why is it in the news?

  • The latest Household Consumption Expenditure Survey (HCES) for 2022-23 highlights milk as India’s top food spend item, indicating significant consumption patterns in both urban and rural areas.
  • The survey, conducted by the National Sample Survey Office (NSSO), reflects the importance of dairy products in Indian households’ diets.


About NSSO and Consumer Expenditure Survey

·       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.



Major Findings of the 2022-23 Survey


Income Growth:

  • Both urban and rural households have experienced an increase in income levels compared to the previous survey.
  • Rural households exhibit a sharper growth in spending, indicating improving economic conditions.


Expenditure on Food:

  • Rural households allocate 46% of their total expenditure on food items, while urban households spend 39% on food.


Milk and Dairy Consumption:

  • In rural India, the monthly value of milk and dairy products consumed per person amounts to Rs 314. This surpasses the expenditure on other essential food items such as vegetables, cereals, eggs, fish & meat, fruits, edible oil, spices, and pulses.
  • Similarly, in urban India, milk (Rs 466) emerges as the top food item in terms of monthly expenditure per person, followed by fruits, vegetables, cereals, eggs, fish & meat, edible oil, spices, and pulses.


Milk Production in India

·       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.


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