Why in the News?

  • The Union Cooperation Minister Shri. Amit Shah said that India’s dairy sector is the fastest growing in the world.

Dairying Sector in India

  • History of Indian Dairy Sector:
    • In India, milk production was unorganised and fragmented during the Colonial period.
    • The British set up military dairy farms for supplying milk to the cantonments.
    • First modern dairy plant (Kolar Dairy, Karnataka) established in 1893 by the British.
    • By the 1940s, rising urban demand had led to milk shortages in cities.
    • Kaira District Cooperative Milk Producers’ Union Ltd. (Amul) was founded in 1946 in Anand, Gujarat, under Sardar Patel & Tribhuvandas Patel, guided by Dr. Verghese Kurien.
    • The government launched the Integrated Dairy Development Programme in 1955 with UNICEF aid.
    • The National Dairy Development Board (NDDB) was established in 1965 in Anand under Dr. Varghese Kurien.
    • In 1970, Operation Flood was launched by NDDB as the World’s largest dairy development programme, led by Dr. Kurien – Known as the White Revolution.
    • It helped India become the largest milk producer in the world in 1998.
  • Current Status of Indian Dairy:
    • India is ranked 1st in milk production.
    • India contributes ~24% of world milk production.
    • Digital initiatives: e-GOPALA app for breeding services; AI-driven supply chain.
  • Success of Indian Dairy Sector:
    • Global Price Competitiveness: India’s farm‑gate milk prices are quite competitive, comparable to the U.S. and lower than the EU and New Zealand.
    • Cost-Efficient Production: Despite low yields, overall production costs remain low thanks to the abundant and inexpensive labour, use of cheap fodder etc.
    • Highly Efficient Cooperatives: Success of AMUL and Anand Model Cooperatives in Indian states helped in strengthening the Diary sector.
  • Challenges:
    • Production Challenges: Low productivity of animals, Lack of balanced diets to the cattle, Lack of Mechanisation due to Small-holder scenario.
    • Supply Challenges: Fragmented supply chains, Infrastructure gaps(e.g.: Cold storages), and Perishability of Milk.
    • Price Constraints: Price volatility, Unorganised markets and small-holder scenarios causes poor returns for farmers.
    • Climate and Environmental Concerns: Methane emissions from the dairy sector( ~25% of India’s methane emissions) as well as Heat stress related reduction in production.
    • Quality and Value Addition: Adulteration concerns and Inadequate value addition facilities.
  • Way Forward:
    • Genetic improvement: Artificial Insemination, sex-sorted semen, indigenous breed conservation.
    • Fodder development: Protein-rich crops, hydroponics, silage adoption.
    • Infrastructure: Chilling plants, cold chains, rural logistics.
    • Mechanisation: Low-cost milking machines, solar chilling.
    • Climate mitigation: Methane-reducing feed additives, resilient breeds.
    • Market reforms: Digital milk procurement, contract farming, wider cooperative coverage.
    • Promotion of value-added dairy exports.