The economics of animal rearing has assumed importance in India in recent times. Recently, the National Dairy Development Board (NDDB) has taken the decision to import 40,000 doses of Gir bull semen from Brazil for domestic insemination to raise milk volumes. Also, the Uttarakhand Government has initiated the genetic enhancement of Badri Cow through sex-sorted semen and embryo transfer technology with the aim to increase its productivity. All steps point to the enhanced importance of economics of animal rearing in India.
What is animal rearing? What are the different components of economics of animal rearing in India?
Animal Rearing- Animal rearing is the process of raising animals for meat, dairy products, eggs, fibre and leather, transport, fertilizer manure and fuel. Animal rearing involves the care and management of animals to ensure their enhanced productivity, health and well-being.
Animal Rearing contribution to India’s economy- The contribution of animal rearing Gross Value Added (GVA at constant prices) was 30.19% of Agricultural and Allied Sector GVA and 5.73% of Total GVA in FY 2021-22. Animal rearing provides employment to about 20.5 million people in India.
Livestock population in the country- As per 20th Livestock Census in the country, there are 303.76 million bovines (cattle, buffalo, mithun and yak), 74.26 million sheep, 148.88 million goats, 9.06 million pigs and about 851.81 million poultry.
Important components of animal rearing and their success stories
| Dairy industry | India ranks first in milk production in the world. Its milk output of 221 million tonnes in 2021-22 accounted for nearly 23 per cent of global milk supplies. Milk is the country’s largest agricultural commodity, surpassing rice and wheat in terms of both volumes and value of production |
| Poultry Industry | India ranks third in egg production. The output of eggs in 2020-21 is around 130 billion. This amounts to a per capita availability of around 95 eggs per year. |
| Meat Industry | India ranks 5th in terms of meat production, producing around 6.3 million tonnes of meat. Buffalo meat alone accounted for nearly two-thirds of meat products exports. |
| Sericulture Industry | India’s Silk Industry is world’s second largest after China. The total raw silk production in India was 33,739 MT in 2020-21. |
| Fishing Industry | India is the world’s second-largest fish producer, with exports worth more than Rs 47,000 crore. Fisheries are the country’s single-largest agriculture export, with a growth rate of 6 to 10 per cent in the past five years. |
What is the significance of animal rearing in India?
1. Enhanced Economic contribution to India’s GDP- According to the ES 2022-23, the livestock sector has grown at a compound annual growth rate (CAGR) of 7.9% during 2014-15 to 2020-21 (at constant prices). The animal rearing sector’s contribution to total agriculture Gross value added (GVA) (at constant prices) has increased from 24.3% in 2014-15 to 30.1% in 2020-21.
2. Additional source of Income to Farmers- The animal rearing sector provides an additional source of income and employment to farmers. It provides employment to about 8.8% of the population in India.
3. Food and Nutritional Security- The enhanced production of milk, meat, egg and fish have ensured the food and nutritional security in the daily diets of the people. For ex- It is important for improving India’s rank in the Global Hunger Index.
4. Socio-economic development- Animal rearing sector is a major avenue for women employment. For ex- Women made up 31% of total members of the 190,000 in dairy producer cooperatives in 2020–21.
5. Fibres- Wool, hair, hides, and pellets are all components of fibre and hides (skins) made from livestock. Leather is the most major product with a significant export potential and is used for a variety of uses both domestically and internationally.
6. Weed control- Livestock is also used for biological control of brush, plants, and weeds as cattle graze off the weeds.
7. Cultural- Livestocks add to the cultural self-esteem when they own prized animals such as pedigreed bulls, dogs and high yielding cows/ buffaloes. People also use the animals like cocks, rams, bulls for competition and sports like cock fights, ram fights and bull fights (jallikattu).
| Read More- Gir and Kankrej cows |
What are the challenges with animal rearing?
1. Productivity- Animal rearing sector suffers from the challenge of animal rearing. As per Integrated Sample Survey, average annual productivity of cattle in India during 2019-20 is 1777 kg per animal per year as against the world average of 2699 kg per animal per year during 2019.
2. Diseases- There has been a surge in the prevalence of contagious diseases among animals which have detrimental effects on livestock health. For ex- Outbreak of Lumpy Skin Disease (LSD), Foot and Mouth Disease (FMD), Black Quarter infection.
3. Feed and fodder scarcity- The shortage and high cost of feed and fodder is a significant challenge to animal rearing. The Jhansi-based Indian Grassland and Fodder Research Institute has estimated that there is a deficit of 12% green fodder, 23% dry fodder, and 30% grains-based concentrated animal feeds.
4. Inadequate policy support- The bulk of the agricultural subsidies by the central and state governments goes to the crops sector. For ex- In the 2023-24 Union Budget, the allocation for the Department of Animal Husbandry and Dairying is merely Rs 4,328 crore while well over Rs 4 trillion has been allocated to food, fertiliser, and other agricultural subsidies.
5. Lack of marketing support- Animal products lack price and marketing support that are enjoyed by the crop-based commodities in the form of MSP and official state procurement by FCI.
6. Lack of Institutional finance- The share of livestock in the total agricultural credit (short-term, medium-term and long-term) is only around 4%.
7. Greenhouse gas contribution- The animal rearing sector is a major contributor to the greenhouse gases like Methane, which have a very high global warming potential (GWP).
8. Lack of advancements in technology- Fewer artificial inseminations, lower-quality germplasm and insufficient technical staff have inhibited the development of animal rearing.
What are the government schemes for the development of animal rearing?
| Rashtriya Gokul Mission (RGM) | It is being implemented for development and conservation of indigenous bovine breeds since December 2014. Its aim is to enhance milk production and to make it more remunerative to the farmers. |
| National Livestock Mission (NLM) | National Livestock Mission (NLM) scheme has been restructured for 2021-22 to 2025-26. The scheme focuses on entrepreneurship development and breeds improvement in poultry, sheep, goat and piggery, including feed and fodder development. |
| National Artificial Insemination Programme | To suggest novel methods of bringing about impregnation in female breeds and prevent the spread of certain diseases which are genital in nature. |
| National Cattle and Buffalo Breeding Project | To genetically upgrade important indigenous breeds on a priority basis with a focus on development and conservation. |
| National Animal Disease Control Programme | Implemented to control FMD and Brucellosis by completely vaccinating cattle, buffalo, sheep, goat and pig populations against Foot & Mouth Disease (FMD) and bovine female calves of 4-8 months of age against Brucellosis. |
| Animal Husbandry Startup Grand Challenge | To appreciate innovations coming from the villages to expand the dairy sector in India. |
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What should be the way forward?
1. Providing sufficient feed and fodder resources- Providing sufficient feed & fodder and drinking water is the need of the hour to increase productivity of livestock rearing in India, in the rain-shadow region.
2. Marketing- Trade Policies like marketing have to be more effective for promotion of various livestock products like egg, fish, milk etc. and provide sufficient price to farmers by reducing influence of middlemen.
3. Promoting indigenous breeds- Our indigenous breed of cattle must be promoted, like the genetic enhancement of Badri Cow.
4. Training- Necessary training and subsidies should be provided to farmers to adopt livestock rearing as an alternate source of income.
5. Research and development- Government should focus on Research & Development in livestock sector to increase per livestock productivity to provide more benefits to small & marginal farmers.
| Read More- Live Mint UPSC Syllabus- GS 3- Economics of animal rearing |
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