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Recently, Union Home and Cooperation Minister Amit Shah announced plans for ‘White Revolution 2.0‘, which aims to further revolutionize the dairy industry. Also, the Ministry of Cooperation unveiled standard operating procedure (SOPs) for White Revolution 2.0. It will on the line of Operation Flood, which was launched in 1970 catalysed the White Revolution, and transformed India’s dairy sector.
White Revolution 2.0 focuses on expanding the cooperative model, which was the backbone of Operation Flood. The government plans 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.
What is the current status of dairy sector in India?
| Milk Production Data | India is the world’s leading milk producer. The milk production has reached 230.58 million tonnes in 2022-23, up from 17 million tonnes in 1951-52. The per capita availability of milk in India is 459 grams per day, surpassing the global average of 323 grams per day. |
| Milk Sector contribution to Agri GDP | The milk sector (milk consumed or sold in liquid form, ghee, butter, and lassi produced by producer households) contributed almost 40% (Rs 11.16 lakh crore) to agriculture and related sectors. |
| Top Five Milk producing states in India | The top five milk-producing states- Uttar Pradesh, Rajasthan, Madhya Pradesh, Gujarat, and Andhra Pradesh– contribute over 53% of the country’s total milk production. |
| National Average Yield and production data | The national average yield is 8.55 kg per animal per day for crossbred animals and 3.44 kg for indigenous ones. Indigenous buffaloes account for 31.94% of production, followed by crossbred cattle at 29.81%. |
| Handling of milk | The organized sector, led by cooperatives, manages about one-third of the marketable milk. The unorganized sector handles the remaining two-thirds. |
What is the government’s roadmap for achieving White Revolution 2.0?
| Expansion of Cooperative reach | Presently, there are 1.7 lakh dairy cooperative societies (DCSs) covering 2 lakh villages (30% of the country’s villages, and 70% of India’s districts). However, only 10-20% of villages are covered in states like Uttar Pradesh, Uttarakhand, and Madhya Pradesh, while states like West Bengal, Assam, and Odisha have less than 10% coverage. The National Dairy Development Board (NDDB) plans to establish 56,000 new multipurpose DCSs and strengthen 46,000 existing ones over the next five years, particularly in Uttar Pradesh, Odisha, Rajasthan, and Andhra Pradesh. |
| Planned Expansion | A pilot project was launched in February 2023, with a budget of Rs 3.8 crore, to set up dairy cooperatives in uncovered gram panchayats across Haryana, Madhya Pradesh, and Karnataka. |
| Funding | National Programme for Dairy Development (NPDD) 2.0 will provide primary funding for White revolution 2.0. This scheme will provide financial assistance for village-level milk procurement systems, chilling facilities, and capacity-building, targeting 1,000 Multipurpose Primary Agricultural Credit Cooperative Societies (MPACSs) with Rs 40,000 each. |
What is the Significance of White Revolution 2.0?
1. Increase in the share of agri and allied sector GDP- White revolution 2.0 will lead to enhanced milk production, which will add to the growth of the agri and allied sector in India. For ex- Currently, the milk sector (milk and its derivative products) contribute to around 40% (Rs 11.16 lakh crore) to agriculture and related sectors.
2. Generation of rural employment and women empowerment- White revolution 2.0 will generate employment and contribute to the empowerment of women in the process. For instance- The Indian dairy industry today, directly or indirectly, supports over 8.5 crore people, predominantly women.
3. Improving Market Access and Income for Farmers- White Revolution 2.0 will enable more farmers to participate in the organized dairy market by providing market access to farmers in areas previously uncovered by cooperatives. This will ensure better prices for their produce and more stable incomes.
4. Reducing Regional Disparities- White Revolution 2.0 aims to address regional disparities in cooperative coverage. The initiative will target the underserved regions of Uttar Pradesh, Odisha, and West Bengal, and hence will ensure more equitable development across the country.
5. Food and nutritional security- The initiative aims to increase daily milk procurement by dairy cooperatives from 660 lakh kg to 1,007 lakh kg by 2028-29. This expansion will enhance the availability of milk, contributing to both food security and nutritional needs in the country.
What are the challenges in achieving White Revolution 2.0?
1. Uneven Presence of Cooperative- While states like Gujarat and Kerala have well-established cooperative networks, others like West Bengal, Assam, and Jharkhand have less than 10% coverage. This imbalance limits the ability to scale up production uniformly across the country.
2. Declining annual growth rate of milk production- The annual rate of milk production has declined from 6.47% in 2018-19 to 3.83% in 2022-23.
3. Variability in yield and per capita availability across states- States like West Bengal and Odisha have much lower milk yields compared to states like Punjab and Gujarat. For ex- While Punjab boasts a high yield of 13.49 kg per animal per day, West Bengal’s yield is only 6.30 kg.
4. Low cattle Productivity- 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.
5. Prevalence of Diseases- There has been a surge in the prevalence of contagious diseases among cattles. For ex- Outbreak of Lumpy Skin Disease (LSD), Foot and Mouth Disease (FMD), Black Quarter infection.
6. Feed and fodder scarcity- 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.
7. 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.
8. Lack of marketing support- Milk and milk 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.
9. Lack of Institutional finance- The share of livestock in the total agricultural credit (short-term, medium-term and long-term) is only around 4%.
10. Greenhouse gas contribution- The diary sector is a major contributor to the greenhouse gases like Methane, which have a very high global warming potential (GWP).
11. Lack of advancements in technology- Fewer artificial inseminations, lower-quality germplasm and insufficient technical staff have inhibited the development of high quality cattle breed.
What are the other government schemes for the development of dairy sector?
| 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. |
What Should be the Way Forward?
1. Expansion of Cooperative led procurement in the organised sector- Presently, about two-thirds of the marketable milk is in the unorganised sector, where informal middlemen dominate the supply chain. The potential for expanding organized sector’s share in marketable milk (which is led by the cooperative sector) must be explored.
2. Providing sufficient feed and fodder resources- Providing sufficient feed & fodder and drinking water is the need of the hour to increase productivity of cattle stock in India, particularly in the rain-shadow region.
3. Value addition and Marketing- The milk producers should be given the requisite support to enter into value-added segments such as ice cream, yogurt, cheese, and whey. These segments have profit margins of 20%, which is much higher than the 3-5% margin in the case of simple milk produce.
4. Promoting indigenous breeds- Our indigenous breed of cattle must be promoted, like the genetic enhancement of Badri Cow.
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- The Indian Express UPSC Syllabus- GS 3- Economics of animal rearing |
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