CHAPTER:I INTRODUCTION

Transcription

1 m I CHAPTER:I INTRODUCTION l

2 Chapter : I Introduction : This chapter has been divided into three sections. Section-I explains the significance of dairying in the Indian economy. Growth and compositional changes in livestock population has also been narrated in this section. Section-II deals with the genesis of modern dairy development in India. Section -III provides the rationale for this study, its objectives and methodology. Section -1 India is predominantly an agrarian economy with more than 75 per cent of its population living in villages and depending on agricultural and allied activities for their livelihood. Land and cattle have traditionally been the two basic income yielding assets of Indian farmers. Livestock is an integral part of the agricultural production system in India and it plays Vi important role in national as well as in socio-economic development of millions of rural households. It provides employment to millions of unemployed and under employed persons and particularly to small farmers, marginal fanners and landless labourers in villages. As per All India Debt and Investment Survey ( 1981 ), over 73 per cent of India s rural households owned livestock to derive supplementary income and employment1. Livestock includes cattle, buffaloes, sheep, goats, horses, ponies, pigs, mules, donkeys and yaks. The share of livestock in the gross value of total agricultural output increased from Shah V.D. Production and Utilisation Pattern of milk at the Rural producers over in Gujarat A Ere V.V.Nagar 1998 p. 2 2

3 per cent in to over 25 percent in , and further increased to 35.5% in The share of value of livestock products increased from 1.1 per cent in Sixties to 4.6 per cent in Seventies.( and to an accelerated rate of about 5 percent in the Eighties.)3 The contribution of\ dairying of India is the largest and in the total income of animal husbandry about two thirds of total is derived from milk and milk products 4 The gross value of live stock output which was Rs billion (at current price) and Rs billion (at price) in increased to Rs billion (at current prices) and Rs billion (at prices) in The share of livestock sector in which was Rs. 59 billion (4.82 %), increased to Rs. 308 Billion (6.45%) in But then the figures increased in Rs billion through the share of live stock in GDP slightly decreased to 5.74% in and further decreased to 5.22% in The livestock provide milk, meat, hides and skins, wool, draughtpower for agricultural operations, rural transportation, fuel for cooking and much needed organic manure to enrich soil fertility. 2 Vijay Paul Sharma, Live Stock Economy of India Current Status, Emerging issue and Long - Term Prospect. Indian Journal of Agriculture Economics. Vol. 59 No.3 July-Sept, P.S. George Darying and Livestock Economy of India : A B.eview in Indian Journal of Agricultural Ecnomics Jan-June Pandey, U.K The Livestock Economy of India : A Profile Indian Journal of Agricultural Economics Vol.50, No. 3 July, Spt p Gangwarl. S. Production performance and future scenario of Live stock sector-challenges of trade liberalisation Indian Journal of Agricultural Economics Vol.59, No. 3 July, Sept pp Basic animal husbandly statistics, 2005 Central Statistics Organizations M/o Statistical & Progranntie implementations. 3

4 Livestock Population in India India has the largest cattle and buffalo population in the world. Nearly 15 percent of cattle population in the world, one fifth of total bovine population (20 percent) and more than half (53.0 percent) of buffalo population of the world are in India.7 India has recognised 30 species of cattle, 10 of buffaloes, 40 of sheep and 20 of goats. The analysis of Table 1.1 shows that the total livestock population of India increased from 369 million in 1977 to million or by 13.55% in 1982, to million in 1987 and to million in It further increased to million (5.79%) in 1997 but rather decreased to million (0.04%) in In the total livestock population lion s share is claimed by cattle. However, the share of cattle population in total livestock population had consistently declined from percent in 1977 to percent in 1982 of further to 44.8 percent and 43.5 percent in 1987 and 1992 respectively. On the other hand, the share of buffalo population in the total had increased from percent in 1977 to percent in The aggregate share of cattle and buffalo population in the total accounted for 65.5 per cent in 1977 which consistently declined to 62.5 percent in 1982, 62% in 1987, 61.31% in 1992, 59.5% in 1997 and 58.37% in 2003 respectively. It becomes evident from the Table 1.1 that buffalo population has grown faster than cattle population which indicates that the fanners have shifted from cow to buffalo because of high fat content and higher milk yield of buffalo. 7 Shall V.D. Production and Utilisation Pattern of milk at the Rural producers over in Gujarat A Ere V.V.Nagar 1998 p. 2 4

5 Table 1.2 shows the expenditure incurred on Animal Husbandry and Dairying in each Five year plan. The Table shows that the total outlay was increased in each plan. In First Five year Plan ( )1 The total outlay on Animal Husbandry was million Rupees, while it was 77.8 million rupees on dairying and expenditure on dairying. It the second five year plan the total outlay on animal husbandry was millions was Rs million rupees respect it was million rupees million rupees and million rupees in second five year plan ( ) million rupees, million rupees and 43.6 million rupees, in Third five year plan ( ), million rupees, million rupees and 43.1 million rupees in Annual Plan ( ) million rupees, million rupees and 51.1 million rupees in Fourth Five year plan ( ), million rupees, million rupees and 23.2 in fifth five year plarn, ( ), million rupees and 46.7 million rupees in Annual plan ( ) million rupees, million rupees and 61.7 million rupees in Annual plan ( ) million rupees, million rupees and 54.4 million rupees in sixth five year plan ( ) and 11346,2 million rupees million rupees and 43.5 million rupees in seventh Five year plan ( ) million rupees, million rupees and million rupees in Ninth Plan ( ) million rupees, million rupees and million rupees in Tenth Plan ( ) respectively. The Indian dairying is characterised by four main features viz. (i) it is village based (ii) milk production is seasonal (iii) The share of buffalo milk is more in total milk production and (iv) there are regional variation in milk production. 5

6 Growth And Compositional Changes In Livestock Population : Bovine Population It seems from table 1.3 that he livestock population in the country increased from million in 1951 to million in 1997 at annual growth rate of nearly 1.1 per cent but the total livestock in the country has decreased to million in 2003 showing an overall decrease of 0.54 per cent (annual compound growth rate of per cent) (Government of India, 2004 a). There were some changes in the composition of livestock in broad groups like bovine, ovine and other livestock during the last four and half decades. The proportion of bovines (cattle and buffaloes) declined from nearly 68 per cent in 1951 to 58.8 per cent in 2003 whereas the proportion of bovines increased from 29.5 per cent to per cent between 1951 and The cattle population which accounts for nearly 66 per cent of bovine population and about 39 per cent of total livestock population showed a declining trend. The share of other animals like ponies, horses, mules, donkeys, camels and pigs increased marginally from 2.7 per cent to 3.4 per cent. The population of the bovine stock consisting of cattle and buffalo increased at a rate of 0.69 per cent per year during 1951 and 2003 period ranging from nearly zero growth during to 2.18 per cent during Between the two species, buffalo stock increased at a faster rate (1.55 per cent/year) compared to cattle population (0.36 per cent) indicating the rising importance of buffaloes because of higher price for buffalo milk and substitution of draught animals with mechanical power in the country. The livestock density per hectare of net sown area has increased from 2.45 in 1951 to 3.42 in 1997, indicating more pressure on land resources (Table 1.3) 6

7 The trends in the composition of bovine and milch animal stock over the years signifies that the breedable cow and buffalo population is important from the milk production point of view. The composition of bovine breeding stock has improved in terms of increased share of in-milk animals in breeding stock as well as in total adult females. While adult females among cattle account for about 32 per cent of the cattle stock, and in case of buffaloes, it is about 51 per cent of the buffalo stock. The rise in buffalo numbers is seen even more clearly in terms of the ratio of buffaloes to cows in the stock of adult females, or the milch animals. This ratio of milch buffaloes to milch cows increased from 0.46 in 1951 to 0.50 in 1966, 0.58 in 1977 and then to 0.73 in In other words, the trends in ovine stock indicate that there is an increasing shift to milk production as a major objective of rearing of bovines in Indian agriculture. Introduction of mechanical power and its relative advantages have led to its substitution for animal power wherever it was economical to do so. After the initial slow start during the sixties, crossbreeding of indigenous cattle with exotic breeds spread all over the country. Census enumeration of crossbred cattle started only with the 1982 Livestock Census Round. Successive rounds of Livestock Census thereafter clearly established the speed with which crossbreeding spread in different states across the country. In 1987, crossbred cattle constituted only 6.33 per cent of the total cattle and crossbred breedable cows about 7.44 per cent of the total cows. In 1992, the share of crossbred cattle in total cattle increased to 8.4 per cent )^d that of crossbred breedable cows in total breedable cows to about 10 per cent of the total cows. By 1997, these proportions increased to 10.1 per cent and 14.4 per cent, respectively. 7

8 \ The trends in the annual growth rates of livestock population over, the. period have shown that the livestock population grew at annual average compound growth rates of 0.97 per cent between 1951 and 2003, ranging from 0.44 per cent during to 2.57 per cent during The results show that population of in-milk bovine consisting of lactating buffaloes and cows has increased at a faster rate and growth rate has accelerated over time since the mid sixties and then again declined between 1987 and A comparison of growth rates of cattle and buffalo population shows that buffalo population in India increased at a faster rate than cattle population during all the inter-census periods except for In case of cows, increases in numbers have come mainly during and The incentives, apparently, took longer time to affect cattle stock than in the case of buffaloes (Table 1.3). The trends in the size and composition of the bovine stock in the country show that the shift is talcing place in favour of the bovines as milch animals. The shift had begun somewhat before 1972, the first year of the OF-era for which data are available. The trend, however, has accentuated during the OF period, with the change noticeable in the case of cattle as much as in the buffalo population. There are large regional variations in production and per capita availability of milk in the country. The regional shares of milk production are presented in Figure-1 Over 80 per cent of national milk production comes from nine states, namely, Uttar Pradesh, Punjab, Rajasthan, 8

9 Maharashtra, Madhya Pradesh, Gujarat, Karnataka, Andhra Pradesh and Haryana. However, there have been some shifts in milk production shares of different states. Uttar Pradesh was the largest milk production in the country with about 17 million tonnes of milk, followed by Punjab (8.6 million tonnes), Rajasthan (6.6 million tonnes), Maharashtra (6.2 million tonnes), Madhya Pradesh (6.1 million tonnes,) and Gujarat (5.6 million tonnes) during triennium ending (TE) During (TE) the top five milk producing states were, Uttar Pradesh (18.5 per cent), Punjab (10.2 per cent), Rajasthan (9.8 per cent), Madhya Pradesh (7.1 per cent) and Gujarat (6.8 per cent) accounting for more than half of total milk production, whereas, during TE , Uttar Pradesh (19.2 per cent) Punjab (9.9 per cent), Rajasthan (8.1 per cent), Maharashtra (7.2 Per cent), and Madhya Pradesh (7.1 per cent) were the largest producers of milk. The share of Uttar Pradesh, Maharashtra, Karnataka, Tamil Nadu, Kerala, Jammu and Kashmir and Orissa increased between and period, while the share of Punjab, Rajasthan, Gujarat, Andhra Pradesh, Bihar, Haryana, and West Bengal declined during this period. The major milk producing regions in the country have good resource endowment and infrastructure. The eastern region is lacking behind in terms of dairy development. 9

10 W. B 5.00% Karnataka 4 60% Kerala 2.90% UP 18 50% T. N 5 30% Bihar 6.00% Maharashtra 5.60% A. P 6 30% Haryana 6.60% Gujarat 6.80% Rajasthan 9.80% M. P. 7.10% Punjab 10.20% UP. B Punjab Rajasthan M. P Gujarat Haryana A. P Bihar Maharashtra of. N. W. B. Karnataka Kerala Others (TE) W. B 4.60% T N 5.60% Karnataka 640% Maharashtra 720% Kerala Others 3,40% 5.20% UP % Rajasthan 8 10% Punjab 9 90% Bihar 4 70% 6.50% M P 7.10% UP B Punjab Rajasthan M. P Gujarat Haryana A. P. Bihar Maharashtra T N. W. B. Karnataka Kerala Others (TE) FIGURE 1 : Percentage shares of Major states in total milk production in India and (TE) Source : Govt, of India, 2003 B.C. 10

11 Contribution To The National Economy India accounts for a significant share of world s livestock resources with nearly 57 per cent of world s buffaloes, 16.5 per cent of cattle, 16.2 per cent of goats, 5.7 per cent of sheep and 5 per cent of poultry (FAO,2004). Though the contribution of agriculture and allied sectors to the national gross domestic product (GDP) has declined during the last few decades (55 per cent in the early 1950s to 39.5 per cent in and 23.9 per cent in ). livestock sector has been among the few highgrowth sectors in rural India. The importance of livestock can be gauged from the contribution it makes to the national economy. Livestock sector accounted for 25,5 per cent of agricultural GDP and about 5.6 per cent of total GDP in The share of livestock in the gross value of\ agricultural outputs (at prices) has increased from 18.6 per cent in to 35.5 per cent in (CSO, 2003). The dairy sector contributes the largest share, in agricultural GDP. The large contribution that livestock sector makes to the national economy is a reflection of multiple roles that livestock plays in the fanning systems in the country. Figure I show the growth in value of output of major livestock products in the country at constant prices over the last five decades. The infonnation regarding the value of output and the share of major products in total value of output from.live stock has been narrated in Table 1.4.The total livestock output has increased more than four times in the last five decades. According to the Central Statistical Organization (CSO) estimates, the gross value of output from livestock sector (at prices) has increased from Rs. 20,586 crores in to Rs. 88,330 crores in (CSO, 2003). The dairy and poultry are high-growth sectors and is reflected in the growing importance of the contribution of these sub-sectors in the livestock economy. While output in dairy sector 11

12 The value of output from livestock sector grew at an annual compound growth rate of 3.12 per cent between and , ranging from 0.72 per cent in the sixties to 4.77 per cent in the 1980s (Table 1.5) Among all livestock products, eggs witnessed the highest growth (5.37 per cent), followed by poultry meat (3.94 percent), and milk group (3.65 per cent). The wool and hair sub-sector registered a negative growth. All livestock subsectors registered the highest growth during decade of 1980s except for meat products and dung, while in 1990s there was deceleration in growth in all subsectors except for wool and hair. The growth in dairy sector is mainly attributed to the successful implementation of the Operation Flood and other dairy development programmes implemented by the central and the state governments, while growth in poultry sector can be attributed to a large part to the private poultry industry initiatives. The development of poultry industry in India within a span of just two decades is remarkable. From rural backyard poultry' production catering to the domestic market prior to the 1980s, the sector has transfonned itself into advanced industrial production in some states. Section - II Genesis of Modern Dairy Development in India : The development of dairying has undergone a significant change after independence. Five year plans in India brought about significant development of milch animals and dairying. The first two plans envisaged development of dual purpose. Milch animals which provide higher milk production as well as can be used as draught-power. In the successive plan the emphasis was shifted to cross 13

13 increased by over four times, that of eggs increased by 11.2 times and poultry meat by five times. The wool and hair, and dung are the slow growth sub-sectors. The share of milk group in total value of output from livestock sector has increased from about 55 per cent in to over 68 per cent in (Table 1.4) The share of meat sector has declined from 20.8 per cent to 16.8 during the same period but the share of poultry sector (meat and eggs) has increased from 4.5 per cent to 10.3 per cent. The share of dung (fuel and manure) has declined significantly from 21.8 per cent in to about 7 per cent in The use of dung as fuel has declined significantly from 12.3 per cent in early 1950s to nearly 4 per cent in , while the share of dung as source of manure has fallen from 0.9 per cent to 0.25 per cent over the same period. The importance of poultry sector has increased at a faster rate compared to other sub-sectors during the last two decades. The share of poultry has increased from about 7.7 per cent in to little over 10 per cent in , while the share of meat sector has remained almost constant. Figure : , Figure 1 Value of Output (Rs. Crores) from Livestock Sector in India (at Prices) Source : SO 2003, National Accounts Statistics, various issues) 12

14 bred animals. Cross bred animals have higher milk yield potential than that of other non-descript (unclassified) animals. In the initial stages credit aspect of cooperatives was given more importance but subsequently agro based village level societies in India were assigned more important as an avenue of income and employment and thus the concept of dairy cooperatives was originated. The National Commission on Agriculture (NCA 1972) in its Interim Report on Milk production recommended that the benefits of increasing demand for milk should pass on to small and marginal farmers and landless agricultural labourers. It also suggested an integrated rural development system of Kaira District Cooperative Milk Producers Union Ltd. commonly known a AMUL in Anand. The success of Kaira District Cooperative milk Producers Union (AMUL), Anand, Gujarat in milk procurement its processing system and its diversification into various milk products has been the most impressive growth story in cooperative sector. The success of Kaira Milk cooperative has come to be known as Anand pattern. The revolutionary growth achieved by dairy enterprise has its origin in Anand pattern (Amul pattern) of dairy cooperatives which have unique^ position. It is based on six cooperative principles viz. (I) voluntary membership (ii) democratic decision- making (iii) limited interest on share capital (iv) equitable distribution of surplus (v) cooperative education and (vi) mutual cooperation. Anand pattern of cooperative structure has three tiers of well-structured organization viz. (i) village level (ii) district level and (iii) federal level in the development of dairying in our country. 14

15 In view of several positive features in favour of cooperative sector and practical results shown by the milk cooperatives in Gujarat it was finally decided by the Government of India to extend institutions support in order to industrialise and organise all the dairy efforts in entire rural areas through cooperatives. In the Government of India took up comprehensive programme of Operation Flood (OF) to replicate the Anand pattern cooperatives in other states. Operation Flood (OF) programme - I was launched in July 1970 \ and Six districts, viz. Kheda, Mahesana, Banaskantha, Sabarkantha, Vadodara and Ahmedabad were covered under the same. Dairy project of Mahesana and Kheda were expanded from 3.5 to 5.0 lakhs, liters per day and from 5 to 7 lakhs litres a day respectively. And two new dairies were established at Palanpur and Himmatnagar to handle 1.5 lakhs litres/day each. In addition to this, cattle feed plants at Kheda and Mahesana were expended Technical inputs artificial insemination and grass land development facility were also provided to the members of societies in those districts. An amount of Rs crores were paid to the about districts co-operative milk producers unions by the end of The Operation Flood-I programme was originally conceived and formulated by the National Dairy Development Board (NDDB) to replicate the Anand pattern dairy co-operative and was incorporated into the Fourth Five Year Plan and the Central Government set up the Indian Dairy Corporation (IDC) to execute the project. The five year Operation Flood project was initiated in July 1970 as the world s largest milk drive 15

16 launched in any country. Operation Flood programme aimed to build up a viable and sustaining dairy industries on co-operative line and to augment milk production internal are through integrated package of input service provided at producers level. The World Food Programme (WFP) authorities, for the programme, agreed to supply free of cost 1.26 lakh tonnes of slammed milk powder (SMP) and 0.42 lakh tonnes of Butter Oil (BO) which when reconstituted into milk could generate funds worth Rs. 95 crores. The generated funds were to be utilised for the expansion of milk processing facilities and for increasing milk production. Operation Flood - I programme covered 4 metropolitan cities viz. Delhi, Mumbai, Kolkatta and Madras for marketing of milk by linking these metro centres with 18 hinterland milk sheds spread over 10 states. The project was entirely based on World Food Programme (WFP) the cost of which was estimated to be 153 million dollars. Operation Flood-II This programme was launched in 1978 and it was commenced from in India and in Gujarat in Oct It was a massive multipurpose programme launched by the Govt, of India in during sector. It reflected a shift in the strategies of livestock development in India towards specialized and higher productive milch animal. In Gujarat state call the 19 districts (except Amreli, Bhavnagar and Dang) were cover under the two proposed clusters, with the target of increasing milk production to 2.75 million,tones during 4th plan to 3.71 million tones during 5th plan. This target was at lained by providing 16

17 necessary input and making arrangements for the procurement and marketing of milk through fanners own organization. Operation Flood II was incorporated in the Sixth Five Year plan and it was expected to cover practically all the states and it was to be implemented through three- tier cooperative structure with federation at the Apex. It was a continuation of Operation Flood-I. As many as 148 cities with a population above one lakh persons were to be linked to the rural milk sheds under National milk Grid. The total cost of the project was about Rs crores. There were in all 155 districts of 16 states of. India that were selected for implementing Operation Flood-II programme. The employment potential of OF-I1 was huge in rural areas. The projected effect of OF- II according to project authorities, was to increase milk of milk producers cooperative societies from 2.3 million litres daily in to 18.3 million litres daily in and the per capita availability of milk from 107 gram in to 144 gm by Operation Flood -II programme assisted dairy development programme in Karnataka. Rajasthan and Madhya Pradesh. Operation Flood - III programme was lunched in Operation^ Flood - III programme which was initially taken up up till 1990 with an outlay of Rs crore was extended by world Bank up to April 30, 1996 with an outlay of Rs crore. It was meant to consolidate achievements gained during Operation Flood I and II by improving productivity and efficiency of cooperative dairy sector and its institutional base for its long tenn sustainability. Investments in Operation Flood III focused on strengthening the institutional management aspects of dairy 17

18 \ cooperatives at its various levels to establish financially strong farmers owned and managed organisations through enhancement of inputs and institutional strengthening in the farm of training, research, market promotion, monitoring and evaluation. It intended to expand infrastructure in major markets by linking them to milk sheds through National Milk Grid (NMG) to ensure year round with milk supply. ( ) Resources and Fund outlay of operation of Operation Flood-Ill Resources : Rs. (Crore) N.D.D.B.s Own resource External Assistance World Bank European Economic Community Total Physical Targets and Achievements of Operational Flood -III Programme during Item Target Achievement Anand Pattern District Coop Societies (1000) Organised Functional - - Membership of Cooperation (Lakh) Av. Milk procurement (Lakh Pounds) Built up dairy processing capacity (lakh pd) Urban Milk Marketing (lakh pds)

19 Operation Flood programme was perhaps the world s biggest dairy development programme in terms of score, coverage and longevity. It contributed significantly in modernisation and development of Indian dairy industry. In Operation Flood Phase I Rs million, in phase II Rs million and in phase III Rs million invested. Owing to Operation Flood programme, upto March 1997 about 74,300 dairy co-operative societies on Anand pattern involving 9.4 million farmer members spread over 170 milk sheds were organised in India. Under the programme the average milk procured during December 1997 by dairy Co-operatives was lakh litres per day. The Co-operative dairies handled about 12 percent of total milk marketed in India. The Operation Flood was assisted by World Food Programme (WFP), European Economic Community (EEC), World Bank and other International support agencies. The main objective of Operation Flood was to establish viable and self-sustained national development on cooperative lines. The dairying in India has taken a leap forward over the last several years through the Operation Flood Programme which has brought within its fold almost all the states. It has achieved a commendable progress. There were dairy co-operative societies functioning in 170 milk sheds in the country involving about 8.40 million fanner members at the end of These cooperatives supplied more than 3.5 million litres of milk everyday to 4 metropolitan cities and more than 5.0 million litres to about 500 cities in the country. 19

20 Besides implementation of OF programme, the state government has implemented a number of dairy development programme such as breed improvement programme for cattle and buffaloes, Feed and fodder development programme, veterinary and animal health care programmes intensive cross breeding programme etc. The co-operatives and commercial banks provided much needed credit for purchasing milch animals. Dairy co-operatives not only helped in increasing milk production but also in offering remunerative prices to milk ^ producers. The Government of India has also recognised the importance of dairying and its outlay on livestock sector rose from only Rs million during the Fifth Plan period ( ) to Rs million during the Sixth Plan ( ) and to Rs million during the Seventh Plan ( ). Following the Dairy Development Programmes adopted by the Central and the State Governments, National Dairy Development Board, National Dairy Research Institute, Technology Mission on Dairy Development etc., during last 3 decades the dairy industry has achieved rapid growth. Table 1.6 shows year wise species wise milk production i.e cow, buffalo, sheep goat milk Production total milk production (in million M.T) and per capita per day availability of milk (in gms) in India are shown. In 1951 production of cow milk was 7.8 M.M.T, Buffalo 9.3 M.M.T, sheep-goat 0.4 and Total production was 17.5 M.M.T while per capital availability was 132 gms. In 1956 production of cow milk was 8.2 M.M.T, Buffalo 11.0 MMT, Sheep-goat 0.5 and total production

21 \ MMT and per capita availability was 135 gms In 1961 though production of milk was increased cow milk 8.8 MMT buffalo milk 11.0 MMT, sheet goat milk 0.7 MMT total 20.5 MMT but even though per capita availability decreased to 127 gms. In 1966 decrease was seen in every species except buffalo in this way cow 6.9 MMT, buffalo 11.9 MMT, sheet goat 0.6 MMT total 19.4 MMT and also decrease in per capita availability to 108 gms. again, increase in every species in 1972 i.e cow milk 7.5 MMT, buffalo 14.8 MMT, Sheep-goat 0.7 MMT, total 23.0 MMT and per capita availability also increased to 112 gns. again decrease except in buffalo in 1977, i.e. cow milk 7.1 MMT, buffalo 18.5 MMT, sheep goat 0.6 MMT total 21.2 MMT but per capita availability increased to 123 gms Again year 1982 from as well as per capita availability of milk increase was seen every species cow 14.0 MMT buffalo 20.8 MMT, sheep-goat 1.0 MMT, total 35.8 MMT and per capita availability 136 gms. In 1987 if increased to cow 17.7 MMT, buffalo 21.2 MMT, sheep goat 1.2 MMT, total 40.0 MMT and per capita 157 gms. In year 1988 it increased to cow milk production 22.0 MMT buffalo 25.2 MMT., sheep goat 1.5 MMT, total 48.7 MMT per capita availability 160 gms. In year it increased to 1989 cow 23.0 MMT buffalo 25.5 MMT, Sheep-goat 1.5 MMT total 50 MMT and per capita availability 165 gms.. In the year 1990 it inerreased tocow milk production was 24.0 MMT buffalo 29.0 MMT sheep goat 1.9 MMT, total 54.9 MMT and per capita availability 178 gns. In the year 1991 it increased to cow milk production 27.0 MMT buffalo 27.7 MMT, sheep goat 2.0 MMT. total 58.7 MMT and per capita availability 183 gns. In the year 1995 it was projected to cow 30.5 MMT, 21

22 buffalo 33.0 MMT, sheep goat 2.5 MMT, total 66 IvfMT and per capita availability 198 gins. Again during the year total milk production was forcasted to 70.1 MMT and per capita availability was forcasted to 202 gms. Year 2000 production of cow milk was 37.3 MMT, buffalo 38.0 sheep goat 2.8 MMT, total 78.4 MMT and per capita availability was 214 gms. Table 1.6 shows that cow milk production was increased constantly from 1966 to and the maximum increase was during (97.18) % Then increase in milk production of buffalo was seen. Among this species (buffalo) year 1995 has shown peak increase (5.3 MMT, 19.13%) than In the year 2000 buffalo milk production was slightly higher than cow milk production (0.7 MMT). In the. same way, Milk production of sheep goat was also increased in 1995 in comparison to year 1991 (0.5 MMT).It is notable here that the total milk production was also increased at the peak during ( MMT %) According table 1.7 total milk production was in year , in year Provisional in the year and it was anticipated in the year respectively table 1.7 shows^ state-wise milk production from to It total milk production was M.T Among these, maximum production was from U.P (14153 M.T) second rank was of Punjab (7700 M.T) third was Rajasthan (7260 M.T) fourth Maharashtra (5706 M.T) fifth Madha Pradesh (5600 M.T) and Gujarat was at the sixth rank (5255 M.T). ' In the same way, the total milk production was M.T in the year That means than a clear increase of 2003 M.T was seen than the previous year. The state wise pattern of milk production was also remain 22

23 almost the same i.e U.P first ( M.T) Second rank was of Punjab (7776 M.T) third was Rajasthan (7456 M.T), Maharashtra fourth (5849 M.T), Andhra Pradesh fifth (5521 M.T) (trading behind M.P) and Gujarat Sixth (5312 M.T) Looking to the state wise increase. U.P M.T., Punjab only + 76 M.T., Rajasthan M.T) Maharashtra MT, M.P -539 MT) and Andhra Pradesh look its its place which has shown increase of 399 M.T. \ than the previous year. Gujarat has shown increase of only + 57 M.T. in the year under consideration. During the year the total milk production was MT which shows an increase of MT (4.9 %) than' the previous year Looking to the statewise production, U.P remained first (14648 MT) (+791 MT) Punjab remained second (8375 MT) (+ 599 MT) Rajasthan remained third (7758 MT) (+302 MT) Maharashtra remained fourth (6094 M.T) (+245 M.T) Gujarat bounced one rank ahead from sixth to fifth rank trailing behind Andhra pradesh (5862 M.T) (+ 550 M.T) Andhra pradesh remained sixth (5814 M.T) (+ 293 M.T) In the year the total milk production was M.T which was more by 2501 M.T than the previous year (2.9 % ) Looking to the state wise production. U.P remained first with M.T (+640 M.T) Punjab remained second with the milk production of 8728 M.T (+353 M.T) Rajasthan remained third with slightly higher than the previous year + 31 M.T) Maharashtra remained fourth with the production of 6237 M.T (+ 143 M.T) Andhra Pradesh again recovered its rank from sixth to fifth by producing milk 6583 M.T (+ 769 M.T) while Gujarat remained sixth with milk production of 6090 M.T (+ 228 M.T) 23

24 In the year , the total milk production was M.T which was more by 3795 M.T discussing to state wise production, U.P. remained first with M.T (+ 774 M.T) Punjab remained second with the production of 9096 M.T (+368) Rajasthan remained third with the production of 8287 M.T (+ 498 M.T) Andhra Pradesh remained fourth by overtaking Maharashtra with the production of 6906 M.T (+ 323 M.T) Maharashtra remained fifth with the production of 6562 M.T (+ 285 M.T) Gujarat remained sixth with the milk production of 6284 M.T. (+ 194 M.T). However, this per capita per day availability of milk is still lower as compared to nutritional norm of 220 gms. per day per person as recommended by Indian Council of Medical Research (ICMR). The per day per person milk consumption is very much lower than the per capita availability of milk. Indeed many states in the country such as Punjab, Haryana, Himachal Pradesh, Gujarat and Rajasthan are in a position to meet the minimum nutritional requirement. The share of production of livestock in Gross National Product (GNP) was 8 to 9 percent in The cow and buffalo gave milk production valuing Rs. 295 crores. The cow and buffalo do other works also like transportation and other works worth Rs crores and the value of their manure was Rs crores while the value of their meat, skin, leather was Rs crores8. The share of livestock income in the total income of rural household is approximately 30 to 40 percent. Total milk production in India was about 8.4 crore metric tonnes valuing Rs crores in As compared, to milk yields in welfare milk production in India is low due to low production potential of milch animals and lack of adequate nutrition and health coverage. ' Gujarat Samachar New Paper Date : Page No. 3 * Sandesh News Paper Date : Page No

25 Excessive livestock population and the stagnation of the output of feed and fodder have deteriorated the quality of livestock. Average annual milk yield of the Indian milch animals is very low. There exists to a wide gap between the minimum nutritional requirement of milk and the actual availability. As compared to dairy animal breeds of foreign countries, the productivity of domestic livestock is very poor owing to traditional system of animal husbandry. Our dairy animal is roughly half efficient as the average milk animal in the world and probably on fifth as efficient as those in the advanced dairying countries. Although reasonable success has been achieved in increasing country s milk production, the development programmes carried out in last two decades have failed to make dent in average annual yield of milch animals. The productivity of milch animal is still very low at around 1000 litres per location year as compared to 9000 litres in Israel, 6000 to 7000 litres in USA, and 3000 to 4000 litres in New Zealand and Australia. Long interlacing period of\ milch animals, breed, insufficient and unbalanced feed, unhealthy environment, lack of adequate marketing facilities, poverty and illiteracy of fanners etc. are the snags in increasing milk yield. Most of the dairy fann households are unaware of the scientific practice of dairy fanning. The income of milk producers mainly depends upon sale of millc and milk products. As compared to seasonal agricultural income, dairying income is relatively more evenly spread throughout the year. Milk sale is guided by group of interrelated factors from producers considerations. Some are market driven and some are internal. 25

26 Produced milk is ulitised in different fonns of consumption, its sale is in fluid fonn, it converses into curd, mavo, ghee etc. Moreover, milk utilisation pattern is highly responsive to production viz. Seasonally, relative prices of milk products, local demand and price of milk. Further retention of milk for home consumption depends upon other parameters such as food habits, family needs, price realisation, ceremonial demand, accessibility to market etc. In the last two decades, with significant changes in the above factors, the consumption and utilisation pattern of milk at rural producers level has also changed significantly. There is enormous diversity in milk utilisation pattern at rural producers level across the country which influences the industry in a number of ways. In recent period, no precise infonnation based on fann level studies on retention of milk for home consumption, proportion of total milk marketed, and utilisation pattern of milk at the producers level are available at -the national level. Therefore, it is pertinent to have the latest comprehensive estimates of milk production, retention, marketing, conversion, price realisation through sale of milk and milk products, utilisation of retained milk etc. The study will be useful to deal the administrators, fanners, economists research-schools marketing agencies and public as well. Table 1.8 shows decade wise milk procurement (kg) and turnover (in Rs) It was 11 lalcg kg in , 275 lakh Kg , 1131 lakh kg in , 1952 lakh leg in , 2047 lakh kg in , 2363 lakh kg in , and lakh leg. In The last data are provisional and not final which shows increasing trend in milk procurement since its inception. 26

27 Looking to the turnover in rupees, it was 7.9 lakh rupees in , Rs lakh in , Rs lakh in , Rs lakh in , Rs lakh in , Rs lakh in and Rs lakh (provisional) which shows increasing trend in turnover the last date are being provisional and not find. Table 1.9 shows sale of cattlefeed Amul Dan (in M.T.) It was 4189 M.T in , M.T in , M.T. in , in and in which shows increasing trend in sale of cattle feed Amul Dan except in the data of which are yearly and not declare wise Amul Dan is famous among fanners and cattle rearers and there is no question about its sales. Table 1.10 shows change in composition of milch animal population sate wise. It shows that west bengal was first (1474) Meghalaya second (1233) Assam third (1158) Tripuru fourth (1094) in number of cows per 100 buffaloes in Tripura jumped from fourth to first (2960) west Bengal came down second from first (1901) and Assam held its third position (1178) in 1972 Again Tripura held its first position (4025) New bom sikkim pocketed second rank (2150), Nagaland which was also new bom state pocketed third position (1150) and orrissa came in picture for very first time and ranked fourth position (1004) in Sikkimed overtook Tripura and ranked first (4500), Tripura second (3700) west Bengal came down to third (2252) Nagaland also came down to fourth from third (2250) Assam (1168) kerala came very first time in the picture and ranked sixth (1080) Orissa came down to seventh from fourth's^ (1032) in

28 Tripura agained overtook sikkim and ranked first (4117) silckim second (3700) W.B. third (2586) Meghalaya fourth (2100), Nagaland came down fifth from fourth (1933) kerala in its sixth position (1354) Assam came down to seventh from fifth (1223) and orissa also came down^ eighth from senenth (1013) in Gujarat is far behind in cow reasing and it is only third fro right hard side with 68 cows per 100 buffaloe. That means buffaloes are more popular than cows in Gujarat.. It is naturally change to its income, of milk Section-HI Objectives of Study : In order to have a comprehensive study, it is decided to have the following objectives : 1. To examine the trend of bovine population, milk production and yield per animal in different regions of Gujarat. 2. To critically review the different dairy development programmes and their impact on the dairy economy of Gujarat. 3. To analyse the cost and profitability of milk production among different types of bovine animals at the grass-root level. 4. To examine the economic impact of milk production and its byproducts at producers level. 5. To study the utilization of milk production at producers level. 6. To derive appropriate conclusions and suggest policy implications to improve the economic conditions of milk producers. 28

29 Methodology: The present research work is a combination of macro and micro level studies. Both the secondary and as well as primary data are used for analysis. The secondary data available from published and unpublished sources such as publications of Government, Department of Animal husbandry, National Dairy Development Board, District milk unions and village milk producers co-operative societies etc. have been used in' the study. Infonnation has also been obtained by personal visits and discussions with senior officials of various institutions/ societies engaged in dairying activities. The primary data have been collected by conducting a micro level case study of Vadodara and Bharuch districts. The study was carried out to investigate the milk economy of Gujarat at the grass-root level. A multi stage sampling method has been used for selection of sample districts, sample talukas, sample villages and sample house holds. A detailed brief break up of the sample design is as follows :- A. Selection of Districts : Availability of marketing infra-structure has a direct bearing on production and utilisation pattern of milk. On the basis of classification of districts as developed and weak network of marketing, two districts have been selected for a micro level study. To study the production, utilisation and sale pattern of rural milk producers, a micro level study of two districts one district with well - developed co-operative network(vadodara) and other with weak cooperative network (Bharuch) has been carried, out. 29

30 B. Selection of Talukas: The procedure of selection of talukas was similar as that of selection of' districts. From Vadodara district Vadodara taluka and from Bharuch district Zagadia taluka were selected. C. Selection of Sample Villages : From each selected taluka it was decided to select 3 villages- one village near to the town, second at a reasonable distance from the town and third interior from the town. Thus, altogether 6 villages were selected from both the districts. From Vadodara taluka Natvamagar, Bhadarwa and Poecha and from Bharuch taluka Shuklatirth, Nikora and Tevara villages were selected. D. Selection of Dairy Households : \ From each selected village it was decided to select 20 households randomly for collection of primary data. The twenty households comprised 5 households each from landless labour dairy animal owning households, small and marginal fann households, medium fann households and large fann households is provided in table Primary data from the sample households were collected for the year by personal interview and recall method. A comprehensive schedule was canvassed among the selected respondents for obtaining detailed infonnation about land-holding, crop pattern, livestock position, input use, production of mi lie, its utilisation and disposal pattern, sale and disposal of milk products, employment and income generation from dairy occupation followed by sample households. 30

31 Limitations of the study : The subject selected for the study has a fairly wide scope. Due to time and financial constraints, it is obviously not possible for an individual research worker to cover and do justice to all aspects of milk economy of Gujarat. Apart from the policy issues relating to the milk economy of Gujarat, the study is mainly limited to two districts of Gujarat viz., Vadodara and Bharuch, From these two districts also, only three villages from Vadodara and three villages from Bharuch have been selected for a micro study. The results derived from the study may/may not be applied at the macro level. Chapter Scheme : The study has been divided into five chapters. A brief outline of the chapter scheme is as follows Chapter -/: Introduction This chapter provides the rationale for the study. It also covers objectives, methodology and limitations of the study. Chapter-II: Dairy Development in Gujarat hi this chapter a detailed study of dairy development in Gujarat has been carried out. Different programmes relating to dairy development in Gujarat are also discussed in this chapter. 31

32 Chapter-Ill: Milk Economy and Employment Generation at the Grcissroot level The milk economy at the grass-root level and its impact on employment generation have been described in this chapter. Chapter-lV: The Utilization Pattern of Milk Production at the Grass-Root Level In this chapter the utilization of milk production and views of milk producers for improving the production of milk and its by-products have been discussed. Chapter - V: Summary and Conclusions The major findings of the study have been narrated in this chapter. Certain policy implications to improve the production and utilization of milk at the producers level in Gujarat have also been suggested in this chapter. \ 32

33 Table 1.1 Livestock Population of India Sr No Year No of Animals. Cattle Buffaloes Other animals (in million) Total Livestock No % No % No % No % , Sources : 1. Agricultural Statistics at a Glance. Directorate of Economics & Statistics, Govt, of India, March Live stock census lrttp://dacnet:nic:in/eands 5. \ 33

34 Table 1.2 Expenditure on Animal Husbandry and Dairying in India under Five Year Plans. (In Million Rs.) Plan Total outlay on animal Husbandry and dairying Expenditure on dairying Expenditure on dairying total outlay First Plan ( ) Second Plan ( ) Third Plan ( ) Annual Plan ( ) Fourth Plan ( Fifth Plan ( ) Annual Plan ( ) Annual Plan ( ) Sixth Plan ( ) Seventh Plan ( ) Eighth Plan ( ) N.A. N.A. N.A. ' Ninth Plan(l ) Tenth Plan ( ) Source : Daily Fanning in Asia, Asian Productivity Organisation Report,