Secretary DAHD Urges Dairy Federations to Embrace Circular Economy; Advocates State-Level Biogas Projects to Cut Carbon Footprint

A high-level meeting to review the milk situation in India was convened on December 18, 2024, in New Delhi under the leadership of Alka Upadhyaya, Secretary of the Department of Animal Husbandry & Dairying (DAHD), Ministry of Fisheries, Animal Husbandry and Dairying. Representatives from the National Dairy Development Board (NDDB), the National Cooperative Dairy Federation of India (NCDFI), state cooperative dairy federations, and other stakeholders participated in the review, focusing on the current state of the dairy sector and progress made by state milk federations.

India, the world leader in milk production, achieved a remarkable output of 239.3 million metric tons in 2023-24. Secretary Alka Upadhyaya highlighted the sector's stability, underscored by a Wholesale Price Index (WPI) and Consumer Price Index (CPI) inflation rate for milk at 2.09% and 2.85%, respectively, for November 2024. With adequate stocks of skimmed milk powder, whole milk powder, white butter, and ghee, the sector has shown significant improvements in milk procurement and prices paid to farmers. She emphasized the need to balance consumer interests with efforts to enhance procurement prices, thereby ensuring equitable benefits for all stakeholders.

The Secretary urged milk federations to actively participate in government programs like the Midday Meal and Integrated Child Development Services (ICDS), managed by the Ministry of Women and Child Development (MoWCD) and the Ministry of Human Resource Development (MoHRD). These initiatives offer substantial opportunities for the dairy sector by integrating milk into large-scale nutritional programs. Commending the efforts of state milk federations such as Amul (Gujarat), Nandini (Karnataka), Saras (Rajasthan), and Megha (Jharkhand), the Secretary encouraged other federations to adopt similar strategies to bolster their operations.

Discussions also revolved around increasing the production of value-added dairy products to cater to evolving consumer preferences. NDDB presented strategies for enhancing milk processing capabilities and pledged to support states through the National Programme for Dairy Development. Notably, the consumption of processed dairy products has surged by 20%, reflecting changing consumer trends.

An important segment of the meeting was dedicated to promoting a circular economy in the dairy sector. NDDB showcased successful biogas models, including the Zakariyapura Model, the Banaskantha Model, and the Varanasi Model. These initiatives demonstrate the sector’s potential in generating sustainable energy and organic fertilizers from cow dung. Over 27,000 household biogas plants have been established across 19 states under various schemes, supporting sustainability and economic growth. Additionally, two large-capacity dung-based biogas plants with a combined capacity of 140 metric tons per day are operational, while 11 more plants with a total capacity of 675 metric tons per day are in progress.

The household biogas initiative has also contributed to generating carbon credits, with 1,040 farmers collectively earning 11,000 credits. This effort aligns with global sustainability goals and enhances farmer incomes. NDDB’s collaboration with Suzuki R&D Centre India Pvt Ltd aims to further scale up the use of cow dung for energy and organic fertilizer production, advancing carbon neutrality and sustainable practices in the dairy sector.

The Secretary emphasized the importance of state dairy federations embracing circular economy initiatives and urged proactive collaboration with NDDB to maximize benefits. She called for each state to present at least one biogas project at the department’s upcoming conference on circularity in the dairy sector. Such projects are expected to reduce the sector’s carbon footprint while increasing dairy farmers’ incomes. Efficient water utilization within the dairy value chain was also discussed, with automation proposed as a means to significantly reduce water consumption in processing plants. This aligns with the objectives of the National Water Mission and the National Action Plan on Climate Change.

Concluding the meeting, Secretary Upadhyaya stressed the need for benchmarking to enhance efficiency, reduce production costs, and lower the dairy industry’s carbon footprint. She urged federations to expedite the formation of cooperative societies to bring more milk into the organized sector. Such efforts, she noted, would improve the socioeconomic status of India’s milk producers, consolidating the nation’s leadership in the global dairy landscape.