World Milk Day 2020: Milk Industry and Entrepreneurship

Twenty years ago, World Milk Day was established by the Food and Agriculture Organization of United Nations to recognize the importance of milk as a global food. It is observed on June 1 each year since 2001. To help create a positive stream of conversation, the 2020 celebrations started with the Enjoy Dairy Rally from May 29 to 31, culminating on June 1.   

World Milk day 2020  

This year World Milk Day is being celebrated with theme ‘the 20^th Anniversary of World Milk Day’. It aims at encouraging the benefits of dairy for health and nutrition, affordability and accessibility, and the sector’s passion and commitment to feeding our communities.   

Milk industry and India  

Dr. Verghese Kurein, the father of India’s “White Revolution”, executed the “Operation Flood” and is credited for revolutionising the dairy farming and milk cooperatives. His initiatives made India a milk- surpulus country and today dairy sector is playing an important role in the country’s socio-economic development and provides livelihood to millions of homes in villages.

According to National Dairy Development Board (NDDB), India has 40 indigenous cattle breeds as well as 13 local breeds of buffalo. The cattle and buffalo population has been calculated at over 300 million, in the 2019 national livestock census. 

India has become the leading milk producing country in the world, accounting for around 19% of the global market share. The milk processing industry in India is expected to expand at a compound annual growth rate (CAGR) of 14.8% between FY 2018 and FY 2023, and will reach INR 2,458.7 billion in FY 2023. 

Export/Import

From India, the export of dairy products has increased to countries like Bhutan, Afghanistan, Canada, Egypt, and the United Arab Emirates.  

India also imports a significant amount of dairy products from countries like France, New Zealand, Ireland, France, Ukraine, and Italy. 

Constraints in development of Milk Industry 

Climate change, fodder unavailability remains as a concern for the industry. The overall productivity of dairy sector is low due to inadequate nutrition from green fodder. Around 500 million animals in India are still deprived of feed and fodder security.  

According to a report by NITI Aayog, droughts and flood are affecting milch animals due to it’s impacts on availability of fodder and water. Agricultural expansion to pastoral lands is reducing availability of grazing lands for the milch animals. 

Entrepreneurship opportunities 

National Bank for Agriculture and Rural Development (NABARD) under Dairy Entrepreneurship Development Scheme (DEDS) provides assistance for setting up a dairy enterprise. It aims at promoting activities like production, procurement, transportation, processing and marketing of milk by providing back ended capital subsidy.

Eligibility  

1. Farmers, entrepreneurs and groups of unorganised and organised sector, dairy cooperatives, Panchayati Raj Institutions etc.

2. An applicant will get assistance for all components but only once

3. More than one member of a family can get assistance, provided they set up a separate unitswith separate infrastructure at different locations. 

Pattern of assistance

1. Back ended capital subsidy @25% of the project cost for general category and @33.33% for SC/ST farmers

2. Entrepreneur contribution (Margin) for loans beyond INR 1 lakh- 10% of project cost (minimum)

3. Back loan – Balance option