(From L to R) T Nanda Kumar, Chairman National Dairy Development Board, R.S Sodhi, Managing Director of Gujarat Co- Operative Milk Marketing Federation Ltd (Amul), Dilip Piramal President IMC, R.N Bhaskar, Consulting Editor of Free Press Journal, Mahesh Pathak, Principal Secretary, Animal Husbandry Dairy Development and Fisheries, Government of Maharashtra and Madan Sabnavis, Chief Economist, Care during the panel discussion under the FPJ-IMC Forum on ‘Indian Dairy Industry and its Relevance to the Economy’ on Tuesday. |
Mumbai : The Free Press Journal and The Indian Merchants’ Chamber jointly organised their monthly panel discussion under FPJ-IMC Forum on ‘Indian Dairy Industry and its Relevance to the Economy’ this Tuesday.
The panel comprised T. Nanda Kumar, Chairman, National Dairy Development Board (NDDB); R. S. Sodhi, Managing Director, Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF which markets products under the Amul brand); R.N Bhaskar, Consulting Editor of Free Press Journal, Mr. Mahesh Pathak, Principal Secretary, Animal Husbandry, Dairy Development & Fisheries, Govt. of Maharashtra and Mr. Madan Sabnavis, Chief Economist, CARE. The panel helped provide an insight into the competitive landscape of the dairy sector.
Nanda Kumar pointed out, that the cooperative sector of this industry has been growing over 19.6% CAGR the co-operative sector growing 19.6% CAGR, while the processed milk industry has been growing at 22%. The Dairy industry currently contributes to around 33% of the value of agricultural production in India. He also stated that the prime minister’s vision of doubling the farmers’ income by 2022 was possible only if dairy income were added to his other agricultural income sources.
Sodhi spoke about the tremendous relevance of the Amul model in this country. He pointed out how the milk cooperatives in Gujarat remain the only industry in the world which gave back almost 80% of the market price of milk, back to the farmer, as against 30% globally. Other milk cooperatives also ensured that the farmer got a return of around 70% of the market price. This way the farmer earns more and is incentivised to produce more milk. This in turn helps meet the rapidly growing demand for milk, thanks to the nutritional needs of much of India as also the gradual shift from cereals to milk products on account of growing affluence of people on an average.
Pathak said that Maharashtra was confronted with the urgent need for good quality fodder and the need to promote integrated dairy plants. He bemoaned the poor quality of milk being supplied in some urban areas on account of malpractices like adulteration, by some unscrupulous elements.
Sabnavis spoke about the 4 pillars which made the Milk industry both unique in and relevant to India. The first pillar was milk output which has been growing at a healthy pace. The second pillar was the surging demand for milk, which in turn went hand in hand with increased milk production. Demand had been growing both because of in increasing population on the one hand, and increasing prosperity on the other, which made people focus more on nutritional intake. Milk remained one of the primary sources of nutrition in India. The third pillar the enormous employment that the backyard cattle rearing model provided in India. This in turn provided livelihood to countless millions. The fourth pillar is that even though milk prices have kept increasing, it has been done in a planned manner — gently and consistently — which in turn has ensured that there is little consumer resistance against such price increases.
The panellists talked about how the cooperative milk industry would soon spread to Uttar Pradesh, Jharkhand, and to East and Northeast India. Technology is bound to play an important role in bringing transparency and improving the quality of management at the collection centres. Technology would make milking of cattle easier and more hygienic for farmers. More remunerative prices would in turn encourage more production of milk. Unlike other agricultural crops where income is largely seasonal, milk provides a regular cashflow on a daily or fortnightly basis. What is needed is good procurement, remunerative pricing of milk for farmers, and good distribution of milk to consumption centres.
The panel also believed that milk could play a significant role in the coming months and years towards enhancing rural prosperity.
