Question : Increasing Farmer Income through Dairying

(a) whether the Government is facing challenges in increasing farmers’ earnings;
(b) if so, whether dairy farming will play an important role in raising farm income;
(c) if so, whether there is a need to create level playing field between cooperatives and private sector;
(d) if so, the details thereof;
(e) whether the private sector has created more capacity than cooperative sector, if so, the facts thereof; and
(f) whether the private sector has been hindered by the subsidies extended to cooperatives and if so, the steps taken by the Government to address the concerns of the private sector and to boost the farm income?

ANSWER
THE MINISTER OF STATE FOR FISHERIES, ANIMAL HUSBANDRY AND DAIRYING
(DR. SANJEEV KUMAR BALYAN)

(a) Yes sir.
(b) Yes Sir, Dairy farming contributes about 3% to the National GDP and is the mainstay of 6.4 crore rural families aid and value of dairy output is growing at a CAGR of 13.4% in the last 5 years. It is playing an important role in increasing dairy farmers’ income.

(c) &(d) Ministry of Food Processing Industries, Government of India is implementing a scheme titled Pradhan Mantri Kisan SAMPADA Yojana under which private dairy sector is supported for creation of infrastructure for cold chain, processing and preservation of milk and milk products along with cooperative sector. As regards Cooperative Dairy Sector, this Department supplements the efforts of various State Governments by implementing following Dairy Development Schemes for creation and strengthening of dairy infrastructure aiming at boosting up growth and increasing milk production:

i. National Programme for Dairy Development (NPDD)
ii. Dairy Processing and Infrastructure Development Fund (DIDF)
iii. National Dairy Plan-I (NDP-I)
iv. Supporting Dairy Cooperatives and Farmers Producer Organizations engaged in Dairy Activities (SDC&FPO)

(e) Food Safety and Standards Authority of India (FSSAI) has data on registration and licensing on dairy plant capacity in dairy sector, but it is not desegregated into private and cooperative sector. As per National Dairy Development Board, Annual Report 2017-18, the milk processing capacity with cooperative dairy sector is 729.19 Lakh Liter Per Day, hence after taking detailed data from FSSAI and de-duplication, private sector data will be provided.

(f) Private dairy sector has been supported under schemes of Ministry of Food Processing Industries, Government of India as mentioned at part (c) & (d) above. Additionally, Department of Animal Husbandry & Dairying, Government of India has been implementing Dairy Entrepreneurship Development Scheme with objective of providing self-employment opportunities and promoting entrepreneurship in dairy sector especially in rural areas. As regards Cooperative Dairy Sector, this Department also supplements the efforts of various State Governments by implementing Dairy Development Schemes for creation and strengthening of dairy infrastructure aiming at boosting up growth and increasing milk production. Broadly the coverage of organized private sector in the country is 10.2%, while the organized cooperative sector is 10.3 % of total milk production. The rapid growth of private sector capacity in the last decade shows that the sector is prospering in dairy sector, and its imprint is more clear in value added products.

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