Digitalizing India’s Dairy Sector
Kartavya Desk Staff
Source: PIB
Subject: Dairy sector
Context: The National Dairy Development Board (NDDB) has reached a milestone in digitalizing the dairy sector, notably generating over 35.68 crore “Pashu Aadhaar” IDs.
About Digitalizing India’s Dairy Sector:
What it is?
• India is the global leader in milk production, contributing 25% of the world’s output. Digitalization is the Second White Revolution, shifting the focus from mere production to traceability, efficiency, and value addition.
Trends and Data Facts:
• Production: India produced 221.06 million tonnes of milk (2021-22), a 73% increase over the last decade.
• Market Value: The sector was valued at $130 Billion in 2021 and is projected to reach $300 Billion by 2027.
• Digital Reach: Over 17.3 lakh producers are now integrated into the Automatic Milk Collection System (AMCS).
• Consumption: Per capita availability has risen to 444 grams per day, significantly higher than the global average.
Importance of the Dairy Sector in India:
• Rural Livelihood Security: It provides a regular source of income for over 80 million rural households.
E.g. In regions like Vidarbha and Marathwada, dairy acts as a safety net against crop failures, reducing the incidence of farmer distress.
• Nutritional Security: Milk is a primary source of animal protein for India’s largely vegetarian population.
E.g. Government programs like the Mid-Day Meal increasingly include fortified milk to combat Vitamin A and D deficiencies in children.
• Economic Contribution: The dairy sector contributes significantly to the agricultural GDP, often surpassing the combined value of rice and wheat.
E.g. In Gujarat, the Amul model contributes billions to the state economy, demonstrating dairy as a commercial powerhouse.
• Women Empowerment: Dairying is primarily managed by women, providing them with financial independence.
E.g. Self-Help Groups (SHGs) in Odisha and Andhra Pradesh have successfully taken over milk collection centers, enhancing their social standing.
• Inclusive Growth: Livestock distribution is more equitable than land distribution, benefiting small and marginal farmers.
E.g. Roughly 75% of rural households own just 2–4 animals, yet they drive the bulk of India’s 25% global market share.
Initiatives Taken for Digitalization:
• National Digital Livestock Mission (NDLM): Creating Bharat Pashudhan, a database for breeding, health, and vaccination records.
• Pashu Aadhaar: Issuing 12-digit unique ID ear tags to animals for full traceability.
• Automatic Milk Collection System (AMCS): Digitizing milk fat testing and payments to ensure farmers get fair prices instantly.
• NDDB Dairy ERP (NDERP): An open-source software (ERPNext) to manage supply chains from cow to consumer.
• GIS Route Optimisation: Using satellite mapping to reduce milk procurement distances and fuel costs for cooperatives.
Overall Challenges in the Dairy Sector:
• Low Productivity per Animal: Average milk yield in India is 987 kg per lactation, far below the global average of 2,038 kg.
E.g. Indigenous breeds often produce less than cross-bred varieties due to a lack of focused genetic upgrades in many states.
• Fragmented Supply Chain: About 75–85% of the marketable surplus still flows through the unorganized/informal sector.
E.g. Local milkmen (Dudhiyas) in North India often lack cold chain infrastructure, leading to higher spoilage and quality issues.
• Feed and Fodder Scarcity: Rising costs of concentrates and shrinking grazing lands affect profitability.
E.g. High inflation in maize and soybean prices recently forced many dairy unions to hike milk prices to cover input costs.
• Quality and Adulteration: Maintaining global sanitary standards is a hurdle for exports.
E.g. India’s share in global dairy exports is <1% because many products fail to meet the strict phytosanitary norms of the EU and USA.
• Lack of Formal Credit: Smallholders struggle to get loans for expanding herds or upgrading technology.
E.g. Farmers often rely on local moneylenders at high interest rates because commercial banks perceive livestock as a high-risk asset.
Way Ahead:
• Scaling Breed Improvement: Focus on Artificial Insemination (AI) and genomic selection to boost the productivity of indigenous cattle.
E.g. The Semen Station Management System (SSMS) ensures that only high-quality, traceable semen doses are used nationwide.
• Strengthening the Cold Chain: Expanding bulk milk chillers at the village level to reduce spoilage and improve Clean Milk Production.
E.g. NDDB’s AMCS integration allows cooperatives to monitor milk temperature and quality in real-time from remote villages.
• Promoting Value-Added Products: Shifting from liquid milk to high-margin products like cheese, probiotics, and organic milk.
E.g. Brands like Epigamia and Amul are rapidly expanding into high-protein yogurts to meet urban health-conscious demand.
• Enhancing Export Competitiveness: Aligning Indian standards with Codex Alimentarius to tap into South Asian and Middle Eastern markets.
E.g. Creating Export Zones for dairy in states like Gujarat can help standardize quality for international certification.
• Formalizing Credit through Technology: Using Pashu Aadhaar data as collateral for digital lending by banks.
E.g. Fintech startups are now exploring Livestock Credit Scores based on the health and milk records stored in the NDLM database.
Conclusion:
By merging the traditional cooperative strength with cutting-edge digital tools like NDLM and AMCS, India is evolving into a transparent and efficient dairy superpower. This digital shift ensures that the benefits of the White Revolution reach the smallest farmer, securing India’s position as a global leader in sustainable and technology-driven milk production.
Q. White Revolution 2.0 in India aims to revitalize the dairy sector and extend the success of the original White Revolution to other agricultural domains. Discuss steps to bring about White Revolution 2.0.