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Dairy farming has been a traditional source of livelihood and it has a deep connection with India’s agricultural economy. India has emerged as a leader among the milk-producing nations especially after Operation Flood and the growth of milk cooperatives in the country.
Importance and achievements of dairy sector for India
However, dairy sector is facing crisis today. Milk procurement prices are falling in several milk-surplus states in western and northern India due to factors like:
Over production is a worldwide problem due to eclipse of small dairy farms and the rise of mega dairy. While dairy farmers are suffering from low procurement prices, consumers are paying a high price for milk. Though overproduction is a major issue, it is compounded by various infrastructural and policy lacunae which need to be cured. Also, only about 20 percent of dairy sector is organised. Organised sector has more capacity to bear losses. The recent slide in milk prices affected mostly the unorganised sector. Lack of cooperatives and linkages with food processing industry has thus, compounded the problem of dairy sector.
Suggestions to tide over supply demand mismatch include:
With the above measures in place, the challenges can be turned into an opportunity to bring in a sustainable dairy sector in India.
By: ABHISHEK KUMAR GARG ProfileResourcesReport error
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