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The Indian dairy sector is one of the fastest developing sectors of agricultural commodities in India. This sub-sector contributes 5% to the national economy. This achievement of the dairy cooperatives in India can be ascertained by the fact that at present more than 70 million farmers are connected to this industry, a number that is increasing every year by 9 to 11% as per a report by Niti Aayog. The Indian dairy sector produces 93 million tonnes of milk on an annual basis. However, the success of dairy cooperatives in India would have been impossible without the government’s consistent efforts.
Time and again, the Indian government has launched schemes for the betterment of the livestock farmers, animals and cost efficiency taxation policies that have contributed significantly to the achievements of the dairy cooperatives in India.
This article talks about the success of dairy cooperatives in India, the challenges faced by this industry etc.
Achievements of Dairy Cooperatives in India
The success of dairy cooperatives in India can be attributed to the fact that India is a leading producer in the dairy sector. Here are some of the achievements of the dairy cooperatives in India:
- Currently, at least 70 million farmers are leading the Indian dairy movement. This is a huge number, as around 43% of farmers of India have made it their primary source of income.
- On the basis of the facts and records available, NITI Aayog has said that Indian dairy production will cross 330 million metric tonnes by 2035.
- India’s state-owned dairy brand Amul is a global brand that represents the success of dairy cooperatives in India.
- Along with financial investments, the government introduces technological advancements from time to time. This technological advancement in the Indian dairy sector paves the way for high production value with comparatively fewer efforts.
Initiatives of Indian Government for Success of India’s Dairy sector
Over the 40 years since the inception of the dairy industry, the government has come up with a lot of initiatives that have gone hand in hand with the success of dairy cooperatives in India:
Vibrant Village Programme
Vibrant Village Programme is one such programme that is at the forefront of the success of dairy cooperatives in India. With this initiative, the government has tried to increase the connectivity and infrastructure of the villages having a bulk share of livestock farmers.
Alternate Minimum Tax
The government has also introduced cutting down the alternate minimum tax by an exponential amount to enhance the overall income of dairy farmers. Earlier, the government had proposed reducing the AMT from 18.5% to 15%. This move by the central authority has been seen as one of the factors that contribute to the success of dairy cooperatives in India.
Central Sector Scheme
Over the years, the government has invested heavily in the central backed schemes, Rashtriya Gokul Mission and the National programme for dairy development. As per the statistics, the investment has been increased by 20% in 2022-23 to meet the growing demands of the dairy cooperatives in India. This money has been invested to provide the overall production value and to improve the health of the livestock.
Digital Banking
Lately, the ministry of procurement has launched a new scheme in which the digital payments made in the dairy industry will provide incentives to farmers. Another added advantage of this scheme is introducing transparency in the financial outlook of the industry.
Livestock Health
One of the crucial factors that play a vital role in the success of the dairy cooperatives in India is a healthy livestock group. The profit in this business is completely based on the overall health of the livestock. Hence, keeping that in mind, the government introduces methods to eradicate diseases in them.
Challenges that Hinder the Success of Dairy Cooperatives in India
The success of India’s dairy sector is hindered by the basic challenges that the industry faces on a daily basis. These challenges affect the overall production level. Some of the common challenges are:
- Non-availability of labourers
- Lack of proper emolument system
- Dearth of proper infrastructure
- Half-baked government schemes
- Inadequate resources and cures for diseases among the livestock
The Indian Dairy sector is one of the promising sectors that are bound to provide revenue owing to their potential. Therefore, the Indian government has been trying to support dairy cooperatives in India.
