Syllabus: Food processing and related industries in India
Overview
- India leads global milk production, contributing nearly 25% of world output.
- Digitalisation represents the Second White Revolution, focusing on traceability, efficiency, and value addition.
- NDDB has generated over 35.68 crore “Pashu Aadhaar” IDs, enabling digital livestock tracking.
Key Trends and Data
- Milk production reached 221.06 million tonnes in 2021–22, recording a 73% decade-long increase.
- Per capita availability rose to 444 grams per day, surpassing the global average.
- Over 17.3 lakh producers are integrated with the Automatic Milk Collection System (AMCS).
- The dairy sector’s market value is projected to rise sharply by 2027.
Importance of Dairy Sector
- Rural livelihoods: Dairy supports over 80 million households, especially in drought-prone regions.
- Nutritional security: Milk supplies animal protein, supported through programmes like Mid-Day Meal.
- Economic contribution: Dairy contributes more than rice and wheat combined to agricultural GDP.
- Women empowerment: Women manage most dairy activities, strengthening financial independence and social status.
- Inclusive growth: Smallholders owning 2–4 animals drive a large share of national production.
Digital Initiatives
- National Digital Livestock Mission (NDLM) builds a national database of breeding, health, and vaccination.
- Pashu Aadhaar assigns 12-digit unique IDs for complete animal traceability.
- AMCS ensures digital fat testing and instant farmer payments.
- NDDB Dairy ERP (NDERP) manages the supply chain from farm to consumer.
- GIS route optimisation reduces fuel costs and procurement time.
Challenges
- Low productivity: Average yield is 987 kg per lactation, far below the global average of 2,038 kg.
- Fragmented supply chain: 75–85% of surplus passes through the unorganised sector.
- Feed and fodder scarcity increases production costs and affects profitability.
- Quality and adulteration restrict India’s global dairy export share to under 1%.
- Limited formal credit forces farmers to rely on high-interest informal sources.
Way Forward
- Breed improvement through Artificial Insemination and genomic selection to raise productivity.
- Cold chain expansion with village-level bulk milk chillers for quality preservation.
- Value addition by promoting cheese, probiotics, and organic milk.
- Export alignment with Codex Alimentarius standards for wider global access.
- Digital credit using Pashu Aadhaar-linked livestock records as collateral.
Conclusion
- Integrating cooperatives with digital platforms like NDLM and AMCS ensures transparency and farmer empowerment.
- This digital shift positions India as a technology-driven, sustainable dairy superpower.