Ashwani Mahajan
In the last couple of years, Government of India is indulged in making a free trade agreement (FTA) with European Union, which would require us to reduce import tariff on dairy products to zero percent. It is notable that European countries give huge subsidies to their dairy producers to promote and safeguard their dairy sector. If subsidised dairy products are allowed to import into India, our dairy products would not be able to withstand the competition.
Development of dairy sector in the last four decades, have benefitted the national economy in general and farming community in particular. Today we produce 35 crore litre of milk daily and India has the distinction of world’s largest producer of milk. In 2012-13, total milk production in the country was valued at Rs. 4 lakh crores. If we compare the production of any single agricultural produce, may it be rice or wheat, milk values much higher than any single crop. Milk production has surpassed 1300 lakh tonnes, whereas production of largest single agricultural crop rice’s in 2012-13 was 1040 lakh tonnes . Therefore one can conclude that farmer gets higher income from milk than any other produce.
On the eve of independence, per capita availability of milk in the country was merely 129 grams per day. Today this has reached 233 gram per day. Production of milk got a boost after 1970, when a special program started in the name and style of ‘Operation Food’. Fast increase in production of milk in a short period of time is also called ‘White Revolution’. Leader of this revolution, who is also called ‘India’s milk man’ was Dr. Kurien. Today nation is fighting against the menace of malnutrition. In this context it is notable that whereas per capita availability of food grain has declined in the last 20 years, rising per capita availability of milk, definitely gives us a sigh of relief. Therefore dairy sector has worked hard to save Indian agriculture and provide nutrition to the nation.
Co-operation: Key to Dairy Development
Role of cooperative movement, especially ‘Amul Model’ was instrumental in dairy development in India. Today organised and unorganised sector both have been helping in dairy development in India. In organised dairy sector, cooperative sector has dominant presence. Today the world acknowledges the role of Milk Man Dr. Kurien led ‘Amul Model’. Milk is procured from small milk producer from all over the country. Thereafter in the processing units, takes place the value addition when milk is processed and purified in most modern plants. In the process more than three-forth of the price of the milk goes to the farmer, which is exemplary is the world.
Looming Dangers on Dairy Sector
Though India has made significant progress in dairy sector, and income of the farmer has also increased significantly, future of the dairy sector is in danger, as government is entering into international and regional trade agreements in the name of free trade. Dairy sector in India is already faced with several problems like indifferent attitude of government, FDI in retail, old and less productive breeds of cows/buffalo etc. Indian dairy sector which is also faced with several problems including high cost per unit; may lose the battle of competition and Indian dairy may be forced to push out of the market. Dairy sector is also faced with the problem of lack of national leadership.
After Dr. Kurien there is no national personality to represent dairy sector. Under these circumstances, proposed FTA with EU may cause havoc for the dairy sector. If we import milk and other milk products at say 10 percent cheaper, our domestic producers may not be able to compete with the imported stuff as our famers would be deprived of the fair price for their milk, in tune with domestic cost of production. The farmer who is already facing the brunt of rising cost of milk production will be pushed out of the market. Milk production of the country would be adversely affected and India dependence on imports would go up. Farmer for whom dairy production means supplementing the income would no longer find it remunerative to continue with milk production. Under these circumstances proposed FTA with European Union may not only affect the future development of dairy sector, rather it may doom the dairy sector at large.
Need to mend Government Policy
Undoubtedly, dairy sector has been instrumental in the survival for the farmers, woman empowerment and their self prestige; however most unfortunate part of the whole story is that government still does not treat dairy to be part of agricultural sector.
No doubt dairy sector today is a major source of food security, employment and income enhancement of the farmer. At the same time dairy sector today has become the symbol of upliftment of the women folk. But it is unfortunate that even today the government does not consider dairy as part of agriculture. It is notable that dairy sector does not get priority treatment in bank loans. Whereas agricultural incomes are exempted from income tax, dairy income attract income tax has applicable on non agricultural incomes. Inclusion of dairy sector in MNREGA may go a long way in the development of dairy sector; however the government does not seem to be in any mood to go in this direction. Today on the one hand the government is talking about food security, a major source of food security is being sent to the danger zone. Today it is imperative to ensure the feed security for the milch cattle along with food security for humans to ensure growth in milk production. If we include milk also in mid-day meal program, it may help increasing the production of milk in the local areas along with provision of nutritional meal to the children.
Handle with Care
It is imperative that the government takes utmost care in reaching at international and regional trade agreements and does not make any commitment to open dairy imports, which may doom the dairy sector. Rather there is need to draw short term, medium term and long term plans for healthy growth of dairy sector.
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