A parliament report shows India's low cattle productivity, despite being the largest milk producer, hinders its ability to compete globally.
India’s Dairy Exports Surge 80%, Driving Global Growth

A Parliament Report Reveals India’s Low Cattle Productivity Trails Most Major Dairy Nations, Highlighting Challenges to Global Competitiveness.

A new parliamentary panel report has brought to light a critical issue in India’s agribusiness sector: despite being the world’s largest milk producer, the country’s cattle productivity is significantly lower than that of its global competitors. This glaring efficiency gap, as noted in the report, presents a major hurdle for India’s dairy industry to effectively compete in international markets.

According to data cited in the report, the total annual milk output per animal in the United States is 10,954 kg, which is more than five times higher than India’s 1,948 kg per year. Similarly, milk yields in New Zealand outstrip India’s by 128%, and Denmark’s annual output stands at 10,187 kg per animal. This stark comparison highlights why India remains cautious about opening its sensitive dairy sector to large global corporations.

The report, titled “Role of National Dairy Development Board (NDDB) for Protection and Development of Indigenous Cattle Breeds,” notes that while a federal program, the Rashtriya Gokul Mission, was launched in 2014 to improve indigenous breeds, the overall productivity remains low. However, it also points to a positive trend: the annual productivity of indigenous breeds like Gir has increased from 3.25 kg per day in 2013-14 to 4.17 kg in 2022-23, marking the fastest growth globally, albeit from a very low baseline.

India’s unique cooperative model, driven by millions of small farmers, is the backbone of the country’s dairy production. The article cites the 2021-22 Economic Survey, which states that less than half of the marketable milk surplus is handled by the organized sector, including cooperatives. The remaining is managed by the unorganized sector, which further complicates efforts to implement large-scale productivity improvements.

In conclusion, the report underscores a central paradox in India’s dairy economics: while its total milk production volume is massive, the low per-animal productivity poses a significant challenge to future growth and global competitiveness. The government’s initiatives for breed improvement are showing some progress, but the immense productivity gap and the decentralized nature of the industry mean that long-term, coordinated efforts are essential to close the divide and strengthen India’s position in the international dairy community.

Source: Hindustan Times, “India trails most nations in cattle productivity: Parliament panel report

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