The document discusses the present status of the market milk industry in India, noting that while India has the largest cattle population globally, milk productivity per animal is low compared to global averages due to factors like low milk yielding animals and lack of organized milk production and collection systems. It provides details on the evolution of the dairy sector in India from the 1940s to today through initiatives like Operation Flood that established a nationwide milk grid and strengthened rural incomes by cutting out middlemen. The document concludes by recognizing dairy's potential to improve rural livelihoods but also notes challenges like weak development efforts that could negatively impact the industry.

1. WELCOME

2. MAHATMA PHULE KRISHI VIDHYAPEETH, RAHURI
SHRIRAM COLLEGE OF AGRICULTURE,
PANIV
Name Of Student : KAMBLE DEVENDRA TATYASAHEB
REG. NO : SCP-2019/033
Semester : VIII th
Course No : SRP-EL-AHDS-405
Course title : Processing Of Milk & Milk Products
Course Teacher : Prof. Mundphane.S.T
Credit : 0+10 = 10
Topic name : Present Dairy Status Of India

3. Market Milk Industry in India

4. Salient features of the market milk industry
 Handling of milk in Co-operative Milk Union (Oldest: Allahabad, 1913) established all
over the country on a small scale in the early stages.
 Long distance refrigerated rail-transport of milk from Anand to Bombay since 1945.
 Pasteurization and bottling of milk on a large scale for organized distribution was started
at Aarey (1950), Worli (1961), Calcutta (Haringhata, 1959),
Delhi (1959), Madras (1963), etc.

5.  Establishment of Milk Plants under the Five-Year Plans for Dairy
Development all over India.
 Dual object of increasing the national level of milk consumption and
ensuring better returns to the primary milk producer
 The main aim ---- to produce mere, better and cheaper milk.
Conti-----

6. After Operation Flood
 Strategy for organized dairy development in India ---- actually
conceived in the late 1960s, within a few years after the
establishment of National Dairy Development Board (NDDB) in
1965.
 NDDB ----- established by an Act of Parliament with the
objectives of promoting dairy cooperatives, financing dairy
infrastructure through loans and grants and providing technical
and managerial support to the dairy cooperative societies.
 The Operation Flood programme (OFP) ---- conceived by the
NDDB and endorsed by the government.
 However, in 1969, when the Government of India approved the
OFP and its financing through the monetization of World Food
Programme-gifted commodities,
 The statutes under which NDDB was registered did not provide
for handling of government funds.

7.  Therefore, in 1970 the government established a public-sector company, the Indian
Dairy Corporation (IDC).
 The IDC ----- given responsibility for receiving the project's donated commodities,
testing their quality, their storage and transfer to user dairies as well as receiving the
dairies' payments.
 Thus the financial and promotional aspects ----- the responsibility of the IDC while the
entire technical support for OFP was provided by NDDB.
Conti-----

8.  OFP ---- set up with the objectives to enhance milk production, increase the
rural income and to ensure reasonable price to the farmers for the milk they
produce.
 OFP ---- implemented in three phases. The first phase (1970-1980) ---
financed by the sale of 1,26,000 MT of skimmed milk powder (SMP) and
42,000 MT of butter oil gifted by the European Union (then European
Economic Community – EEC) through the World Food Programme.
 India currently has 133349 village dairy cooperatives federated into 177 milk
unions and 15 federations that procured on an average 25.1 million litres of
milk every day.
 Village dairy cooperatives have nearly 14.11 million farmers as members
(www.nddb.org).
Conti-----

10. Indian dairy sector has evolved from rags to riches
-Per capita milk
availability-132g/day
-Milk rationing and
scarcity
-Dependent on import
-High intermediation
White revolution
-Per capita milk availability-
444 g/day
-17% of global output
-Net exporter
-Increased share of
producers share in
consumer price
• Cooperative dairying
• countrywide milk grid –
linking producers to
consumers
• Cutting out middle men
• Strengthening
production,
procurement,
infrastructure and
technology transfer
1940’s
2022
10

11. Table 4 : Average Yield of
Milk (kg/day)
Indigenous
cow
2.36
Exotic/
Crossbreed
7.02
Buffalo 4.80
Goat 0.43
• Bovine population – about 175 million
• Indigenous cows - for 40% of milch
population but only 24% production.
• Buffalo milk - 55% of production
• Average daily milk yield/ animal – 4.4
litres/animal .
• Wet animals – 69.3% (increased by about
12% over the last decade)
Milk yield by Animal type
40
14
46
24
21
55
0 20 40 60 80 100 120
Indigen
ous cow
Crossbre
d
Buffalo
milch populaton
Milk production
Percentage contribution
11

12. UP – 18%
AP & Rajasthan – 9% each.
Punjab & Gujarat – 8% each.
MP & Maharashtra – 7%
Karnataka 5 %
12
Fig : Top Milk production states in India

13. SWOT Analysis of Indian Dairy Industry
Strength
 Largest milk producer in the world.
 A huge base of around 11 million farmers.
 Traditional emphasis on consumption.
Weakness
 Poor feeding practices.
 Poor access to institutional
credit.
 Lack of cold storage facilities.
Opportunities
 Elastic demand; economic growth will
spur demand.
 Increasing preference for branded dairy
products.
 Growing focus on health and nutrients
in urban market.
Threat
 Nearly 80 per cent of the
Indian dairy industry is
unorganized.
 Removal of import duty has
led to the threat of dumping.
13

14. Present Status of the Market Milk industry in India
 India ranks first in respect of cattle and buffalo, second in goat and third in sheep
population in the world.
 India has more than 175 million cattle ---- about 13% of the global cattle population
(www.fao.org).
 However, in spite of this large cattle wealth and India’s position as the highest producer
of milk, productivity per animal is only 987 kg/lactation as compared to the world
average of 2038 kg/lactation (www.dahd.nic.in).
 In the advanced dairying countries, milk is produced from comparatively fewer, but high
producing animals.
 In countries such as Denmark and Israel, though the total number of bovine population
has steadily declined over the past decade, the total milk production has gone up, thus
pointing to increased productivity of animals.

15.  Main reasons for this acute shortage of milk
 low milk-yielding capacity of the average Indian cow
 acute shortage of feeds and fodder.
 Lack of organized milk production and collection,
 restricted transport facilities (especially refrigerated)
 and shortage of processing and marketing organizations have greatly hampered the
growth of the market milk industry.
 Poor-quality milk,
 wide-spread adulteration,
 and lack of quality consciousness among the great majority of consumers --- further
aggravated the situation.
Conti-----

16. 16
Conclusion:
 Dairy has a lot of potential to improve rural incomes, nutrition and
women empowerment, and hence is a very critical area for investment.
 A well-developed industry will enable millions of farmers to capitalize
on the emerging opportunities and make a significant impact on rural
incomes.
 On the flip side, weak efforts towards dairy development also can have a
significant but negative impact on the dairy industry.
 The growth rate has been sluggish over the past few years.