Boosting Dairy Business in Northeast

Union Minister for Fisheries, Animal Husbandry,and Dairying Rajiv Ranjan Singh has flagged the issue of low per capita average of milk in the Northeast region compared to the national average and underscored the need for the region to take steps to achieve self-sufficiency. The dairy farmers in the region will be keen to scale up production only when there is adequate infrastructure for milk procurement at the nearest distance. Assurance of the remunerative price of surplus milk procured from them is another key factor that determines the growth in the dairy sector. The region needs more dairy entrepreneurs and cooperatives to unlock its potential in the sector. The availability of cattle feed and fodder at an affordable cost is also crucial for bringing down input costs for dairy farmers of the region and for transforming traditional livestock-rearing practices into a gainful commercial venture. Milk cooperatives increasing wholesale and retail prices of milk in the region on account of an increase in input costs driven by rising fodder prices explains why most traditional dairy farmers are reluctant to scale up their production. Rising milk prices also create hurdles for low-income households in increasing household milk consumption, triggering demand-side apprehension among farmers about investment in dairy activities going bad. Challenges notwithstanding, livestock rearing being a traditional and integral part of the life of Indigenous communities, the region offers tremendous potential for a turnaround in the dairy sector. The central government plans to provide Rs 250 crore for the expansion of dairy infrastructure and increasing milk procurement capacity of the region from 1.5 lakh litres per day to 3.5 lakh litres per day, and onboard 70,000 new farmers into the cooperative network is good news. Timely release, utilization, and adherence to target dates of the projects to be taken up with this fund are critical to achieving the objectives. Building capacities of cooperatives in the dairy sector to prepare comprehensive Detailed Project Report (DPR) by roping in professionals is essential to ensure judicious utilisation of available funds and successful project execution. Sadly, the region’s lack of capacity in the DPR preparation has been a major impediment to the desired growth in different sectors. While various central ministries harp on quality DPR preparation, the region has miserably failed to build its capacity as it continues to overlook this important aspect. Various dairy development schemes that the central government Department of Animal Husbandry and Dairying has been implementing to supplement the efforts of the state governments for milk production and milk processing are: the National Programme for Dairy Development (NPDD), Supporting Dairy Cooperatives & Farmer Producer Organisations engaged in dairy activities (SDCFPO), Animal Husbandry Infrastructure Development Fund (AHIDF), Rashtriya Gokul Mission (RGM), National Livestock Mission (NLM); and Livestock Health and Disease Control Programme (LHDCP). The central government says that these schemes help improve milk production, strengthen dairy infrastructure, enhance the availability of feed and fodder, provide animal health services, reduce the cost of milk production and also help to enhance income from dairy farming. Dairy farmers, who are the primary stakeholders in the sector, are passive beneficiaries, and exploring the scope of these schemes to make them direct beneficiaries of some incentives in some components of this scheme can be expected to generate interest among them about other government interventions and start taking more interest in finding out if the ecosystem has already changed and become favourable for boosting milk production. Livestock insurance is a laudable intervention in the sector. It can help the region’s dairy farmers who suffer livestock losses during floods or due to outbreaks of diseases. The central government has also streamlined the Livestock Insurance programme by reducing the share of premium contribution by a beneficiary to 15% which earlier ranged between 20% and 50% for various beneficiaries and categories of states. The remaining premium share is to be contributed by the central government and state governments on a 90:10 basis for the Northeastern states. Also, the number of animals to be insured by one beneficiary has been increased, and now one beneficiary can insure 100 small animals and 10 large animals. The premium payment and claim procedure being simple and farmer-friendly and states in the region releasing their shares timely is essential for the success of the programme. Lessons must be learnt from the poor implementation of the flagship crop insurance scheme–Pradhan Mantri Fasal Bima Yojana– to remove the hurdles in the animal insurance programme. Poor implementation of schemes makes intended beneficiaries reluctant to participate in various activities of the schemes and programmes as they become apprehensive of their time and energy going to waste. Public-private partnership infuses schemes and programmes with professionalism, the lack of which among some government officials and employees leads to poor implementation. The Northeastern states must address such gaps for a turnaround in their dairy sectors.