Consumers’ Stakes in Assam Dairy Sector

Assam has set an ambitious target of producing 10 lakh litres of milk daily by setting up milk processing units in six districts. Currently, the state has the capacity to produce 1.5 lakh litres of processed milk daily. The proposed plans giving equal priorities to dairy farmers and consumers will be critical to achieving the goal. Daily per capita milk consumption in Assam is much less than the quantity recommended by the Indian Council of Medical Research (ICMR). Apart from the problem of availability, the rising retail price of milk poses a barrier to increasing the per capita consumption. Milk prices remaining affordable for consumers is crucial for boosting demand for processed milk and milk derivatives. Rising input costs, such as increasing cattle feed and fodder prices, have increased milk production costs, forcing dairy farmers to increase prices of milk in the state. Assam Fodder Mission achieving its goals is crucial to ensure the availability of fodder at affordable prices for dairy farmers to boost the production of raw milk and prevent retail prices from going up. The World Bank-funded project aims at making the state self-sufficient in fodder production. As fodder accounts for about 60 to 70% of the cost of milk production, an increase in purchased feed and fodder substantially increases production costs, leaving dairy farmers with no option but to raise the price for sustainable production. Milk being a perishable commodity, production at commercial scale requires farmers to procure dairy processing equipment and cold storage facilities to prevent wastage. The formation of cooperatives of dairy farmers and the government providing subsidies to the cooperatives for the establishment of milk chilling plants increases the commercial viability through the supply of an increasing quantity of milk supplied to private dairies. The informal dairy market is dominated by the sale of raw milk to individual buyers and sweet manufacturers locally, and the challenge is to gradually transform it into a more organised and formal market by focusing on hygienic production and maintenance of quality and food safety. Many consumers in Guwahati prefer fresh milk sold in loose form in polythene packets or poured from large aluminium containers at their doorstep, which is reflective of the perception of the quality of milk among them despite the adulteration risk. Many of them also buy milk sold in tetra packages at much higher prices, but they are not confident about buying branded pasteurised milk sold by private dairies. Addressing this gap can significantly contribute towards boosting production of processed milk and bring more individual dairy farmers to route their raw milk through dairy cooperatives they have either formed themselves or already existing private dairies and cooperative societies. Raising awareness among consumers about the importance of hygienic milk consumption and transparency of quality control by dairy cooperative societies is crucial for their demand to shift from unsafe fresh milk sold in loose form to pasteurised milk. Increasing food safety inspections to check the quality of milk at the sale point and random tests of samples of milk supplies at the doorstep by milk vendors and making public the findings will help consumers to make informed decisions about their choices and preferences when it comes to buying milk. Reports of the detection of adulterated milk seized in Guwahati and different places of the state are pointers to health risks to consumers posed by the sale of unsafe loose milk. Carrying out such inspections regularly and taking punitive action against such milk vendors is essential to effectively curbing the sale of adulterated milk in the city and elsewhere. The pragmatic solution to the problem of unsafe milk being sold is increasing the capacity of milk processing in the state and strengthening food safety inspection. Building awareness on increasing milk consumption in rural Assam also needs to be prioritised to achieve the ICMR recommended dietary guideline. Initiatives for improving the dairy farm sector in the state have so far been focused on addressing the supply side constraints. Special focus on demand-side interventions from consumer perspectives will help the government to articulate the right strategy to achieve the goals of various schemes and projects in the dairy sector. Awareness of health benefits of consumption of recommended quantities of milk will also influence consumers to pay higher prices whenever retail prices go up due to increases in input costs, but they must be provided credible information about the nutritional value of packaged and branded milk supplied by dairy cooperative societies. Boosting production of milk and ensuring remunerative prices will augment the household income of farmers and motivate them to look at the commercial potential of cattle rearing. Achieving the target of daily production of 10 lakh litres appears to be challenging due to the low level of current production and informal dairy activities accounting for the lion’s share of the dairy sector. Informed choices of consumers will make the target achievable if the government and dairy cooperatives act in a coordinated manner to remove all barriers in organised milk processing.