Introduction
The most recent discussion in the community is Budget 2023, where many processes and decisions were made to fill gaps in our country’s production and resources. One of the most important topics discussed was dairy processing. It is common knowledge that the White Revolution began in India in 1970 with the primary goal of increasing access to affordable food and improving the standard of living for small farmers whose livelihoods depended on agriculture. Additionally, the country’s economy was significantly impacted by the white revolution and now is the time for a change.
What Dairy Processing Implies?
Dairy processing is an essential part of the food industry and plays a crucial role in the overall economy of India. The dairy sector has been growing rapidly in recent years and is one of the largest contributors to India’s economy, providing livelihoods to millions of farmers and milk producers.
Using diary products has been a part of our cultural roots for a very long time. Domesticating animals for milk is not a new concept. Dairy products are used in almost everything and is the world’s largest producer and consumer of milk is one example that proves that dairy has been an inseparable part of Indians.
The current state of dairy processing in India
Dairy processing in India has come a long way in recent years, with the development of modern processing facilities, the use of advanced technologies, and an increased focus on quality control and food safety. India is now one of the largest producers of milk in the world, with the industry providing livelihoods to millions of farmers and milk producers across the country.
The world’s largest herd of cattle is located in India. Comparatively to the other major dairy producers, the milk production per cow is noticeably lower. The majority of the dairy products supplied in India are fluid milk, and almost all of them are consumed domestically. Because of this, there is an enormous opportunity for value addition and overall growth in the Indian dairy business.
Despite this progress, the dairy processing sector in India still faces several challenges, including a lack of investment in the industry, poor infrastructure, and low levels of technical expertise. These challenges have resulted in a limited capacity for milk processing, which has impacted the overall competitiveness of the industry.
The most recent edition of the IMARC Group publication on the Indian dairy industry is the subject of the report. The study is the result of extensive research into the Indian dairy industry and includes an in-depth examination of each major Indian dairy sector. The following aspects of the Indian dairy market have been thoroughly examined in the report, which is based on both secondary research and multiple waves of qualitative primary research.
What does ICRA say about dairy processing after Budget 2023?
The dairy processing industry in India is set to benefit from incentives outlined in the 2023-2024 Union budget, according to ICRA. The budget offers a 15% reduced tax rate for cooperatives that start manufacturing before March 31, 2024, leading to more small and marginal farmers participating in organized milk procurement. The government aims to cover uncovered panchayats and villages and increase competition in the dairy industry, resulting in private players facing more competition.
The low tax rates and increased funding may encourage the growth of the dairy processing industry. India is poised to play a greater role in Indo-Pacific nutritional security, leading to increased demand for both primary and processed food products. The government can strive for national and state-level partnerships to guarantee stable demand and raise prices for farmers and the agricultural ecosystem, leading to growth in the dairy processing sector.
Public-private partnerships are crucial for the growth of the dairy industry. Competition from cooperatives may affect private players. India’s food processing industry has an opportunity to integrate with countries in the Indo-Pacific region. National and state partnerships can help generate stable demand and improve price realizations for farmers. Increasing dairy processing is essential as demand grows.
The world’s largest herd of cattle is located in India. Comparatively to the other major dairy producers, the milk production per cow is noticeably lower. The majority of the dairy products supplied in India are fluid milk, and almost all of them are consumed domestically. Because of this, there is an enormous opportunity for value addition and overall growth in the Indian dairy business.
Despite this progress, the dairy processing sector in India still faces several challenges, including a lack of investment in the industry, poor infrastructure, and low levels of technical expertise. These challenges have resulted in a limited capacity for milk processing, which has impacted the overall competitiveness of the industry.
Government initiatives to support dairy processing
In recent years, the government of India has taken several steps to promote and support the dairy processing sector. These initiatives include:
National Dairy Development Board (NDDB): The NDDB is a government-owned organization that provides support to the dairy industry in India. It provides technical assistance, training, and support for the development of dairy cooperatives, which play a vital role in the dairy processing sector.
Pradhan Mantri Kisan Sampada Yojana (PMKSY): This government initiative aims to modernize and expand existing food processing units, establish new units, and create infrastructure for the dairy sector. The PMKSY also provides financial assistance to dairy farmers and processors to help them improve the quality of their products and increase their competitiveness in the market.
National Dairy Plan (NDP): The NDP is a comprehensive plan aimed at improving the productivity and competitiveness of the dairy sector in India. It provides support for the development of dairy processing facilities, training and capacity building, and research and development in the industry.
On the other hand, private investment in the Indian dairy industry has also grown in recent years. Due to the size and potential of the Indian market, both domestic
Conclusion
The dairy processing sector in India has the potential to play a crucial role in the country’s economy, providing livelihoods to millions of farmers and milk producers. Despite the challenges facing the industry, the government’s initiatives and support will help to promote and support the growth and development of dairy processing in India. With continued investment in the sector, India has the potential to become a leading player in the global dairy market.
