Andhra Pradesh has recorded the highest growth in both milk production and per-capita milk availability, 41% and 36% (approx.) respectively, in 2006-10.
The state of Andhra Pradesh has recorded the highest growth in both milk production and per-capita milk availability, clocking growth rates of over 41% and about 36% (approx.) respectively during the 5-year period of 2006-10.
However the state ranked 3rd in terms of milk production with over 1.1 million tons (mt) of milk produced annually, apex industry body ASSOCHAM said on Tuesday.
"Milk production across India has grown at a significant rate of about 19% during the aforesaid period with overall milk production crossing the 121 mt mark as of 2010-11, but despite India being the largest milk producer in the world, per-capita milk availability in India at 252 grams falls below the global average of 279 grams per person per day," according to a study titled "Unlocking The Growth Potential Of Indian Dairy Industry" conducted by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).
New Zealand (9773 grams), Ireland (3260 grams) and Denmark (2411 grams) are the top three countries in terms of per-capita milk availability.
Apart from AP, the states of Rajasthan (28%), Kerala (24.8%), Karnataka (24%) and Gujarat (23.7%) are among the top 5 states in terms of growth in milk production.
"It is imperative for India's dairy industry to streamline its value chain processes and integrate the smallholder dairy producers into the processing value chain in order to improve the overall performance of the industry, more so as they possess inherent strengths like low production costs, lower liabilities and limited liquidity risk," noted the ASSOCHAM study.
However, lack of knowledge and technical know-how, poor access to support services, limited access to credit and poor milk quality together limit the ability of smallholder dairy producers to take advantage of market opportunities.
"Growing at a compounded annual growth rate (CAGR) of over 4%, milk production in India is expected to rise to about 177 mt by 2019-2020 and that will help in meeting the projected demand of 150 mt by 2016-17 that has been envisaged in National Dairy Plan Phase 1," said D. S. Rawat, national secretary general of ASSOCHAM, while releasing the chamber's study.
The increase in the income level of an average Indian is being accompanied by a change in the food basket, with the monthly per-capita expenditure on milk and milk products in both rural and urban areas growing significantly by about 92% and 72% respectively, highlighted the study prepared by the ASSOCHAM Economic Research Bureau (AERB).
Uttar Pradesh (UP) commands the highest share of over 17% in total milk production followed by Rajasthan (11% share), Andhra Pradesh (9%), Punjab (about 8%) and Gujarat (about 8%), which are the top 5 states with a combined share of over 53%.
Punjab has recorded the highest per-capita milk availability of 937 grams as per the latest available data, followed by Haryana (679 grams), Rajasthan (538 grams), Himachal Pradesh (446 grams) and Gujarat (435 grams).
Andhra Pradesh has recorded the highest growth rate of about 36% in per-capita milk availability, followed by Kerala (21% approx.), Rajasthan (20% approx.), Karnataka (19%) and Gujarat (17% approx.).
"Concentration of milk production in some pockets together with the high cost of transportation has led to rising disparity among states in terms of per-capita milk availability," noted the ASSOCHAM study.
There is an urgent need to build strategies to increase competitiveness in all segments of the dairy chain - input supply, milk production, processing, distribution and retailing - recommended the ASSOCHAM study. "For promotion of the dairy sector in India, emphasis now needs to be more on how to involve and encourage the village population into proactively adopting the dairy industry as a viable alternative to the agricultural activity."
Promoting dairy entrepreneurship, strengthening the economic viability of dairy farms, increasing the link between rural production areas and urban markets, and promotion of small quantity packaging to meet the needs of the poor are certain key areas highlighted by the ASSOCHAM study in formulating a long-term growth strategy for the dairy sector. (INN)