by – By Manish Bandlish
As we celebrate the 102nd birth anniversary of a visionary leader, Dr. Verghese Kurien, it becomes imperative to revere our heritage, the tremendous achievements we have achieved in the Indian dairy sector. Dr Kurien’s remarkable “Billion Liter Idea” laid the foundation for the world’s most extensive agricultural dairy development programme, forever changing the trajectory of India’s dairy industry. Today, India ranks high in terms of milk production, occupying the No. 1 spot with a notable 23 percent contribution to global milk production.
Dr. Kurien had rightly said: “India’s place in the sun would come from the association between the wisdom of its rural population and the skill of its professionals.” These words resonate as proof of the transformation we have witnessed. The success of the White Revolution can be attributed to the tireless efforts of millions of farmers across the country. Their enthusiastic involvement and dedication to adopting advancements in animal husbandry, food handling and veterinary care have elevated India’s dairy sector to global standards. The collective efforts of this country’s dairy farmers and the dairy industry continue to live out this legacy every day.
A script for India’s growth every day
India’s milk production amounts to more than 220 million tonnes, six times more than in the 1960s. The tailwinds of the Indian dairy industry attracted attention in the late 1990s, when it surpassed developed economies in terms of milk production. Today, India’s dairy and livestock sector contributes around 5 per cent to the country’s GDP and the contribution of the dairy sector to the agricultural sector is 24 per cent, valued at around Rs 10 lakh crore, making it becomes the tallest in the world.
The novel Operation Flood program, considered one of the most important rural development programs in the world, was more than a dairy program. Dairy production was considered an instrument of development that generated employment and regular income for millions of rural inhabitants. Today, more than 8 million households are directly associated with the dairy sector. Notably, women have 70 percent representation in India’s dairy workforce. This is a testimony that this sector is a formidable force, which no other sector can represent. The Indian dairy sector has been instrumental in providing the desired economic independence to this nation’s farmers, where they can access better civic services and incorporate more dairy animals.
India is not only the largest producer of milk but also the largest consumer of milk and milk products. Milk being intrinsically connected to our culture has also driven its consumption. Considered one of the fastest growing markets in the world, growing at around 15 per cent annually over the past 15 years, the dairy industry in India has grown to an impressive Rs 13 trillion. Furthermore, the Indian dairy market is expected to reach Rs 30 trillion by 2027. Rising income and growing preference for products like cheese, yogurt, curd, ice cream, etc., along with the shift towards products with emphasis on comfort, hygiene and health. and well-being will give the necessary boost to the sector.
Beyond its important economic contributions, the dairy sector is emerging as a vital player in addressing nutritional challenges. While milk is considered a healthy food, dairy stands out as the most affordable source of protein and provides a holistic and accessible solution to address widespread nutritional challenges. Furthermore, the dairy industry is actively involved in fortification efforts, particularly to improve the nutritional content of widely consumed products such as milk and curd. Greater inclusion of probiotics also offers an additional avenue to offer consumers an easy alternative to dietary supplements. Over the years, the industry has seen several initiatives aimed at improving nutrition within the dairy sector.
Efforts have also been made to spearhead programs to help the sector reach out to the masses. A notable example is the Gift Milk initiative of the NDDB Foundation for Nutrition (NFN), which is dedicated to eradicating malnutrition in school children by providing them with safe milk and milk products.
Additionally, the sector is at the forefront of instilling environmentally friendly initiatives throughout the value chain. From adopting renewable energy at village-level collection centers to including rainwater harvesting wells and water recycling plants at manufacturing levels, the sector is mitigating the judicious use of available resources. The Indian dairy sector continues to explore various options at all levels, including logistics and supply, to help contribute to the path towards sustainability. The need of the hour is to link consumers with the mission of sustainability, and this can be achieved by creating awareness and highlighting the importance of sustainable consumption and practices. Promoting responsible options such as symbolic milk, safe waste disposal, recycling, minimizing food waste and supporting sustainability initiatives can generate visible results. As seen in other industry segments, dairy organizations should also strive to be plastic waste neutral.
Opportunities and potential for advancement
The Indian dairy sector is poised for continued growth and opportunities to expand its potential by addressing certain key aspects. The buzzword of the current generation – entrepreneur – came to our country long before its time. The Operation Flood initiative ensured that the powers were in the hands of farmers, forcing them to decide their own trade policies, adopt modern production and marketing techniques, and receive services that they individually could not afford or manage.
Under the umbrella of the National Dairy Development Board (NDDB), Dr. Kurien’s longstanding initiatives and visionary leadership, along with crucial support from the Government of India through tax incentives, input subsidies and infrastructure provisions such as cold chains and electrification, further helped the transformative journey for the Indian dairy sector, fostering self-sustainability and economic growth.
The consumption of milk and dairy products is not limited to urban consumers only. Rural India is the largest consumer, but it is mainly based on self-consumption or neighborhood purchases. With the increasing demand for packaged and pasteurized milk, the rural sector can transform into a large market. Furthermore, the versatility of milk and its wide range of products, from traditional dairy products to innovative dairy-based food and beverage options, along with the growing openness of Indian consumers to experiment and explore further, reflects the untapped potential of the industry. . Additional investments in developing cold chain infrastructure in urban and suburban markets will also help expand coverage.
In remote areas, the potential for growth lies in expanding facilities for veterinary treatment, ensuring that the livestock population is perfectly aligned with the availability of veterinary hospitals. This expansion would not only address the current gap, but would also ensure better animal health care and have a positive impact on milk production. To maximize the potential of diverse supply, it is necessary to optimize supply chain operations. The perishable nature of the sector requires meticulous efforts to preserve freshness and safety, and by streamlining these processes, we can ensure the efficient and timely transportation of dairy products from farms to consumers.
Additionally, investing in intensive education and training programs on good dairy practices becomes a gateway to success. Equipping farmers with knowledge and skills is not only an opportunity but a catalyst for the production of safe, high-quality dairy products.
As we move forward, the journey we have achieved so far as an industry is truly remarkable, driven by a collective commitment to continuous improvement and innovation. In this journey, farmers are the backbone and their pivotal role in shaping the triumphs of the Indian dairy sector cannot be underestimated. The future must also be faced with optimism, where the adoption of modern technologies will pave the way for a White Revolution-2.0, fostering efficiency, productivity and sustainability to usher in a new era of progress and prosperity.
India’s dairy sector has the potential to further solidify its leadership position, ensure long-term profitability and contribute to the country’s economic development, while meeting the changing demands of the global market or, in other words, become in a dairy sector for the world.
As Dr. Kurien commented: “I am in the business of empowerment. “Milk is just a tool for that.” May milk be the same tool of change for future generations. On this National Milk Day, let us come together as an industry, share best practices, knowledge, experiences and adopt innovative techniques and the latest technologies. Let us initiate dialogues and debates, incentivize sustainability, promote research and innovation and commit to orchestrating a new chapter in the remarkable transformation of the Indian dairy industry.
(Manish Bandlish is the CEO of Mother Dairy).
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