December 16, 2013

India's per capita milk availability exceeds world average

India's per capita availability of milk reached 290 grams per day, slightly more than the world average which is about 285 grams per day.

This is according to the National Dairy Development Board (NDDB) chairperson, Amrita Patel, while delivering the keynote address at the 42nd Dairy Industry Conference organised by the Indian Dairy Association (IDA).

"Growth in milk production in our country, as reflected in the rate of inflation, appears to be satisfactory when compared to other protein foods like eggs, meat and fish," she said.

Over the last five years, India's milk production has increased by about 25 million tonnes compared to an increase of about 6.6 million tonnes in the US, 5.4 million tonnes in China, 2.7 million tonnes in New Zealand and 1.6 million tonnes in the EU.

Patel said the organised sector currently handles only 30% of the marketable surplus. In the interest of both producers and consumers, it is necessary to increase the share of the organised sector (cooperatives, producer companies and private players).

"The National Dairy Plan (NDP) has set this target over the next 15 years at 65%. But to achieve this, private companies would need to collect milk directly from producers as is being done by cooperatives and producer companies. Alternatively as is the case abroad, private companies need to explore sourcing their requirement of milk from co-operatives and producer companies. The co-operatives and producer companies would need to ensure quality, timely supplies and cost effectiveness when supplying milk to private companies," she stressed.

Private companies need to enter the liquid milk market in addition to marketing products since sale of liquid milk is likely to contribute to much of the trade in milk in India for quite some years.

"In future, it will be desirable that private sector and co-operatives work together to ensure that exports take place after meeting the domestic demand of both. If a higher price needs to be paid to match export prices, then this should be paid," she said.