(GIST OF KURUKSHETRA) Opportunities in Dairy and Fisheries Sector

(MARCH-2024)

Opportunities in Dairy and Fisheries Sector

Dairy and fisheries are two important sectors in Indian economy, contributing significantly to GDP and providing employment opportunities. India has one of the highest milk production in the world. The National Invest Promotion and Facilitation Industry reports that India produces 126 million litres of milk per day and contributes around 24.64 per cent of global milk production in the year 2021-22. The dairy industry in India is the largest in the world. It also plays a crucial role in supporting rural economies, where small farmers often rely on dairy farming as their primary source of income.

Policy Provision for Dairy and Fisheries Sector

In recent times, range of policy measures have been taken to promote sustainable development, increase productivity, and tackle the challenges faced bythe dairy industry.
The recent initiatives include introduction of Rashtriya Gokul Mission (RGM), National Livelihood Mission (NLM), Livestock Health and Disease Control (LHDC), National Programme for Dairy Development (NPDD), National Animal Disease Control Programme (NADCP), Diary Infrastructure Development Fund (DIDF), Animal Husbandry Infrastructure Development Fund (AHIDF) etc.
By promoting the use of high-genetic-merit bulls and strengthening artificial insemination services, the RGM aims to increase milk production sustainably. Further, NLM underscores the importance of entrepreneurship development, innovation, and extension services in the livestock sector.
By promoting employment generation, fostering risk management through livestock insurance, and investing in research and development, the NLM seeks to increase productivity and create a more resilient livestock industry.
To promote animal health, LHDC and NADCP have been implemented. The LHDC’s objective is to eradicate and control critical diseases through the implementation of preventive vaccination programmes and the strengthening of veterinary infrastructure.
The NPDD, with its dual components, focuses on enhancing the quality of milk and increasing the share of organised milk procurement. This initiative aims to create market linkages, strengthen capacity building, and boost the overall efficiency of dairy production in specific regions.
The SDCFPO scheme, focusing on financial support during crises, highlights the government’s commitment to ensuring stable market access for dairy farmers. By providing soft working capital loans to cooperative federations, the initiative aims to mitigate the impact of adverse market conditions and natural calamities. This proactive approach contributes to the resilience of the dairy sector and ensures the well-being of farmers, crucial stakeholders in the industry.
Prior to PMMSY, to address the infrastructural requirements for fisheries sector, Fisheries and Aquaculture Infrastructure Development Fund (FIDF) was developed during 2018-19. It provides concessional finance to the eligible entities including sub-national governments for the development of identified fisheries infrastructure facilities through nodal loaning entities. In addition, the Kisan Credit Card (KCC) facilities has been extended to animal husbandry and fisheries farmers since 2018-19.

Challenges

Indian dairy and fisheries industries have experienced significant growth, positioning themselves as prominent players in the international market.

However, these industries face challenges resulting from supply chain interruptions and the effects of climate change.
Disruptions in transportation insufficient cold storage facilities, and distribution barriers may hinder the seamless movement of dairy products from producers to consumers, potentially jeopardising the industry’s growth trajectory.
The fisheries sector also confronts supply chain-related challenges.
To maintain its competitive advantage, it essential to ensure the prompt and efficient distribution Factors such as inadequate logistics and insufficient processing facilities may impede the sector’s overall success.
Climate change poses a significant challenge to both the dairy and fisheries industries. The impact of climate change on these sectors is two-fold.
Firstly, shifts in weather patterns, rising temperatures, and unpredictable environmental conditions can directly affect production levels and the quality of output.
Secondly, these challenges pose a threat to the livelihood of those dependent. Moreover, the consequences of climate change are not limited to the quantity and quality of dairy and fisheries products. The looming threat of climate change has significant implications for the livelihoods of individuals who depend on these sectors.

Way Forward

Addressing the inefficiencies in the supply chain by investing in infrastructure and technology, implementing climate-smart practices, and promoting innovation can help strengthen the Indian dairy and fisheries sectors against the challenges they face.
By pre-emptive addressing these issues, the industries can continue to prosper, contributing to the country’s economic growth while ensuring food and nutritional security and sustainability for the long term.