Food & Beverage News: F&B Specials - NDDB eyes WB aid to boost India’s milk production

The National Diary Development Board (NDDB) is planning to raise around Rs 17,000 crore from the World Bank over a period of 15 years, mainly for ‘breeding and feeding’ of milch animals all over the country.

At the 38th Diary Industry conference held in Bangalore last month, Dr Amrita Patel, chairman, National Diary Development Board, said that the funding would be used to double milk production in the country. For this NDDB is getting a World Bank assistance to improve the productivity of milch animals through genetic improvements and optimal use of feed.

“There are 14 states that contribute to the high milk production of the country, they will easily be able to benefit, while for the smaller producers, we will relax the norms for getting the loan amount,”she said.

The amount would be used for various schemes of the National Diary Programme and would guarantee that the country is able to meet the expected demand of 180-million tonnes of milk demand by 2012, Patel said. However, she added, ”Nothing is final yet, it’s all still a plan and we are still in a dialogue.”

The National Diary Project, which is expected to be implemented within 2010, also aims to ensure that through the initiative, both cooperatives and private players in the organised sector are able to increase their share of marketable surplus from 30 per cent, to 65 per cent, said Patel. Amrita also stressed on the need to draft the Bovine Breeding Bill. “A greater discipline is required to be introduced to improve the quality of our breeding service. It is time the department of animal husbandry, dairying and the fishery prepare a draft Bovine Breeding Bill which aims at regulating bovine breeding activities.”

NR Bhasin, president of the Indian Dairy Association, criticised the Centre for excluding dairy from enjoying higher remuneration, unlike other sectors in agriculture. “The investments in agriculture are higher, while dairy has been ignored in most instances despite it being a high revenue-generating sector,” Bhasin said. He also raised questions on the export of oil cake and meat. “Why is there a 7 per cent incentive for oil cake and meat, when the farmers in the country are struggling to meet milk demands and sustain their cattle?” he asked.

The improved purchasing power of Indian households is pushing up dairy consumption in both urban and rural areas. But the demand is fast outpacing production and may lead to a severe shortage, unless productivity rises quickly, said Dr Patel. “The dairy industry must respond to the rapidly growing demand for milk as the projected demand of 180 million tonnes by 2021-22 would require our annual increase in milk production, which has been growing at 2.5 million tonnes to 5 million tonnes,” she said.

Dr Patel was not in favour of imports making up for the shortfall, because India was the largest milk producing country in the world. Such a move would spike the prices of milk products, she said.

NDDB has a plan in place to double the milk production over a span of 15 years by improving productivity through genetic improvement of the milch animals and optimal use of feed and fodder to fully realise the genetic potential.

The plan sought to make certain that the organised sector that consisted of cooperative and private sector, increase share of marketable surplus from 30 per cent to 65 per cent. This will guarantee food safety and provide a direct link to milk producers, with remunerative prices and technical inputs.

Many companies from across the country had put up stalls at the conference. These included Krishna Industries from Mumbai, dealing in milking machine, bulk milk coolers and stainless steel milk cans, Goma from Mumbai had high pressure crate washer, Khambette Kothari Cans and Allied Products Pvt. Ltd presented bulk milk coolers, KMF had its range of products, ISF Industries Pvt. Ltd from Chennai had direct expansion cooling tanks, Bimal Industries from Sirmour in Himachal Pradesh had world wide dairy equipment, GRB, hosur range of products, Amrut Dairy products Ambala Cant had skim milk powder, Vijaipac from Hyderabad had the cup filling machine for curd.