Fodder strategy for dairy sector

The Assam government’s plan to provide a Rs 5 a litre support price to dairy farmers selling milk through cooperative societies is aimed at boosting milk production in the state. Controlling fodder inflation is critical for the sustainability of milk production. If fodder inflation is not checked, it may neutralise the impact of support prices, the details of which are yet to be worked out. India is the largest producer of milk in the world and accounts for 24% of global production. Per capita consumption of milk in India, at 444 grammes per day, is the highest as compared to the global average of 322 grammes per day, but the devil is in the details. The per capita availability of milk in Assam is only 77 grammes per day. Per capita availability of milk in the state in 2009-10 was 69 grammes, which shows that over the past 12 years, the state has been able to increase per capita availability only by 12 grammes per day. Contrasted to this slow growth in production in Assam, per capita availability of milk in Punjab increased to 1271 grammes/day from 944 grammes/day, 1150 grammes/day from 509 grammes/day in Rajasthan, and 1081 grammes/day from 662 grammes/day during the same reference period. Due to dependence on animal protein, the demand for milk consumption cannot be expected to rise manifold as in states where the population primarily sources protein from milk. Yet, per capita availability of milk in Assam is far below the 300 grammes per day recommended by the Indian Council of Medical Research for requisite nutrients. This also speaks volumes about the need and scope for boosting milk production in the state. Increasing milk production will help farmers augment household income, which in turn will increase their purchasing capacity while strengthening the rural economy. Building awareness about the benefits of milk and dairy products alone cannot lead to an increase in demand for more production. Price plays a crucial role in influencing demand. Prices of milk and milk products in the state have gone up, with the milk cooperatives and producers attributing it to inflation and rising transportation costs due to a hike in fuel prices. The support price can be expected to stabilise the prices of raw milk and milk derivatives, provided fodder and fuel prices remain steady and do not increase further. Fodder inflation moderated marginally in February but continues to be on the higher side, which continues to be a real worry for dairy farmers. Fodder and feed contribute up to 50% towards livestock productivity and production, but for small and marginal farmers with small landholdings owning about 80% of the country’s livestock, increasing green fodder production at the individual farmer’s level is a huge challenge. Cooperative farming of green fodder is a sustainable solution, but farmers will be hesitant to take it up on a commercial scale without experiencing successful demonstrations on model farms in their villages. The mismatch between rising milk production, per capita availability, and fodder availability will continue to increase India’s dairy sector’s import dependence to overcome the fodder shortage. The state government reviewing the implementation status of its ‘Fodder Resource Development Plan for Assam’ will help evaluate the overall fodder production in the state and challenges that remain unaddressed. A strategy paper on the feed and fodder sector in Assam setting targets and goals for the period 2019–2024 was also prepared, indicating that a lot of work at the planning stage had been done. The question that remains unanswered is why milk production has not increased to the desired level while milk prices have been hiked multiple times for rising fodder costs, despite these policy documents identifying the bottlenecks and suggesting remedial measures. The strategy paper also highlighted the problem of the state’s grazing area shrinking due to encroachment by human settlement. This sounds the alarm bell that if green fodder is not grown on a commercial scale within the state to make it available at an affordable price, many small and marginal farmers may be compelled to withdraw from the allied agricultural activity of milk production. Milk cooperatives articulating an effective strategy in collaboration with the state government for fodder production will be crucial for the sustainability of production among small and marginal farmers. If the supply from these farmers depletes, then boosting milk production in the state will remain a far cry. Drawing parallels with states where milk production has increased significantly despite fodder inflation can help policymakers in Assam identify gaps that perhaps need more attention. Increasing milk production and increasing per capita availability at an affordable price are vital for the state to improve its nutrition profile. The state government undertaking a comprehensive review of milk production at the time of working out the details of the direct benefit transfer of support prices to individual milk producers will go a long way in identifying critical gaps and finding workable solutions to bridge those. The challenges, however, should not be allowed to overshadow campaigns aimed at boosting milk consumption.