Indian dairy sector: Time to revisit operation flood

Abstract

The demand for milk and milk products is rapidly increasing with achievement of high economic growth in India. Chances that demand growth will surpass the output growth are high. In the past, substantial increment in production was achieved with the implementation of a comprehensive dairy development programme—operation flood. It is contented that the future increase in milk production will have to be met by increasing the productivity of dairy animals. However, productivity augmentations are difficult to come by in the given circumstances. While proposing that greater availability of concentrate feeds was primarily responsible for improved production in the past, it is opined that available technology is of limited use in supporting future productivity improvement. Similarly, genetic improvement of animals, which was largely responsible for milk production increases in the past, will prove contentious. Constraints in the supply of feed and fodder are also highlighted. Hindrances in the delivery of veterinary support services, which are likely to play a crucial role, are outlined. Lack of research and development support and adequate market access to smallholders as factors contributing to the list of challenges are identified. Issues of contemporary market failing to incentivise the producers are highlighted besides identifying the reasons for resistance to shift to neo-liberal market structures. Finally, climate change, as having direct and indirect adverse effects on the production, is identified as a factor adding to the complexity of situation. While seeking to analyse the current challenges confronting the Indian dairy sector in the face of imminent demand increases, it is concluded that a multifaceted programme of the nature and extent of operation flood is needed. It is suggested that this will provide the much required momentum to different components of the milk production system.