India’s dairy industry has undergone a remarkable transformation since independence, evolving from a milk-deficient nation to the world’s largest milk producer and consumer. However, despite its achievements, the industry faces challenges that necessitate a second White Revolution.
In the early years after Independence, India struggled with a milk deficit, relying heavily on imports while per capita consumption remained low. Over time, through strategic initiatives like the White Revolution, India’s milk production surged from 17 million tonnes (mt) in 1950-51 to an impressive 230.58 mt in 2022-23. According to the FAO Dairy Market Review (2023), India’s milk production is projected to reach 236.35 mt in 2023-24, reflecting a 2.5 per cent increase from the previous year, surpassing the global average growth rate. This shift catapulted India to the position of global leader in milk production and consumption.
The White Revolution played a pivotal role, elevating India’s global milk production share to over 24 per cent with a processing capacity of 126 million litres per day. The dairy sector emerged as a significant contributor to the national economy, accounting for 5 per cent of the GDP and employing around 80 million people.
Despite these accomplishments, the industry faces pressing challenges that demand urgent attention. Factors like population growth, the pre-eminence of milk as the most universally consumed source of protein and a growing focus on nutrition are driving up demand for the commodity.
Production is struggling to keep up.
Productivity puzzle
That’s because despite its dramatic turnaround from the post-independence years, India’s dairy sector is grappling with a productivity problem. For instance, the average milk yield of exotic or crossbred cows in India stood at just 8.52 liters per day. In comparison, cows in the United States of America produced nearly 30 liters of milk a day.
This is leading to a growing demand-supply gap, which combined with the rising cost of production owing to an increase in feed costs, is pushing up milk prices.
With the increase in the price of milk only accelerating and outpacing broader inflation — with prices having risen 15 percent in the last year alone — industry needs to act urgently to avoid a collapse in consumption.
White Revolution 2.0
The key lies in triggering a White Revolution 2.0.
To do that India needs to solve its productivity puzzle.
Boosting productivity through modern technologies like embryo transfer and sex-sorted semen is crucial. These innovations improve breeding outcomes, enhance genetic stock, and increase the likelihood of female calves, ultimately raising productivity.
Embryo transfer technology, for instance, is increasingly being hailed as a game-changer. It can enable us to breed cows of better genetic stock by increasing the number of calves born from cows possessing high genetic merit.
The use of sex-sorted semen increases the probably of female-only calves being born to over 90 percent as opposed to 50 percent with natural breeding, or even artificial insemination, using conventional semen.
These practices all hold great potential, but the fundamental aspect is knowing when an animal is in the right window for impregnation.
Leveraging digital tools to monitor animals’ reproductive cycles — like sensors that can monitor an animal’s body temperature and so on and can help determine whether it is in the right window for impregnation — can significantly enhance insemination success rates.
As a matter of fact, leveraging digitisation has the potential to boost insemination success rates from 35-40 percent to over 70 percent.
A holistic approach
But we also have to look beyond insemination techniques to solve India’s productivity riddle. A truly holistic approach must also encompass improved animal nutrition.
Animal nutrition directly impacts milk yields. India’s limited nutritious feed production – with the country producing just 15 million tonnes of feed when it needs somewhere in the region of 70 million tonnes –underscores the need to prioritise feed security5.
But fodder is not easy to come by. India is facing a 11.24-32 percent green fodder and 23 percent dry fodder deficit, respectively. 6
It must thus turn to silage.
Silage can play an important role in ensuring animals get the right nutrition, so much so that the American USDA estimates that good quality silage can fulfil as much as half of a cow’s energy needs.
However, growing silage necessitates cultivating more land, prompting exploration of utilising wastelands for fodder production.
Collaborative efforts involving the government, cooperatives, and the private sector are vital for implementing these strategies effectively.
By fostering a comprehensive approach and leveraging modern technologies, India can overcome productivity challenges, ensuring sustained growth in its dairy sector. This concerted effort can propel India from a milk-secure nation to a milk surplus country, continuing the legacy of its dairy success.
The author is Managing Director, Godrej Agrovet Ltd