Livestock Development and Globalisation of India's Economy | Animal Husbandry & Veterinary Science Optional for UPSC PDF Download

Livestock and their Importance in the Indian Rural Economy

• Livestock like cattle, buffalo, sheep, goats, horses, pigs, poultry, etc., are crucial in India for purposes such as food, draught, security, and more.
• Ownership of livestock often signifies status in many societies.
• India boasts one of the world's largest livestock populations, including cattle, buffaloes, sheep, goats, and poultry.
• In 2004-05, India produced significant quantities of milk, eggs, wool, and generated power through livestock.
• Livestock contribute substantially to agricultural operations as a power source.

Contribution of Livestock to the Agricultural Sector:

• The livestock sector's contribution to agricultural GDP has increased from 17% to 29%.
• It provides regular employment to 18.4 million people, constituting 5% of the total workforce.
• Cattle, buffalo, and poultry are highlighted as essential contributors to the livestock sector.
• Milk comprises a significant portion of the sector's output value, with its share consistently rising.

Significance of Poultry in Livestock Production:

• Poultry has shown substantial growth in numbers and output, with eggs and poultry meat making up a notable percentage of the sector's output value.
• Wool and hair make relatively smaller contributions to the sector's output value.
• Dung plays a vital role in the rural economy as both a fertilizer and an energy source for cooking.

Role of Livestock in Rural India:

• Animal husbandry is a critical activity in rural India, with a majority of rural households owning livestock.
• Livestock significantly contribute to smallholder farming systems, accounting for a substantial portion of farm income.
• Livestock play a crucial role in providing employment opportunities, particularly for women and in arid regions.

Livestock Farming in Arid and Semi-Arid Regions:

• In arid areas, livestock farming is a primary source of livelihood, utilizing scarce resources effectively.
• Livestock in these regions help convert crop residues into valuable food, providing stability in income compared to erratic crop production.
• The surplus production of milk, meat, and wool in these areas enables trade, contributing to sustained income for farming families.

Developmental Efforts in Cattle Development

Overview of Livestock Production Progress

• The livestock production sector has made significant advancements over the past five decades.
• The post-independence era was characterized by planned development of the national economy.
• One major improvement was seen in milk production, which rose from 174 million tonnes in 1951 to a million tonnes by 2004-05.
• This increase led to a rise in per capita availability of milk from 105 grams to 226 grams per day during the same period.

Key Village Scheme

• The Key Village Scheme was introduced during the First Five-Year Plan, starting in 146 villages and expanding to 583 villages by the end of the Fourth Five-Year Plan.
• Its primary objective was to enhance cattle quality through better breeding practices, improved feeding, health care, and milk marketing strategies.
• However, by the end of the Third Five-Year Plan, it was evident that the scheme had limited impact due to various reasons.

Shortcomings of the Key Village Scheme:

• The implementation was limited to a small scattered area.
• The scheme covered an insufficient cattle population.
• Inadequate technical inputs were provided.
• Lack of proper marketing facilities hampered the scheme's success.

Intensive Cattle Development Project (ICDP)

• To address the limitations of the Key Village Scheme, the Intensive Cattle Development Project (ICDP) was launched.
• The ICDP aimed to rectify the shortcomings of the previous scheme and improve cattle development on a larger scale.

The Intensive Cattle Development Project

• The project started in 31 districts during the Third Five-Year Plan and expanded to cover 122 project areas and all key villages by the end of the Sixth Five-Year Plan.
• ICDPs were situated in specific milk sheds within cattle and buffalo breeding areas, aiming to include 100,000 breedable females in each project.
• Key components of the program included technical support for health, feeding, fodder production, and facilities for artificial insemination using liquid or frozen semen.
• Efforts were made to establish links for marketing milk by setting up dairy plants.

Research and Development Initiatives

• An important advancement was the introduction of frozen semen technology and crossbreeding indigenous cattle with European breeds.
• The Indian Council of Agricultural Research set up five research stations to focus on crossbreeding cattle and develop breeds suitable for local conditions.
• Crossbreeding projects, including bilateral initiatives, aimed to improve cattle breeds, but many did not succeed in evolving new breeds due to limitations in field animal usage.
• The Indo-Swiss Project in Kerala effectively utilized frozen semen and field data to enhance crossbred bulls, leading to the stabilization of a local breed called "Nandini."

Buffalo Development in India

• Traditionally, buffaloes have been the primary source of milk production in India.
• Buffalo development lacked attention in successive plans, with initiatives like the All India Coordinated Research Project on Buffaloes and the Central Institute for Research on Buffaloes yielding limited results.
• The organized dairy sector recognized the buffalo's significance, driving its development through market incentives and price support.
• Challenges in enhancing buffalo productivity include the absence of progeny testing for artificial insemination (AI) bulls.

Sheep and Goat Development

• There has been a consistent increase in the population of sheep and goats in the country with a focus on enhancing wool production in terms of quality and quantity.
• The rise in wool production can be attributed to the growth in the sheep population.
• Despite efforts by the Central Sheep and Wool Research Institute in Rajasthan to develop superior sheep breeds like "Avikaleen" and "Avivastra," the practical impact of these initiatives has been limited.
• Several factors contribute to the challenges faced in improving wool quality, including inadequate technology, poor stakeholder response, and trade policies affecting wool imports.
• The country's wool production was 48.5 million kg in 2004-05, falling short of the 70-80 million kg demand from the woolen textile industry.
• Due to the unsuitability of domestically produced wool for products like carpets and floor coverings, the textile industry heavily relies on imports.

Poultry Production

• Commercial poultry farming in India commenced in the 1960s with the import of grandparent stocks from reputable companies.
• The industry initially had a slow growth rate but gained momentum post the green revolution, aided by the availability of agricultural by-products.
• Egg and meat production in the poultry sector has seen remarkable growth over the past three decades.
• The egg production figures have surged from 2,881 million in 1961 to 23,660 million in 1991 and further to 40,000 million in 1995.
• The broiler industry emerged in the 1970s, witnessing a rise in production from 4 million birds in 1971 to over 3.04 billion kilos by 2002-03.
• Poultry farming has created employment opportunities, particularly in urban and suburban areas, transitioning from traditional to intensive farming practices and larger-scale operations.

Impact of Globalisation on Dairy Sub-sector in India

Dairy Production in India

• India is the world's largest producer of milk.
• Milk production is mainly carried out by small-scale producers spread across the country.
• The production is largely based on converting crop residue and agricultural by-products into high-value food products.
• Milk production is more concentrated in cereal-producing regions.
• Indian dairying is known for not using land for milk production and being labor-intensive.

Organised Dairy Sector

• The organized dairy sector manages around 10% of the total milk production in India, contributing to about 30% of the total milk marketed.
• Small-scale producers' scattered production necessitates the organization of cooperatives to streamline milk collection.
• Cooperatives like the AMUL pattern have been successful in efficiently utilizing rural resources.

Private Sector in Dairy Industry

• Private sector focuses on high-margin milk products and relies on intermediaries for milk collection.
• Some projects have shown success in directly engaging with milk producers for collection and distribution.
• Private sector practices sometimes result in lower payments to producers and higher prices for consumers.

Current Scenario

• The per capita availability of milk is still below nutritional requirements.
• Recent surpluses in milk production have led to stockpiling in dairy plants.
• Some areas experienced milk surplus, while others faced shortages, indicating fluctuating demand.

Export of Dairy Products from India

• The export of dairy products from India was previously limited to a small quantity of ghee to the Middle East and Gulf countries under a quota system, managed by the National Dairy Development Board.
• Due to surplus milk availability, exports are now deregulated, allowing products to be freely exported after registration with the Agricultural and Processed Food Export Development Authority (APEDA).

World Trade in Dairy Products

• Global dairy product trade is characterized by significant imbalances, with a handful of countries dominating exports, while most others rely on imports.
• The European Community (EC) is a major exporter, with significant shares in cheese, butter, and milk powder, primarily directed to various regions like Western Asia, Western Europe, and Africa.
• New Zealand and Australia also play vital roles in the dairy trade, exporting notable amounts of cheese, butter, and milk powder to regions like South and East Asia, the former USSR, and Oceania.
• Australia and the USA contribute to global exports, with the USA focusing on Central America and Australia on South East Asia.

World Trade Organization (WTO)

• The WTO evolved from the General Agreement on Tariffs and Trade (GATT) established in 1947, with India as a founding member of both GATT and the WTO.
• India expects resolution of outstanding implementation issues, particularly in agriculture, through WTO agreements.
• While separate agreements for specific sectors like fisheries and dairy products were not reached in WTO discussions, India remains hopeful for satisfactory resolutions.

Specific Dairy Products

Cheese

• The Indian cheese industry is at a nascent stage and lacks the variety demanded in the international market, limiting immediate export opportunities.
• To compete globally, India needs to enhance its cheese manufacturing technology to meet international standards.

Butter

• Opening of minimum import access may shift New Zealand and Australia's butter exports to the EEC market, potentially raising international butter prices.
• India could capitalize on this by exporting butter to nearby regions in response to changing market dynamics.

Milk Powder

• Approximately three million tonnes of milk powders are traded globally, with significant demand for Skimmed Milk Powder (SMP) in regions like South America, South-East Asia, and Africa.
• India is poised to benefit from anticipated increases in international SMP prices and can leverage this opportunity to expand its market presence.

Dairy Development in India:

• The Indian dairy industry has shown significant growth, surpassing an annual output of over 69 million tonnes by 2003. This growth not only positions India as a global leader in milk production but also signifies a consistent increase in the availability of milk and its by-products.
• The Government of India has implemented various schemes to enhance the dairy industry, expand its reach to hilly and underdeveloped regions, provide support to struggling dairy cooperatives, and elevate standards and quality.

Export of Leather, Meat, and Meat Products:

• Leather and leather products, as well as meat and meat products, play a significant role in India's livestock sector exports. These exports have seen fluctuations over the years, with variations in values and market dynamics.
• The export destinations for these products primarily include regions in Africa, South and East Asia, and West Asia. There have been shifts in export markets over time, influenced by factors like bans and subsidies in different countries.

Meat Production Trends:

• India has experienced growth in meat production for both domestic consumption and exports. The industry has witnessed changes in traditional practices, with the modernization of meat processing and the establishment of processing plants in key cities.
• The export of meat and meat products from India has evolved over the years, with fluctuations in values and shifts in major export markets. The country's strength lies in buffalo meat, which serves as a cost-effective alternative to beef in certain markets.

Opportunities for India in Meat Export:

• India stands to benefit from the changing dynamics of the global meat market, particularly with the reduction of subsidies in the European Economic Community (EEC). The country's focus on buffalo meat presents opportunities for growth, especially in markets seeking affordable alternatives to beef.
• With the potential increase in international beef prices, India's buffalo meat exports could further expand, provided there is a concerted effort to promote the rearing and fattening of buffalo calves in rural areas.

Meat Sector Potential and Export Trends

• Several countries have restricted meat imports from India due to diseases like rinderpest and foot-and-mouth, hindering trade opportunities.
• Establishing disease-free zones could eliminate this barrier, paving the way for increased exports.
• Exporting mutton in chilled or frozen forms holds promise, particularly in the Gulf and Middle East regions.
• Developing modern infrastructure such as state-of-the-art abattoirs, cold storages, and refrigerated transports is crucial.
• Indian Institute of Foreign Trade conducted a study projecting potential meat exports to reach Rs. 1,000 crore annually by the late 1980s.
• Due to various challenges like structural and institutional shortcomings, actual exports only reached Rs. 772 crore by 1998-99.
• Export figures gradually increased to Rs. 781 crore in 1999-2000, Rs. 1,457 crore in 2000-01, and Rs. 1,694 crore in 2003-04.

Wool Sub-sector Overview

• India's wool production has remained around 40 million kilograms over the past decade.
• Rajasthan contributes about 45% of the wool suitable for carpet making.
• Woollen industries are dispersed across states like Punjab, Haryana, Rajasthan, UP, Maharashtra, and Gujarat.
• Significant concentrations of woollen units are found in Punjab (40%), Haryana (22%), and Rajasthan (10%).
• India faces a scarcity of high-quality wool needed by organized mills and the hosiery sector, relying heavily on imports.
• Increasing quantities of New Zealand wool are imported for blending with domestic wool, especially for carpets.

Production and Import Statistics for Wool

• Indigenous wool production figures have fluctuated over the years, with a reliance on imports to meet demand.
• Import data for raw wool and rags shows varying quantities brought into the country annually.
• For instance, raw wool imports amounted to 66,000 tonnes during 1999-2000.

Government Policy on Wool Import

• The Government of India has maintained a lenient stance on wool imports, exempting customs duty on raw wool imported by registered apex handloom co-operative societies.
• This exemption was extended to the Khadi and Village Industries Board in 1989-90, leading to a decline in the use of domestically produced wool.
• The liberal import policy has hindered the growth of the Indian wool market, impacting sheep and wool development programs in various states.

Export of Wool and Woollens

• Export of hand-knotted carpets, wool, and woollens plays a vital role in generating foreign exchange for India.
• Steady growth in exports has been facilitated by the lenient import policies regarding raw wool.
• However, the over-reliance on imports due to globalization may negatively affect domestic wool production in the future.

Sheep Husbandry Challenges

• Sheep farming, mainly practiced in hilly and desert regions, faces challenges due to land constraints and restrictions on grazing areas.
• The shift towards liberalized imports may further impact indigenous production, leading to increased dependence on imports in the woollen industry.

Poultry Sub-sector Growth

• The poultry industry has witnessed significant growth in egg and meat production over the past three decades.
• India's potential in international poultry trade is promising, with lower production costs compared to developed nations.
• Emphasis on processed eggs and poultry in the global market necessitates timely entry and collaborations with fast-food chains.

Export Development Challenges

• Consistency: Inconsistent export policies have hindered India's reputation as a reliable exporter, especially in sensitive commodity markets.
• Quality Control: Stringent quality standards in production and processing are crucial for livestock product exports, requiring improvements in infrastructure and production practices.
• Infrastructural Bottlenecks: Upgrading transport and port facilities, as well as meeting international standards in processing plants, are essential for export growth.
• Technology and Production: Enhancing technology, brand image, and production for exports are necessary steps for developing a competitive edge in the global market.