Feb 7, 2020
Indian dairy sector hopes to see investment of Rs. 60,000 crore and creation of 10 million jobs in five years
India’s dairy sector is hoping a lot with the new budget as it wants to see up to Rs. 60,000 crore of new investment and creation of 10 million jobs in five years.
Budget 2020 gave the dairy industry a target of doubling the annual milk processing capacity to 106 million tonnes, from the existing 53 million tonnes (or from 140 million litres a day to 300 million) in five years.
R. S. Sodhi, MD, Amul brand explained that to process this massive capacity, the industry requires between R. 20 and 40 crore investment for every 100,000 litres of processing. Thus, the sector would attract a fresh investment of at least Rs. 60,000 crore. As every 100,000 litres of milk production creates 6,000 new jobs, the sector will see 10 million new jobs by 2025.
The Karnataka Milk Federation (‘Nandini’ brand) has begun examining the potential for a processing unit in the Mumbai area, setting aside Rs. 200 crore for the proposed expansion. It has started looking for sites near Mumbai (for a milk processing unit) to support supply of our Nandini brand, of milk and processed products, from local sources.
The Centre has also proposed the setting up of a national cold supply chain for perishables and to eliminate foot and mouth disease in cattle. Coverage of artificial insemination is proposed to be increased from the present 30 per cent to 70 per cent. Also, fodder farms and to link farming of grass to the rural employment guarantee scheme. “
Also, it is important to focus on green fodder availability, as it would attract huge investment in the dairy sector. The government grows green grass for use as fodder in advanced countries. In India, farmers, mostly small landholders, do animal husbandry only to the capacity of green grass growth in marginal land. Increase in grass availability.