Expectations of the Indian Dairy Industry from Modi 3.0 in FY 25

As the Indian dairy industry looks to FY 25 under the leadership of Prime Minister Narendra Modi's third term, it anticipates a series of strategic interventions and supportive policies from the government. Given the industry's critical role in the national economy and its impact on rural livelihoods, several key areas need urgent attention to ensure sustainable growth and enhanced productivity.

1. Sufficient Allocation Based on Industry Size and Importance

The Indian dairy sector contributes significantly to the agricultural GDP and supports millions of rural households. Thus, it is imperative for the government to allocate sufficient resources to this sector. Adequate funding can drive research, infrastructure development, and technological advancements, ensuring the industry's growth keeps pace with global standards. A well-funded dairy sector can enhance productivity, improve milk quality, and boost exports, making India a key player in the global dairy market.

2. Focus on Productivity over Population

The focus should shift from merely increasing cattle numbers to enhancing their productivity. High-yield cattle breeds, better feed, and advanced veterinary care are essential for this transformation. Cost-effective strategies, such as artificial insemination with superior breeds and farmer education programs, can significantly boost milk yield. This approach not only increases farmer income but also optimizes resource use, contributing to a more sustainable dairy industry.

3. Reforming Cattle Culling and Slaughtering Laws

The issue of stray animals poses a severe challenge, both to the dairy industry and to public safety. Reforming cattle culling and slaughtering laws can provide a humane and economically viable solution. By implementing regulated and ethical culling practices, the government can manage the stray cattle population effectively. This reform would also support farmers by reducing the financial burden of maintaining non-productive animals.

4. Grants and Soft Loans for Infrastructure Development

To double the current share of the organized sector in milk and value-added dairy products, the government should provide grants and soft loans for establishing dairy infrastructure. This support can facilitate the construction of modern dairy farms, processing units, and cold chain logistics. Enhancing infrastructure not only improves milk quality and shelf life but also opens new markets for dairy products. Financial assistance in the form of low-interest loans or subsidies can encourage small and medium-sized dairy enterprises to expand and modernize their operations.

5. Establishing a National Buffer for Milk Powder and Butter

The dairy industry currently faces a problem of surplus, with over 300,000 MT of skimmed milk powder (SMP) and 100,000 MT of butter stocks. To address this, the government should establish a national buffer stock for milk powder and butter, akin to the Food Corporation of India's grain reserves. This buffer can stabilize prices, prevent distress sales, and ensure food security. During periods of surplus, the buffer stock can absorb excess production, and during shortages, it can release stocks to maintain market stability.