NCDC's "Grant in Aid" and the Dairy Sector: A Strategy for a Developed India @2047

Prof. DINESH CHANDRA RAI Vice Chancellor, BRA Bihar University, Muzaffarpur, Bihar

As India charts its course towards becoming a 'Viksit Bharat' by 2047, the nation’s journey is defined not just by industrial and technological prowess, but by the strength of its rural economy. At the heart of this transformation lies the dairy industry, a sector that is a quiet, yet formidable, engine of socio-economic development. The Union Cabinet recent approval  of  "Grant in aid to National Cooperative Development Corporation (NCDC)" with an outlay of ?2,000 crore for a period of four years, from 2025-26 to 2028-29. This strategic decision is a significant step towards modernizing the dairy sector and promoting  sustainable growth. With this grant, NCDC will be able to raise an additional ?20,000 crore from the open market, which will be utilized to provide long-term credit and working capital to cooperatives across various sectors, including dairy. This timely decision, ratifies  a sustained focus on the sector's modernization and expansion, sets a robust tone for the ambitious goals ahead.

The last decade has been a period of remarkable growth, solidifying India’s position as the world's largest milk producer. Milk production has surged from 146.31 million tonnes in 2014-15 to over 239 million tonnes in 2023-24, a testimony to the resilience and hard work of over eight crore farmers. The success of this period is largely attributable to a series of targeted government initiatives. The Rashtriya Gokul Mission, for instance, has been instrumental in preserving and developing indigenous breeds, with a significant increase in artificial insemination coverage and a focus on genetic improvement. Schemes like the National Programme for Dairy Development (NPDD) have strengthened the cooperative movement, a cornerstone of the Indian dairy model that empowers small and marginal farmers, particularly women.

The Hurdles on the Path to Progress

Despite these monumental achievements, the journey to a 'Viksit Bharat' is fraught with significant challenges. The Indian dairy sector still grapples with low animal productivity, a stark contrast to global averages. The persistent shortage of quality feed and fodder, coupled with rising input costs, puts immense pressure on farmer profitability. Climate change poses a new and critical threat, with increasing heat stress on animals and erratic rainfall patterns disrupting fodder availability. Furthermore, the fragmented supply chain, lack of robust quality control mechanisms at the village level, and a fragmented market structure often lead to unremunerative prices for farmers, hindering the sector's full economic potential.

A Vision for the Future: The White Revolution 2.0

For the dairy industry to be a key contributor to Viksit Bharat @2047, a new, ambitious roadmap—a White Revolution 2.0—is imperative. This vision must go beyond simply increasing production and focus on three key pillars: sustainability, technology, and farmer-centric innovation.

First, we must uphold a Sustainable and Circular Dairy Economy. The traditional dairy model has a significant environmental footprint, but it also holds the potential to be a beacon of sustainability. The focus must be on promoting resource efficiency and creating a circular economy. A Dairy Carbon Credit Scheme could be a novel initiative, where farmers are rewarded for adopting eco-friendly practices such as manure management for biogas production and using agri-waste as animal feed. This not only mitigates the sector's environmental impact but also creates a new revenue stream for farmers, incentivising the transition to green practices.

Second, the future lies in Precision Dairy Farming. While large-scale automation may not be feasible for small landholders, technology can be adapted to their needs. A "Digital Pashu" initiative could integrate the e-Gopala platform with wearable sensors for cattle, enabling farmers to monitor animal health, milk yield, and reproductive cycles remotely. Such a system, backed by a robust AI-driven veterinary support service, would drastically improve animal productivity and reduce disease outbreaks. The government could also establish a National Dairy Technology Fund to support start-ups developing affordable, localised technological solutions for disease diagnostics, fodder management, and genetic traceability.

Finally, we must empower a new generation of Dairy Entrepreneurs. The sector needs to attract young talent and innovative ideas. A dedicated Dairy Entrepreneurship and Skill Development Fund can provide financial and technical support to youth for setting up modern, small-scale dairy units, value-added processing facilities, and direct-to-consumer dairy brands. This will not only create employment but also help in diversifying products, moving beyond liquid milk to high-value goods like cheese, whey protein, and organic dairy products, catering to the evolving demands of a growing middle class.

Summarily, the dairy industry is not just about milk; it is a livelihood for millions, a bulwark against rural poverty, and a vital component of the nation’s nutritional security. By addressing its systemic challenges and embracing a future-forward roadmap centred on sustainability, technology, and entrepreneurship, the Indian dairy sector can transform itself. It has the potential to not only meet the demands of a developed India but to set a global standard for a model that is both economically prosperous and environmentally responsible. The commitment shown in the recent cabinet decision provides the momentum; it is now up to all stakeholders to ensure that the vision of a Viksit Bharat @2047 is truly nourished by the strength of its dairy sector.

(Views are personal)