Demand for dairy products on rise

Demand for dairy products on rise

Increased consumption might result in shortage: NDDB chief

Demand for dairy products on rise

  NDDB Chairman Amrita Patel presenting Dr Kurien Award to Erode District Co-operative Milk Producers Union Founder Chairman S K Paramasivan at a conference in Bangalore on Wednesday. KMF Chairman Somashekara Reddy (extreme left), IDA President Dr N R Bhasin look on. dh photo
But the demand is fast outpacing production and may lead to a severe shortage, unless productivity rises quickly, said Dr Amrita Patel, Chairman, National Dairy Development Board (NDDB).

Speaking at the 38th Dairy Industry Conference here on Wednesday, she attributed the increase in demand to substantial increase in GDP (gross domestic product), increase in income of rural households due to programmes like MGNREGS (Mahatma Gandhi National Rural Employment Guarantee Scheme) and increase in salaries of the government employees.

“The dairy industry must respond to the rapidly growing demand for milk as the projected demand of 180 million tonnes by 2021-22 would require our annual increase in milk production, which has been growing at 2.5 million tonnes to 5 million tonnes,” she said.

She dismissed resorting to imports to make up for the shortfall, stating that if India, the largest milk producing country in the world resorted to imports of even small quantities of milk products, then it would likely spike international prices, resulting in higher import and therefore consumer prices. She said that it planned to double the milk production over a span of 15 years by improving productivity through genetic improvement of the milch animals and optimal use of feed and fodder to fully realise the genetic potential.

The Plan also seeks to ensure that the organised sector comprising, both cooperative and private sector, increase their share of marketable surplus from 30 per cent to 65 per cent to ensure food safety and provide a direct link to milk producers, with remunerative prices and technical inputs.

The plan requires about Rs 17,000 crore over the next five years, she explained. She also stressed on a more scientific approach to breeding, feeding and animal healthcare programmes.

Price hike

The Karnataka Milk Federation (KMF) is yet to hold talks with the Chief Minister with regard to its proposal for an increase of Rs four/litre of milk.

Chairman of the Karnataka Milk Federation Somashekara Reddy told the reporters on the sidelines of the event that he would be appraising the Chief Minister of his proposal on February 20.

“If the Chief Minister concedes on the price hike, then we will increase it from March 1,” the KMF chairman said.

Reddy claimed that milk in Karnataka was priced far lower than other states, and that the milk producers were selling to the private producers due to the low prices.

The KMF chairman cited the increased cost of livestock feed as another reason for the price increase.

He promised that the KMF will increase its production from the present 38 lakh litres per day to 70 lakh litres per day in six months time, if the price was increased.

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