Dairy sector hopes to attract Rs 60,000 cr, create 10 mn jobs over 5 years

FM had announced a target of doubling the annual milk processing capacity to 106 MT, from the existing 53 MT in five years

The country’s dairy sector hopes to see up to Rs 60,000 crore of new investment and creation of 10 million jobs in five years, in the wake of the Union Budget proposals.

The finance minister had announced 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.

“To process this massive capacity, the industry requires between Rs 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,” said R S Sodhi, managing director, Gujarat Cooperative Milk Marketing Federation, holder of the Amul brand. 

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. “We recently launched the Nandini brand of cheese to institutional buyers like hotels, restaurants and other bulk consumers in Maharashtra. We have 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. Currently, we supply milk and its derivatives from Karnataka to consumers in Maharashtra,” said B C Sateesh, managing director.

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. “FMD reduces milk production capacity by at least 25 per cent in animals. So, eliminating it would automatically increase India’s milk production by 25 per cent,” said Devendra Shah, chairman, Parag Milk Foods. 

Also, we needs to focus on green fodder availability. 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 would attract huge investment in the dairy sector,” said Devendra Shah, chairman, Parag Milk Foods (Go and Govardhan brands).