Govt asks pvt cos to invest more in dairy sector

The government on Friday called on private companies to invest more in the dairy sector which has potential to give better returns than the manufacturing and services sector.

Currently, the government is pumping funds in the sector because it can play key role in achieving the ambitious target of doubling farmers income by 2022 and making India a USD 5 trillion economy by 2025, he said.

"There is not much private investment happening in this sector at present. Much of it is public funding. The need of the hour is to get the more and more private investment in the dairy sector," Animal Husbandry Secretary Atul Chaturvedi said at a dairy event organised by the Agriculture Today Group.

There is a need to look at the sector from pure economics rather than for just poverty alleviation, he said adding that this sector can give better returns on investment than manufacturing and services.

The dairy and allied sector's contribution to the country's GDP is much more than the agricultural sector.

In fact, is it 50 per cent higher than the farm sector. However, there has not been a focus on the allied sector, he said.

Chaturvedi said the dairy sector can contribute to the growth of the economy, generate income and livelihood to farmers.

"We have the ambitious target of doubling farmers income and making India USD 5 trillion economy. This sector can contribute in achieving both the targets," he added.

Emphasising the need to improve the competitiveness in the sector, the secretary said the government therefore is focusing its programmes on three key things -- controlling animal disease, ensuring right kind of nutrition and better breed improvement.

The government has already launched a vaccination drive under the national animal disease control programme. Besides, it has plans to tag cattle with unique identity in a year for traceability purpose, he added.

India is the world's largest producer of milk with 172 million tonnes a year. The per capita availability of milk in the country is 374 grams per day, much higher than the world average of 294 grams per day.

Despite being the largest producer, India's share in global milk and milk products exports is less than one per cent.