'No milk price relief till Diwali'

The livestock sector contributes around ₹14 trillion to the Indian economy, and dairy comprises around ₹9.5 trillion of this, Rupinder Singh Sodhi said

Milk prices have shot up 13-15% in the past 15 months amid a global rise in cereal prices. Production suffered due to insufficient fodder following unseasonal rains, and a decline in the number of lactating cattle in a lag effect of fewer artificial inseminations during the pandemic. The trade enters the flush season from October to February when cattle produce more milk naturally and dairy companies typically lower their procurement price.

Sodhi, former managing director of Amul dairy cooperative, said in an interview that to ensure adequate availability of milk at reasonable prices in the coming two years, farmers will have to be given remunerative prices.

He said the extended cold season till May and erratic rainfall in the past two months will help increase milk production by 5%, despite the normal 15% dip in production during summers.

India’s milk production is set to rise to 628 million tonnes in the next 25 years from the present 222 MT, said Sodhi, who is also an advisor to Reliance Retail Ventures. Edited excerpts:

Livestock, fishing and aquaculture saw the highest growth in gross value of output in the decade ended 2020-21, while the share of the crops dropped. What could be the possible reasons?

In GDP of agriculture, the contribution of cereals was 37% five decades ago, now it is 17%. The share of milk has increased to 24% from 10%, meat to 8% from 1.6%, eggs to 1.2% from 0.5%.

When prosperity comes over the years, consumers upgrade themselves from carbohydrate-rich food to protein and fat-contained diet from animal source. Whether it is milk or poultry or meat, the reason is simple: they are tastier, nutritionally dense because of their high protein content, and affordable. It is also because of better availability. People find animal-source protein nutritionally rich at very affordable prices.