Context

• The livestock sector is one of the most rapidly growing components of the rural economy of India, accounting for5% of national income and 28% of agricultural GDP in 201819.In the last six years, the livestock sector grew at 7.9% (at constant prices) while crop farming grew by 2%. In rural households that own livestock, women are invariably engaged in animal rearing.

What is mean by Livestock?

• Livestock are the domesticated animals raised in an agricultural setting The livestock provides food and non-food items to the people. Food: The livestock provides food items such as Milk, Meat and Eggs for human consumption.

Role of Livestock in Indian Economy

• Livestock plays an important role in Indian economy. About 20.5 million people depend upon livestock for their livelihood. Livestock contributed 16% to the income of small farm households as against an average of 14% for all rural households. Livestock provides livelihood to two-third of rural community. It also provides employment to about 8.8 % of the population in India. India has vast livestock resources. Livestock sector contributes 4.11% GDP and 25.6% of total Agriculture GDP.

DO YOU KNOW?

• India is the world’s largest milk producer, followed by the United States of America, China, Pakistan and Brazil.
• India ranks 1st contributing 23 of the global production. In the last 3 decades, India witnessed over 3 times rise in milk production.

Role of Women in rural economy

• Mostly engaged in agricultural activities: It is widely recognised that the majority of women workers in rural areas (72%) are engaged in agricultural activities. However, with the exception of participation in dairy cooperatives, specifically in milk marketing, women’s role in the livestock economy is not as widely known or discussed.
• Rise in no of women in Dairy cooperatives: There were five million women members in dairy cooperatives in 2015-16, and this increased further to 5.4 million in 202021.Women accounted for 31% of all members of dairy producer cooperatives in 2020-21.In India, the number of women’s dairy cooperative societies rose from 18,954 in 2012 to 32,092 in2015-16.

Why women are not recognised in livestock rearing?

• Sporadic nature of work: Conventional labour force surveys fail to accurately record women’s work in livestock raising for many reasons. Among the many problems in data collection, two significant ones are the sporadic nature of work undertaken for short spells throughout the day and often carried out within the homestead, and women’ own responses.
• Poor data collection: 12 million rural women were workers in livestock raising an estimate based on the Employment and Unemployment Survey of2011-12. However, with the augmented definition, according to estimates, around 49 million rural women were engaged in raising the livestock.
• Non recognition by policy makers: The problem clearly is that women livestock farmers are not visible to policymakers, and one reason is the lack of gender disaggregated data.

What are the Problems associated with women and livestock rearing?

• No specific data on women in the livestock economy: Recent employment surveys such as the Periodic Labour Force Survey fail to collect data on specific activities of persons engaged primarily in domestic duties. So, the undercounting of women in the livestock economy continues.
• Lack of Training: the reach of extension services to women livestock farmers remains scarce. According to official reports, 80,000 livestock farmers were trained across the country in 2021, but we have no idea how many were women farmers. only a few women in each village reported receiving any information from extension workers. Women wanted information but wanted it nearer home and at times when they were free.
• Difficulty to avail loans: women in poor households, without collateral to offer to banks found it difficult to avail loans to purchase livestock. Around 15 lakh new Kisan Credit Cards(KCC) were provided to livestock farmers under the KCC scheme during 2020-22.There is no information on how many of them were women farmers.
• Lack of technical knowledge: Women livestock farmers lacked technical knowledge on choice of animals (breeding) and veterinary care. Men invariably performed these specific tasks and took animals for artificial insemination.
• No active role in cooperatives: Women were not aware of the composition and functions of dairy boards and that the men exercised decisions even in women only dairy cooperatives. Further, the voice of women from landless or poor peasant Scheduled Caste households was rarely heard.

What are the Government policies?

• The National Livestock Policy (NLP) : The NLP of 2013, aimed at increasing livestock production and productivity in a sustainable manner, rightly states that around 70% of the labour for the livestock sector comes from women. One of the goals of this policy was the empowerment of women.
• The National Livestock: The National Livestock Mission (NLM) of2014-15 was initiated for the development of the livestock sector with a focus on the availability of feed and fodder, providing extension services, and improved flow of credit to livestock farmers. However, the NLM does not propose any schemes or programmes specific to women livestock farmers.
• Responsibility of state Government: The policy proposes that the State government allocates 30% of funds from centrally sponsored schemes for women. There is no logic for the 30% quota.

Conclusion

• Women’s labour is critical to the livestock economy. It follows then that women should be included in every stage of decision making and development of the livestock sector. Today, women livestock workers remain invisible on account of their absence in official statistics. We must recognise the due role of women in livestock rearing.

Mains Question

Q.How women contribute to rural economy? Despite being a core in animal rearing, why women are yet not recognised in policy framework of government?

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Context

The revised version of the Rashtriya Gokul Mission and National Livestock Mission (NLM) proposes to bring focus on entrepreneurship development and breed improvement in cattle, buffalo, poultry, sheep, goat, and piggery.

Livestock breeding and challenges

• Unorganised in nature: Livestock breeding in India has been largely unorganised.
• Lack of linkages: Because of this unorganised nature there have been gaps in forward and backward integration across the value chain.
• Impact on quality: The above scenario impacts the quality of livestock that is produced and in turn negatively impacts the return on investment for livestock farmers.
• Roughly 80% bovines in the country are low on productivity and are reared by small and marginal farmers.

Entrepreneurship development through NLM and Rashtriya Gokul Mission

• The revised version of the Rashtriya Gokul Mission and National Livestock Mission (NLM) proposes to bring focus on entrepreneurship development.
• Breed improvement infrastructure: It seeks to provide incentives to individual entrepreneurs, farmer producer organisations, farmer cooperatives, joint liability groups, self-help groups, Section 8 companies for entrepreneurship development and State governments for breed improvement infrastructure.
• The breed multiplication farm component of the Rashtriya Gokul Mission is going to provide for capital subsidy up to ₹200 lakh for setting up breeding farm with at least 200 milch cows/ buffalo using latest breeding technology. 
•  Moreover, the strategy of incentivising breed multiplication farm will result in the employment of 1 lakh farmers.
• The grassroots initiatives in this sphere will be further amplified by web applications like e-Gopala that provide real-time information to livestock farmers.
• Poultry: The poultry entrepreneurship programme of the NLM will provide for capital subsidy up to ₹25 lakh for the setting up of a parent farm with a capacity to rear 1,000 chicks.
• Under this model, the rural entrepreneur running the hatchery will be supplying chicks to the farmers.
• This is expected to provide employment to at least 14 lakh people.
• Sheep and goat entrepreneurship: In the context of sheep and goat entrepreneurship, there is a provision of capital subsidy of 50% up to 50 lakh.
• An entrepreneur under this model shall set up a breeder farm, develop the whole chain will eventually sell the animals to the farmers or in the open market.
• This model is projected to generate a net profit of more than ₹33 lakh for the entrepreneur per year.
• Piggery: For piggery, the NLM will provide 50% capital subsidy of up to ₹30 lakh.
•  Each entrepreneur will be aided with establishment of breeder farms with 100 sows and 10 boars, expected to produce 2,400 piglets in a year.
• This model is expected to generate a profit of ₹1.37 crore after 16 months and 1.5 lakh jobs.

Conclusion

The revised scheme of NLM coupled with the Rashtriya Gokul Mission and the Animal Husbandry Infrastructure Development Fund has the potential to dramatically enhance the productivity and traceability standards of our livestock.

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One of India’s largest dairy cooperative societies has just raised its milk prices for consumers by Rs 2/litre and this has become national news.

Sparking off a debate

• Many in the media are debating how this will push up Consumer Price Index causing inflationary pressures, which may soon force the RBI to change its “accommodative stance” on monetary policy.

Why such hues over Milk?

Milk is an important case study for our overall agriculture sector.

• First, milk is our biggest agri-commodity in terms of value, greater than paddy (rice), wheat, and sugarcane combined.
• Second, India is the largest producer of milk in the world with an estimated production of about 208 million tonnes in 2020-21, way above its closest competitor, the US, whose milk production hovers around 100 million tonnes.
• Third, our dairy sector is dominated by smallholders with an average herd size of 4-5 animals.
• Fourth, and this is important, there is no minimum support price (MSP) for milk. It is more like a contract between the company and the farmers.

How is the milk price determined?

• The price of milk is largely determined by the overall forces of demand and supply.
• Increasing costs of production enter through the supply side, but the demand side cannot be ignored.
• As a result of all this, the overall growth in the dairy sector for the last 20 years has been between 4-5 per cent per annum, and lately, it has accelerated to even 6 per cent.

Concerns of dairy farmers

• For dairy farmers, this increase in milk prices is not commensurate to the increase in their feed and other costs, and they feel that their margins are getting squeezed.
• They also feel that this price still does not count their logistics cost.

Transformation since Op Flood

• It is well known that “Operation Flood” (OF) that started in the 1970s transformed this sector.
• The institutional innovation of a cooperative model, steered by Verghese Kurien, changed the structure of this sector.
• However, even after five decades, cooperatives processed only 10 per cent of the overall milk production.
• India needed the double-engine force of the organised private sector to process another 10 per cent.
• The doors for the private sector were opened partially with the 1991 reforms, but fully in 2002-03 under the leadership of Vajpayee, when the dairy sector was completely de-licenced.

Rise of dairypreneurs

• Many start-ups “dairypreneurs” have come in promising a farm-to-home experience of milk.
• There is one company that delivers fresh milk at the consumer’s doorstep and gives quality testing kits at home.
• These have digitized cattle health, milk production, milk procurement, milk testing, and cold chain management.

Effective breeding

• Sexed semen technology helps in predetermining the sex of offspring by sorting X and Y chromosomes from the natural sperm mix.
• This can solve the problem of unwanted bulls on Indian roads.
• Although the current cost of sexed sorted semen is high, Maharashtra has taken a bold step in subsidizing it for artificial insemination.

Way forward

• The upshot of all this is that let prices be determined by market forces, with marginal support from the government or cooperatives in times of extreme.
• The major focus should be on innovations to cut down costs, raise productivity, ensure food safety, and be globally competitive.
• That will help both farmers and consumers alike.
• The cooperatives did a great job during OF, and are still doing that, but the private sector entering this sector in a big way has opened the gates of creativity and competition.

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Importance of animal husbandary and dairy sector

• As an allied industry of agriculture, the animal husbandry and dairy sector collectively employs more than 100 million people.
• Since the bulk of establishments in this sector is concentrated in rural India, the socio-economic relevance of this sector cannot be overstated.
• the Central government unveiled a string of measures to cushion the economy, as a part of which the Animal Husbandry Infrastructure Development Fund (AHIDF) was announced.

More about AHIDF

• The AHIDF has been set up with an outlay of ₹15,000 crore.
• As per the provisions of AHIDF, a project will be eligible for a loan amount that covers up to 90% of the estimated cost –
• There will be interest subvention of 3% for all eligible entities.
• Applicants can submit the proposal with a complete Detailed Project Report through the Udyami Mitra Portal.
• The fund includes a diverse set of stakeholders such as FPOs, private dairy players, individual entrepreneurs, and non-profits within its ambit.

Strengthening dairy value chain

• There is a pressing need to enhance chilling infrastructure at collection centres by setting up bulk milk coolers.
• If the infrastructure needs for milk processing and distribution are included, then the overall potential investment opportunity is to the tune of ₹1,40,000 crore across the dairy value chain.
• There is also considerable potential to increase the productivity of cattle, especially by enhancing the quality of animal feed.
• With this in mind, the AHIDF has been designed to support the establishment of animal feed plants of varying capacities.
• The infrastructure gap of 10-18 MMT in the production and supply of affordable compound cattle feed translates into an investment potential of around ₹5,000 crore.

Boosting the poultry industry

• There are not only economic but nutritional benefits to boosting the poultry segment’s output, efficiency and quality.
• India is the fourth largest chicken meat producer and the second largest egg producer in the world.
• India is well-positioned to help mitigate rampant malnutrition given that chicken meat provides the cheapest source of protein per unit.
• With eggs being introduced as part of the mid-day meal within several anganwadis in the country, an upgradation in poultry infrastructure would be closely intertwined with social justice outcomes too.
• Macro benefits regarding climate change and employment are linked to this sector.
• Enhanced infrastructure can make processing units more energy-efficient and help mitigate their carbon footprint.

Consider the question ” As an allied industry of agriculture, the animal husbandry and dairy sector are important for rural area and the socio-economic relevance of this sector cannot be overstated. In light of this, examine the role Animal Husbandry Infrastructure Development Fund (AHIDF) could play in transforming rural economy.”

Conclusion

The AHIDF also has the potential to create over 30 lakh jobs, even as it overhauls domestic infrastructure towards giving greater prominence to India’s dairy and livestock products in the global value chain.

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The article highlights the issues facing the dairy sector and explains the utility of IVF technology for crossbreeding.

Importance of dairy sector

• The dairy sector assumes significance on account two reasons:
• 1) It has to do with the socio-cultural affinity towards cows and dairy products in large parts of the country.
• 2) As an industry, it employs more than 70 million farmers.
• Need of the hour is for us to identify ways in which we can enhance the return on investment for our farmers.

India’s journey from milk deficit country to one of surplus

• Initiated in 1970, Operation Flood transformed India into one of the largest milk producers.
• The per capita availability of milk in 2018-19 was 394 grams per day as against the world average of 302 grams.
• Today with an annual production of 187.75 million tonnes India accounts for about 22% of the world’s milk production.
• However, India is yet to join the ranks of major milk exporting nations, as much of what we produce is directed towards meeting domestic demands.

Making India milk exporting nation

• Indigenous cows produce 3.01kgs of milk per cow per day, while the yield of exotic crossbred cows is 7.95kgs.
• Crossbreeding has taken off in a big way because of the advancements in reproductive technologies like In vitro fertilization (IVF), embryo transfer process, and artificial insemination.
• Out of these processes, IVF and artificial insemination have proven to be the most popular and effective methods.
• The NAIP (Nationwide Artificial Insemination Programme) Phase-I was launched in September 2019.
• Every animal in the programme was assigned a 12-digit unique identification number under the Pashu Aadhar scheme.
• NAIP Phase-II was initiated on 1 August 2020 with an allocation of ₹1,090 crore in 604 districts covering 50,000 animals per district and is on track to be completed by the 31 May 2021.
• Under the programme, 9.06 crore artificial inseminations will be performed and is expected to lead to the birth of 1.5 crore high yielding female calves.
• Consequently, 18 million tonnes of additional milk will be produced as average productivity will be enhanced from 1,861kg per animal per year to 3,000kg per animal per year.
• Artificial insemination (AI) technology has been the most used method in India, but its success hinges upon accuracy in heat detection and timely insemination.
• And this is where In Vitro Fertilization (IVF) technology will prove to be more effective.

Conclusion

In keeping with our ethos of ‘Jai Kisan, Jai Vigyan’ the marriage of rural farming with the latest innovations in technology will usher in unprecedented transformation in our dairy industry.

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The recent law passed by the Karnataka State Assembly on bovine slaughter is a topic of contention.

Prevention of Slaughter and Preservation of Cattle Bill (2020)

• The Karnataka state assembly passed the Prevention of Slaughter and Preservation of Cattle Bill (2020).
• It has banned the slaughter of all cows, bulls, bullocks and calves as well as it also outlaws the slaughter of buffaloes below the age of 13.
• Smuggling and transporting animals for slaughter is also an offence.
• The bill prescribes punishments of between three to seven years – which is more than the punishment prescribed in Indian law for causing the death of a human being by negligence.
• It also gives the police powers to conduct searches based on suspicion.
• Though the bill has yet to be passed by the state’s Legislative Council, the government has said it will pass an ordinance to implement its provisions.

Practice Question: The recent law passed by Karnataka State Assembly on bovine slaughter is a topic of contention. Analyze.

Muslims and farmers

• The legislation, based on Hinduism’s reverence for the cow, undermines the food practices of many Indians, for whom beef is a cheap source of protein.
• Already, Indians are some of the most malnourished people on the planet and, remarkably, nutrition standards are worsening.
• The bill also penalizes people working in the meat and leather industries that depend on cattle slaughter, many of whom are Muslim.

Dairy economics

• The sector that will take the largest hit from the legislation is the dairy industry. India’s dairy industry is massive with an annual turnover of Rs 6.5 lakh crore – making it by far India’s largest agricultural product.
• India’s farmers earn more from dairy than wheat and rice put together. India has almost as many bovines as people in the United States with one for every four Indians.
• The problem with the bill is that that slaughter is integral to the dairy industry’s economic functioning. Dairy farming in India functions on small margins. As a result, the upkeep of unproductive animals would throw their bottom lines out of alignment.
• When a male calf is born or a milch animal stops giving milk (or yield falls), farmers need to be able to get rid of the animal. In normal times, this sale is also a source of capital for the farmer.
• In 2014, the size of the used cattle market just in Maharashtra was valued at as much as Rs 1,180 crore per year.
• Verghese Kurien, founder of Amul and the architect of India’s White Revolution, that supercharged India’s milk production from 1970, opposed any ban on cow slaughter. Kurein was clear that the economics of dairy demanded slaughter.

Cowed down

• The statistics produced by the 2019 Livestock Census are clear: cow slaughter laws have actually ended up harming cows.
• Between 2012 and 2019, states with cow slaughter laws such as Maharashtra, Madhya Pradesh and Uttar Pradesh saw their cattle numbers fall (by 10.07%, 4.42% and 3.93%, respectively).
• On the other hand, West Bengal – one of India’s rare states where cattle slaughter has no restrictions – saw a massive increase of 15.18%. As a result, Bengal now has the Indian Union’s largest cattle population.
• Farmers simply let unproductive cattle loose, giving rise to the problem of large herds of feral cows which have caused economic havoc and pose a danger of citizens – a problem unique to India.
• In the countryside of many states, famished cattle herds now pose a danger to crops and cause accidents.

Buffalo nation

• Naturally, stray cattle numbers are directly linked to cow slaughter laws. States such as Uttar Pradesh, Madhya Pradesh and Gujarat have seen substantial rises in their stray cow population between 2012 and 2019 while West Bengal has seen a sharp fall.
• Between 2012 and 2019, Maharashtra, Madhya Pradesh and Uttar Pradesh saw their buffalo numbers rise.
• Since the buffalo – not seen as sacred in Hinduism – could be slaughtered legally, dairy farmers were clearly preferring it over the holy cow.
• But the Karnataka bill very alarming even compared to the devastation caused by the earlier cow slaughter laws is because it even targets buffalos.

Making it worse

• Karnataka’s stringent laws against cow slaughter is part of a policy pattern that – rather than make India’s already precarious economic situation better – makes Indians worse off.
• Recent examples include demonetization, the new Goods and Services Tax as well as putting in place the world’s harshest Covid-19 lockdown, making sure India’s was the worst affected country economically during the pandemic.
• India is going through a rural crisis. With poor yields due to unscientific farming methods and lack of support structures like irrigation, the average monthly income of the Indian farmer stands at only Rs 6,427 per month.
• To make matters worse, for small farmers (defined as owning less than a hectare of land), their farming income is too low to cover their expenses and they are in debt and this describes the situation of 83% of Indian farmers.

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