UP dairy output pegged at Rs 7,000 cr

Annual production estimated at 21 million tonnes

Uttar Pradesh, which has the country's largest livestock, has ranked third with 11% share in domestic dairy output estimated at Rs 7,000 crore out of the total Rs 60,255 crore.

The state accounts for 17% or 21 million tonnes (MT) of India's total milk production standing at 121 MT annually.

Almost 7% of the over 1,400 registered dairy units in India are located in UP and the state is ranked 5th, as per the latest available data analysed by Associated Chambers of Commerce and Industry of India (Assocham) in a study titled 'Unlocking Growth of Potential of Indian Dairy Industry'.

However, UP clocked a slower growth of 16% in milk production, which is below all-India growth of 19%. UP recorded 5th highest share of over 8% in direct employment generated in registered dairy units.

In terms of per-capita availability, UP ranked 9th clocking a growth of about 8%, which is below all-India growth of 12%.

Concentration of milk production in some pockets together with high cost of transportation has led to rising disparity amid states in terms of per-capita milk availability, the study noted.

Small holder farmers account for significant portion of UP's milk production. Thus, it is imperative for its dairy industry to streamline value chain processes and integrate small holder dairy producers into processing value chain to improve the overall performance of industry, Assocham secretary general D S Rawat said.

Meanwhile, milk production across India grew by 19% with overall milk production crossing 121 MT mark as of 2010-11. But, despite being the largest milk producer in the world, per-capita milk availability in India at 252 grams is below the global average of 279 grams per person per day.

Growing at a compounded annual growth rate (CAGR) of over 4%, milk production in India is expected to rise to 177 MT by 2019-20. This would help in meeting the projected demand of 150 MT by 2016-17.

Due to increasing income levels accompanied by change in food basket, the per capita consumption of milk and milk products in both rural and urban areas has grown significantly at about 92% and 72% respectively.

However, there is an urgent need to build strategies to increase competitiveness in all segments of dairy chain, input supply, milk production, processing, distribution and retailing, recommended the study.

"For promotion of dairy sector, emphasis needs to be on how to involve and encourage the village population into proactively adopting dairy industry as a viable alternative to the agricultural activity," he said.