He also said the government will encourage small and marginal farmers and BPL households to rear descript indigenous breeds. India, the world's top milk producer, had 156 million tonnes of milk output last year.
The dairy sector issues were discussed at length in the agriculture ministry's Parliamentary Consultative Committee meeting held here today. Implementation of the National Dairy Plan also featured in the meet.
"In order to encourage farmers for increasing milk production, it is imperative that milk collection facilities need to be upgraded and farmers be given remunerative price for their produce. This is possible only when an effective management system is in place to link farmers to the market," Singh said at the meeting.
About 70 million rural households are engaged in milk production. The small and marginal farmers as also landless labourers produce about 1-3 litres of milk per day and account for production of most of the milk for the country, he added.
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Milk output in India, the world's leading producer, was about 156 million tonnes in 2015-16 and even the per capita availability is higher at 337 grams per day compared with the world average of 229 grams.
Minister of State for Agriculture Sudarshan Bhagat and eight MPs from both Lok Sabha and Rajya Sabha as well as Animal Husbandry Secretary Devendra Chaudhry and other senior ministry officials were present.