NABARD, Mumbai-400051
Online published on 30 July, 2020.
This paper examines the marketing arrangements for animal products in North Eastern Region states. Animal husbandry is a major sub-sector of agricultural economy of the North Eastern states with huge production potential and consumption demand. The income from livestock as a proportion of total agricultural household income is equal to or higher than all India average of 11.9% in 5 out of 8 North Eastern states. Most animal products in North Eastern states are sold directly to other households and through local traders. The presence of formal marketing agencies is very minimal and limited to milk marketing in a couple of states like Sikkim and Assam. Direct sale to households is the dominant marketing agency for milk, eggs, wool, honey, fish and live animals are primarily sold through local traders. Two-thirds of the households received less than Rs.1000 per month from animal products and half of them in turn received less than Rs.200 per month, which is a pittance. The paper concludes that North Eastern farmers can earn better incomes provided proper value chains are developed in place of existing informal and fragmented marketing arrangements. However, this is not easy as transport and communication infrastructure is not well developed in North Eastern states. Major issues such as non-availability of good quality animal seed, concentrate feed at affordable cost, insurance cover, etc. and absence of processing and packaging units too must be addressed.