Growth Drivers of Dairy Production in India: An Appraisal

The study analysed the state-wise share to total milk output, growth trends in yield growth, output instability, sources of milk growth, as well as the progress of dairy infrastructure in India. The results indicated that the northern region contributed largest share to total milk output in India while the share in the eastern region plunged during the study. The first period (1980–1995) registered the highest growth rates in milk output however growth drastically declined in the second period (1996–03) before again improving in the third period (2004–13). India registered relatively stable milk output in the last two decades. The regional instability indices hovered around 6.12 to 20.6 per cent. The species-wise contribution to total milk output revealed a significant shift from indigenous cattle milk towards crossbred cattle milk. However, buffalo milk output contributed the largest share to total milk output in India. The results of decomposition analysis further revealed that growth in milk output was primarily driven by yield improvement however, the progress of dairy infrastructure in the country was found grossly inadequate. Therefore to fully exploit the productivity potential of the milk yielders, continued investment in dairy infrastructure and replacement of indigenous cattle with crossbred must be pursued cross all the states of India.