Mumbai, Nov 21 India has emerged as the largest milk producer of the world producing 74.3 million tonnes annually. However, as much as 80-90 per cent of India's milk and dairy industry is in the unorganised sector, according to an Internet debate initiated by Dairy Outlook of the Food and Agriculture Organisation (FAO) of the US.Tanzania with 98 per cent of its dairy industry in the unorganised sector tops the list. Other countries tracked by the FAO seem to have almost half of their dairy industry in the unorganised sector. For example, 40 per cent of Sri Lanka's dairy industry is unorganised, Brazil (40 per cent) and Costa Rica's 44 per cent.
``India has emerged as the world's largest milk producer, but the White Challenge ahead is massive and daunting,'' says a study - The White Challenge - conducted by Initiatives, a Mumbai-based research group said ``There is a need to modernise this large unorganised milk and dairy industry.''
A policy package aimed at modernising the unorganised must providespecial attention to increasing the productivity of the milk economy and especially of the cattle.
Unorganised sector milk may be cheaper than processed milk where production centres are located very close to the urban consumers. But where production centres are far from urban areas, it is not only comparatively inexpensive but also essential to have processed and packed milk.
``Consumer preferences for fresh and full milk have made it possible for the unorganised sector to thrive. But where markets are located away from production centres, there is no alternative to pasteurisation, packaging and proper transportation.
If India does not want half of its population to suffer, modernisation would be essential to facilitate the movement of milk from surplus to deficit areas. Quoting Steven Staal of International Livestock Research Institute Nairobi who suggests an approach to the unorganised sector in developing countries, the study says: ``Throughout the developing countries, dairy market policies havelargely been adopted from the West, reflecting international standards of food safety. As the percentage of unorganised sector shows, the sector is being systematically ignored as a result most consumers buy milk and dairy products which are completely outside any regulatory environment.''
The study says ``A new milk policy package would be needed to ensure the following:
Import and excise duty concessions are offered on a large- scale to processors to enable them to set up pasteurisation, storage, transport facilities and impregnable packaging.
Schemes for distribution should be introduced based on franchise given to those vendors who undertake to purchase milk from certified cooperatives and private dairies after undergoing training.
Processors and non-government organisations should join hands to provide training not only for farmers and processing unit workers, but also for distributors.
A consumer campaign should be launched to educate consumers about the merits ofpasturised milk sold by franchies vis-a -vis milk sold at the risk of adulteration.It is only when an impregnable cold chain from producer- to- consumer is established that consumers would have faith in processed milk. Until then they are bound to prefer raw milk. Lastly, the study says: The central government can introduce change in the licensing excise and customs regime. But the initiative for reform at the operational level must come from state governments in partnership with cooperative and private procesors and NGOs capable of providing training for producers, processing workers and distribution, where appropriate advantageous international cooperation may be sought.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.