Main Article Content

Abstract

Dairy industry is of crucial importance to India. The country is the world’s largest milk producer, accounting for more than 13% of world’s total milk production. It is the world’s largest consumer of dairy products, consuming almost 100 per cent of its own milk production. Dairy products are a major source of cheap and nutritious food to millions of people in India and the only acceptable source of animal protein for large vegetarian segment of Indian population, particularly among the landless, small and marginal farmers and women. Dairying has been considered as one of the activities aimed at alleviating the poverty and unemployment especially in the rural areas in the rain-fed and drought-prone regions. In ancient and middle ages the place of cattle in the economic and social life of people gained importance. By the time the Britishers come to advent India; the little republics (villages) were flooded with milk animals, occupying a unique position among the world nations. India has emerged as the largest world producer of milk with an annual production of 100 million tonnes in 2007, surpassing the production of 88 million tonnes by USA in that year. The milk production in the country quadrupled from 23 million tonnes in 1973 to 100 million tonnes in 2007, with the remarkable annual growth rate of 4.5 per cent as against the world's average of about one per cent. Consequent to the New Economic Policy, 1991 and the recent amendments to the Milk and Milk Products Order (MMPO)1992, India offers a level playing field to Indian and foreign investors alike to invest in dairying both with a view to serve domestic and export markets. India got further boost with the signing of Uruguay Round Agreement on Agriculture (URAOA) in 1994, eventually culminating in the establishment of the World Trade Organizatio (WTO) in 1995. The dairy industry was de-licensed in 1991 and the private sector, including Multi National Companies (MNCs), was allowed to set up milk processing and product manufacturing plants. As efficiency is the key factor in privatization policy.

Article Details