Policymakers have been working hard to ensure that increased milk production benefits farmers

- India fails to take advantage of the white revolution in the world market

The country's milk production is expected to be six per cent higher in the current financial year. Milk production is expected to be higher in the current financial year as monsoon is normal and in some areas early rush season. Following the general effect of corona, there has been a steady recovery in milk consumption. In addition, speeding up vaccinations, improving economic activity and increasing demand from dairy producers have supported domestic milk consumption. With the increase in milk production, the growth rate of dairy industry is also expected to remain high.

In the financial year 2021, due to stable purchase of milk due to corona and low demand, industries converted excess milk into skimmed milk powder. As a result, inventory of milk powder has increased and there are reports that prices have come under pressure. Powder sales are likely to increase in the current financial year as demand improves. Growth in per capita milk consumption, shift in dietary preference as a result of urbanization and government support for the dairy industry are expected to increase demand. India has been the largest producer of milk in the world and has been the main source of income for cattle breeders.

Before moving forward in the Regional Comprehensive Economic Partnership (RCEP), the Government of India has taken into account the position of local industries which has been a great consolation for the dairy industry among other industries. If the RCEP agreement had taken place in its earlier form, rivers of dairy products would have started flowing into India from New Zealand and Australia, which could have seriously affected the dairy sector of the country, which has been developed by farmers on a cooperative basis.

Due to lack of competitiveness on the export front, India is facing obstacles in getting foreign trade through foreign trade agreements. In such a scenario, India will have to build a પાંચ 5 trillion economy by 205-2, making dairy products, along with other products, viable in the export market. Only then can the income of the country's small farmers be steadily increased. Due to the white revolution, India has become the largest producer of milk in the world today.

There are 1.50 crore small milk producers in the country which supply milk to about 1.5 lakh co-operatives spread across the country. This milk business provides a livelihood to millions of families in India. However, 90% of India's dairy industry is unorganized. The unorganized milk trade and the quality of the products produced are not seen. Due to poor quality, India does not have the expected success in exporting dairy products.

The dairy industry argued that trade agreements should not be entered into under the RCEP as India's dairy products cannot compete globally, especially with New Zealand and Australian dairy products. Currently, imports of dairy products from these countries are very low. New Zealand exports 3% of its dairy products. With countries such as the US, New Zealand and Australia having huge milk production and supply exceeding demand, it is understandable that these countries try to dump their dairy products in other countries through trade agreements to increase exports.

For the first time after independence, i.e. in the 180's, India was a milk-scarce country and its milk requirement was met through imports. India has become a major producer of milk and milk products since the revolution in the 1980s to increase its milk production. By 203, India will account for about 50 per cent of the world's total milk production. According to an estimate, the total demand for milk will be around 240 million tonnes by 203-7 while the supply will be 50 million tonnes. In such a scenario, it is necessary to increase the export of dairy products from India.

Making infrastructural facilities like cold chain, chilling plants, processing facilities, R&D system, logistics available to the producers of dairy products at affordable cost, urgent efforts are needed to make the country's dairy products competitive in the world market so as to raise the price of surplus milk in the country. Cooperative, private and multinational sector dairy producers continue to provide incentives to set up production units.

To protect the country's livestock, huge duty is levied on value added dairy products imported into India, but this does not increase exports. Processing units have found an option to produce dairy products that increase the immunity of milk produced in the country during the Corona period. To be successful in this option, it is necessary to increase the efficiency of various components of the dairy sector, so that farmers can succeed in increasing their income if not double, and in the country there is a beneficial disposal of surplus milk.