|
i.Importance of Dairy Sector
|
|
Dairying is an important secondary source of income for millions of families in rural areas. India is at number one position in production of milk, achieving an annual output of about 110 million tonnes of milk during 2009-10. The Indian Dairy Industry acquired substantial growth momentum from 9th Plan onwards. The per capita availability of the milk has reached 258 grams per day in the year , but it is still low compared to the world average of 265 grams per day. Most of the milk in India is produced by small, marginal farmers and landless labourers who are grouped into cooperatives at the village level. To provide them a steady market and a remunerative price for the milk produced, about 13.90 million farmers have been brought under the ambit of 133349 village level cooperative societies in the country as part of Operation Flood Programme.
|
The value of output from livestock and fisheries sectors at current prices was about Rs. 310891 crore during 2008-09 according to the estimated Central Stastical Organisation. This works out to about 27% of the value of output of Rs. 1158400 crore from the entire agricultural and allied sector. The Total export earning from livestock, poultry and marine products stood at Rs. 18664.44 crore during 2008-09 (Rs. 10056.50 crore from livestock and poultry and Rs. 8607.94 crore from marine products).
|
iia. NATIONAL DAIRY PLAN
|
The National Dairy Plan is one of the most ambitious Schemes of the Government. With an estimated Outlay of Rs. 17371crore, the NDP intends to strategise increase in the milk production of the Country beyond the projected demand of about 180 million tones by 2021-22 and also enhance the share of organised sector from the present 30% to about 65%. The Committee are, however, disturbed to observe that not much headway has been made in the direction of fructification of NDP since the time they presented their Second Report to the Parliament on 18 December, 2009.
|
After the Preliminary Report was passed on to the World Bank on 17 February, 2009, a World Bank Identification Mission visited Gujarat, Punjab and Uttar Pradesh during 8-17 February, 2010 in connection with this Project. While the World Bank is of the view that overall content of proposed investment appears generally sound, greater clarity is required on certain issues like terms and conditions for the transfer of the project funds from Government of India, roles and responsibilities of various stakeholders, like Department of Animal Husbandry, Dairying and Fisheries, State Governments, National Dairy Development Board
|
| and other related agencies, provision of appropriate policy and regulatory framework to ensure quality of programme delivery, eligibility criteria for state implementing agencies for participating and receiving funds and development of effective institutional mechanism to provide quality service deliver to small and marginal dairy farmers. The Department have informed the Committee that these issues will be addressed and resolved through consultative process with various stakeholders in the next four to six months. |
The Committee are very much aware that the issues mentioned above are complex ones and may require extensive consultations with the various stakeholders which may be a time consuming affair. They, therefore, recommend that if the Department have to stick to their originally envisaged timelines of four to six months for completing the consultation process with various stakeholders, they should prepare a well laid out Plan of Action, with rigid timelines so that there is no further spill over on this ground and the NDP is finalized and ready for implementation at the earliest. The Committee would like to be apprised of this Plan of Action alongwith a well laid out schedule for implementation of NDP in the context of the position as it stands today.
|
| iib.National Dairy Plan : |
: is a new Scheme of Eleventh Plan. National Dairy Plan (NDP) is a strategic plan with an outlay of Rs.17,371 crore to achieve a target of 180 million tonnes of milk production annually by 2021-22. Milk production is expected to grow at 4% with an annual incremental output of 5 million tonnes in the next 15 years. Districts will be categorised into 324 high potential districts for intensive development and remaining 282 low potential districts for further expansion of the sector. At the time of examination of Demands for Grants (2009-10) the Committee were given to understand that the National Dairy Plan proposed was under consideration of the World Bank. The Committee had in their Second Report, therefore, recommended that the Department should work in tandem with all concerned to ensure the implementation of National Dairy Plan does not suffer like many of their other Schemes.
|
| However, when the Committee obtained an update on National Dairy Plan in connection with the examination of Demands for Grants (2010-11). The Committee noted that not much progress has been achieved in respect of the National Dairy Plan. |
The National Dairy Development Board is working towards expediting the process, but nothing tangible is seen. They, therefore, wanted to know whether the Department had tried to rope in the Ministry of Finance and the diplomatic channels for expediting the matter.
|
In response Department of Animal Husbandry, Dairying and Fisheries in a written submission stated that in response after getting the necessary approvals, the Preliminary Project Report (PPR) was posed to the World Bank on 17.3.2009. A World Bank Identification Mission visited Gujarat, Punjab and Uttar Pradesh during 8-17 February, 2010 in respect of this project.
|
The Mission discussed the proposed project objective and reviewed the technical components which have been proposed for Bank financing. While these would be examined in greater detail during the course of project preparation and refined as appropriate, World Bank is of the view that the overall content of the proposed investments appears generally sound/greater clarity on certain issues like terms and conditions for the transfer of the project funds from Government of India, roles and responsibilities of various stakeholders, like Department of Animal Husbandry, Dairying & Fisheries, State Governments, National Dairy Development Board and other related agencies, provision of appropriate policy and regulatory framework to ensure quality of programme delivery, eligibility criteria for state implementing agencies for participating and receiving funds and development of effective institutional mechanism to provide quality service delivery to small and marginal dairy farmers still remain. The Department have informed the Committee these issues will be addressed and resolved through consultative process with various stakeholders in the next four to six months.
|
| iii.Intensive Dairy Development Programme |
A critical impact evaluation study of the scheme needs to be conducted. Further as and when the National Dairy Plan is approved and implemented, continuation of the scheme on “Intensive Dairy Development Programme” has to be assessed from the view point of duplication of efforts and investment. In the meantime, it is suggested that the scheme may be extended to OF areas also. However, critical assessment of the
• The Intensive Dairy Development Scheme has been modified based on the Impact and Evaluation Study during the 10th Five year Plan and accordingly pre-project benchmark survey has been made compulsory for submission of new project on 2005-06 onward. |
| (iv) Allocations to Dairy Sector |
| The Dairy Development Sector consists of the following major schemes. |
A. Centrally Sponsored Schemes
(a) Intensive Dairy Development Programme (IDDP) (Strengthening Infrastructure for quality and clean milk production)
(b) National Dairy Plan
B. Central Sector Schemes
(a) Assistance to Cooperatives.
(b) Delhi Milk Scheme (DMS).
(c) Dairy Venture Capital Fund.
The outlay and expenditure for the entire sector is as under:-
(Rs. in Crore) |
YEAR BE RE Expenditure
2007-08 88.50 109.25 111.50
2008-09 98.00 98.10 97.90
2009-10 101.10 89.24 72.28*
2010-11 87.76 - - |
| The Dairy Sector allocation of Rs. 87.76 crore for 2010-11 is even less than the reduced RE figures of Rs. 89.24 for the year 2009-10. |
| When asked why such low allocation has been made inspite of even the Eleventh Plan Document mentioning that such reduction in State funding is undesirable for growth of the Dairy Sector, the Department have stated that they had sought Rs. 125.01 crore, however, the allocation is Rs. 87.76 crore only. The Planning Commission, when queried in the matter staked in a written communication that they allocate overall plan allocation to the Ministry/ Departments. Scheme wise allocation is done by the DAHDF themselves based on their priorities. However, total allocation was increased to the tune of Rs. 1300.00 Crores for 2010-11 as against BE of Rs. 1100.00 Crores, RE of Rs. 930.00 Crores and Expenditure Rs. 878.49 Crores for 2009-10. |
| vi.Measly FUNDS ALLOCATION TO DAIRY SECTOR |
| The Committee are distressed to observe that dairying which is an important secondary source of income of millions of families in the rural areas and also a regular source of income for countless of their urban brethren involved in bulk processing, transportation, retailing and other allied activities, is yet to catch the eye of the Government as a sunshine sector of the national economy. |
| India’s number one position in the world as producer of milk notwithstanding, the Government’s assistance and handholding of the sector is not much worth reporting back, while last three years saw allocations of Rs. 88.50 crore, Rs. 98.00 crore and Rs. 101.10 crore respectively. The allocation for the year 2010-11 has been pegged at Rs. 87.76 crore, being the lowest till date in the Eleventh Plan. With the past record of expenditure in the first three years of the Eleventh Plan which adds to Rs. 281.68 crore upto 11 March, 2010 and the allocation of Rs. 87.76 crore in the ongoing fiscal, the Department would be left with a huge balance of more than Rs. 200 crore for the terminal year of the Eleventh Plan. |
The Committee find this a very disquieting situation and they are not satisfied by the explanation of the Planning Commission that the meager allocation coming the way of dairy sector is the fault of the Department, as inter se allocation is their forte. The Planning Commission’s explanation is also on a weak ground in view of the fact that the Eleventh Plan Document prepared by them candidly admits that the reduction in State funding has been detrimental to the growth of the dairy sector. The Committee, therefore, reiterate their recommendation made previously in this Report that the Department of Animal Husbandry, Dairying and Fisheries should not be starved of funds so that their hands are tied while deciding inter se allocation for various sectors.
They urge upon the Government to, therefore, consider the recommendation of this Committee about hiking the allocation for the current Financial Year for the Department to Rs. 2800.00 crore in all seriousness, so that the various sectors including dairying sector get requisite boost to perform optimally and contribute further to the Country’s economy. |
| Source: Stand Committee on Agriculture-R/7-28/04/10=KRSR/010610 |
