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Government Policies and Incentives

The role of dairy development in increasing milk production, improving the nutritional standards of the people, generating employment opportunities (both direct and indirect) and improving income level in rural areas, especially for small and marginal farmers and agricultural labourers has been well established. We have already learnt the role of various organizations (like NDRI, NDDB, NGOs, Cooperatives etc.) and programmes (like Operation Flood) in the development of dairying in India. These institutions and programmes are directly related to the government policies and initiatives for improvement of both milk production and marketing.

Presently animal husbandry and dairying receive priority in the government’s efforts for generating wealth and employment, increasing the availability of animal protein in the food basket and for generating exportable surpluses. The value of output of milk at current price (2003-04) was Rs.110085 crore, which is about 67% of the total contribution of livestock sector. Table 3.1 gives the information about the percentage contribution of livestock sector in the total Gross Domestic Product(GDP) of the country and the percentage contribution of milk in the total livestock sector. The Tenth Plan target for milk production is set at 108.4 million tonnes(MT). envisaging an annual growth rate of 6.0 per cent. Dairying plays a crucial role in rural economy and livelihood particularly for the rural women who play a significant role in dairy farming and are directly involved in major operations likefeeding, breeding, management and health care. In dairying, 75 million women are engaged as against 15 million men. As the ownership of cattle and buffaloes are more evenly distributed with landless labourers, and marginal farmers, the progress in the dairying sector will result in a more balanced development of the rural economy, particularly in the reduction of poverty ratio. Even many small and medium farmers who derive yearly savings from agriculture are dependent on livestock especially dairy and poultry for daily subsistence. The allocation for animal husbandry,dairying and fishery is Rs. 2500 crore during the tenth plan.
Percentage contribution of livestock sector in the total Gross Domestic Product of the country and the percentage contribution of milk in the total livestock sector.
Percentage contribution of livestock sector in the total Gross
Domestic Product of the country and the percentage contribution of
milk in the total livestock sector.

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