Report suggests PPP for 2nd ‘White Revolution’

Report suggests PPP for 2nd ‘White Revolution’

As the milk prices show no sign of respite and keep on fueling inflation, a Working Group report on Animal Husbandry and Dairying has recommended Private-Public Partnership model for dairying.

The report, with a mandate to review the concerned sectoral policies and make suggestions to formulate plan for the next five years, says that the Government must promote Public-Private Partnership (PPP) in dairy sector to increase milk production. This will be put before Steering Committee for consideration to lay out plan for the Department of Animal Husbandry and Dairying in the 12th Five Year Plan.

A Planning Commission official told The Pioneer that the Working Group recommended a model like Food Processing Ministry’s Mega Food Park plan, wherein the Government provides fund for the infrastructural work and the private players put in working capital.

Milk has been a major concern from the last two years now. Prices have been hiked 13 times over the past one year and another round of hike is in the offing. Full-cream milk now costs Rs 38 a litre, up from 30 in March 2010.

The 2010-11 Economy Survey says there is wide gap in demand and supply of milk. The country is not able to keep pace with the demand which is growing at about 6 million tones (MT), while the annual incremental milk production over the last 10 years has been about 3.5 MT — a gap of 42 per cent.

The survey says that if milk production in the country doesn’t grow at 5.5 per cent by 2021-2022, India could become a net importer of milk in next decade. So there is a need to increase production in sync with the demand. Planning Commission estimates show that the demand for milk is likely to be 172.20 MT by 2021-22. According to rough estimates in 2010-11 the country produced around 116 MT milk.

With surging economic growth and consequently more money in consumers’ hands, demand for milk and milk products has been going up constantly. It is evident from the fact that India’s per capita milk consumption has increased to 263 gram per day per person in 2009-10 from 60 gram per day per person in 1950s, against world average of 279.4 grams per day per person.

The reports talks of a Second White Revolution in the country to bridge the demand and supply gap. In the 12th Plan, the Government may also give priority lending status to dairy sector with an aim to promote dairying by providing cheap credit (4% at par with farm loans).