India’s livestock Economy: Transforming India towards Aatmnirbhar Bharat

India’s livestock Economy: Transforming India towards Aatmnirbhar Bharat

By- Dr.Nirbhay Kumar Singh ,Assistant Professor
Dept. of Veterinary Anatomy ,Bihar Veterinary College ,Patna

Livestock production and agriculture are intertwined, each being dependent on the other, and both are crucial for overall food security of the nation. Livestock sector is an important sub-sector of Indian agricultural economy. It is an integral part of livelihood activity for most of the farmers and help sustaining farm activity. Besides, it is supplementary and complementary to agriculture in the form of critical inputs, contributing to health and nutrition of the household, supplementing incomes, offering employment opportunities, and finally being dependable “banks on hooves” in times of need. According to estimates of the Central Statistics Office (n.d) as cited in DADF (2019a), the value of livestock sector output was about Rs. 9, 17,910 crores at current prices during 2016-17 which is about 31.25 percent of the value of output from agricultural and allied sectors. At constant prices, the value of output from livestock sector was about 31.11 percent of the total value of output in agricultural sector. According to the Central Statistical Office (n.d) as cited in DAHD (2019a), during year 2017-18, the contribution of livestock sector to national Gross Domestic Product (GDP)/ Gross Value Added (GVA) was 4.10 percent. The value of export of livestock and livestock products during 2017-18 was Rs. 457.76 billion while value of import was Rs. 104.24 billion (Singh, A. 2019a). As per estimate of National Sample Survey (68th round (July 2011 – June 2012) as cited in DADF (2019b) undertaken on employment, it is revealed that livestock sector is engaging 16.44 million workers in the activities of farming of the animals, mixed farming, fishing and aquaculture. India’s livestock sector is one of the largest in the world. As per the 20th livestock census of Department of Animal Husbandry and Dairying (DAHD) held in 2019, the total livestock population in India was 535.82 million, which include 192.52 million cattle, 109.85 million buffaloes, 74.26 million sheep, 148.88 million goats, about 9.06 million pigs, 851.81 million poultry population and 0.85 million other livestock population (DAHD, 2019b)

India is blessed with vast livestock resources in the form of varieties of livestock breeds which include 43 indigenous cattle, 16 buffaloes, 34 goat and 43 sheep breeds (DARE, 2019). The total milk production in the country grew at 6.50 percent and reached 187.75 million tonnes in year 2018-19, which was more than double the growth of world milk production. This record production improved the per capita availability of milk to 394 gm per day per person, considerably higher than recommended by Indian Council of Medical Research (ICMR) i.e. 280 gm per day per person. Uttar Pradesh, Rajasthan, Madhya Pradesh, Andhra Pradesh and Gujarat are the top five milk producing states, constituting 53.10 percent of the total milk production in the country. Nearly 35 percent of the milk production is contributed by Indigenous Buffalos followed by 26 percent by crossbred cattle. The total meat production in the year 2018-19 reached 8.11 million tonnes with 6 percent growth rate. Out of the total meat production, contribution of poultry meat is 50 percent (4.06 million tonnes) followed by buffalo meat (19.50 percent). The poultry meat production registered a growth rate of 7.80 percent. Uttar Pradesh, Maharashtra, West Bengal, Andhra Pradesh and Telangana are the top five meat producing states, constituting 56.90 percent of the total meat production in country. In 2018-19, egg production reached 103.32 billion with annual growth rate of 8.50 percent. The per capita availability of eggs is around 79 eggs per person per year, which is far below the recommended level i.e. 180 eggs per person per year by ICMR. Andhra Pradesh, Tamil Nadu, Telangana, West Bengal and Haryana together contributed 65 percent of the total egg production in the country and are the top five eggs producing states. The total egg production from commercial poultry is 84.91 billion (82.20 percent) and backyard poultry is 18.41 billion (17.80 percent). The total wool production in the year 2018-19 reached 40.42 million kgs, which declined by 2.50 percent as compared to previous year. Rajasthan, Jammu and Kashmir, Telangana, Karnataka and Gujarat are the top five wool producing states. They together contributed 78.50 percent of the total wool production in country. The key factor for growth of animal husbandry sector is infrastructure that acts as a catalyst for accelerated growth of livestock sector. In 2018-19, there were 65815 veterinary institutions across the country which includes, 25571 Veterinary Dispensaries and 28168 Veterinary aid centres and 12076 Veterinary Hospitals in country (DAHD, 2019c). In 2015, India reported 70767 veterinarians out of which only 3116 (4.40 percent) are private veterinarians as compared to 87 percent in USA and 60 percent in Europe (Miftahul, 2017). As on March 2019, the Indian dairy cooperative network consisted of 1, 90,516 primary milk cooperative societies at village level covering 16.93 million milk producer members and procured 50.7 million kg. Milk per day registering a growth of about 7 percent. The total number of women members in dairy cooperatives across the country was 5.06 million representing almost 30 percent of the total membership. The World Bank (IDA) assisted Central Sector Scheme i.e. National Dairy Plan Phase I (NDP-I) has been implemented by the National Dairy Development Board in 18 major milk producing States through a network of 172 implementing agencies. The project with the implementation period from 2011-12 to 2018-19 has substantially contributed in achieving its prime objective of increasing the productivity of milch animals and thereby increase milk production to meet the rapidly growing demand for milk. The project also had an objective of providing rural milk producers an access to the organised milk processing sector. In India, about 46 percent of the milk produced is either consumed at the producer level or sold to non-producers in the rural area and the balance 54 percent of the milk is available for sale to organised and unorganised players. The organised sector comprises of ‘Dairy Cooperatives’, ‘Producer Companies’ and ‘Private Dairy Units’, which provide fair and transparent system of milk collection round the year at the village level. (NDDB, 2019a). Presently, about 40 percent of the milk sold is handled by the organized sector (Dairy Cooperatives and Producer companies- 20 percent and Private Dairies- 19 percent) and the remaining 60 percent by the unorganized sector (DADF, 2018a).

 

Livestock resources

India is

• World’s highest livestock owner at about 535.78 million
• First in the total buffalo population in the world – 109.85 million buffaloes
• Second in the population of goats – 148.88 million goats
• Second largest poultry market in the world
• Second largest producer of fish and also second largest aquaculture nation in the world
• Third in the population of sheep (74.26 millions)
• Fifth in in the population of ducks and chicken (851.81 million)
• Tenth in camel population in the world – 2.5 lakhs

 

Rank                    Parameters

1^st– Total Livestock Population, Milk Production, Cattle Population, Buffalo Population, Carabeef Production, Goat Milk Production, Total Bovine Population

2^nd– Goat Population, Bristle Production (a pig industry by-product), Fish Production

3^rd– Sheep Production, Egg Production

4th -Chicken Production

5^th– Poultry Meat Production, Poultry Production, Meat production

8^th– Duck Production

9^th– Camel Population, Wool Production

 

Source : 20th Livestock Census

Contribution of livestock to people

The livestock provides food and non-food items to the people.

1. Food: The livestock provides food items such as Milk, Meat and Eggs for human consumption. India is number one milk producer in the world. It is producing about 176.34 million tones of milk in a year (2017-18). Similarly it is producing about 95.22 billions of eggs, 7.70 million tonnes of meat in a year. The value of output of livestock sector at current prices was Rs 9,17,910 crores at current prices during 2016-17 which is about 31.25% of the value of output from agricultural and allied sector. At constant prices the value of output from livestock was about 31.11% of the value of the output from total agriculture and allied sector. During the financial year 2017-18, the total fish production in India is estimated at 12.61 Million Metric tonnes.
2. Fibre and skins: The livestock also contributes to the production of wool, hair, hides, and pelts. Leather is the most important product which has a very high export potential. India is producing about 41.5 million Kg of wool per annum during 2017-18.
3. Draft: Bullocks are the back bone of Indian agriculture. Despite lot of advancements in the use of mechanical power in Indian agricultural operations, the Indian farmer especially in rural areas still depend upon bullocks for various agricultural operations. The bullocks are saving a lot on fuel which is a necessary input for using mechanical power like tractors, combine harvesters etc. Pack animals like camels, horses, donkeys, ponies, mules etc are being extensively used to transport goods in different parts of the country in addition to bullocks. In situations like hilly terrains mules and ponies serve as the only alternative to transport goods. Similarly, the army has to depend upon these animals to transport various items in high areas of high altitude.
4. Dung and other animal waste materials: Dung and other animal wastes serve as very good farm yard manure and the value of it is worth several crores of rupees. In addition it is also used as fuel (bio gas, dung cakes), and for construction as poor man’s cement (dung).
5. Storage: Livestock are considered as ‘moving banks’ because of their potentiality to dispose off during emergencies. They serve as capital and in cases of landless agricultural labourers many time it is the only capital resource they possess. Livestock serve as an asset and in case of emergencies they serve as guarantee for availing loans from the local sources such as money lenders in the villages.
6. Weed control: Livestock are also used as Biological control of brush, plants and weeds.
7. Cultural: Livestock offer security to the owners and also add to their self esteem especially when they are owning prized animals such as pedigreed bulls, dogs and high yielding cows/ buffaloes etc.
8. Sports / recreation: People also use the animals like cocks, rams, bulls etc for competition and sports. Despite ban on these animal competitions the cock fights, ram fights and bull fights (jalli kattu) are quite common during festive seasons.
9. Companion animals: Dogs are known for their faithfulness and are being used as companions since time immemorial. When the nuclear families are increasing in number and the old parents are forced to lead solitary life the dogs, cats are providing the needed company to the latter thus making them lead a comfortable life.

Role of livestock in farmers’ economy

The livestock plays an important role in the economy of farmers. The farmers in India maintain mixed farming system i.e. a combination of crop and livestock where the output of one enterprise becomes the input of another enterprise thereby realize the resource efficiency. The livestock serve the farmers in different ways.

1. Income: Livestock is a source of subsidiary income for many families in India especially the resource poor who maintain few heads of animals. Cows and buffaloes if in milk will provide regular income to the livestock farmers through sale of milk. Animals like sheep and goat serve as sources of income during emergencies to meet exigencies like marriages, treatment of sick persons, children education, repair of houses etc. The animals also serve as moving banks and assets which provide economic security to the owners.
2. Employment: A large number of people in India being less literate and unskilled depend upon agriculture for their livelihoods. But agriculture being seasonal in nature could provide employment for a maximum of 180 days in a year. The landless and less land people depend upon livestock for utilizing their labour during lean agricultural season.
3. Food: The livestock products such as milk, meat and eggs are an important source of animal protein to the members of the livestock owners. The per capita availability of milk is around 375 g / day; eggs is 74 / annum during 2017-18.
4. Social security: The animals offer social security to the owners in terms of their status in the society. The families especially the landless which own animals are better placed than those who do not. Gifting of animals during marriages is a very common phenomenon in different parts of the country. Rearing of animals is a part of the Indian culture. Animals are used for various socio religious functions. Cows for house warming ceremonies; rams, bucks and chicken for sacrifice during festive seasons;   Bulls and Cows are worshipped during various religious functions. Many owners develop attachment to their animals.
5. Draft : The bullocks are the back bone of Indian agriculture. The farmers especially the marginal and small depend upon bullocks for ploughing, carting and transport of both inputs and outputs.
6. Dung: In rural areas dung is used for several purposes which include fuel (dung cakes), fertilizer (farm yard manure), and plastering material (poor man’s cement).

Livestock population (2019 Livestock census)

Sl. No	Species	Number (in millions)	Ranking in the world population
01	Cattle	192.49	Second
02	Buffaloes	109.85	First
	Total (including Mithun and Yak)	302.79	First
03	Sheep	74.26	Third
04	Goats	148.88	Second
05	Pigs	9.06	–
06	Others	0.91	–
	Total livestock	535.78
	Total poultry	851.81	Seventh
07	Duck	–	Fifth
08	Chicken	–
09	Camel	0.25	Tenth

 

It is well known that livestock has emerged as a key driver of India’s agriculture sector growth in recent times. Disaggregated information based on the National Accounts Statistics (NAS) shows the value of output of livestock products rising from 28.2% of the country’s total agriculture production in 2004-05 to 36.2% in 2018-19. The increase is pronounced, especially after 2013-14 (see Chart 1; agriculture includes crops and products, but not fisheries and forest produce).

Source: National Accounts Statistics

The above trend is also confirmed by the National Statistical Office’s ‘Situation Assessment of Agricultural Households (SAAH)’ reports. These, unlike the production value estimates in the NAS, are based on actual surveys of agricultural households and their incomes from both farm and non-farm sources (for a background, see our previous note https://www.cprindia.org/news/10035).

Table 1 gives the share of livestock in the farm incomes (from cultivation of crops as well as animal husbandry) of agricultural households for different states and all-India.

Table 1: Income from animal husbandry as % of total farm income

	2012-13	2018-19
Meghalaya	9.22	3.84
Chhattisgarh	0	10.78
Telangana	8.13	12.25
Mizoram	15.93	16.76
Karnataka	10.85	19.57
Odisha	48.29	20.96
Kerala	14.00	22.40
Madhya Pradesh	15.42	23.11
West Bengal	18.69	23.11
Maharashtra	12.26	24.49
Tripura	10.09	24.79
Sikkim	36.62	25.29
Assam	15.95	25.56
Punjab	13.24	26.13
Uttar Pradesh	15.98	29.32
Haryana	25.16	30.66
Uttarakhand	25.10	38.42
Rajasthan	23.56	38.71
Bihar	13.99	38.83
Himachal Pradesh	26.69	41.51
Andhra Pradesh	34.71	42.80
Jharkhand	45.12	42.87
Tamil Nadu	36.46	43.09
Gujarat	39.69	44.61
Arunachal Pradesh	16.46	44.63
Manipur	34.83	44.90
Jammu & Kashmir	20.73	53.48
Nagaland	30.11	65.41
ALL-INDIA	19.85	29.41

Note: Income refers to net receipts after deducting paid-out expenses; Total farm income includes net receipts from crop production plus farming of animals.

Source: SAAH reports for 2012-13 (NSS 70^th Round) and 2018-19 (77^th Round).

It can be seen that livestock’s contribution to farm income at all-India level as per the SAAH surveys (29.4% for 2018-19) is lower than its share in agriculture production (36.2%) based on the NAS. Being survey-based, the SAAH data is likely to be more reliable than official production estimates. The latter have been called into question, particularly in respect of milk (https://bit.ly/3lylyVo). Table 2 shows that the average annual production growth of 6.3% estimated by the Department of Animal Husbandry & Dairying (DAHD) during 2015-16 to 2019-20 has exceeded the 3.5-4% yearly increase in liquid milk sales of cooperatives and inflation-adjusted turnover of leading private dairy companies for this period (Table 2).

Table 2: Milk production vs. Sales by organised dairies

	Milk Production (million tonnes)	Liquid milk marketing by coops*	Sales of major private dairies**
2014-15	146.314	312.41	16,573.41
2015-16	155.491	321.28	16,898.96
2016-17	165.404	330.82	19,328.22
2017-18	176.347	349.54	20,457.08
2018-19	187.749	358.09	21,561.97
2019-20	198.440	370.77	23,885.13
Average % growth	6.28	3.49	7.67@

Note: *lakh litres per day; **For 12 large dairy companies in Rs crore; @Unadjusted for inflation. Annual consumer inflation in milk & dairy products averaged 3.6% during 2015-16 to 2019-20.

Source: DAHD, National Dairy Development Board and company results.

But even a 29.4% share of livestock in farm income for 2018-19 is a significant jump from the 19.9% levels only six years ago. From Table 1, it can be seen that in as many as nine states, livestock generates more than 40% of the incomes of agricultural households from farming. This might not be surprising for a state like Gujarat, where the district cooperative unions affiliated to ‘Amul’ procure roughly half of its entire estimated milk output. Nor should it for Tamil Nadu, which is home to India’s largest private sector dairy (Hatsun Agro Product), broiler enterprise (Suguna Foods) and also “egg capital” (Namakkal). Like with Gujarat, organised dairies handle nearly half of Tamil Nadu’s milk production. More than two-thirds of that, though, is accounted for by private dairy companies, as against the near-monopoly enjoyed by the Amul-affiliated cooperatives in Gujarat. Andhra Pradesh is another state with a strong dairy as well as poultry industry (it has, since 2017-18, even overtaken Tamil Nadu as India’s No. 1 egg producer).

What is equally striking about livestock’s share in farm income is that it is higher among smallholders – agricultural households possessing less than one hectare of land. For households in the lowest size classes (below 0.40 hectares or one acre), the net receipts from farming of animals are even more than from cultivation of crops (Table 3).

Table 3: Livestock’s share of farm income by land size (Rs/month)

Land size class (hectares)	Net receipts from crop production (1)	Net receipts from farming of  animals (2)	Total Farm income (3)	(2) as % of (3)
<0.01	1,660	2,084	3,774	55.66
0.01-0.40	977	1,162	2,139	54.32
0.41-1.00	2,683	1,335	4,018	33.23
1.01-2.00	5,269	1,845	7,114	25.93
2.01-4.00	9,432	2,551	11,983	21.29
4.01-10.00	19,645	3,451	23,096	14.94
10.00+	43,599	11,473	55,072	20.83
All sizes	3,798	1,582	5,380	29.41

Source: SAAH report for 2018-19 (77^th Round).

One reason for livestock farming contributing a higher share of income for marginal agricultural households is that it is a more labour– than land-intensive economic activity. Land ownership in rural India is rather iniquitous: According to the SAAH report for 2018-19, 84.7% of rural households have holdings of less than one hectare and they together account for just 34.5% of the total area owned. The same report, however, shows ownership of livestock to be more equitably distributed. For instance, 30% of rural households in the lowest operational holding size class of 0.002-0.005 hectares own milk-producing cows, which is as much as that for those with 3-4 hectares. The average number of in-milk cattle owned per 100 households for this virtually-landless holding class, at 33.4, isn’t also much below the 44.9 for those having 3-4 hectares. The ownership is even more equitable in the case of ovine (sheep/goat) and poultry birds – households with less land tend to keep more of these – although not as much as with buffaloes (Table 4).

Table 4: % of rural households owning livestock & number (N) of livestock per 100 households

Size class of operational holding (ha)	In-milk cattle		In-milk buffalo		Ovine		Poultry birds
	%	N	%	N	%	N	%	N
0.002-0.005	30.0	33.4	13.8	17.7	43.4	267.5	17.8	178.6
0.005-0.040	26.9	37.4	19.3	25.6	34.3	473.3	14.2	108.3
0.040-0.5	20.5	25.4	11.7	14.5	28.6	173.4	13.9	116.3
0.5-1.0	26.4	34.8	17.0	23.0	28.9	195.3	16.1	134.7
1.0-2.0	28.0	39.6	21.3	30.3	27.3	237.0	14.3	179.4
2.0-3.0	30.9	46.5	25.9	40.6	22.5	197.7	10.8	118.6
3.0-4.0	30.1	44.9	34.8	52.5	21.7	149.8	7.2	65.3
4.0-5.0	41.8	74.3	34.8	65.0	23.6	187.0	9.9	94.3
5.0-7.5	46.8	75.8	35.6	59.2	15.6	428.2	6.4	325.8
7.5-10.0	49.7	73.7	44.1	79.0	26.3	260.2	6.0	58.7
10.0-20.0	48.4	79.2	41.2	66.3	23.4	241.2	6.0	76.6
>10.0	36.4	80.5	90.0	168.2	26.1	309.0	16.2	224.7
All sizes*	16.4	21.9	10.7	14.8	21.9	188.8	10.7	133.9

*Includes landless households.

Source: SAAH report for 2018-19.

The viability of livestock rearing over regular crop agriculture for smallholders has been best demonstrated in dairying, more so in states with well-developed milk procurement and marketing systems. The best example of it is, perhaps, the Valsad district union of Amul. This Rs 1,850 crore-turnover union procures an average 8.5 lakh kg per day of milk from its 1.22 lakh producer-members, almost two-thirds of them adivasis. These largely first or second-generation dairy farmers typically keep about three adult milch animals – the first one a freshly-calved cow giving 10-12 litres daily, the second 5-6 months pregnant producing 3-4 litres and the third about 8 months already gone dry. The last animal would, then, calve just when the second one stops lactating. In this way, the farmer is able to sell 15-16 litres daily round the year.

In areas where organised dairies undertaking direct procurement exist, a one-acre farmer can even dedicate her entire land to grow high-yielding protein-rich fodder hybrids/varieties and rear 5-6 crossbred cows.  Feeding this multi-cut/perennial green grass would not only meet the base crude protein requirements of these animals (and their calves/heifers), but also reduce purchases of expensive compound cattle feed/concentrates that need to given only when they are producing milk.

Hybrid broiler technology has, likewise, turned poultry farming into a commercial enterprise even for smallholders. Modern broiler hybrids grow from 35-40 gm chicks to 2-2.5 kg live birds within 40-45 days, as against the traditional free-range/backyard breeds that take 12-16 weeks to attain slaughter weight. A broiler farm, again, requires little land. One acre can easily accommodate 10,000 birds and six batches sold in a year.

The viability of both dairy and poultry, however, rest on three factors. The first is capital. Good crossbred cows and Murrah buffaloes cost upwards of Rs 50,000-60,000. The investment requirement even for a 2,000-bird broiler farm – inclusive of poultry shed, equipment and cost of day-old chicks, feed, medicines and vaccines in the first cycle – would be at least Rs 8 lakh today. That obviously calls for bank loan access or even subsidy, which some states are offering at up to 40% of project cost (https://bit.ly/3DA0Ydx).

The second market access. The Amul model in dairying or the Suguna contract farming integration model in poultry (https://bit.ly/3FFVLmn) basically provide market linkages for producers. Assured offtake along with some minimum guaranteed price is important for any farm produce. In this case, it relates to produce that needs to be sold daily or six times in a year. The farmer’s capital cost recovery and return on labour are a function of both liquidity (being able to sell each time) and price received.

The final point relates to consumption. Demand for animal proteins and fat is part of the normal dietary diversification that comes with rising household incomes. Data from past National Sample Survey rounds have pointed to a significant diversification of consumption – from merely calories/energy-based foods to those incorporating proteins and micronutrients – taking place during the high growth phase of the Indian economy from 2004-05 to 2011-12. A previous note in this series had suggested a stalling or even reversal of this accelerated trend of diversification (https://bit.ly/3lDJO8S). That, of course, has implications for demand and sustained growth of the most dynamic – and possibly, poverty-alleviating – segment of Indian agriculture.

Courtesy-This note, part of the Understanding the Rural Economy series by CPR, has been authored by Harish Damodaran and Samridhi Agarwal.

REFERENCE-ON REQUEST

https://www.pashudhanpraharee.com/livestocks-contribution-to-indian-economy/