ROLE OF LIVESTOCK IN INDIAN ECONOMY

Pooja Singh^* and A. K., Upadhyay

Department of Veterinary Public Health and Epidemilogy

College of Veterinary and Animal Sciences ,G.B. Pant University of Agriculture and Technology, Pantnagar-263145 Uttarakhand, India

Pooja Singh (Ph.D. Scholar) – drpoojavet140@gmail.com

Livestock are an integral component of agriculture in India and make multifaceted contributions to the growth and development of the agricultural sector which includes animal husbandry, dairy and fisheries sector plays a significant role in the national economy and in the socio-economic development of the country.  Livestock help improve food and nutritional security by providing nutrient-rich food products, generate income and employment and act as a cushion against crop failure, provide draught power and manure inputs to the crop subsector, and contribute to foreign exchange through exports. Additionally, livestock make substantial contributions to environmental conservation, supplying draught power and manure for fertilizer and domestic fuel that save on the use of petro-products.

Livestock sector also plays an important role in the rural economy as supplementing family earnings and generating gainful employment in the rural sector, particularly among the landless labourers, small and marginal farmers and women’s. About 20.5 million people depend upon livestock for their livelihood. Livestock contributed 16% to the income of small farm households as against an average of 14% for all rural households. Livestock provides livelihood to two-third of rural community. It also provides employment to about 8.8 % of the population in India. India has vast livestock resources. Livestock sector contributes 4.11% GDP and 25.6% of total Agriculture GDP.

Since India’s independence, it has experienced considerable economic growth and structural change; a trend accelerated by its structural reforms which began in 1991. These changes are also reflected in trends of livestock sector which has shown considerable growth in recent decades especially since the late 1990s. There have also been major changes in the production of the Indian livestock sector. This paper assesses the role and contribution of livestock sector in Indian economy.

LIVESTOCK RESOURCES OF INDIA

• 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 the population of ducks and chicken (851.81 million)
• Tenth in camel population in the world – 2.5 lakhs     (Source: 20th Livestock Census) STANDINGS OF INDIA IN THE WORLD

POPULATION OF LIVESTOCK AND ITS IMPORTANCE

According to 17th census total livestock, population is 485002 and in 19th Livestock Census 512.05 million which conducted with reference date of 15th October, 2012. It is increasing day by day due to its importance as an alternative source of income and food also. The importance of livestock in India goes beyond the function of food production. It is an important source of draught power, manure for crop production and fuel for domestic use. Thus, by minimizing use of nonrenewable energy, livestock make a positive contribution to the economic development. Livestock sector is an important source of income for the farmers and rural poor peoples. The growth in the livestock subsector is expected to contribute to poverty alleviation, as the livestock elements are largely concentrated among the marginal and small farmers in rural areas. Near about 70% of livestock market in India is owned by 67% of small and marginal farmers and by the land less. Livestock are an important source of income for the rural poor also. This sector contributed important share in export of Indian international trade. Recently the livestock subsector playing very important role in poverty alleviation in rural area. The livestock sector contributed over 5.26 per cent to the total GDP during 2006-07. According to estimates of the Central Statistical Organization (CSO), the value of output from livestock and fisheries sectors together at current prices was about Rs.2,82,779 crore during 2007-08 which is about 31.6 per cent of the value of the output of Rs.8,94,420 crore from agriculture & allied Sector. In 2017-18 India’s total import of livestock and livestock products of Rs. 101.24 billion and export is of Rs. 457.76 billion.

CONTRIBUTION OF LIVESTOCK TO PEOPLE

The diet of an average Indian is cereal-based and lacks nutrient-rich foods such as pulses, fruits, vegetables, and animal products. Low intake of these products results in nutritional deficiencies.

The problem is severe in populations having little access to cultivated land. Diversification of diet towards animal products can help to improve nutrition. Consumption of livestock products is expected to increase faster with sustained economic growth and attendant increases in per capita incomes. The livestock provides food and non-food items to the people are:-

1. Food:The livestock provides food items such as Milk, Meat and Eggs for human consumption.

1. Milk- India continues to be the largest producer (20.17 percent of the total milk production in the world) and has attained the first rank in milk production in the world. It is producing about 176.34 million tones of milk in a year (2017-18). At present the first five countries in the world producing maximum milk are India, USA, Russia, Germany and France. At the beginning production of milk was only 17 million tonnes (MT) in 1950-51 in India. Now it is increased to 108.5 million tonnes in 2008-09. World milk production is estimated at 693 million tonnes during 2007-08 and Indian milk production stands at 104.8 million tonnes. Despite a higher growth rate, the per capita availability of milk in India is 252 grams per day is lower than the world average 265 grams per day. This has not only placed the country on top in the world, but also represents sustained growth in the availability of milk and milk products for the growing population of the country. Concentrated dairy products such as skimmed milk continues to be the largest item of export, which together accounts for nearly 78% of net milk and milk product exports during 2007-08.

5. Poultry and Egg- Poultry is one of the fastest growing segments of the agricultural sector in India today. Their growth rate has been rising at 8 to 10 percent per annum with 5.65 percent of the global egg production. As a result, India is now the world’s fifth largest egg producer and the eighteenth largest producer of broilers. Table eggs and broiler meat are the major end products of the poultry sector in India. The organized sector of poultry industry is contributing nearly 70% of the total output and the rest 30% in the unorganized sector in India. The Andhra Pradesh, Tamil Nadu and Maharashtra producing nearly 70% of the country’s egg production. Presently production of eggs is estimated to number about 37 billion, that of broilers 895 million, and that of poultry meat 735,000 tonnes. Egg production has increased from 21 billion in 1990-91 to 51 billion numbers in 2006-07 and 53.5 billion numbers in 2008. India ranks fifth in the world with annual egg production of 1.61 million tones and in 2017-18 about 95.22 billions of eggs.  Poultry exports are mostly to Maldives and Oman. Indian poultry meat products have good markets in Japan, Malaysia, Indonesia and Singapore.

• Meat and Meat Products- The meat products industry in India was largely in the un-organized sector and share 3 percent of total meat production. With rapid urbanization, higher income levels and changes in lifestyle, Indian market produces scientifically and hygienically packed meat and meat products which are now expanding rapidly. Today, there is a increasing demands of the meat and meat products for in domestic and foreign market, particularly to the Gulf and West Asia and neighboring countries. In 2003 India had a livestock population of 470 million that included 205 million cattle and 90 million buffaloes. Cattle, buffaloes, sheep and goat, pigs and poultry are the types of animals, which are generally used for production of meat.

There is a large scope for expanding exports, especially in buffalo and poultry meat, eggs and dairy products. Slaughter rate for cattle as a whole is 20%, for buffaloes it is 41%, pigs 99%, sheep 30% and 40% for goats. The country has 3,600 slaughterhouses, 9 modern abattoirs and 171 meat-processing units licensed under the meat products order. The production of meat has increased 1.9 million tonnes to 23 million tonnes from 2001 to 2007. 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.  During 2017-2018 the total fish production in India is estimated at 12.61 Million Metric tonnes.

In meat and meat processing sector, poultry meat is the fastest growing animal protein in India. The estimated production of meat was 6.5 million tonnes during 2007-08. Per capita consumption increased from 870 grams in 2000 and expected to reach 2 Kg during 2009. According to APEDA, the export of buffalo meat was increased from 343817.08 tonnes (value Rs 1536.77crore) in 2003-04, to 483478 tonnes (Rs.3549.70 crore) in 2007-08. The export of sheep/goat meat is increased from 16820.53 tonnes (Rs 110.39 crore) in 2003-04 to 8908 tonnes (Rs.134.09 crore) in 2007-08. The processed meat export was 986.13 tonnes (Rs 7.63 crore) in 2003-04 and now it is 1245 tonnes (value Rs 12.96 crore). The export of poultry products was 415228.17 tonnes (Rs 202.40 crore) in 2003-04 it is also increased near about 1355246 tonnes (Rs 401.08 crore) in 2007-08.

5. Fish Production- India has a about 8041 km of coastline, and about 5.70 million ha of fresh water area suitable for fisheries production. Fishing, aquaculture and allied activities are reported to have provided livelihood to over 14 million persons in 2006-07. In 2001 overall fish production was 5666 thousand tonnes it gradually increasing continuously. At present, India’s total fish production is about 76.21 thousand tonnes. This sector has great potential to export their fish and fish product also. Since 1991, overall export of fish is raised at considerable rate. According to the data provided by ministry of agriculture and commerce of India, there export of fish and fish product increased from last ten years. In 1991 India has exported 140 thousand tones of fish and fish products but till it reached to 541 thousand tonnes its money value is Rs. 7621 crore in 2008.

ANIMAL PRODUCTS STATISTICS

(Source:Amandeep Singh, 2018)

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.

1. 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).
2. 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.
3. Weed control: Livestock are also used as Biological control of brush, plants and weeds.
4. Cultural: Livestock offer security to the owners and also add to their self esteem especially when they own prized animals such as pedigreed bulls, dogs and high yielding cows/ buffaloes etc.
5. 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.

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 are 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).

BENEFITS OF LIVESTOCK SECTOR DEVELOPMENTS IN INDIA

Animal Husbandry sector provides large self-employment opportunities. Presuming that one family member is employed in looking after the livestock, 25 million people are estimated to be employed with the livestock rearing activity. This sector is playing very important role in the rural economy as support sector of the economy. Especially 70 million rural households primarily, small and marginal farmers and landless labourers in the country are getting employment opportunities in dairy. Dairying has become an important secondary source of income for millions of rural families. Poultry is also another way of getting food and food security in India. Apart from food security it has provides employment to about 1.5 million people. Livestock Sector not only provides essential protein and nutritious human diet through milk, eggs, meat etc but also plays relevant role in utilization of non-edible agricultural by-products. Livestock also provides raw material/by products such as hides and skins, blood, bone, fat etc. This provides subsidiary occupation to a large section of the society particularly to the people living in the drought prone, hilly, tribal and other remote areas where crop production on its own may not be capable of engaging them fully. In the adverse climatic conditions and national calamities like drought, flood etc., animal husbandry practices shall be proved to be boon for sustaining the livelihood of the landless and marginal farmers in the state.

Indian livestock industry makes up for a significant amount of world’s livestock resources. Both the national economy as well as the socio-economic growth of the country is backed by the livestock sector. Besides, offering great potential and outstanding contribution in the agricultural sector over the past years. The livestock sector is performing well in the manner of production, value addition and export of dairy, fishery, wool, poultry and other products. Apart from its performance there are some threats also exist we need to re-correct it and take the global market opportunities.

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