Volume - Indian Dairy Association

REPORT OFTHEADVISORY COMMITTEEONANIMAL HUSBANDRY & DAIRYINGVolume IMAIN REPORTConstituted by thePLANNING COMMISSIONGovernment of IndiaYojana Bhawan, New Delhi.January 2010

CONTENTSChapters/AnnexPage No.Preface 1Executive Summary 2‐11Chapter 1: Livestock in National Economy 12‐20Chapter 2: Growth of Animal Husbandry and Dairy Sectors 21‐23Chapter 3 : Potential for Growth in Animal Husbandry and Dairy Sectors 24‐29Chapter 4 : Public Investment 30‐35Chapter 5 : Inputs and Services 36‐47Chapter 6 : Developmental Strategy 48‐71Chapter 7 : Research and Technology Support for Animal Husbandry 72‐79Chapter 8 : Livestock Credit and Insurance 80‐87Chapter 9 : Public Private Partnership 88‐92Chapter 10 : Review of Central Sector and Centrally Sponsored Schemes 93‐108Chapter 11 : Suggested Central Sector and Centrally Sponsored Schemes 109‐111Chapter 12 : Institutional and Structural Reforms 112‐116Chapter 13 : State Specific Recommendations 117‐165Annexure I : Report of Sub‐group on Fodder Production 166‐209Annexure II : Report of Sub‐group on Livestock Extension 210‐224Annexure III: Report of Sub‐group on Value Addition 225‐269Enclosures1. Constitution of the Committee2. Constitution of the Sub‐groups

2EXECUTIVE SUMMARY1. Livestock is an important sub‐sector of Indian Agricultural Economy andplays a multifaceted role in providing livelihood support to the ruralpopulation. Livestock sector apart from contributing to national economy ingeneral and to agricultural economy in particular also provide employmentgeneration opportunities, asset creation, coping mechanism against cropfailure and social and financial security.2. Even though there has been deceleration in growth rate of livestockoutput per se after mid 1990s, the growth in livestock sector has beenfaster than crop sector. The contribution of livestock sector in agriculture interms of output, which was 17.3 per cent during 1980‐81, increased to 26.9per cent in 2007‐08. Similarly, contribution of the sector to National GDPhas been around 5.5 per cent over the years despite pronounced variationobserved in contribution of crop sector to National GDP; indicating thestability of the livestock sector.3. Nearly two thirds of farm households in India are associated with oneor the other form of livestock production and 80 per cent of them are smalllandholders (< 2ha), livestock contribute substantially to their livelihoodand provides coping mechanism during the period of crop failure. Thecontribution of livestock income varies from region to region; it beinghighest in the case of arid region followed by irrigated and hill andmountain eco region. Another significant feature of income from livestockis its high Gini Coefficient indicating uniformity in its distributionirrespective of the size of holding.4. The demand driven growth being witnessed in livestock in the recentyears is an important pathway for increasing the income of marginal andsmall and landless labourers. Market opportunities due to the anticipatedrise in demand for livestock products will provide an avenue for resourcepoor farmers to increase production, improve their livelihoods, reducemalnutrition and thereby contribute to the goal of overall povertyalleviation. The growth attained in livestock sector hitherto has beenattributed largely to increase in animal numbers and to a lesser extent on

3productivity enhancement. The future growth has to sustain primarily onenhanced productivity and not on increase of livestock population.5. In the rural areas, most of the livestock rearing activities are handledby women force. As many as 75 million women are engaged in livestocksector as against 15 million men. There is an increasing trend towardsparticipation of women in livestock development activities. This has led toempowerment of women headed households in the rural communities.6. In recent years, a gradual shift is taking place in livestock sector fromresource driven systems to demand driven systems and involvement ofeducated youth in livestock production activities. The increase in theprocessing of especially milk and meat had provided a fillip to thisdevelopment. Livestock production systems have also provided muchneeded diversification opportunities especially in the states like Punjab,Haryana and Uttar Pradesh and also in the poorly endowed regions likeBundelkhand.7. Processing and value addition has been primarily limited to the milksub‐group. The meat sector continues to be handled in an unorganizedmanner. For making the meat sector more vibrant, profitable, exportoriented and provider of safe meat, a greater emphasis needs to be givenon establishment of modern slaughter and processing facilities.8. The growth of the livestock sector during the 8 th Plan was 4.01 percent per annum, which decelerated to 3.45 per cent in the 9 th Plan and 3.91per cent in the 10 th Plan. The contribution of milk sector to the total outputfrom livestock is about 68 per cent and in some of the states it is as high as80 per cent. After the completion of Operation Flood, there has hardlybeen any investment in the cooperative sector. The investment undercentrally sponsored schemes has gone to non‐viable areas mainly in theNorth East. The private sector has made considerable investment butmainly in the processing sector, which has not given the required impetusfor achieving higher growth rate in milk sub‐sector; consequently thegrowth has decelerated to 3.91 per cent in the 10 th Plan. During the sameperiod the growth in egg production was positive and increased from 4.41per cent in the 8 th Plan to 7.26 per cent in the 10 th Plan. The growth in wool

4sub‐sector has been seriously affected due to lack of focused policy andalso liberalization of the import policy for wool.9. With higher purchasing power due to higher income over the yearsdemand for consumption of livestock products is going to enhance duringthe 11 th and 12 th Plan. The future strategy for achieving the targetedlivestock production should be through productivity enhancement and thisis possible through innovative approach of breeding, feeding andmanagement aspects. The future strategy should be based on obtaininghigher return per unit of product through value addition, which in turnwould benefit the primary producer.10. Over the years there has been a quantum jump after theliberalization in the export policy of livestock product especially meat andmilk which during the last year have achieved an export of Rs. 5000 croresin the case of meat and Rs. 1000 crores in the case of milk. India isgeographically situated at an advantages place in South East Asia and cancapitalize on the growing market in Africa, Middle East and South East Asiain the growing livestock market.11. From the visits made by the Advisory Committee constituted by thePlanning Commission, to different states of the country, it has been clearlyestablished that there are large differences in the potential of the growth ofsector across the states/regions. Considering the geography and naturalresource availability, the dairy development should have ideally taken placein Indo‐Gangetic plain comprising the states of Punjab, Haryana, UttarPradesh and Bihar, which has not happened to the desirable level. On thecontrary, traditionally low potential areas like Karnataka, Maharashtra,Andhra Pradesh and Rajasthan have shown better performance. To a greatextent this variation can be explained due to the emphasis put in thesestates on cooperative system of dairy development which not only providesmarket but also the requisite input services for increasing milk production.12. The small ruminant sector offers considerable opportunities forproviding employment to the resource poor farmers especially in the aridand North‐hilly region of the country. A focused approach with higher

5investment community approach and developing processing facilities wouldprovide the required boost to the sector. This has been lacking so far.13. Performance of poultry sector has been more than satisfactory andthe sector has emerged from a meager backyard nature to a fullycommercialized production system, which could be attributed totechnology in the form of high producing strains, role of private sector,efficient market linkages and adequate processing facilities.14. The demand for pork and other pig products is significantly higher inNorth‐Eastern states and almost 80 per cent of the production in thecountry is consumed by people of NE region. In spite of this, developmentof piggery sector has almost been neglected in NE region; probably onaccount of lack of feed and other resources. Therefore, it calls for acomprehensive strategy for piggery development to meet the demand. Thestate governments and North Eastern Council should emphasize inpromoting this sector.15. The overall investment made in livestock and dairy sector has beenvery meager over the Plan period. The 10 th Plan outlay (2002‐2007) forDAHDF was Rs. 2500 crore which constituted 11.84 per cent of the totalbudgetary outlay of agriculture and allied sector. Out of this, the outlayallocation for DAHDF (excluding fisheries) was Rs. 1760 crores accountingfor 8.35 per cent of the total outlay for agriculture and allied sector. Interms of expenditure the performance of the department has been evenpoorer and was 8.02 per cent during the entire Plan period; varyingbetween 6.42 per cent to 10.03 per cent from year to year. On thecontrary, contribution of livestock sector has been increasing over the years(26.9 per cent in 2007‐08) as indicated in earlier paragraphs. With themeager budgetary allocation made to the sector, it would not be possibleto achieve the desired growth rate of 6 per cent targeted in the 11 th Plan.Not only the public investment has been low there has also been seriouslack of investment by the private sector in animal husbandry and that toolimited to dairying mainly in the processing sector. In the 11 th Plan, aprovision of Rs. 11000 crores was made for DAHDF. However, theexpenditure during the Plan period is likely to be no more than Rs. 6000crores. One of the reasons of poor allocation made in the Plan is attributed

6to low absorption capacity of the department, which also needs to beimproved to achieve higher growth.Developmental Strategies16. The strategies during the last few Plans has been to improve thegenetic potential of indigenous cattle through crossbreeding with exoticbreeds. In the 10 th Plan a centrally sponsored National Project on Cattle andBuffalo breeding has been taken up covering the whole of the country. Anumber of bull production farms, frozen semen bank and AI centers havebeen established. The project was allocated Rs. 375 crores in the 10 th Plan,which has been enhanced to Rs. 500 crores during the 11 th Plan. This hasresulted in a quantum jump in the number of artificial inseminations andthe production of crossbreds. However, most of the bulls used in theprojects are not progeny tested; and adequate strategy for field recordingand progeny testing of the bulls has not been built in the project. It is wellknown that the high producing animals can give its performance only incomparatively better environment. However, the strategy does not providefor simultaneous improvement of feed and fodder resources, due to whichit has not been possible to harness the full potential of the scheme. It is,therefore, recommended that in all areas covered under NPCBBprogramme efforts should be made to develop feed and fodder resourcessimultaneously.17. The strategy for development of small ruminant sector as a whole islacking. Due to a number of reasons the sheep production in major parts ofthe country is at the cross roads. Large sheep breeding farm for productionof exotic rams was set up in Hissar, Haryana, along with seven large farmsin states where imported sheep of Merino and Rambouilt breeds were keptfor production of rams. In the case of Rajasthan, projects were taken up onwool grading and marketing and production of fine and medium qualitywool for quality production. All these projects have failed. It is suggestedthat the future strategy should be to improve quality of wool in sheeplimited to Northern states of the country namely J&K, Uttarakhand and hillyparts of UP. In other parts of the country the strategy should be to improvesheep for mutton production. Various programmes in the states should beredefined and redrafted on these lines. Despite the fact that goat offers

7great potential no strategy has been developed for its improvement. Thereis no central sector or centrally sponsored schemes for development ofsmall ruminants. This sector appears to have been completely neglected.18. As indicated earlier, in the case of Pig production, there a mismatchbetween the consumption and production centers. While the majordemand of bacon and other products is in the NE, the production is limitedto areas of Uttar Pradesh and Andhra Pradesh. It is suggested that thepresent approach of individual farming should be replaced by clusterapproach in the NE region with simultaneous development of processingfacilities.19. Although the poultry sector has been completely commercialized,backyard poultry offers scope in the rural areas for providing income toweaker sections of the community. The Central Avian Research Institutehas developed suitable technologies for development of backyard poultry,which would enhance its productivity and returns. It must, however, berealized that in view of competition from the commercial sector, backyardpoultry has to be considered essentially as a sector limiting itself forproviding livelihood opportunities to landless and resource poor farmers.20. In the case of animal health, the major emphasis is limited toproviding curative treatment by opening hospitals and dispensaries. Thedisease investigation support is quite weak. Most of these facilities arestationary in nature, thereby, reducing their efficiency. The present strategyshould be replaced by mission mode approach. A national network on thedisease investigation and reporting should be established. Epizootic mapson the occurrence of various diseases in various parts of the country shouldbe prepared. A strategy to stamp out the diseases should be developed andimplemented following the approach adopted in eradication of Rinderpestdisease. The existing manpower with the state veterinary and animalhusbandry department is not sufficient to provide services at the doorstepof the farmers. This gap can be filled by putting more emphasis on trainingof paravets who would be in a position to provide the desired services andrelieving the veterinary doctors to assume higher responsibilities. Theproduction of vaccine is an area which needs to be privatized either

8completely or taken up on PPP models for efficient utilization of limitedresources available to the sector.21. Under dairy development milk producers cooperative will continueto play a major role despite liberalization of the sector. However, the dairycooperatives will have to reform themselves and become competitive. Milkproducers institutions registered under company’s law have been found tobe more effective than the cooperatives. NDDB has prepared a NationalDairy Plan, which has been submitted to the World Bank for financialassistance. Under the project the processing capacity would be expandedand also investment made in progeny testing and fodder production tosupport the breeding programme. R&D efforts in developing processed andpackaging technology for Indian milk products as also other innovative milkproducts need to be supported. With the implementation of National DairyPlan in the near future there is a need to re‐look at the various schemespresently funded by DAHDF for avoiding duplication and overlapping ofinvestment.22. Support should be provided to modernization of meat sector.Registration of all slaughter houses in cities/towns is essential for meatproduction and protection of environment. The establishment of ruralbased abattoir in animal breeding track would reduce the need fortransportation of live animals to urban area for slaughter. In addition,modern abattoir/meat processing plant should be supported to promoteexport.23. The existing institutional mechanism is not sufficient to cater to theneeds of various stakeholders of the sector. For meeting emergingchallenges both at national and international levels a paradigm shift in theinstitutional mechanism would be essential. Structural reforms are requiredat various levels viz. national, state and production levels. For providingcomprehensive information on livestock related aspects and drawing longterm and short term policy/strategies, it is essential for establishing aseparate National Body for Livestock Information and Policies which canadvise the Ministry in all policy matters relating to livestock sector. Theproposed body can establish a channel of communication and coordinationwith all the state governments and the public/private organizations, both

9national and international dealing with livestock. Presently, no well‐definedmechanism exists on import of germ plasm in the form of live animals,frozen semen and embryos. An adhocism prevails while taking the decisionon these issues. An authority for quality control on breeding material,which is being suggested since 8 th Five Year Plan, should now be set up onpriority basis. At present the vaccine production as well as quality controllies with the state veterinary department which functions not only as userbut also as producer and quality controller, which is not a satisfactoryarrangement. An independent authority for Quality Control of Vaccines andother biological products produced both in the public and private sector assuggested in the 11 th Plan should be set up.24. Many of the state departments have been setting up livestock farmswithout assessing their requirements. This tendency needs to bediscouraged and the production of breeding males (bulls, rams) should bethrough identified farmers and farmers group. The issues of disconnect andnon‐convergence between different departments implementing animalhusbandry and dairying activities at the state level needs to be addressedfor harnessing full benefits of various schemes. The activity of semenproduction should be placed with the proposed central agency for ensuringquality and standards.25. The future strategy should give greater emphasis on developingpublic private partnership (PPP) in different activities of animal husbandryand dairy sector. Some of the areas, which can be taken more efficiently inPPP mode include: vaccine production and its delivery, meat productionand processing, processing of fallen animals and animal by‐products, fodderseed production, management of community pastures and fodder banks,extension and technology transfer, etc.26. There is a serious shortage of quality fodder seeds availability in thecountry. The State Seed Corporations do not own the responsibility ofproducing fodder seeds. Fodder seed production is basically in the hands ofprivate sector and groups of farmers. The strategy comparable to the cropsector will have to be developed for production of fodder seed, whichshould incorporate production of breeder seed, foundation seed, certified

10seed and truthfully labeled seed. Extension efforts will have to be made tothe type of the seed suitable for his area and its availability.27. Livestock extension services to the farmers will be the key forimproving livestock productivity and making the livestock sectorcompetitive in the liberalized economy, which at present is almost nonexisting.Livestock extension services should include transfer of technologyand also strengthening locally relevant innovative systems; advisory serviceand provision of access to range of services. It is evident that extensionservices need to undergo a paradigm shift. There is a need to have alivestock extension policy built into the National Agriculture Policy. A welldevelopedknowledge portal needs to be developed and established.28. Non‐availability of credit especially to landless and asset less farmersis one of the major impediments in development and growth of the sector.At present, short term credit to livestock farmers for meeting therequirement for production purposes is not easily available. LivestockFarmers Credit Card (like Kissan Credit Card) should be introduced forproviding short‐term credit to solve the problem of working capital and toavoid paying very heavy rate of interest to the money lenders. Innovativecredit facilities through joint liability groups/SHGs need to be promoted.29. The DAHDF is implementing a number of centrally sponsored andcentral sector schemes with different funding pattern. The differentcomponents of the schemes, which are decided at the central level arebeing implemented by the states and the states do not have any say indeciding their pattern and technical contents. It is suggested that onlyschemes of national importance/relevance pertaining to breeding, diseasecontrol, feed and fodder, and National Dairy Plan should be planned at thecentral level and implemented as central sector schemes. A second streamwith a shelf of schemes may be developed and the states may be allowedto choose relevant schemes based on state/region specific needs. A thirdstream of scheme to be implemented through NABARD as venture capitalfund is also suggested.30. The developmental programmes initiated by Government of India inthe recent years viz. RKVY, NREGA, BRGF, Watershed Programmes, etc. alsoprovide an opportunity for promoting livestock activities. Effective

11convergence and dovetailing of animal husbandry and dairy sector withthese developmental schemes need to be made.31. Considering the performance of different states in implementation ofvarious programmes of animal husbandry and dairy sectors, absorptioncapacity and constraints of manpower and infrastructure, it is unlikely thatit would be possible to achieve the set target of 6‐7 per cent growth perannum during the 11 th Plan period. As such, the target for overall growthrate in livestock sector may have to be revised to 5 per cent during thecurrent plan with a 4 per cent growth rate for milk sector and 6‐8 per centfor poultry and meat sector.32. Implementation of the developmental strategies suggested by theCommittee for different sectors along with the higher investment portfolioswould accelerate the growth in the livestock sector. This would result inachieving a growth rate of 6‐7 per cent in the 12 th Plan period.

12I. Livestock in National EconomyCHAPTER I1.1 Livestock is an important sub‐sector of Indian Agricultural Economy andplays a multifaceted role in providing livelihood support to the ruralpopulation. Livestock sector apart from contributing to national economy ingeneral and to agricultural economy in particular also provides employmentgeneration opportunities, asset creation, coping mechanism against cropfailure and social and financial security.1.2 Over the years, livestock sector has been making significant contributionto national economy as well as to the agriculture sector output. Growth rate inoutput of crop sector has witnessed a deceleration over the years particularlyafter mid 1990s. Even though there has been deceleration in growth rate oflivestock output per se after mid 1990s, the growth in livestock sector has beenfaster than crop sector leading to its increased share in the total agriculturesector output from 17.3 per cent during 1980/81 to 26.9 per cent in 2007/08.The value of output from livestock sector was to the tune of Rs.2,40,601 croreduring the year 2007‐08 (at current prices) accounting for 26.90 per cent of thevalue of output from agriculture and allied sectors.Percentage Contribution of Livestock Sector to Agriculture and National GDP(at 1993‐94 prices)YearPercent Contribution of Livestock sector toAgriculture GDP National GDP1990‐00 24.39 5.592000‐01 25.92 5.672001‐02 25.91 5.702002‐03 29.27 5.702003‐04 27.26 5.402004‐05* 24.90* 4.70*2006‐07 31.70 5.262007‐08 26.90 5.21• At 1999‐2000 prices.1.3 The sustained economic and income growth in the country andintegration of global agri‐food markets provide considerable scope for future

13growth of livestock sector and opportunity of increased income generation forlivestock farmers, especially small holders. Nearly two‐thirds of farmhousehold in India are associated with livestock production and 80 percent ofthem are small land holders (≤ 2ha). What is required is to identify the existingand emerging opportunities and develop a comprehensive road map forharnessing these opportunities.1.4 The fact that about 90 million farming families owning milch animals areinvolved in milk production amply signifies the important role of the sector.Livestock provides a large share of draught power, with about half the cattlepopulation and 25 per cent of the buffalo population being used to cultivate 60million hectare of cropland. Draught animal power is making a significantcontribution to agricultural production and thus to the rural economy. Thecontribution is roughly estimated to be to the tune of Rs. 10,000 crores peryear besides saving approximately six million tonnes of petroleum worth Rs.6,000 crores. Draught animal power is still relevant and useful due to the factthat it is suitable to the needs of the farmers with small land holding and theareas where mechanized implements cannot be brought to use. A significantoutput from small and backyard dairy farming is the production of dung, whichis an important organic manure. On an average, 800 million tonnes of manureis produced. Of this, some 300 million tonnes are burnt as fuel and thebalanced used as manure. Even this could be improved upon by scientific yetpragmatic planning like bio‐gas production. However, the dung cakes are thesole source of energy of the poor, for cooking and for heating their dwellingsduring winter.1.5 Contribution of livestock to overall household income is significant butdiffers across different agro‐climatic regions of the country. Agriculture with ashare of 44 per cent in household income is the dominant income source inirrigated and rain fed zones. Non‐farm income is more than agriculture incoastal zone and almost the same in hill and mountain zone. In arid zonecontribution of livestock income is higher than agriculture income implyinggreater risks in crop production in this zone.

14Income by sources in different agro‐climatic zones (%)Agro‐climaticzoneAgriculture Livestock Wages Non‐farmbusiness incomeArid 31.6 36.0 17.0 15.4Coastal 28.5 7.6 24.3 39.5Hill & mountain 33.8 13.6 23.1 29.5Irrigated 44.5 18.0 16.1 21.4Rain fed 43.8 11.4 21.8 23.0Source: Brithal et al., 2007.1.6 Livestock is considered as second most equally distributed source ofincome after agriculture with a Gini coefficient (G k ) of 0.745 and contributesleast (10.6 per cent) to total income equality which is mainly ascribed to itsweak correlation with total income and even distribution of livestockownership. Further, the significant contribution of livestock rearing as aneffective coping mechanism against crop failure has been amply proved inrecent years in Vidharba region of Maharashtra and suicide prone districts ofother states like Karnataka and Andhra Pradesh. Farmers owning livestockasset have been able to overcome the hardships of crop failure and loanburden and no suicide cases have been reported of farmers owning livestock.1.7 The demand driven growth being witnessed in livestock in the recentyears is an important pathway for increasing the income of marginal and smallfarmers and landless labourers. However, the benefits which can accruedepend on a) scale of production and marketable surplus b) efficiency ofproduction, and c) market linkages / access to domestic and internationalmarkets. Market opportunities due to the anticipated rise in demand forlivestock products will provide an avenue for resource‐poor farmers toincrease production, improve their livelihoods, reduce malnutrition andthereby, contribute to the goal of overall poverty alleviation. Providing anenabling environment in which small producers are able to take advantage ofthe opportunities, overcome the challenges and meet the threats should beaccorded priority.1.8 The growth attained in livestock sector hitherto has been attributedlargely to increase in animal numbers and to a lesser extent on productivityenhancement. The future growth has to sustain primarily on enhancedproductivity and not on increase of livestock population. The current trend instabilization of livestock population and increased number of crossbred cattle

15and milch animal population is an indication that focus has gradually shiftedtowards productivity enhancement. The extent to which growth in livestockproduction can be accelerated would depend on how technology, institutionsand policies address constraints facing the livestock sector. This will requireovercoming feed and fodder scarcity and improvements in delivery of animalhealth and breeding services.Contribution to employment1.9 Livestock is an important source for employment generation andincreased production implies higher employment. Dairying is labour intensiveat farm level and participation of women is substantial. It is estimated thateach 610 kg per day additional milk processed in India adds one man‐day forfeeding and care. Animal husbandry is a year round activity engaging labourforce particularly the household members for all the 365 days of the year andthis is of particular significance to rain fed areas where mono cropping beingthe usual practice, the number of man‐days engaged in agricultural activitiesgets restricted only during the cropping season. Milk and meat processingsectors also generate employment and contributes to limiting emigration fromvillages. Small scale milk processing is labour intensive and generates bothemployment and income.1.10 Gender equity is more pronounced in livestock sector, as womenparticipation is 71 per cent of the labour force while it is only 33 per cent incrop farming. As many as 75 million women are engaged in the livestock sectoras against 15 million men. Women play a major role in livestock productionand most of them have good knowledge about livestock behaviour and localfeeds. Extent and nature of their involvement varies within and betweenregions. Despite variations, women mostly handle aspects like milking, care ofyoung and sick animals, cleaning and feeding. In the poultry sector, womenmostly look after rural poultry. Similarly, women play a prominent role inrearing of sheep, goat and small ruminants. Animal Husbandry increases theearning capacity of women and ultimately leads to their economicempowerment. There is an increasing trend towards participation of womenin livestock rearing activities. One reason for this phenomenon is the migrationof men from rural areas to towns and cities in search of paid employment. Thishas resulted in an increase in the proportion of households headed by women.Viewed from an economic dimension, the day‐to‐day activities performed bywomen are crucial inputs for either directly through sale of livestock andlivestock products or the use of livestock in various livelihood activities.

16Livestock production systems in India1.11 Livestock production systems in India have been traditionally practicedmainly as an extensive, low input subsistence systems integrated with cropproduction. However, with liberalisation of Indian economy, sustainedeconomic and income growth, opportunities for export, etc. in the last twodecades or so has also brought about a subtle but sure change in livestockproduction systems. The major changes being seen in the recent years are:‣ Shift from resource – driven to demand – driven production systems‣ Shift from extensive subsistence systems to semi‐intensive / intensivecommercial systems‣ Many educated youth taking up animal husbandry activities, especiallycommercial dairy farming as business enterprisesThe subtle changes happening in the sector also calls for reorientation inthe approach for future development and growth. Currently, 4 per cent ofcrop‐livestock systems are exclusive grassland based and with the declinein both area and quality of grasslands it is expected that these systemswould slowly be reduced. Mixed rain fed (46 per cent) and mixed irrigated(37 per cent) are the major existing livestock production systems. It isanticipated that the share of these systems would see a reduction incoming years. Semi‐intensive and industrial production systems which atpresent account for 13 per cent are expected to expand substantially.

17Crop - Livestock systems in IndiaSuch change also necessitates reorientation of approach, planning andimplementation strategies for facilitating growth of animal husbandry anddairy sectors:‣ Future growth in AH and dairy sector would primarily be market drivengrowth and depends on how well the marketing strategies are conceivedand put in place ;‣ One of the key drivers for the sectoral growth is that livestock farmingsystems would be technology‐driven. It is imperative that cost effective,region specific technologies need to be developed and deliveredeffectively for adoption at the field level;‣ A paradigm shift in existing input delivery mechanism system wouldhave to be developed and put in place for delivering the services atfarmer’s doorstep;‣ A greater role for private sector through appropriate PPP businessmodels; and‣ Enabling policies of the government for facilitating speedier growth ofthe sectorDiversification opportunities1.12 Livestock production systems provide scope for diversification of farmingsystems. In recent years over exploitation of ground water, rapid decline of

18water table, unsuitability of irrigation water, and stagnation in crop productionhas become an issue of concern in many parts of the country, more so inPunjab and Haryana. In such situations, livestock production systems,especially commercial dairy farming are being considered and promoted asmost viable alternate diversification opportunities for traditional cropproduction systems.Governmental policies1.13 For accelerated growth of livestock sector, it is imperative that a strongand focused government policy is required. However, the fact remains thatdespite the importance of livestock sector in the Indian economy, especiallytowards livelihood of resource poor farmers and landless labourers,government policy for the sector has suffered from the lack of clear and strongthrust and focus. One of the indicators of priority to a sector could be judgedfrom budgetary allocation under various plan periods to the sector. Eventhough the total budget allocation for the sector as a whole has increased, theallocation to animal husbandry and dairying as percentage of total plan outlayhas either remained stagnant or has decreased both in the central as well asstates’ plan outlay. At the national level, the allocation to Animal husbandrydepartment was 0.98 per cent during the Fourth Plan which was reduced toabout 0.28 per cent during Tenth Plan compared to the sector’s contribution tothe national GDP of over 5 percent. In the first three years of the Eleventh Planthe allocation has varied from 0.25 per cent to 0.28 per cent of the totalCentral Plan of GOI.1.14 Several of the flag ship schemes / programmes introduced by the CentralGovernment in the recent past like RKVY, Integrated Watershed ManagementProgramme, NREGA, BRGF, etc. provide an opportunity for accessing additionalfunds for promoting activities in animal husbandry and dairy sectors. Theavailable avenues and funds have to be efficiently accessed by the respectivestates.Alternate Institutional Arrangements1.15 With the perceptible change happening in animal husbandry and dairysectors and to meet newer emerging challenges both at national andinternational scenario, it is essential for a paradigm shift in the institutionalset‐up for meeting these challenges. Alternate and efficient institutionalarrangements are called for at different levels. The efforts should be aimed at

19promoting and nurturing the grass root level participatory bodies all over thestate as the organic link between the animal husbandry department and thesmall holders. It should also encourage and promote adoption of appropriatetechnologies, enhance productivity, increase effectiveness, and ensure returnsproportional to the investment of time, energy and resources that smallholders, particularly women, make for livestock development andmanagement.1.16 Most of small animal rearers are landless, small and marginal farmersand there is a unique case of scaling up to maximize profits. Increasing inputs,product developments, processing and marketing is essential to realizeeconomics of scale. Formulation and implementation of innovative and boldpolicies and institutional mechanism specifically suited for different regions ishighly desirable. Milk cooperatives on the pattern of Gujarat (Anand) modelare not in place in many of the regions especially in rain fed areas and havealso not been universally successful. Establishment of models like ProducersCompany in the Companies Act will provide the advantages of retaining thebasic elements of cooperation while enjoying the regulatory regime as aprivate limited company.1.17 For achieving livestock feed security, the concept of establishing aNational Livestock Feed Agency on the pattern of Food Corporation of Indiaalong with the National Feed Grid has been mooted and discussed at variousplatforms. However, this has not been translated into action till date.1.18 Another important issue which is relevant for effective integration oflivestock is that of credit and insurance. Credit and insuring risks of differentkinds require unique innovations for coping with market failures and disasters.A total livelihood credit portfolio providing much‐needed credit facility ofresource poor farmers needs to be developed and implemented. Livestockinsurance though being implemented has not been scaled up to the desiredlevel.1.19 Some of the areas which require focus are:a) Increasing involvement of community organizations in decision‐makinghas become the common agenda of all developmental programmes thatare initiated by the government. However, in animal husbandry schemesit is more of a top down approach or target oriented schemes.Convergence of AH activities holistically as a significant component in

natural resource management holds considerable promise. For realisingthis, a paradigm shift is necessary for effective involvement of communitybased organizations.b) Instead of the State departments taking complete responsibility in thearea of providing AI and minor veterinary services, major responsibilitycould be entrusted to well established NGOs, private institutions, etc.,with a well drawn monitoring and evaluation strategy.c) With the amendment to Part IX of the Companies Act made in 2002,considerable scope exists for promoting Producer Companies inagricultural sector. Presently, more than 150 producer companies havebeen established and operating in the country. However, such companiesdealing in animal husbandry sector are very few and such alternateinstitutions are relevant in rainfed areas. NDDB has been working onestablishing green field producer companies in dairy sector for harnessingthe benefits available for a producer company while at the same timeretaining the basic structure of cooperatives. Such initiatives need to beexplored for other livestock products also.20

21CHAPTER IIII. Growth of Animal Husbandry and Dairy Sectors2.1 The 11 th Plan document has set a target of achieving an annual growthof 6‐7 per cent in the sector as a whole with milk group achieving a growth of 5per cent per annum and meat and poultry group achieving a growth of 10 percent per annum during the Plan period. This has been considered essential forachieving an overall growth of 4 per cent in agriculture sector during theperiod.2.2 The deceleration in growth of crop sector over the years has been themajor concern which is limiting the overall growth in agricultural sector.Fortunately, the growth rate in livestock sector has been relatively steadycompensating for the slow growth in crop sector. However, a sign ofdeceleration is also seen in the livestock sector which could mainly be ascribedto sharp decline in growth of milk sector.Growth in value of Output from Livestock Sector (at 1993‐94 prices)Sl No. ItemGrowth during Plan Period (%)8 th 9 th 10 th1 Value of output from Agriculture 3.26 1.39 1.702 Value of output from livestock 4.01 3.45 3.903 Milk group 4.25 4.07 3.194 Meat group 4.17 2.70 4.915 Eggs 4.41 4.44 7.266 Wool and hair 3.51 2.93 ‐0.057 Dung 0.92 ‐0.03 3.968 Increment in stock 15.56 3.48 11.572.3 Considerable variation in growth rate of output of livestock sector isseen across different states. Except in the states of Andhra Pradesh, Gujarat,Himachal Pradesh and Uttar Pradesh which have achieved a growth of morethan 5 per cent per annum between 8 th and 10 th Plan, the growth in remainingstates have remained below 4 per cent. A slow growth in potential states likePunjab, Haryana, Maharashtra, Karnataka and Rajasthan is an issue of concernand the reasons for this need to be critically looked into.

22Average growth in output of livestock during 8 th to 10 th Plan period2.4 Average contribution of milk sector to the total output from livestocksector is about 68 per cent and in the states of Gujarat, Haryana, MadhyaPradesh, Punjab and Uttar Pradesh the contribution is as high as 80 per cent.Any adverse impact on growth of milk sector is likely to adversely affect theoverall growth of livestock sector. Sharp decline in growth of milk sector during10 th Plan might be due to lower investments in this sector post ‘OperationalFlood’ which was being implemented by NDDB.

2.5 Growth in Poultry sector, especially in the egg production has been quiteencouraging during the past three decades. The average annual growth in eggproduction which was around 4.5 per cent during 8 th and 9 th Plan increased to7.26 per cent during 10 th Plan period. The sector witnessed considerableturmoil due to outbreak of Avian Influenza during 2006 and 2007 and in thefirst two years of the 11 th Plan average annual growth has been around 5.2 percent. The sector as a whole has made significant progress over the years andthe country ranks 4 th in egg production in the world. Growth in output of Meatsector has more or less remained stagnant at around 4 per cent annually.23

24CHAPTER IIIIII Potential for Growth in Animal Husbandry and Dairy Sectors3.1 Potential for growth in animal husbandry and dairy sectors variesconsiderably across the states and is governed by a host of factors viz.geographical conditions, crop production, climatic conditions, socio‐economicdynamics, outlook of the state towards development of these sectors andfinancial investment made.3.2 Future growth in animal husbandry and dairy sector would primarily bemarket driven growth and depend on how well the marketing strategies areconceived and put in place. With the speedy economic growth in the countryand higher disposable incomes, the needs and wants of the domesticconsumers have considerably changed. However, adequate efforts have notbeen made to understand the emerging needs and wants. Further, therequired infrastructure and strategic plans for marketing and branding of dairyand other livestock products have not been put in place.3.3 The strategy for growth in animal husbandry and dairy sectors should beoriented primarily towards developing a market‐led growth and exploit thevast potential available both in the domestic as well as export market. Whilecreating the necessary infrastructure and putting in place relevant institutionalmechanisms, focus has also to be made towards developing marketintelligence (both domestic and international).Milk Sector3.4 The success of growth in milk sector over the years could primarily beascribed to establishment of well developed market linkages and marketinginfrastructure. Implementation of Operation Flood Project by National DairyDevelopment Board (NDDB) helped in development of marketing aspects at avery fast pace. A sharp decline in growth of output from the milk sub‐sector isof concern as this sector contributes to about 70 per cent of the total output ofthe livestock sector. It is essential that the potential for growth in milk sector inthese states should be fully harnessed by creating overall enabling conditions,higher investments, focused approach and infrastructural development. Thestates of Punjab, Haryana, Gujarat, Karnataka, Tamil Nadu, Rajasthan andAndhra Pradesh have potential for achieving higher growth rates of 6 – 8 percent during the remaining part of 11 th Plan.

253.5 For achieving the targeted production of 180 million MT of milk by 2020the orientation has to be essentially directed towards productivityenhancement of cows and buffaloes. Quantum jump in productivity is possiblethrough innovative approach in breeding, feeding and management aspects.The Punjab government’s steps in encouraging setting up of hi‐techcommercial dairy farms, private investments being made in Andhra Pradesh,vertical integration of dairy animals on commercial lines in Karnataka are someof the positive indicators that the approach is slowly shifting towardsproductivity enhancement.3.6 In the present day market driven economy, providing value addition toraw material always pays higher dividends. However, this key component hasbeen addressed inadequately in the milk sector. A whole set of issues onpolicy, regulatory mechanism, infrastructural development, capacity building,institutional setup, etc., have to be addressed. Currently, only 16‐17 per centof the fluid milk is being processed in the country of which buffalo and cowmilk account for 55 per cent and 45 per cent respectively. Of the total cow milkbeing processed 26 per cent is from indigenous cow milk and the rest fromcrossbred cow milk. It is essential to enhance the quantum of milk beingprocessed to make it safe for consumption and increase its keeping quality.The process of value addition begins from the moment milk is drawn fromcow/buffalo; and at every step from production to consumption there is amplescope for value addition.3.7 Almost 70 per cent of milk is consumed as liquid milk and conversion ofmilk into various value added products is to a very limited extent, especially inthe organized dairy sector. Anand Cooperative Milk Union (AMUL), Gujarat,has been the pioneer in diversification process and manufactures a range ofvalue added milk and milk products on commercial basis. Some of the otherCooperative Milk Unions like KMF in Karnataka; MILKFED in Punjab; SARAS inRajasthan; and VERKA in Haryana have also been performing considerably wellin providing value addition to milk and milk products.3.8 Some of the areas which need to be focused for value addition in dairysector are:a) The extent of collection and processing has to be enhanced. A target ofenhancing milk processing from current level of 16‐17 per cent to atleast 25 per cent in the next five years has to be set.

26b) Average collection of marketable surplus milk by organized dairies (bothcooperative and private) is only to an extent of 30 per cent except inGujarat where 85 per cent of surplus milk is collected by DairyFederation. For enhancing production and collection of liquid milk, eachof the state should create 2‐3 new milk shed areas every year.c) The National Dairy Plan envisages that for achieving the targeted growthin dairy sector, the handling of marketable surplus by private andcooperative institutions has to essentially increase from current level of50 million Kg/ day to 160 million Kg/ day by 2020‐21. For achieving this,all producers/processors should develop a milk collection network onthe model of Gujarat.d) At least 6‐8 zones which have potential for high milk collection andprocessing facilities (like Kolar area in Karnataka) should be identifiedand developed as export promotion zones.e) Traditional Indian dairy products which have huge potential for valueaddition and export have not been focused. More research has to bedone in indigenous milk products and organized dairy processing plantsshould essentially harness the existing opportunity.f) Training and capacity building in the area of value addition has beenneglected. Focused training mechanisms at different levels need to bedeveloped and implemented. Adequate number (about 100) ofPolytechnics may be established for imparting a 2‐year certificationcourse.Meat Sector3.9 For accelerating the growth in meat sector there is a need for providinggreater assistance to the sector in terms of more public funding throughcentral assistance/ schemes and enabling policy environment. Presently, noCentral assistance or schemes are available for this sector and even theincentives given to the sector in the form of export subsidy, etc., have beengradually withdrawn. The restrictions imposed by OIE are posing hindrance toexport. The certification process needs to be streamlined.3.10 Value addition in meat sector has been almost non‐existent except incase of buffalo meat processing which is primarily meant for export market.The top most priority in meat sector should be to ensure production of safeand quality meat and promote the concept of Farm‐to‐Fork in a sustainedmanner. Livestock markets and abattoirs are mostly in unorganized sector andfor making the meat sector more vibrant, profitable, export oriented and

27provider of safe meat, it is necessary that a perceptible shift from unorganizedto organized sector takes place. Currently, only buffalo meat export is wellorganized and 0.5 million tonnes of buffalo meat worth US$ 600 million wasexported in 2008‐09. The potential which exist for export of buffalo meat andpoultry products especially to Asian and African countries should be exploitedas an immediate strategy.3.11 The Meat and Poultry Processing Board setup recently in 2009 by theMinistry of Food Processing would provide considerable impetus for meatprocessing sector. However, the production side still remains unaddressed.With the likelihood of CODEX standards becoming applicable in the next fouryears time, the traceability issue would be a major concern for meat exportsector. For overcoming this problem, probably in future, large commercialmeat farms may have to be set up exclusively for rearing animals for meatpurpose.3.12 Very little effort has been made by Animal Husbandry department bothat state and central level for development and growth of small ruminantsector. Presently, no effective centrally sponsored / central sector schemes areavailable for providing much needed assistance. The vast potential ofdeveloping goat sector, which exists in some of the regions like Bundelkhand,parts of Rajasthan and Himachal Pradesh needs to be beneficially harnessed. Afocused approach with higher investment, community approach, establishingmeat processing plant and developing adequate market linkages is to be made.3.13 Development of sheep sector has been at crossroads. The populationhas stagnated during the last two decades except for a marginal increase ofabout 6 per cent between 1997 and 2003. The wool production has alsoremained constant at 40 million kg, of which 4 million kg is of fine wool. Thetrade policy of permitting import of wool under OGL has affected domestictraditional market. A clear cut policy direction is needed on priority as towhether the focus should continue to raise sheep for wool production or thefocus should shift towards mutton production.3.14 The North Eastern region holds considerable potential for developingPiggery sector as the pig husbandry is the most important activity in the statesof North East especially in the tribal areas. Even though more than 80 per centof the pork produced in the country is consumed in north eastern region, noserious attempts have been made by the state governments, central

28government or North Eastern Council in promoting pig production oncommercial basis.Poultry Sector3.15 Poultry sector in India, over the years, has slowly transformed from ameagre backyard farming to a well structured, organised industry oncommercial lines. The organised sector of the industry has addressed all theinterlinked issues like breeding farms, hatchery, feed mills, equipmentmanufacture, feed supplements, drug and vaccine production, etc. in a holisticmanner. However, marketing of the final product is the weak link in the chainand is still under the control of traders. Potential for further growth in thisorganised sector has to come primarily through focusing on achievingimproved Feed Conversion Ratios (FCR) and tackling of outbreak of diseaseslike Avian Influenza and other newer emerging diseases.3.16 Promoting of rural backyard poultry has to be considered essentially asa sector limiting itself for providing livelihood opportunities to landless andresource poor farmers since it is difficult for this sector to compete with wellorganised commercial sector.3.17 Considering the performance of different states in implementation ofvarious programmes of animal husbandry and dairy sectors, absorptioncapacity and constraints of manpower and infrastructure, the Committee is ofthe view that it is unlikely that we would be in a position to achieve the settarget of 6‐7 per cent growth per annum during the 11 th Plan period. As such,the target for overall growth rate in livestock sector may have to be revised to5 per cent during the current Plan with a 4 per cent growth rate for milk sectorand 6–8 per cent for poultry and meat sector.

29Annual growth rate in livestock sector (current and potential) in majorStates of IndiaStateCurrent Annual growthrate (%)Potential Annual growthrate (%)Andhra Pradesh 5.56 6‐8Assam 2.19 3‐4Gujarat 5.47 6‐8Haryana 3.40 5‐6Himachal Pradesh 4.33 5‐6Karnataka 2.73 5‐6Kerala 0.95 2‐3Madhya Pradesh 2.68 5‐6Maharashtra 3.77 6‐7Punjab 3.48 6‐8Rajasthan 3.32 6‐7Tamil Nadu 2.40 5‐6Uttar Pradesh 4.09 6‐7West Bengal 2.66 3‐4

30CHAPTER IVIV Public InvestmentTenth Plan Outlay and Expenditure4.1 The outlay and expenditure during the 10 th Plan period for the threedepartments of the Union Ministry of Agriculture, namely the Departmentof Agriculture and Cooperation (DAC), the Department of AnimalHusbandry, Dairying and Fisheries (DAHDF) and the Department ofAgricultural Research & Education (DARE) is presented in Table 4.1. As maybe seen, a substantial increase in outlay was provided to Ministry ofAgriculture since 2004‐05 taking the Central Government share of totalplan expenditure on Agriculture and allied sectors from 33 per cent in 2002‐03 to 44 per cent in 2006‐07. The major expenditure was however on cropsector. The Ministry introduced several new programmes during the 10 thPlan aimed at diversification of agriculture, strengthening technologyvalidation, demonstration and dissemination, water saving anddevelopment of infrastructure.4.2 Despite larger allocation to the agriculture and allied sector, theshare of public fund to Department of Animal Husbandry & Dairying hasbeen very low. The DAHDF accounted for 11.87 per cent of the total outlayof the Ministry of Agriculture during the 10 th Plan. Out of Rs. 2500 croresallocated, the actual expenditure was Rs. 2345.60 crores by DADF. Out ofthis, the expenditure on fisheries was Rs. 570.33 crores and theexpenditure by Department of Animal Husbandry & Dairying was Rs.1775.24 crores. The DAHD accounted for only 8.35 per cent of the outlaymade available to Ministry of Agriculture.

31Table 4.1Outlay and Expenditure of Ministry of Agriculture During theTenth Five Year PlanS.No.1.2.3.4.5.6.7.PeriodTenth PlanOutlay (2002‐07)2002‐03(Expenditure)2003‐04(Expenditure)2004‐05(Expenditure)2005‐06(Expenditure)2006‐07(RevisedEstimate)TotalExpenditureCurrent PriceDAC DAHDF DARE TotalDAHDFas% ofTotalOutlayfor MoA13200.00 2500.00 5368.00 21068.00 11.871655.94 238.90 650.75 2536.952050.34 271.76 748.98 3068.672656.26 566.22 816.01 4035.723817.46 589.37 1046.75 5453.374860.00 679.32 1430.00 704015040.00 2345.57 4692.49 22134.71DAC = Department of AgricultureDAHDF = Deptt. of Animal Husbandry, Dairying and FisheriesDARE = Department of Agriculture, Research and EducationDAHD = Department of Animal Husbandry & DairyingFish = Fisheries

32Table 4.2Outlay and Expenditure by Department of Animal Husbandry Dairying& Fisheries in Tenth Five Year PlanCurrent PriceS.No. Periodoutlay for MoADAHDF Fisheries DAHD DAHD as% of total1. Tenth Plan Outlay 2500.00 740.00 1760.00 8.35(2002‐07)2. 2002‐03238.90 75.90 162.92(Expenditure)3. 2003‐04271.76 68.72 203.00(Expenditure)4. 2004‐05566.22 150.51 415.12(Expenditure)5. 2005‐06589.37 109.00 480.00(Expenditure)6. 2006‐07670.32 166.12 513.20(Expenditure)7. Total 2345.57 570.33 1775.24DAC = Department of AgricultureDAHDF = Deptt. of Animal Husbandry, Dairying and FisheriesDARE = Department of Agriculture, Research and EducationDAHD = Department of Animal Husbandry & DairyingFish = FisheriesEleventh Plan Outlay4.3 The 11 th Plan outlay for the DAHDF is Rs. 8174 crores. The pace ofexpenditure during the last two years has been slow. Against an allocationof Rs. 910 crores during 2007‐08, an expenditure of Rs. 784 crores wasmade. Similarly, during 2008‐09, against an allocation of Rs. 1000 crores, anexpenditure of Rs. 872.86 crores has been made. Similarly, in 2009‐10 the

33original allocation of Rs. 1100 crores has been revised downwards to Rs.920 crores. It is feared that the total expenditure during the 11th Plan willnot reach even Rs. 5000 crores.4.4 The Animal Husbandry & Dairying contributes between 25 per centto 30 per cent of the GDP of the agriculture. Despite this significant share inGDP, the resources allocated to DAHD have been meager and insufficient.This in turn has affected the rate of growth of AHD which was less than 4per cent during the 10th Five Year Plan.State Plans4.5 The resources made available under state plans to the AnimalHusbandry & Dairying have also been insufficient and small in almost everystate of India. In states also the bulk of the expenditure has been made onthe crop sector and Animal Husbandry & Dairying has not received theadequate share in the resource allocation.External Assistance4.6 Dairy sector has received massive external assistance. OperationFlood I was implemented through funds (over Rs. 100 crores) generatedfrom the sale of commodities (SMP and Butter Oil) donated by EuropeanUnion. IDA of World Bank assisted state dairy projects in Rajasthan,Madhya Pradesh and Karnataka. Operation Flood II and III also receivedassistance from IDA of World Bank. But for these assistance, it would havenot been possible for India to make a significant contribution in increasingmilk production and processing capacity. A National Dairy Plan prepared byNational Dairy Development Board has been submitted to the World Bankfor assistance and is under discussion.4.7 Livestock development has been a component of a number ofagricultural projects assisted by World Bank. This includes UP DiversifiedAgriculture Project, Assam Infrastructure and Agriculture DevelopmentProject, Rajasthan Agriculture Development Project, WatershedDevelopment projects in various states, and is currently a component in

34Assam Agriculture Competitiveness Project, Tank Development Project inAndhra Pradesh, etc.Bilateral Assistance4.8 Animal husbandry has received assistance under a number ofbilaterally assisted projects. DANIDA and CIDA have assisted projects invarious states, including Tamil Nadu Livestock Development Project. Mostof these projects have been completed with positive results.Rashtriya Krishi Vikas Yojana4.9 A noval scheme to support agriculture development “RKVY” has beenintroduced in the 11th Five Year Plan with a provision of Rs. 25,000 crores.Animal Husbandry & Dairying (and Fisheries also) are eligible for assistanceunder this scheme. However, the allocation to the animal husbandry sectorhas been quite poor. During 2007‐08 the Animal Husbandry sector(including fisheries) received Rs. 111.25 crores (9.53 per cent). During 2008‐09 the sector received Rs. 394.29 crores (14.56 per cent). The poorallocation made to the Animal Husbandry sector is basically due to inabilityto formulate projects following the guidelines of RKVY.4.10 The Agriculture Departments function as nodal departments forRKVY in the States. The Animal Husbandry officers complain of big brotherlyapproach of state agriculture departments in matters of allocation ofresources. The Union Minister for Agriculture, Shri Sharad Pawar hasadvised all the state governments to give favourable consideration toAnimal Husbandry sector and allocate at least 30 per cent of the resourcesduring a particular year to Animal Husbandry and Dairying.

35Private Sector Investment4.11 There is hardly any private sector investment in Animal Husbandryexcept in states like Gujarat and Rajasthan where people assist in thedevelopment of Gaushala and Gosadans. In the case of dairy development,with the liberalization of economy, considerable private sector investmenthas been made in the processing, value addition and marketing. Thedairying is no longer a monopoly of the cooperative sector; as a matter offact privately owned dairy plants account for 51 per cent of the total milkprocessed in India. The dairy processing was not included under the prioritysector lending by the banks. In his budget speech 2009, the FinanceMinister announced the Government decision to treat dairying as a FoodProcessing Industry which would extend priority sector lending besidesproviding a host of concessions. However, a notification is awaited. Withthese measures, it would be possible for the private sector to invest in theprocessing and marketing sectors.

36V. Inputs and ServicesCHAPTER VBackground5.1 Animal husbandry has been recognized as an important source oflivelihood across the country, particularly in providing gainful self‐employmentto Below Poverty Line (BPL) families. This is because of the growing demandfor milk and other animal products to the extent, that the production from thepresent level will have to be doubled during the next 15 years. As most of theBPL families in rural India maintain livestock for supplementary income, this isan excellent opportunity to improve the productivity to meet the growingdemand while enhancing their incomes. However, the success depends on theability to improve the quality and yield while reducing the cost of production toavoid pressure from the international market.5.2 Indeed, the lack of quality and inefficiency of livestock development inmost of the states are bottlenecks for the farmers engaged in the livestocksector, to harness the potential and to enhance their income.5.3 The important reasons for sub‐optimal performance of the livestockdevelopment programmes in India are:• Lack of awareness among livestock owners about opportunities and bestpractices available to improve the production and profit margins;• Shortage of trained human resources to provide technical services at thedoorsteps of livestock owners;• Inadequate and untimely supply of critical inputs to ensure optimumproduction;• Involvement of multiple agencies engaged in various aspects of livestockdevelopment without any focussed goals; and• Lack of value chain approach to establish co‐ordination among all theplayers to enhance the production and profitability5.4 Due to the above hurdles, livestock husbandry is not able to registersignificant progress in spite of its inherent potentials and huge financialoutlays. To overcome this problem, it is essential to identify various activities

37and players in the value chain under different production systems in thelivestock sector.Value Chain in Livestock Husbandry5.5 Among various species of livestock, milch cattle and buffaloes are themajor contributors to the economy as milk is the main livestock productcontributing to the National GDP in India. Starting from livestock breeding tomilk processing and marketing, there are several players involved in the sectorbetween the dairy farmers and the milk consumer. Figure 1 lists some of themajor players in the value chain of dairy husbandry.Figure 1: Value Chain for Dairy DevelopmentWater conservation/supplyCrop residuesFodder productionPlant breedersSoil scientistsSeedsFertilizersFeed/MineralsMicro-financeMonitoring /EvaluationFodder producers /TradersSmall holder/Dairy cattlePasturedevelopmentHub/Local org.MilkcollectionParavetVeterinarianMilkprocessing/marketingTraining /Capacity buildingConsumerBreed selectionSuperior germplasmPerformance evaluationLab servicesInput supplyBreeding servicesVaccinationsDewormingDisease InvestigationVeterinary services5.6 Similar value chains can be developed for meat, egg, fish and woolproduction. Although, we observe that the dairy farmers are availing thebreeding and veterinary services to produce milk and supply to milk processingunits through their co‐operatives or middlemen, there are many agenciesinvolved in providing support to these farmers directly or indirectly. Dairyfarmers need the following services and inputs for successful management oftheir enterprises:

38Services• Breeding• Pregnancy diagnosis• Vaccination• Deworming• Veterinary services• Testing against various diseases (disease investigation)• Nutritional analysis of various feed ingredients• Advise of fodder cultivation and balanced feeding• Milk collection, chilling, marketing• Efficient use of dung and carcassInputs• Fodder seeds• Fodder, feed and concentrates• Mineral and vitamins• Dewormers, vaccines, medicines• Milking vessels, milking equipments• Various farm equipments5.7 The suppliers of the above services and inputs are part of the value chainof the dairy industry. Availability of these services and inputs well in time arevery critical for ensuring the profitability of dairy entrepreneurs. Introductionof various efficiency measures will not only enhance the production but alsoreduce the cost of milk production. Hence, it is advisable to develop a suitablestrategy for timely supply of services and inputs to livestock owners.Agencies in the Value Chain5.8 Presently, the following agencies are involved in providing the aboveservices. While some of them are engaged as service organisations on behalfof the Government or other development organisations, others are engagedfor generation of employment and profits for themselves.Table 5.1 indicates the role of various players involved in different activitieswhich are related to the enhancement of livestock productivity.

39Table 5.1: Agencies EngagedAgenciesActivitiesAI/PIMinor VeterinaryServicesMajorServicesSemenProductionInput SupplyOtherInputsCreditRemarksAnimalHusbandryDepartmentsLivestockDevelopmentBoardsVaccinationDeworm- ingDISurveillanceFeedMineralMixtureFodderSeeds√ √ √ √ √ √ √ Free√ √ √ FreeDairy Federations √ √ √ √ √ √ √ √ Nominal CostPrivate Agencies /ManufacturersDI Laboratories /VaccineProduction UnitsUniversities /VeterinaryColleges√ √ √ √ √ On Payment√ √ Free to AHDNGOs √ √ √ √ √ √ √ √PrivateVeterinariansBanks / Micro –Finance Units√√SponsoredResearchFree /subsidised√ √ √ √ √ On Payment√BusinessTermsRole of Different Agencies5.9 Animal Husbandry Department: While the Animal HusbandryDepartment is the most important agency engaged in livestock development,the activities carried out by the department are mainly based on theavailability of funds to cover different activities in smaller pockets. Theprogress of these activities are measured on the basis of the budget spent andphysical targets covered without any evaluation of the quality of servicesprovided and the impact of the work on the overall productivity of thelivestock and the benefits derived by the farmers. In the absence of anyparameters for measuring the performance, the impact is not visible.The AHD is handicapped in providing all the required services to livestockowners due to lack of adequate funds to meet the field demands and a largenumber of vacancies at all levels. For instance, inputs such as vaccines,medicines and fodder mini‐kits provided to veterinary dispensaries is notadequate even to cover 25‐30 per cent of the demand. With regard to the

40veterinary services, with over 25‐30 per cent posts of veterinary doctorsvacant, many veterinary hospitals are operating without any veterinarians.Furthermore, in the absence of clear cut priorities given by the AHD, theofficers often set their own priorities, depending on their convenience, inputsavailable and benefits, rather than the needs of farmers. There are manyinstances where farmers are unable to avail the breeding services from otheragencies, which are more efficient and economical, but the officers of the AHDcontinue this work instead of concentrating on major veterinary services,allowing the breeding services to be performed by semi‐skilled paravets.5.10 Livestock Development Boards: Livestock Development Boards are thelatest creations at the instance of the Government of India to implement theprogramme under the NCPBP. The mandate of the Livestock DevelopmentBoards is to carry out breeding, extension and management to enhancelivestock productivity. However, the implementation of the programme isdependent on the staff, deputed from the AHD, who are partially occupiedwith various administrative duties. Thus, the Livestock Development Boardshave not been able to make significant contribution to livestock developmentin many states, while a few states have encashed this opportunity foraccelerating the progress. Although, the Boards have set clear targets for workoutputs, in the absence of systematic linkage with the services and market, theimpact has not been very significant.5.11 Dairy Federations: Since the launching of the Operation Flood in the1970s, most of the states have promoted Dairy Cooperatives and their StatelevelFederation to organise the marketing of milk and other products. Thisprogramme was launched as a viable business model to organise marketingand also to establish a value chain through various backward linkages. Theseservices included AI through paravets, disease diagnostic services, cattle healthcamps, vaccinations, production and distribution of cattle feed, etc., whichindeed enabled the dairy farmers to improve their performances andprofitability. However, the quality of services have been widely varying in theirefficiency and coverage. Many of the Federations had to discontinue some ofthe services due to constraints of finance, human resources and poormanagement of the core business of milk processing and marketing. Often,they had to discontinue to avoid duplication of similar services by otheragencies. Presently, very few State Dairy Federations are in good financialhealth to continue some of these activities efficiently. Nevertheless, their

41approach and operations indicate the potential to deliver various services torebuild the value chain.Indeed, this is the only sector where business planning is done to a greatextent and policy for clean and economic production to meet the futurechallenges are discussed, after reviewing the present value chains.Empowering the Dairy Federations to take a lead to re‐establish the valuechain based on the business opportunities can accelerate the growth in thelivestock sector and enable the dairy husbandry programme to provide gainfulself employment to small farmers in the country.However, many of the State Dairy Federations in the country are suffering dueto poor administration, weak business plan and over‐domination of vestedinterests at the cost of the dairy farmers. To overcome this, a new generationCooperatives and Producer Companies have emerged on a pilot scale whoseperformance on a wider scale is yet to be observed.5.12 Biological Production Units: Many of the States have their VeterinaryBiological Units for production of vaccines, antigens, diagnostic kits and alsofor providing disease investigation services to farmers through decentralizeddisease investigation laboratories. Many of these laboratories havesuccessfully producing all the required vaccines. However, providing supportservices to the decentralized DI laboratory and taking up disease surveillance inthe field has been a weak link. This being an independent activity providingcritical support for animal production, additional capacity building andstrengthening is required. Biological production units and disease investigationlaboratories play a very critical role in promoting clean milk production whilebringing down the cost of production.5.13 State Agricultural Universities: The policy behind the establishment ofState Agricultural Universities, Veterinary Colleges and KVK’s was to supportthe farmers by way of transfer of technology through training and fielddemonstration as well as to design research studies based on the fieldproblems. However, many of the veterinary faculties in Universities are oftenisolated from the field. As a result, this close interaction between the farmersand scientists has been disconnected. This has severely affected the deliveryof services and transfer of new technologies. Nevertheless, some of theUniversities are involved in breeding of forage crops and development of good

42production practices for optimising the fodder yields. Good work has also beendone by many Research Institutions in development of superior quality feedsand mineral mixtures, mineral mapping of the field areas to identify themineral deficiencies in different regions, etc., with good extension services.The benefits of these researches can reach the needy farmers.There is an urgent need to understand the communication breakdownbetween the farm and the laboratories and strengthen the linkage to ensurethat the Research Institutions form an active and important part of the valuechain.5.14 Voluntary Organisations: There are a few important NGOs currentlyengaged in promotion of livestock production in the country. Prominentamong them are BAIF, IndiaGen and JK Trust which are engaged in providinglivestock breeding and minor veterinary care services in many States. Apartfrom these organisations, there are also others like Pradan, Anthra, NimbkarResearch Institute, etc., which are involved in promotion of small ruminants indifferent parts of the country. The services of these agencies, particularly ofthose engaged in providing livestock breeding services have been veryeffective and very well accepted by the farmers, even on payment of servicecharges. Many of these agencies are working in close coordination with therespective State Governments as well as the Government of India. Theseagencies have a long standing reputation and ability to extend the services, iffinancial support and wholehearted cooperation are extended by the StateAHDs and the Dairy Federations.Apart from providing breeding services and animal health care, NGOs can alsotake up mini‐veterinary services such as deworming, vaccination, diseaseinvestigation, disease surveillance, supply of cattle feeds, mineral mixture,fodder seeds, etc., at reasonable cost, under strict monitoring of the StateVeterinary Department or donor agencies. A strong coordination between theAHD and these NGOs can help the State in expanding the programme at a lowcost while saving precious time of the veterinary graduates working in theDepartment to take important and higher responsibilities.5.15 Private Veterinarians and Paravets: There are many privateveterinarians who are involved primarily in providing veterinary services andsome of them are also engaged in providing breeding services. However, the

43quality of service is questionable and the costs are very high, mainly because oflack of monitoring on the quality of their services. As their objective is togenerate income for themselves, strict control on them is necessary to preventexploitation of farmers.Many State Governments have promoted the appointment of Paravets in theState. However, many of them have not been successful, particularly wherethey are not able to get the assured and steady supply of liquid nitrogen andfrozen semen at their places of work. In many states, their working is totallydependent on the mercy of the veterinary officers and such a programme isnot sustainable. Promoting the services of paravets can be a sustainableactivity, if they are assured of regular supply of inputs and their quality ofservices are periodically monitored.5.16 Private Business Enterprises: There are many pharmaceuticals and feedmanufacturers in the private sector who are primarily engaged in providinginputs through some of the above agencies on demand basis. Primarily, theseagencies having business motivation, require regular monitoring about thequality and price by the Government authorities. As their operational andoverheads are high, they will not be able to compete with other agencies inproviding breeding and health care services directly.5.17 Banks and Micro‐Finance Institutions: Micro‐finance plays a verysignificant role in livestock development in the country. It has been reportedthat over 25 per cent of the disbursements through leading micro‐financeagencies have been invested in livestock sector. This indicates the potential ofthe sector and the scope for turning livestock husbandry into an importantincome generation activity in rural India. Micro‐finance agencies and bankscan play a very significant role by establishing a link with various serviceproviders to ensure that the farmers are able to avail these services on credit.Strategy for Delivery of Inputs and Services5.18 For establishing an efficient value chain in dairy husbandry, the milkprocessing unit either operated by the Federation or the new generationcooperatives can assume the prime position for establishing various supportservices and linkages. There can be a consortium of AHD and milk processing

44agencies to bring in all the players and identify their responsibilities andtargets.While the Agricultural Universities can take up breeding of important foddercrops and varieties and develop best fodder management practices andcoordinate fodder seed production, the Veterinary Universities or AnimalScience Department of the Agricultural Universities can take up research ongenetic improvement of livestock development of superior quality inputs suchas semen, vaccines and biologicals development of complete feeds and mineralmixtures, utilisation of non‐traditional and unutilised agricultural by‐productsfor feeding animals and other research activities related to animal genetics,physiology and health. The outcome of the research can be passed on toprivate agencies and Farmers’ Organisations for the development of productsand services at reasonable costs.Awareness on the opportunities for livestock development and extension ofservices like breeding, pregnancy diagnosis, vaccination, deworming anddistribution of feed, fodder seeds and mineral mixture can be entrusted toParavets or Voluntary Organisations engaged in such activities under thestrong monitoring of the AHD or the Dairy consortium.The AHD may concentrate on veterinary health care, disease surveillance andorganising infertility and other health camps, and strong monitoring of thebreeding and health care activities undertaken by the Paravets and NGOs.The Dairy Federations which have rich experience in taking up production ofcattle feed and mineral mixture should expand this activity, while allowingeven the private players to establish their units to create health competition inthe field. The dairy federations / new generation cooperatives should also takethe responsibility of organising milk collection at various levels through villagelevel / block level cooperatives or user groups / dairy farmers’ organisations.They can also establish a fair link between the farmers and micro‐financeorganisations as well as service organisations, playing the role of facilitator. Allthe payments for the services can also be coordinated through the milkprocessing units as they have opportunity to deduct the service charges fromthe milk supplied by the farmers.

45Similar value chains will have to be prepared for the meat, poultry and fisherysectors and players such as various input producers, meat processors anddistributors will have to be identified and a meaningful network will have to beestablished. Fortunately, there are many success stories in the meat, poultryand fishery sectors and there is a good scope for promoting Public PrivateEnterprises to promote these sectors. In this process, the role of all theagencies is identified and their performance can be directly measured in termsof their contribution to productivity enhancement. This will also preventduplication of work, which will be a significant saving in the Government’sspending.Promotion of Forage Production5.19 Availability of good nutritious forage plays a significant role in turningDairy Industry into a profitable venture. Therefore, emphasis should be givento promote forage production directly by the dairy farmers. Apart fromlivestock owners, other farmers can also take up fodder production forsupplying to the needy farmers. Many farmers in peri‐urban areas take upfodder production on their own and sell in local market.It is important to note that presently only 4 per cent of the cropping area isunder fodder cultivation and over 55 per cent of the fodder for livestock is metfrom crop residues and agricultural by‐products. Hence, it is necessary to takea holistic view of the available fodder sources and try to optimise theproduction and supply using all the sources.The most important step is to promote selected varieties of food crops whichcan yield higher quantity of crop residues having fodder value. Some of thesecrops are sorghum, maize, bajra, paddy, wheat, groundnut and a wide range ofpulses. Plant breeders in India, of late, have identified varieties which havehigher quality and yield of crop residues, without any reduction in the yield ofgrains. Serious attempts should be made to popularise the cultivation of suchcrops by involving the Agriculture Extension Division, under the ATMAprogramme and KVKs at the district level. It is necessary to work out the costbenefit analysis as with the increasing value for the fodder, it is likely that suchfodder varieties may generate higher income compared to high yieldingvarieties where the yields of crop residues have been significantly low.

46Efficient use of crop residues by proper treatment, storing and processing canfurther reduce the gap between the demand and supply. This should be takenup simultaneously along with treatment of fodder crop production in the milkshed areas. A striking example is conversion of paddy straw into silage in bulkafter treating with urea, instead of following the old recommendation of ureatreatment of paddy straw on a small scale.For taking up direct production of fodder by dairy farmers, the critical factor istimely availability of required fodder seeds, apart from availability of land andwater resources. The cultivation of fodder crops is also influenced byprofitability in milk production, efficient marketing of milk and remunerativeprice for the commodity. Thus, economics of fodder crop production is notonly influenced by the yield and nutritive value of the fodder, but also theproductivity of the livestock which consume this fodder and transforms intomilk and the value realised for milk and other products. It has been observedthat whenever the dairy societies fail to procure milk or pay a remunerativeprice, the farmers discontinue cultivating fodder, as this venture of fodderproduction is no longer attractive to them.Assuming that there is no hurdle in milk marketing and paying a remunerativeprice, the next step is to motivate the farmers to cultivate fodder crops byestablishing fodder demonstration trials in different areas followed by a studyof the economics of cultivation in comparison with other local crops to ensurethat the fodder is also a remunerative crop. With such demonstrations, thedemand for fodder seeds will increase and then the infrastructure will bestrengthened for timely supply of fodder seeds. Needless to mention, theselection of suitable fodder crops is dependent on the type of soil, climate andwater availability. Hence, identification of suitable fodder crops and theirvarieties should also be carried out periodically and farmers should be advisedaccordingly through the Extension Agencies. It has been observed that foddercrops can be more profitable than many agricultural crops, provided there is anattractive market like in some peri‐urban areas or when farmers own highyielding animals. Hence, with a suitable extension and marketing strategy, it ispossible to popularise fodder crops across the country.With the field demonstrations, followed by field publicity and extensionactivities, many farmers will come forward to take up fodder cultivation.However, this programme should be simultaneously supported with efficient

47livestock breeding and health care services in the target areas. The Paravetsinvolved in animal breeding and veterinary extension officers working in theAH department of the State Government need to make further enquiries in thetarget villages to assess the need of fodder seeds of different species andvarieties. Based on this compiled information, Agricultural Universities, KVKsand the National Seed Corporation should be assigned the task of taking upfodder seed production, either independently or through progressive farmersunder Contract Farming. The seed production agencies should be assured ofbuying the seeds for distribution to needy farmers. The seed distribution canbe coordinated by the Dairy Federations through their cooperatives. Thisactivity should be supported by field technical advisory services, by appointingforage production specialists to guide the farmers.Many experts have observed that farmers have to invest a large sum onprocurement of fodder seeds, as compared to the seeds of food crops, due tohigh seed rate. Hence, to encourage small farmers, fodder seeds which arepriced very high may be subsidised in the initial stages, till the farmers areconfident of getting back their investment with higher returns.There is also a need for supporting dairy farmers to make efficient use offodder by chopping and processing into silage and hay. Suitable schemes willhave to be designed to facilitate these activities. With such a comprehensiveprogramme, fodder production can be given a boost as seen in many milk shedareas across the country and the gap between the demand and supply can bereduced significantly.

48VI. Development StrategyCHAPTER VIa) Cattle and BuffaloesBackground6.1 Over 65 per cent of the population in India is still living in ruralareas and most of them are dependent on agriculture for theirlivelihood. However, more than 75 per cent of them being small andmarginal landholders, deprived of fertile soils and assured water forirrigation and even landless, are dependent on livestock forsupplementary income. Livestock is the only source of livelihood in manyarid and semi‐arid regions in the country and cattle and buffaloes areprominent among them. However, in spite of its economic importance,the performance of the livestock sector has not been optimum, due tonon‐availability of critical inputs and services, and poor linkage with themarket. Under such a situation, even these valuable assets turn intoliabilities and start making negative contribution to sustainabledevelopment. We are now at the crossroads of livestock developmentand should not miss the opportunity of transforming this sector into alucrative one to enable millions of small farmers and rural poor to earntheir livelihood.6.2 In spite of India having the largest livestock population in theworld, the contribution to the national economy has been substantiallylow. Among the livestock, the population of cattle ranks first with 185.2million, followed by goat (124.4 million), buffaloes (97.9 million), sheep(61.5 million) and others (16.0 million). While the population of cattlehas been stable, the population of buffalo has been increasingsignificantly probably due to high demand for buffalo milk and meat.While buffaloes are maintained for milk production, cattle aremaintained for milk as well as for use as bullocks. In fact, among thenative breeds of cattle, there are more draft breeds as compared to milkand dual purpose breeds. This could be the main reason for low milkyield of Indian cattle breeds.6.3 Among 35 important breeds of Indian cattle breeds, Gir, Sahiwal,Red Sindhi and Tharparkar breeds were for milk, with an average milkproduction of 1500 kg/lactation and 6‐8 dual purpose breeds with an

49average milk yield of 1000‐1500 kg/ lactation (Haryana, Kankrej, Rathi,Ongole, Dangi, etc.) and the rest of the 12‐15 breeds were draft breedswith an average milk yield below 500 kg/lactation. Since 1950s, with theprogress of farm mechanisation in Indian agriculture, most of these draftbreeds started losing their importance, leading to neglect andindiscriminate breeding and resulting in a large population of nondescript,low productive animals, which yield less than 200‐300litres/lactation. Thus, inspite of 8 million high yielding crossbred cows,the average milk yield in India is less than 1000 kg/lactation as comparedto 4500 kg/lactation in the western countries and over 10,000 litres inIsrael. Lack of breeding and health care facilities at the doorsteps of thefarmers, severe shortage of feed and fodder and poor linkages with themarket are other major problems affecting the productivity of cattle andbuffaloes in the country. In the absence of culling of unproductivelivestock, mainly due to sentimental reasons and ban on cattle slaughterin many states, the population of unproductive livestock continues togrow, exerting pressure on fodder, feed and forest resources, whilecontributing significantly to global warming and climate change.Inefficient use of dung which can be utilised for production of biogasbefore converting into farmyard manure is another cause of globalwarming, apart from the loss of opportunity to meet the energy needs.6.4 There is good scope to restrict the population growth whileincreasing the production of milk and other products through breedimprovement, balanced feeding, and timely action on preventive andcurative health care and post‐production support for enriching the valuechain. Hence, the development strategy should address all theseproblems faced by the farmers in improving the productivity andfacilitate congenial conditions to earn sustainable livelihood withoutdepleting the natural resources and the environment.Constraints in Management of Large Ruminants6.5 Major issues affecting the performance of large ruminants likecattle and buffaloes in the country are presented below:• Over 65‐70 per cent female cattle are low productive, due toindiscriminate breeding and neglect, thereby turning dairyhusbandry uneconomical;

50• While the cows of most of the draft breeds are very low in milkproduction, the males have lost their utility as bullocks due tomechanisation in agriculture;• In the absence of reliable data on the economics of non‐descriptand draft breeds and loss of opportunity, farmers have no interestin selection and maintenance of high value animals;• Poor quality bulls used for semen collection and poor semenfreezing facilities further affect the productivity of cattle andbuffaloes;• Poor access to breeding and veterinary care at the doorsteps offarmers is leading to genetic erosion and poor health status;• Poor skills of paravets are resulting in infertility and otherbreeding problems;• Lack of coordinated efforts for disease containment is causingmajor health problems;• Increasing shortage of fodder and feed and poor emphasis onutilisation of crop residues are affecting the production;• Due to non‐availability of superior quality inputs at reasonableprice, farmers are exploited by local traders;• Lack of breeding policy and data on performance is leading toextinction of good native breeds and increasing exotic blood level,causing susceptibility to many diseases;• Inability to take up biogas production due to outdated technology,poor services and high cost;• Lack of facilities for housing of unproductive and diseased animalspose burden on small farmers;

51• Lack of awareness about clean milk production, poor marketlinkage, unfair trade practices and consumer‐biased pricing formilk, which is non‐remunerative for farmers;• Inadequate facilities for fattening of buffaloes, particularly malesand processing of buffalo meat, resulting in neglect of males andpoor price realization; and• Lack of awareness among small farmers about variousopportunities for enhancing the production and increasingcommunication gap between male extension workers and femalelivestock owners, causing delay in adopting modern technologies.Goals for Development of Large Ruminant Sector6.6 As a result of the above unsolved problems, the dairy sector inparticular is not able to achieve the expected annual growth of 5‐6 percent. Therefore, we need to re‐focus on the policies and programmes ofdairy development to achieve the following goals:• Conservation of elite native breeds;• Breeding and selection of superior sires and setting up of highquality semen production laboratories to promote geneticimprovement;• Delivery of essential services at the doorsteps of farmers throughwell trained paravets, supported by veterinary doctors underpublic‐private partnership;• Coordinated efforts to take up preventive vaccination and healthcamps to stamp out major diseases;• Efficient feed and fodder management by utilising communitylands, wastelands and crop residues;• Easy availability of superior quality inputs, without exploitation bytraders.• Facilities for housing culled and diseased animals in isolation.

52• Clean milk production through awareness, timely health care andinfrastructural support for efficient post handling of milk andother products;• Strengthening of market value chain, eliminating exploitativemiddlemen, ensuring fair deal for farmers;• Development of efficient farm implements to be operated bybullocks; and• Development of farmer‐friendly policies to promote growth andenhance profits.Proposed Strategy for Development of Cattle and Buffaloes6.7 To accelerate the growth and to achieve the above goals, it isnecessary to promote the following activities:6.7.1 Genetic Improvement: The focus on genetic improvement of largeruminants should be to enhance milk production, while conservingnative breeds, including the draft breeds of cattle. The proposedactivities can be grouped into research, technology development andfield services.The research activities proposed to be undertaken by the public researchinstitutions and agricultural and animal science universities are:‐ Genomic studies to identify the genes/DNA sequences for variouseconomic traits and resistance to stress and diseases and geneticengineering to incorporate them for improvement of newprogeny;‐ Production of sexed semen and sexed embryos and creation ofgene banks of exotic and indigenous breeds;‐ Identification of elite cows and buffaloes in the field for herdregistration;

53‐ Field data recording and establishment of national data bank forevaluation of sires under progeny testing and studying theperformance and economics of various indigenous breeds anddifferent blood levels of exotic breeds, should be the base forformulating the national breeding policy; and‐ Standardisation of oestrous synchronisation technique to enhancethe coverage of large ruminants under artificial inseminationprogramme.Technological developments required to promote genetic improvementare:‐ Well coordinated programme for sire production, screening forgenetically transmitted diseases, selection and evaluation of siresthrough progeny testing;‐ Registration of all the bulls selected for semen freezing and settingminimum standards for semen production; and‐ Setting up high quality semen freezing facilities in public sector aswell as under public private partnership, to ensure high qualityand healthy competition.Field services required for promoting genetic improvement of cattle andbuffaloes owned by farmers are establishment of livestock breedingfacilities to provide breeding services along with minor veterinary healthcare at the doorsteps of farmers even in remote villages.Presently, breeding services are provided by the Animal HusbandryDepartments, Cooperatives, Dairy Federations, private and Governmentsponsored paravets and a few non‐profit organisations. Among them,the performance of non‐profit organisations is far more superiorbecause of the cost, quality, efficiency and reliability. With an initialdevelopment support for 4‐6 years, these agencies can establish theirservices and continue to provide breeding services without any furtherfinancial burden on the Government. In comparison to their services,the services provided by the AHD will need huge financial and humanresources, which are becoming scarce. The services of these non‐profitagencies can also cover distribution of critical inputs such as fodder

54seeds, feeds, mineral mixture, dewormer, etc., apart from carrying outvaccination and minor veterinary services. The paravets workingindependently or with the support from AHD have not been providingreliable services, mainly due to poor technical skills, poor quality semenused, unassured supply of inputs and lack of supervision. This schemeneeds to be strengthened by placing them directly under DairyFederations or NGOs for quality control and regulation of the servicefees charged to farmers.The paravets and the development agencies engaged in providingbreeding services may also be entrusted with the responsibility ofidentifying elite animals which can be registered and used for productionof bull mothers and breeding bulls required for future breedimprovement.6.7.2 Livestock Health: Providing timely, preventive and curative healthcare can play a significant role in promoting economic and clean milkproduction. Therefore, the following activities need to be promoted toimprove the production of large ruminants:‐ Regular vaccinations, creation of disease‐free zones and stampingout of major diseases;‐ Facilities for production of vaccines and diagnostics under Public‐Private Partnership;‐ Establishment of Disease Investigation Labs at the district leveland linking them with livestock breeding centres to providediagnostic and advisory services through Block Veterinary Officers;‐ Establishment of disease investigation units at major livestockmarket yards to screen animals before selling and purchasing toprevent the spread of diseases and farmers from being cheated;‐ Organising periodic livestock health camps for handling problemsof infertility, mastitis and other health related issues; and‐ Promoting private veterinary services under the supervision of theAHD or Dairy Federation.

556.7.3 Animal Nutrition: Balanced feeding is essential not only toenhance the milk production but also to economise the operation andto maintain good health of the animals. As there is a severe shortage ofanimal feeds and fodder in the country, serious efforts are needed todevelop feed and fodder resources while expanding the dairy industry.Some of the major initiatives need to be promoted are presentedbelow:‐ Development of high yielding forage varieties and popularisationof food crops / varieties having high straw yield;‐ Facilities for production and distribution of good quality seeds ofoutstanding varieties by establishing networking betweenAgricultural Universities, National Seed Corporation and farmers;– Establishment of fodder banks to collect and store surplus cropresidues in fodder surplus areas, under public‐private partnershipfor distribution in fodder scarcity areas;– Promotion of fodder production on degraded and wastelands andcommunity pasture lands and under different farming systems;– Promotion of post‐harvest technologies for storage of fodder andimproving nutritive value of roughages;– Popularisation of complete feed, feed with by‐pass protein,microbial protein, azola, spirulina and non‐traditional feedingredients; and– Decentralised production of complete feed through communityinitiatives, using locally available biomass.6.7.4 Value Addition and Market Linkage: The success of the livestockdevelopment programme is dependent on value addition and betterprice realisation of the produce. Milk being a perishable commodity,facilities for timely collection near their homes and payment ofremunerative price are essential to encourage the dairy farmers.Preventing wastage of milk due to contamination, unfair trade practices

56and elimination of unnecessary intermediate agencies in marketing canfurther enhance the profit margins.Presently only 30 per cent of the milk is sold through the organisedsector. The major players in this sector are Cooperative DairyFederations and a few private agencies engaged in selling of fresh milkand milk products and confectionaries. There are a large number ofsweet makers in most of the urban and semi‐urban areas who areengaged in procurement of raw milk either directly or throughmiddlemen.However, most of the farmers selling milk through the unorganisedsector are unable to get a better deal, either due to compulsion orignorance. Unfortunately, they have no other option, particularly inareas where Dairy Cooperatives are defunct or operating withoutefficiency and transparency. It is, therefore, necessary to address theseproblems and strengthen the network of milk collection centres andtheir direct linkage with the milk processing units.Some of the recommendations in this area are:- Installation of automated bulk milk coolers, which can assess thequality of milk and fix the price and total value of milk on the spot;- Awareness about clean milk production and methods to keep thebacterial count low from the period of milking till delivery to bulkmilk coolers;- Decentralised mini‐dairies which can ensure transparency andefficiency, while generating local employment and reducing the costof processing and marketing of milk and milk products;- Development of new, healthy dairy products to attract newconsumers; and- Consumer awareness about milk quality.

576.7.5 Other Support ActivitiesA few more initiatives are needed to strengthen the development of thelarge ruminant sector. These are presented below:1. Development and popularisation of efficient bullock‐drawnimplements and machines, particularly implements which can bedrawn by a single bullock;2. Identification of opportunities for using bullocks as an alternativesource of energy;3. Policy for regular culling of unwanted and sick animals and facilitiesfor housing them in quarantine;4. Facilities for fattening of buffaloes;5. Establishment of modern meat processing units and linking themwith farmers rearing buffaloes for meat;6. Development of efficient designs for compact biogas plants; and7. Research and development for reduction in methane emission bylivestock, particularly through modified feeding and housing.Many of these aspects can be addressed through suitable policies.Various recommendations can be incorporated in the on‐going schemesto boost dairy husbandry in the country.B. Sheep and Goat Production6.8 Of the two small ruminant species, goat both in numbers,distribution, and contribution to food, incomes and rural employment ismore important than sheep. However, this species has not received therequired research and development inputs for the reason that theNational Commission on Agriculture (NCA) in its report submitted in1975 had recommended that considering the role of goat indesertification, its number should not be allowed to exceed 40 million.This had led to a total absence of R&D programmes in goatimprovement prior to and after 1970.

586.9 Sheep has received a much larger R&D support primarily toimprove apparel wool production. However carpet wool and muttonproduction did not receive similar attention. To give an impetus to R&Din sheep production for apparel wool, a Central Sheep and WoolResearch Institute was established in 1962 at Avikanagar (Rajasthan),with regional stations in HP and hilly regions of TN. The majorprogrammes were to improve fine wool production and study variousaspects of its quality and industrial processing for various woolenproducts. Prior to 1970s, the ICAR had also supported some R&Dschemes in improving goat production primarily for milk/fibre. An AICRPon Goats was approved to take up improvement in goats for milk/fibre(pashmina/ mohair). Subsequently a component of goat for meat wasalso added in 5 th Plan. A Central Institute for Research on Goats (CIRG)was established by the ICAR in 1977 to take up research on all aspects ofgoat production and the entire goat yields viz. milk, meat and fibre.6.10 The current population of sheep is 61.5 m which ranks 3 rd in theworld and accounts for 5.5 per cent of the world sheep population.There has been a rapid increase in sheep population after 1980 afterhaving remained between 40‐50m from 1950‐1980. The currentproduction of greasy wool is 44.0 m kg and most of it is of coarse carpetquality and is used only for manufacturing hand knotted/ machine tuftedcarpets, the latter through blending with synthetic fibers, the felts andblankets. There is a large export of these carpets. In addition, India has alarge installed capacity in worsted and hosiery sectors and most of thewool, except around 5 m kg apparel wool which is produced in J&K, HPand Uttrakhand, is imported. However, there is a large export of hosieryand woolen cloth in addition to the carpets. Sheep produces 2.6 m kg ofmutton annually. In spite of large increase in the sheep population inthe last 25 years there has not been any increase in wool production;rather there has been a gradual decline.6.11 The country has implemented large R&D programmes in sheepproduction, primarily related to improving apparel wool production.Large programmes were started with Intensive Sheep DevelopmentProjects (ISDP) in 1960s followed by a large plan for improving fine woolproduction in seven states starting with an establishment of a largeCentral (Australian) Sheep Breeding Farm at Hissar, Haryana, to produceexotic fine wool rams to be distributed to the seven large State Sheep

59Breeding Farms to produce crossbred rams to be distributed to thefarmers for improving wool production and quality of their sheep. Earlierschemes for machine shearing of wool, wool grading and marketingwere undertaken in most of the States. Department of Sheep and Wooland Department of Sheep Husbandry were established in Rajasthan andJ&K, respectively. The Sheep Husbandary Department in Rajasthan hasnow been merged with the Department of Animal Husbandry. The J&Know has two Departments, one in Srinagar and the other in Jammu toserve the two regions of the state. The J&K Government has a largenumber of exotic fine wool sheep breeding farms to produce rams fordistribution for a short period during summer when the sheep flocks arein alpine pastures and are withdrawn and maintained in Governmentram centres. This programme has led to evolution of a new fine woolbreed‐ Kashmir Marino, 75 per cent of sheep in J&K are crossbred andproduce around 3 kg apparel wool/ sheep. The crossbreeding with exoticfine wool breeds in other states did not succeed and has beenabandoned. Similarly, most of the programmes related to wool gradingand marketing except in northern temperate region have been closed.Even the Department of Sheep and Wool in Rajasthan has been mergedwith the Department of Animal Husbandry.Region/State Wise Sheep Improvement Programmes6.12 Considering the past experience in improving apparel woolproduction the programme should be confined in the Northerntemperate region and the modal for maintenance of exotic sheep andproduction of rams for distribution to the sheep farmers as followed inthe state of J&K should also be followed in HP and Uttrakhand forcrossbreeding programme for fine wool production to be successful.6.13 Earlier, the purebred and cross‐bred rams from Central SheepBreeding Farm at Hissar were made available to the State AnimalHusbandry Department for improving fine wool production. Theseanimals were maintained at the seven large state sheep breeding farmsfor producing cross‐bred rams with the major indigenous breed of thestate. The crossbred rams were to be distributed to the farmers for usein their flocks for improving wool production and quality through naturalservice. With the change in sheep breeding policy and restrictingcrossbreeding with exotic fine wool breeds only to the northerntemperate region, the demand for exotic fine wool/ crossbred rams

60declined. A similar situation occurred in the large state sheep breedingfarms. Most of these farms except in Hissar and Rajasthan have nowstopped maintaining exotic stocks/ producing cross‐bred rams. A highpower committee was appointed by DOAHD& F of GOI to consider thefeasibility of the Central Sheep Breeding Farm at Hissar. It hadrecommended that the farm for the purpose it was established need notcontinue at Hissar and may be relocated in northern temperate regionwhere there is demand for exotic / cross‐bred rams for improving woolproduction and quality in the local sheep. This, however, has not beenaccepted and the farm continues at Hissar without much utilization ofthe rams produced. Similarly the state breeding farm in Rajasthan is alsoserving little purpose as the exotic and cross‐bred rams are no morerequired in the light of changed sheep breeding policy.6.14 The future breeding programme should be directed towardsstabilization of exotic inheritance of around 75 per cent and furtherimprovement be brought in greasy fleece weight through selection ofram lambs, around nine months of age, on the basis of their greasyfleece weight. There is a large consumption of mutton in hilly regions,especially in J&K and a large number of animals are brought by roadfrom the states of Rajasthan and Gujarat. The cost of transportation andthe loss in weight during transport and in addition mortality that occurs,leads to very high cost of mutton. It may be desirable that frozendressed carcasses or frozen, meat is transported for consumption in J&Kand in other states in the region.6.15 In the North Western region the emphasis should be on improvingmeat production along with carpet wool production. Since the carpetwool quality in most breeds of sheep in the region is reasonably suitablefor carpet manufacture except in Southern Rajasthan, the emphasisshould be on improving wool weight. Improving body size to increasemeat production will automatically increase wool production. Theemphasis should be on selecting ram lambs around nine months of agewhich are heavier in body weight and may be used for breeding in thesame flock. After a year of use, they may be sold or exchanged withsimilar rams from another flock.6.16 In the Southern and Eastern region the emphasis should be onimproving mutton production through selection of rams on their bodyweight around nine months of age and extensive utilization of such rams

61in the farmers flocks. The rams should be changed every year to avoidinbreeding through exchange with other flock owners in the same orneighboring areas.6.17 For production of rams, the farmers may be organized into groupbreeding schemes where all the flocks in a village or a group of villagesare considered as a single flock since there will be no serious differencesin the breed or genetic merit of the animals among the cooperatingflocks. The ram lambs may be selected on the basis of their body weightat around three month of age and such lambs may be either reared inthe same flock or grouped together and reared in a separate flock in thesame area but with some better feed and management and distributedto the cooperating farmers for breeding of their ewes and should beexchanged every year. In case these ram lambs cannot be reared by thefarmers they may be purchased at weaning age by the Department ofAnimal Husbandry and reared at its cost by one of the farmer in thebreeding area and sold/supply free to the flock owners or in exchange oftheir males which may be disposed of by the Department. TheDepartment may get insured all the ram lambs/ rams distributed to thefarmers at its cost so that any loss that occurs is compensated to it. Inaddition to provision of breeding rams, health cover in terms ofvaccination against enterotoxaemia and regular treatment againstexternal and internal parasites should be assured at least a fortnightbefore the animals are bred. The Department may charge the actual costof medicines and vaccine. There is no seasonality of breeding in sheep inIndia although the sheep are bred in a season so that when the lambsare born the weather is not stressful and there are sufficient naturalfeed resources available for the ewes to rear the lamb. This is true incase of migratory flocks but in stationary flocks breeding can be donethroughout the year and more than one lamb can be produced. Somesupplemental feed consisting of tree leaves, harvested grasses orcultivated fodder hay with some quantity of cheap grains may help inimproving survival and body weight gains and thus higher returns perewe per year.6.18 In more arid regions with extremely limited feed and water supplyand where there may not be any sentiment against the slaughter of veryyoung lambs, lamb pelt production may be undertaken. This will savelarge losses of lambs due to mortality at an early age, allow the milk ofsuch ewes to be utilized for human consumption and such ewes may be

62again bred and thus produce more lambs per year. The returns from saleof pelt are much higher than the sale of wool and lamb put together inmore difficult hot / cold arid areas. Experience of such breeding atBikaner and at Kargil has been very successful.6.19 The number of lambs born per ewe per year are currently limitingmutton production in the country in addition to non‐availability ofadequate quantity and quality of feed, health and management inputs.Commercial mutton production may be introduced, where young lambsare bought at around 10 kg live weight and are intensively fed andmanaged to reach market weight of 25–30 kg, depending upon themarket demand. This will increase lamb survival, lamb growth, highercarcass yield and quality and bring larger returns through lamb meatproduction.6.20 There are breeds of sheep in India like Garole in Sunderban areaof West Bengal which though small in size and having adult body weightof around 15 kg produces in excess of 50 per cent twins and triplets. Thecrossing of Garole with medium/ large size sheep breeds has led toproduction of in excess of 150 per cent of lambs per 100 ewes comparedto 80 per cent in the larger sheep breeds. If such lambs are properlyraised and fattened, they can yield profitable mutton production.GOAT PRODUCTION6.21 Goat is the major species of meat animal in India. It has all thecharacteristics required for efficient meat production viz. highprolificacy, more often breeding in a year, higher milk production andcapacity to rear twins and triplets. Goat meat is further preferred andfetches higher prices in national and international markets. There is alarge scope of export of meat to Gulf and South East Asian countrieswhere there is a large expatriate Indian population which likes goatmeat. Goat meat is also preferred over mutton within the countryexcept in some states like J&K.6.22 The current population of goat is 124.4 m which has grown fasterthan any other species of livestock in spite of the prejudice against it andlittle development efforts in its improvement. The little programmewhich existed earlier was to improve the milk production throughbreeding with large‐sized, better milk producing breeds or crossing with

63exotic dairy breeds. Both the programmes have led to reduction innumber of kid born / kidding and the little improvement in milkproduction could not compensate for the loss of reproductive efficiencyand the number of saleable kids available. The major emphasis inimproving goat production should be on meat (chevon) productionthrough ensuring larger number of kids born per doe per year, improvingtheir survival and body weight gains both in pre‐weaning and postweaningperiod till they reach the market weight of around 25 kg at ninemonths of age when they may be disposed off for the slaughter. If suchkids are sold at festive occasion such as Id, they can fetch in excess of Rs.2000 per animal.6.23 In addition to meat, production of fibre especially pashmina inpashmina goats viz. Changthangi in Ladakh, J&K and Chegu in higheraltitude mountains in Himachal Pradesh. The current pashminaproduction is low compared to better pashmina producing goats in othercountries and selection for pashmina production has not resulted in verylarge and fast improvement. Crossing of low pashmina producing goatswith Angora, a mohair goat has resulted in production of a usable totalfleece weighing around 1 kg of cashgora in higher grades of Angora withlow pashmina producing goats which has average fibre diameter veryclose to the finest wool but has longer, stronger and lustrous fibreswhich can be used for fine garments blended with fine wool andprocessed on worsted system.6.24 The major limiting factors in improving sheep and goat productionare lack of pastures and fodder shrubs and trees in the area where thesheep and goat abound, especially in the states of Rajasthan and thewhole of the northern hill region. All efforts for improving high altitudepastures through arial re‐seeding with perennial temperate grasses andlegumes have not been very successful. Most of the pastures are nowinvaded with weeds because of excessive grazing and little rest except invery high altitude pastures which can be utilized from May to Augustwhen the snow has melted and the new grasses and legumes havegrown and till such time it again starts snowing. The sheep on thesepastures get flushed and breed and lamb by the time they come to midhills where it is not that cold. Most of the flocks again start migrating tothe plains in search of feed. Although there are certain advantages ofsuch permanent migratory/transhuman system of rearing sheep such asin reduced parasitic load and having better nutrition but they also suffer

64losses in body weight due to continuous migration and this system isvery uncomfortable for the shepherds. The improvement of the pasturesand development of feed reserves at the points where the migratoryflock stay during migration and also provision of drinking water, someshelters for the sheep and the shepherds and provision of health coverviz. prophylactic vaccination and drenching against gastro‐intestinalparasites and spraying/dipping against ecto‐parasites and furtherprovision of shearing and marketing of wool, can help in improvingeconomic returns to sheep farmers.6.25 Proper organization of marketing of live animals and wool throughsheep farmers’ cooperatives which may undertake sheep shearing, woolskirting and grouping and marketing of large quantities of wool and liveanimals can help in improving economic returns from sheep farming.Similarly, there are no proper organizations for marketing of live goats/milk/pashmina. Such organizations of farmers can also provide facilitiesfor shearing of wool/pashmina and marketing of produce from sheepand goat as well as provision of health cover.6.26 The two species, sheep and goat, have entirely differentmanagement systems and products except for meat, although the inputsrequired with respect to feed, management and health cover are similar.The farmers maintaining the two species need to be organized andhelped through proper training in management and marketing so thatthey can improve economic returns from sheep and goat farming.6.27 A large number of educated unemployed and retired armypersonnel are taking keen interest in learning commercial goatproduction and taking up such enterprises through support fromNABARD and financial institutions such as nationalized banks. TheGovernment of India under various rural development and povertyalleviation programmes is providing long‐term institutional finance(loans) at low interest rates. Greater emphasis should be laid onimproving goat production for the reason it has larger numbers, widerdistribution, higher off take and thus higher economic returns.Sheep and Goat Farmers Organizations

656.28 The programme may involve primarily helping formation of sheepand goat farmers’ organizations like cooperatives or self help groups toundertake provision of major inputs and undertake marketing ofproducts. The role of the Government should be in providing training invarious aspects of goat production, ensuring protection of animalsagainst major infectious diseases through proper monitoring andsurveillance and taking strategic control measures. The Government mayalso assist in development of feed resources through allocation of largegrazing areas and improving their feed resources through reseeding ofpastures, plantation of fodder shrubs and trees and controlling grazingintensity. The control of such feed resources should also be left to thefarmers’ groups which will not only ensure that these resources are notoverutilized but also are conserved so that reseeding could take place atleast in conserved areas. Rotational grazing or deferred rotationalgrazing will help in conservation of these feed resources.6.29 There is a need for sedantrisation of major migratory flocksthrough establishment of adequate feeding and marketing facilities atleast for young lambs and kids for meat. This may further help inreducing the numbers through improved production and more assuredinputs and remunerative returns to the farmers and make the smallruminant production not only a source of income, employment and foodto the farmers but supply better quality products from these two speciesto the people and the industry without causing any environmentaldegradation.C. Pig Production6.30 Pig is an important meat animal especially for the economicallyand socially backward classes. There are no specific breeds of pig in thecountry although in the North East there are a large variety of pigsranging from extremely small (pigmy) to very large pigs. From time totime exotic breeds of pigs such as Landrace, Yorkshire, etc., have beenintroduced for crossing with indigenous pigs to improve their body sizeand litter size and survival. The central and state governments havemaintained large exotic pig breeding farms for production of purebredpigs and supplying purebred boars/crossbred boars to private pigkeepers. This has resulted in improvement in the performance of suchcrosses. These crossbreds have also been maintained under extensivemanagement and on scavenging with little supplementary feedprovided. There are a very few commercial pig breeding farms primarily

66maintained by private entrepreneurs to produce quality pig meatproducts.6.31 The ICAR has an All India Coordinated Research Project on pigswhich earlier involved crossing indigenous non‐descript pigs with exotichigh producing breeds like Landrace, Yorkshire, etc., and studying theperformance of their crosses under different management systems. Thetechnical programme was, however, modified to only study theperformance of indigenous pigs under different systems ofmanagement, both under housing and intensive feeding and under freerange management with small supplementary feed to study theeconomics of pig production as well as to recommend variousmanagement practices for increasing pig production both undercommercial and extensive management systems. Somerecommendations have become available and transferred to beextension agencies of the state governments. There is hardly any seriouseffort on the part of the state governments for improving pigproduction. Even the disease investigation and identifying serious causesof pig mortality have not been carried out. Pig essentially both withrespect to health and management has been left to the naturalconditions of management. However, there is a great possibility ofcommercial pig production and utilizing its meat for making productswhich have high value and is liked by neo‐rich people. There is also alarge demand for pig products in 5‐star hotels and there is a great scopeboth for improving meat production of pigs and utilizing it for makinghigh value products. Pig has up till now been left to be reared by poorpeople who neither had knowledge nor technology nor financialresources to utilize it. A proper organization can be put up, possibly inthe form of pig producers cooperatives where the state/ a largecooperative farm may produce the piglets and supply them to thefarmers to be raised under intensive feeding and management like incase of broiler poultry, and in the process, provide the feed and healthinputs and purchase the fattened piglets on the basis of their bodyweight and at a remunerative prices. This will help increase pig meatproduction and provide self employment to a large number of rural andperi‐urban people.D. Yak

676.32 Yak is located in extremely cold and high altitude mountainousnorth and north eastern region of the country. Although the largestpopulation of Yak and genetic variants are found in Tibet, a largenumber of Yaks are also located in countries with high mountains suchas Russian Republic, Mangolia, Nepal and Bhutan.6.33 Yak meets all the human requirements. It is extremely adaptableto cold arid environment, extremely high altitude and extremely poorfeed resources. It is used for transport, carrying human and materialloads, for food through meat and milk, protection through providingheat to the owner, who sits in the middle of the herd and also providingskins and hair. The long tail has a bunch of long hair, which is calledChauri and is used for religious purposes. The droppings of the animalare so dry that they can be burnt as a source of fuel without any drying.This way, Yak provides food, shelter, clothing, transport and fuel. Yakfurther has thick outer coat consisting of long fibres which are used formaking tents and coarse cloth. The undercoat is very fine like Pashminaand can be used for making finer garments. The only material required inareas in which Yak abounds from outside is the salt which both thehuman maintaining the Yak and the animal needs.6.34 Yak is almost kept continuously moving for carrying heavy loads orfor finding grazing resources. During summer they are taken to highaltitude in excess of 5000 m and during winter are brought to loweraltitude of around 3000 m.6.35 Yak is also crossed with indigenous cattle for improving adaptationto lower altitude and the males of such crosses are sterile and thisrequires the crossbred females to be again bred either to Yak or tocattle. The backcross to Yak does not make it adaptable to lower altitudeand requires it to stay at higher altitude. Similarly, the crosses with cattlemale have better milk production but are not adapted to higher altitude.This is resulting in continuous backward and forward crossing and a largeunstable population exists in addition to purebred Yak.6.36 The ICAR has established an NRC on Yak at Nikmadang inArunachal Pradesh to undertake research on all aspects of Yakproduction and health. Initially, it was to carry extensive surveys forstudying the present status of Yak genetic resources and theirproduction systems as well as their limitations especially in relation to

68feed and nutrition and health, and further studying the products arisingfrom it and their utilization. As mentioned earlier, Yak is a multi‐purposeanimal providing draught animal power, food, skins and fibre andprotection from cold. Under the circumstances, it is managed and for thepurposes for which it is maintained, it is extremely difficult to have avery comprehensive study on all aspects of production and health. Butconsidering it as a unique animal and further its meeting all the humanneeds, it is essential that more elaborate studies should be carried out.6.37 China has the largest and the most productive research on Yakthrough a number of institutions working on Yak and, further has a muchvaster numbers and wider genetic resources. Cooperation with Chinamay help in developing Yak as a more productive animal that meets allthe needs of the farmer who maintains Yak. Introduction of cattle forcrossbreeding are likely to introduce a number of diseases which wouldrequire to be properly studied and preventive measures taken as suchdiseases which do not prevail in the region could cause a seriousmortality in an already small population of Yak in the country.6.38 Cooperation in studies on Yak with China will be profitable andinternational society on studies on Yak exists which organize annualconferences to review the status of the knowledge on Yak productionand identifies the priority problems related to research anddevelopment. A closer link with China will help in more elaboratedevelopment of research and development programmes on Yak.E. Mithun6.39 Mithun the domestic bovine species is an important livestock inthe North Eastern region of India. This unique species had beendomesticated some 8000 years back from wild gaur. The animalpredominates in the four north eastern hilly states of Arunachal Pradesh,Nagaland, Mizoram and Sikkim. It is also available in neighbouringcountries, especially Bhutan. The current population is 0.278 million.Mithun is a semi‐domesticated animal and is the real under free grazingin forest and is adapted to humid climate and hilly terrain at an elevationof 3000 m above sea level. It is an extremely efficient grazer on steephilly slopes. It is primarily reared for meat which is highly preferred inNorth Eastern region. It also plays an important role in economic, socialand cultural life of the people in the region. Although Mithun is primarily

69used for meat, it is also milked; and milk contains high protein and fat.Mithun has been crossed with cattle and such crosses have higher milkproduction and composition. The only relationship the animal has withits owner is through offering of salt.6.40 Mithun is an important animal to be given in dowry at the time ofmarriage. In fact, the higher number of Mithuns, the family of thebridegroom offers, the greater are the possibilities of the marriageproposal being accepted.6.41 The ICAR, considering the importance of Mithun as a speciallivestock species in North Eastern region, had established an NRC onMithun in Nagaland and is undertaking studies on the identification,evaluation and characterization of Mithun genetic resources apart fromtaking steps for their conservation and management. It also studying theproblems related to health, nutrition, reproduction and management sothat their productivity can be maximized. Studies on crosses of Mithunwith cattle or its reciprocal are being studied with respect to theiradaptability, disease susceptibility and production. The crosses with highproducing cattle either indigenous or exotic not only increases the sizebut also increases milk production both of which help in providing morenutritious food in the region. However, the management of such ananimal especially with respect to feed and health needs to be moreseriously studied before large scale crossbreeding programmes aretaken. The initial studies do indicate promise and acceptability by thepeople who own Mithun.F. Backyard Poultry Farming6.42 Before the establishment of commercial poultry farming in India inthe early 1970s, most of the poultry farming was through maintenanceof small number of indigenous birds under free range and with littlesupplementary feeding and that too mostly on household wastes. Therewas hardly any cost of maintenance of birds, the production was lowand was primarily meant for meeting the household needs.Subsequently, improving the productivity of such birds through gradingwith exotic layers/broilers was taken up through distribution of breedingmales produced at government poultry farms. Some assistance in termsof feed and health cover was also provided. The backyard poultry hasgradually reduced in terms of its contribution to eggs and meat as

70commercial poultry farming for eggs and broilers have provided cheapereggs and chicken meat.6.43 The commercial poultry farming is only located in urban and periurbanareas and most of the products are only available for consumptionin these areas. The rural areas have been bypassed in this development.The earlier effort of the State Animal Husbandry Departments insupplying day‐old chicks/feed to poultry farmers in rural areas has alsodeclined. Another attempt was made by the State Department of AnimalHusbandry to propagate poultry production in peri‐urban areas byestablishing poultry estates where the government established a largenumber of small poultry production units through creating small poultryshelters and providing day‐old chicks, compounded feeds and healthcover and also helped in marketing of eggs and chicken. This, however,could not stand competition with large poultry breeding farms, whichnot only had a large and more efficient production but also had a propermarketing system. Over time, both the backyard poultry in the ruralareas and the peri‐urban small scale commercial poultry, production hasdeclined or has totally been eliminated in these areas where largecommercial poultry production have been taken up or where large scalemarketing of eggs and broilers exists. This development has essentiallybypassed large rural population both in production and consumption.6.44 Major population in the country (in excess of 70 per cent) still livesin rural and peri‐urban areas and has little access to commerciallyproduced layers and broilers. Either there is no consumption or theconsumption is essentially based on limited availability of rural/periurbanproduced eggs and broilers. This situation is highly unsatisfactoryas a large population in the country is being bypassed from thedevelopment of poultry industry and is not availing the cheap proteinavailability from poultry eggs and meat.6.45 The model earlier tried in peri‐urban areas, which could notcompete with commercials could be revised after examining itsweaknesses. It appears that the weaknesses were both in theorganization as well as in proper marketing. Before establishing ruralproduction units either individually or as cooperatives, the total demandfor poultry eggs and meat must be determined and the current situationwith respect to the availability and the costs must be investigated sothat the newer production units ensure not only more abundant

71availability but at costs the rural people can afford. The experience ofcooperative dairy farming can be a model for cooperative poultryproduction where the cooperative maintains its own large layer andbroiler farm and produce day‐old chicks to be supplied to productionunits in the cooperatives to be raised for producing eggs/broilers by theindividual farmers and the feed and health inputs are provided by thecooperative. It also ensures the purchase of eggs and broilers atremunerative prices and their proper handling, processing andmarketing as in case of dairy cooperatives. This would not only help inimproving the economic status of the rural people through sale of eggsand broilers but also will have some of them available for their ownconsumption. Since they will be available with them, it will be possiblefor the rural people to consume them instead of buying them. This hasbeen seen in the case of dairy farming, even in the case of small andmarginal farmers and landless dairy farmers that at least some milkproduced by them is consumed within the family. The rural poultryproduction does not mean that it should only be based on indigenouslow producing birds.6.46 In addition to the chicken, there are other avian species like Quail,Ducks, Pheasants and Guinae Fowl, which are special avian species andhave not been seriously exploited commercially because of thepreoccupation of the urban poultry producers with layer and broilerchicken. These species, if introduced in the rural areas and raised like thelayer and broiler chicken through farmers cooperatives and marketed bythem directly can help in increasing rural poultry production and thusbetter employment, incomes and food for the rural people.

72CHAPTER VIIVII.Research and Technology Support7.1 Major areas that influence livestock production efficiency, economicsand income are breeding and reproduction, diseases, inputs, especially feedand fodder, value addition, food safety and quality, marketing andmechanisms/platforms for dissemination of technologies. The emergingdiseases and unpredictable climate changes are the other areas that wouldbe vital. Some of the major researchable issues and technology needscritical to support and enhance livestock productivity are given below:1. Management of Animal Genetic Resources7.2 Diversity: Characterization, Conservation and Improvement:Livestock Genetic Resources are national heritage that need to be optimallymanaged in their native environment for present and future use. Some ofthe indigenous breeds of livestock have strengths of better adaptability,disease resistance, high prolificacy and growth, etc. Nevertheless, many ofthese breeds are not economically viable in the changing productionsystems. As a consequence, some of the later breeds are showing declinein numbers and are even threatened. It is therefore essential to evaluatetheir strengths before they disappear. Although molecular characterizationof these breeds to identify genes and polymorphism associated with traitsof economic importance has been taken up, this needs to be completed onpriority. Such genes/genotypes with strengths could be used for developingnew genotypes. As in‐situ conservation of these breeds is cost prohibitive,in‐vitro conservation in the form of oocytes, semen, embryos, somaticcells and DNA should be ensured for future use. It will be desirable toestablish somatic cell (fibroblasts) and DNA banks for breeds facingextinction on priority.2. Enhancing Reproductive and Production Efficacy7.3 Integrating Conventional and Molecular Breeding Technologies:Conventional breeding technologies coupled with ETT and Marker AssistedSelection can greatly help in achieving higher genetic gains. Identification

73and localization of Quantitative Trait Loci (QTL) for traits of fertility,production and disease resistance, and their fine dissection to identify theQuantitative Trait Nucleotide (QTN) in the candidate genes should be takenon priority.Several non‐compensable traits viz. sperm nuclear vacuoles, defectivechromatin structure and immaturity, sperm nuclear denaturation and DNAmutation result in reduced fertilization. About half a dozen of holandricgenes are known to control male fertility. There is a need to establishspecific genomic DNA markers for the various traits of fertility. Screening ofmale calves at birth for these traits would greatly help in improving geneticpotential for fertility and production in livestock. Establishment ofMolecular / Cytogenetic Laboratories for such studies in dairy cattle andbuffalo would also greatly help.3. Animal Health Care: Disease Management and Prevention7.4 India losses US$ 4.45 billion (Rs. 20,000 crore) because of variouslivestock diseases, particularly the FMD (43 per cent), diarrhea (14 percent), septicemia ‐ fever (12 per cent) and HS (8 per cent) followed bybrucellosis, IBR, mastitis and tick borne diseases. Lack of comprehensiveunderstanding of disease epidemiology, efficient diagnosticprocedures/facility/infrastructure and effective preventive strategies arethe major limiting factors to curtail the losses. Preventive technologies andstrategies are too ineffective. Part of the problem is due to incompletecoverage of vaccination. Creation of sufficient facility for absoluteimmunological coverage is a supreme necessity. Available vaccines areeffective only partially, and for short duration. It is imperative to developnovel vaccines with merits of long lasting immunity and 100 per centefficacy.7.5 Proper diagnosis and disease epidemiology is a prerequisite tomanagement of disease outbreaks and to curtail losses. However, there is awidespread lack of appropriate reachable diagnostic facility. Theconventional tests, even where available, lack sensitivity and reliability.Often the treatment of infectious diseases is ineffective due to emergenceof drug/insecticide resistant strains of (micro) organisms. Rampant

74indiscriminate/ misuse of medicines is a serious menace. Above all, there isno scientifically collected authentic database on these issues to supportpolicy decisions. Following points warrant urgent attention to effectivelydeal with some of these issues:(i) Effective database, surveillance and reporting systems involvingmolecular diagnostic and monitoring strategies for each major infectiousand parasitic disease are required. Establishment of at least one P‐3laboratory in each region would greatly help research and diagnosis foreffective disease control;(ii) Development of molecular diagnostic tests, recombinant proteinbased ELISA kits, and mechanism for fast, reliable and cost‐effectivediagnosis for the various infectious diseases is warranted. Pen‐side testsshould be developed for on‐the‐spot diagnosis and decisions on treatmentin the field;(iii) Genetically modified marker vaccines, DNA vaccines and other toolsfor improved, safer and prolonged immunization against infectious diseasesin animals are warranted;(iv) Economics of disease and the treatment (including zoonosis) need tobe worked out to properly understand the impact and a befitting emphasison the issue; and(v) Integrated parasitic control strategies need to be developed andimplemented including methods of biological control, immunoprophylaxis,genetic manipulations of vectors to curtail transmission, development ofgenomic information on parasites to design multi‐focal drugs). Geographicmapping of worm infestations against area, season and species need to bedeveloped. An understanding of the life cycles of the different parasiteswithin the whole soil‐plant‐animal system will help in reducing thedetrimental effects of parasites.

754. Zoonoses:7.6 Over 200 infectious diseases transmissible from animals to humans(Zoonoses) are a serious risk. About 75 per cent of the new human diseasesemerged over the past 10 years have origin in animals. New trends inanimal production practices, changing patterns of wildlife populations,demographic changes such as population growth, mobility andurbanization, and globalization of the food industry contribute to this.Resistance to antimicrobials among zoonotic microbes is of increasingconcern.7.7 These developments call for increased levels of epidemiologicalsurveillance and preparedness, and for novel approaches to control andprevention involving interface of animal and human health studies. Riskbased programmes should, therefore, aim at preventing or decreasing thetransmission of zoonoses, through appropriate scientific approach,adequate policy frameworks, control measures, and education.5. Livestock Products Technology7.8 Value addition to livestock products and technologies to developready‐to‐cook and ready‐to–eat non‐food products of animal origin havinglonger keeping quality and shelf life is a challenging thrust area of economicimportance. Production of safe, wholesome and high quality livestockproducts by the application of quality harvesting, processing, preservation,packaging and proper distribution is the need of the hour.7.9 There is an alarming lack of trained human resources and technology.It would benefit to design equipment, especially for small scaleentrepreneurs in the business of meat, egg and leather.6. Food Safety: Food Quality Assurance and Quality Control7.10 Diarrhoeal diseases alone, caused mostly by food and waterbornepathogens, contribute 8.2 per cent to the total burden of human diseases.India loses an astounding total of 180 million man‐days and a whopping Rs.12 billion due to diarrhoea and other related diseases. Hazards related

76foods of animal origin occur due to microbial contamination of foods orfrom toxic levels of residues (pesticides, heavy metals, veterinary drugs,packaging material ingredients, growth promoters, and adulterantchemicals). India, therefore, often underperforms in export of food ofanimal origin due to quality problems.7.11 Development and validation of molecular assays for rapid detectionof pathogens and toxins in food from animal origin, their prevalence andepidemiology, and databases on categorical prevalence with particularreference to geographical, epidemiological and climatic data, would go along way in improving our credentials in export of livestock products and incurtaining related diseases in India. There, however, is a glaring absence of‘state‐of‐the‐art’ laboratory facilities dedicated to advanced research anddiagnosis on food safety, quality assurance and quality control.Establishment of such facilities is a priority area.7. Environmental Pollutants7.12 Toxic residues in foods of animal origin especially antibiotics,pesticides and heavy metals are on the increase. Pesticide consumption inIndia has increased from 2353 MT in 1955 to 43,630 MT in 2007‐08.Preliminary studies have revealed high concentrations of pesticide residuesin animal feed, milk and meat of food animals, which may cause cancer,epilepsy, liver and kidney dysfunctions, somatic growth, depression andneuritis. India’s share in the international milk trade is limited to less than 1per cent primarily because of quality issues including high residues.7.13 The issue warrants serious attention and strategic interventions,starting with development of techniques and establishment of facility forconstant monitoring and reporting, and an effective mechanism in place tocontrol the contaminations. Studies on soil‐water/fodder‐milk, meatrelationship of environmental residues should receive high focus.8. Animal Nutrition7.14 India suffers from serious deficiency of feed and fodder to fullyexploit the production potential of our livestock. The seasonal fodder

77production trends/lean production periods, coupled with environmentaluncertainties further compound the problem. Therefore, new nonconventional energy and protein supplements should be tapped (may beregion specific) and their nutritional worth should be assessed for differentspecies under different phases of growth and production.7.15 As the area under fodder production is almost constant, theincreasing fodder requirement has to be met through development of highyielding fodder varieties with better nutritive value. Therefore, new dualpurpose, high‐yielding, disease resistant hybrid varieties of forages shouldbe developed and their nutritive value for different categories of livestockassessed.7.16 Fodder seed production and availability is a major constraint infodder production. Production of quality seed of high yielding varieties offodder crops and pasture grasses/ legumes should be ensured.7.17 Tapping of unconventional feed and fodder resources(i) Azolla: Technology for cultivation and supplementation of Azolla, afloating fern that fixes atmospheric nitrogen is needed. On dry matter basis,azolla contains 20‐30 per cent protein, 10‐15 per cent minerals and 7‐10per cent amino acids, vitamins (vitamin A, vitamin B 12 and β‐ Carotene),growth promoter intermediaries bio‐active substances and bio‐polymers.(ii) Fruit and vegetable wastes (FVW): In most States, losses in fruits andvegetables are to the tune of 30 per cent, thereby, resulting in theproduction of huge quantities of FVW. Only 4 per cent of fruits andvegetables produced in the country are processed, as compared tocountries like USA (65 per cent), Philippines (78 per cent) and China (23 percent). Comprehensive plans to utilize FVW in India (including developmentand provision of appropriate technology and mechanism for marketing,etc.) need to be developed.(iii) Straw and stover from major food crops, like wheat, rice, maize andpulses are in abundance. Most of these are burnt, causing environmental

78pollution/global warming. Technologies to harvest and pack the straws asbales or densified complete feed block, etc., for use as basal roughage, withor without urea treatment should be developed. Urea treatment of cropresidues lacks mechanization. Suitable technology (like drip technology)should be developed for effective utilization of straws and stover.9. Climate Change vis‐à‐vis Livestock Production7.18 The threat of climatic change and global warming is now recognizedworldwide. There is discernible increase in mean air temperature duringvarious parts of year to the tune of 0.8 ° C to 1.02 ° C, increase in sea leveldue to excess heating of air and melting of ice covers, change in the rainfallpatterns due to variations in the convectional current (both in time anddirection) caused by difference in heating pattern of earth's air as also thechange in seasons and seasonal characters.7.19 Effects on livestock production: Animal health and production can beaffected by emergence or re‐emergence of diseases in various ways, e.g.(A) Green House Effect; (B) Extreme Weather Exigencies, (C) EnvironmentalPollution and (D) Biological Adaptation of Disease Producing Organisms andVectors.7.20 There is need to establish the effects of possible climate changes onlivestock production and to develop appropriate strategies to deal with theeventualities through:• Studies on the effects of environmental stress on livestockproduction and health;• Fodder varieties resistant to elevated temperatures, draught andflood situations;• Genetically superior animal germplasm with merits of resistance toclimate changes in terms of production and diseases; and• Models of perceived disease epidemic threats and mitigationsstrategies.7.21 Curtailing environmental pollution of animal origin: Animalagriculture sector emits 18 per cent, or nearly one‐fifth, of human induced

79GHG emissions, more than the transportation sector. Methane is formed inthe rumen by methanogens by converting H 2 and CO 2 to CH 4 and representsa significant loss of dietary energy, thus by reducing enteric CH 4 production,feed efficiency may be improved. A sheep can produce about 30 l while adairy cow can produce between 200 and 600 l of methane/day,representing a loss of 2‐12 per cent of the gross energy intake. Suitablefeeding strategies should be developed for mitigation of enteric methaneproduction, which seems to be the most logical and practical approach foroptimum nutrition and environment security.7.22 Management of Dung: Millions of tons of dung, urine and poultrydroppings are produced each year. The animal organic waste is a richsource of nitrogen (nitrous oxide, nitrate, and ammonia), phosphorus, andheavy metals which, if not used properly, pollute the surface and groundwater, produce neurotoxins, etc. The enteric bacteria and organic manurecontributes 68 per cent of methane in the environment. Methane andnitrous oxide contribute 75 per cent of total farm global warming potential.At present, most of the dung mixed with urine containing excess ofunutilized nutrients (N and P) is dumped in the waste land and then used asfarm yard manure, causing environmental pollution. But animal organicwastes can be effectively utilized in producing biofuel (bio gas/ electricity)and the nutrient rich biogas slurry can be utilized as manure. Utilization ordisposal of animal wastes and slurry as energy source and animal feedthough possible, could not be popularized due to the prohibitive costs andlabour involved. Development of appropriate technology for this isrequired. The challenge lies in utilizing CO2 instead of releasing it into theenvironment.

80VIII. Livestock Credit and InsuranceCHAPTER VIII8.1 Credit is one of the major requirements for development of any sector,especially when majority of the farmers are resource poor. Most of the animalhusbandry activities are viable and bankable provided all the backward andforward linkages exist. Studies reveal that though there is vast potential foranimal husbandry, it is not being exploited due to lack of infrastructural facilities.These deficiencies were highlighted in state specific reports of the members ofthe Advisory Committee. They need to be corrected to ensure increased creditsupply to the sector.8.2 Ground level credit flow to animal husbandry in comparison to totalagriculture loans and total loans is given below(Rs.crore)S.No. Purpose/Year 2002‐03 2003‐04 2004‐05 2005‐06 2006‐07 2007‐081. Crop Loans 63,141 54,977 76,062 105,350 138,455 181,3932. Investment Credit/TermLoans for Agriculture andAllied Activities17,555 22,486 49,247 75,136 90,945 73,2653. Total Loans (1+2) 80,696 77,463 125,309 180,486 229400 254,6584. Animal Husbandry out ofTerm Loans5. Term Loan for Attachmentsas % of total term loan2,637 2,928 3,097 7,341 8,045 9,03415.2 13.02 6.29 9.77 8.85 12.338.3 Though there is increase in the ground level credit for animal husbandryover the years, its percentage in total term loans is not keeping a similar trend.During 2002‐03 credit to animal husbandry constituted 15 per cent of the termloans which has declined to 13 per cent during 2003‐04, 6 per cent in 2004‐05,increased to 10 per cent during 2005‐06, fell down marginally to 9% in 2006‐07and recovered to 12 per cent during 2007‐08. However, the share of the sector intotal agricultural loans was more or less constant, between 3.5 per cent to 4 percent, except during 2004‐05 when it was 2.5 per cent.

81Potential Links Credit Plans of NABARD8.4 NABARD prepares potential linked credit plans for all the districts wherethe potentials are given for all the sectors. For the year 2007‐08, it was estimatedthat about Rs 10645 crore was the potential for animal husbandry against whichthe actutal ground level credit flow was Rs 9034 crore.8.5 The limiting factors to achieve this potential as observed during our studieswere:• Inadequate breeding and veterinary aid facilities. In districts placement wasnot uniform at the required number of veterinary institutions. Most of theinstitutions are concentrated in developed areas leaving backward areas inthe district far behind;• Huge gap between the requirement and actual availability of feed andfodder;• Diminishing grasslands and grazing lands;• Inadequate marketing facilities whereby producers are not givenremunerative rate; and• Landless/Women/SC & ST beneficiaries are deprived of credit in theabsence of proper security.8.6 All these factors and those given in state specific reports need to be tackledto increase the credit flow for the sector.8.7 Besides the above, capital subsidy for identified activities and interestsubsidy for timely repayment may be considered. Special incentivising by interestsubsidy in case of timely repayments will motivate the borrowers to repay theloans in time. As the major problem that the banks are facing is delinquent loans,which is one of the hindering factors in increasing their loan portfolio, timelyrepayments will eventually lead to disbursement of more loans for the sector.

828.8 Credit should be made available and landless/women/SC & ST beneficiariesshould be encouraged for livestock enterprises by setting up of Joint LiabilityGroups (JLG) and SHGs.8.9 The processing sector need huge working capital requirements and the sameshould be extended in the terms of priority sector lending.8.10 Eligible activities for financing by banks under animal husbandry is given inthe Annexure.Refinance Assistance8.11 NABARD extends refinance assistance to these financial institutions to anextent of 80‐95 per cent of the bank loan provided to the beneficiaries. On anaverage, 10‐12 per cent of total refinance disbursed is for AH Sector. The Statewiserefinance disbursements of NABARD under animal husbandry from 2002‐03to 2007‐08 is given in Annexure.Venture Capital Fund (VCF) for Dairy and PoultryVCF for dairy and poultry is a central sector scheme of Department of AnimalHusbandry, Dairying and Fisheries, Ministry of Agriculture, GoI being administeredby NABARD.• The scheme is under implementation since 2005‐06 and is continuing in the11 th Plan period.• Assistance extended is in the form of interest free loan (IFL) to an extent of50 per cent of the outlay of identified components under dairy and poultrysector.• Milch animals (up to 10) in non‐Operation Flood areas purchase of milkingmachines, bulk milk coolers dairy processing equipment, transportationfacilities, etc. are eligible components under dairy sector.• Poultry breeding farms with low technology input birds and also for ducks,turkey, guinea fowl, quail, etc., feed godown and feed mixing unit,marketing of poultry products, egg grading, packing and storage forexports, retail poultry dressing units, etc., are the components underpoultry sector.

83• Cumulative sanctions under the scheme as on 31 September 2009 stood atRs 132.63 crore in respect of 12806 dairy and 213 poultry units.• Share of North Eastern States so far is 19 per cent.• Maharashtra, Assam, Rajasthan, Karnataka, Mizoram and Uttarakhand haveavailed major share under the scheme.Rural Infrastructure Development Fund (RIDF)8.12 Objective of RIDFTo provide cost‐effective loan support to State Governments to developinfrastructure in rural areas.NABARD’s Role• NABARD is the appraising, sanctioning, financing, monitoring and evaluatingagency for Rural Infrastructure funding from RIDF.• RIDF ‐ A strategic meshing of the infrastructural gap in rural areas and thelending gap of the commercial banks.Growth of RIDF• The RIDF was created out of commercial banks’ shortfall in lending toagriculture.• Started with Rs.2,000 crore in 1995‐96 (RIDF‐I).• Cumulative sanctions till 31 August 2009 ‐ Rs.93,412. 93 crore.• Corpus for 2009‐10 (RIDF‐XV) ‐ Rs.14000 crore + Rs.4000 crore for BharatNirman.8.13 Activities and Terms of Loan• Provides financial assistance to State Governments for 31 activities (ruralroads and bridges, irrigation, rural drinking water schemes, marketinginfrastructure, hospitals, educational institutions, etc.)• Repayment period ‐ 7 years, including 2 years grace period.• Implementation period (phasing of project) ‐ 4 years in North East, J&K, HP,Uttarakhand and 3 years for other states.

84• Quantum of loan – 95 per cent of project cost.• Current rate of interest on loans ‐ 6.5 per cent.• Mobilization advance – 20 per cent/30 per cent of the loan amountimmediately on sanction.• Security ‐ Time Promissory Note (TPN), mandate with RBI / Principal Bankerto State Government.8.14 Funding for Animal Husbandry Projects• So far Rs.493.18 crore sanctioned forming 0.53 per cent of total sanctionsand statewise sactions are given in the Annexure.• Types of projects sanctioned ‐ Veterinary hospitals/dispensaries (new andrenovation), dairy rehabilitation programme, dairy processing plants, pig breedingfarms, vaccine production centres, livestock knowledge centres, semen bank andlaboratory, poultry hatchery and strengthening of cattle breeding farms.8.15 State Department of Animal Husbandry may be proactive in bridging theinfrastructive gap for livestock production activities and get them practiced in theState Planning for availing the funds under RIDF, as there is a constraint ofresources with the respective State Governments.Livestock Insurance8.16 Animal husbandry sector provides large self employment opportunities.Out of 22.45 million engaged in animal husbandry sector, 16.84 million arefemales. About 75‐80 per cent of these workforces are small and marginalfarmers. Livestock holdings are more equitable than land holdings. Small holdersand landless together control 75 per cent of the country’s livestock resources andare capable of producing animal products at a lower cost because of availability ofsufficient labor with them. Evidence shows that small holders obtain nearly half oftheir income from livestock.8.17 Livestock, especially large animals like cattle and buffaloes, are costly andthe resultant risks due to disease, loss of animal due to theft, accident will also beexpensive. When their animals fall sick, these small and marginal farmers faceenormous losses and it would be difficult to recoup them. Thousands are pushedinto poverty once they lose their animals due to disease and/or accident. In case

85of drought when there is scarcity of fodder and water, they resort to distress saleof animals. So there is need for a mechanism to take care of these risks andinsulate the farmers against any losses. Insurance is one such mechanism tomitigate these risks.8.18 Evolution of livestock insuranceThe evolution of livestock insurance in the country over the years is given below:1971 ‐ “Cattle Insurance Scheme” by Small Farmer’s Development Agency.Nationalized banks began to finance the purchase of cattle and agreed tocollect premium from beneficiaries. Cover was for one year and premiumwas collected annually.1983 ‐ “Cattle insurance policy” under Integrated Rural Development Program.Livestock and asset insurance was extended to the poor along with theIRDP subsidized loans (50 per cent subsidy). Compulsory product. Devisedby General Insurance Company (GIC) and implemented through its foursubsidiary agencies of GIC 1983 onwards. Premium 2.25 per cent (death) +0.85 per cent for PTD, no age limit.1983 ‐ Market agreement. No subsidy and voluntary product. For non‐schemeanimals. Premium‐ 2.85‐4 per cent. Age specified: milch cow‐ 2‐8 years,buffalo‐ 3‐12 yrs.1999 ‐ IRDA. Inception of IRDA, liberalization of Indian insurance industry.2001 onwards Private players registered. ICICI Lombard, IFFCO‐TOKYO, HDFCERGO, Royal Sundaram.2005 ‐ Micro‐insurance regulation, 2005. Micro‐Finance Institutions (MFIs), Non‐Government Organizations (NGOs) and Self‐Help Groups (SHGs) can act asagents for insurance companies to increase the penetration of insurance inthe rural markets.2005‐06 ‐ “Livestock Insurance Scheme”. A Centrally‐sponsored schemeimplemented by State Livestock Development Boards (SLDB) and StateAnimal Husbandry Departments.Premium of the insurance is subsidized to the tune of 50 per cent; Competitionincreased between public and private players‐ premium not to exceed 4.5 percent for annual policies and 12 per cent for three year policies. Scheme isextended in 11 th Five Year Plan (2007‐2012) to cover 100 districts.

868.19 As may be observed from the above, livestock insurance is in vogue for thepast three decades. However, its penetration is very little. Presently only 7 percent of the livestock population is insured and there is a need to increase this.Literacy, awareness, affordability, problems with the distribution channels,procedural bottlenecks, problems in settlement of claims, are the reasons for thislow penetration.Premium rate8.20 Presently, the premium charged varies from 2.5 per cent to 6 per cent,depending on the category of the farmer, animals and risk involved. The premiawill be less when a large number of animals are insured as in the case of bankfinanced animals under Government‐sponsored programmes. In other words if alarge number of animals are insured, the premia will come down. So, awarenessprogrammes on livestock insurance need to be organised. Simultaneously,provision of subsidy for premia payment may also enthuse the farmers to go infor livestock insurance.Scheme on Livestock Insurance by GOI8.21 The Government implemented the Livestock Insurance Scheme as aCentrally‐sponsored scheme on a pilot basis during 2005‐06 to 2007‐08 in 100selected districts across the country. The scheme has twin objectives of providingprotection mechanism to the farmers and cattle rearers against any eventual lossof their animals and to demonstrate the benefit of the scheme to the people andpopularize it with the ultimate goal of attaining qualitative improvement inlivestock and their products. Under the scheme, 50 per cent subsidy on premiumwas provided by the Government of India to insure crossbred and high yieldingcattle and buffaloes and the beneficiary paid 50 per cent of the premium. Thebenefit of the subsidy was restricted to two crossbred cows or buffaloes perbeneficiary for a policy of maximum period of three years. The scheme wasimplemented in the states through the respective State Livestock DevelopmentBoards. As per information received from various states, during pilot period, 9.55lakh animals were insured and out of 37,776 cases of claims made, 30,745 caseswere settled. During the remaining period of the 11 th Five Year Plan, the schemeis being implemented as a regular scheme as per existing guidelines in the 100

87newly selected districts. There is provision of Rs. 153.43 crore in the 11 th Five YearPlan for the Livestock Insurance scheme. The expenditure incurred byDepartment of Animal Husbandry, Dairying and Fisheries on livestock insurancewas Rs 16.17 crore during 2007‐08 and Rs 6.5 crore during 2008‐09. About 3.28lakh animals were insured during 2008‐09. Detailed guidelines of the scheme aregiven in the Annexure.Schemes of State Governments8.22 Similar schemes for sheep are implemented by Andhra Pradesh andRajasthan. In Andhra Pradesh, the State Government is providing subsidy of 66.67per cent on insurance premium and the balance has to be borne by theshepherds/flock owners. All the animals in the flock have to be insured to availthis benefit. Shepherds are given an identity card with the flock details so thatthey can pay the premia and lodge claims anywhere in the State. This scheme waslaunched in November 2008.Players in Livestock Insurance8.23 Presently, there are four companies in the public sector engaged inlivestock insurance. In the private sector, there are about 16 companies whichalso want to enter the sector. Companies like Royal Sundaram and ICICI Lombardhave already entered the sector.8.24 Livestock Insurance Scheme, presently under operation for milch animals,may be evaluated and basing on its findings possibility of extending the scheme toother livestock and poultry and also throughout the country may be explored.

88CHAPTER IXIX. Public Private Partnership9.1 Gradually, with economic reforms and resource crunches being faced bythe Government, the idea of promoting private services is being considered asa solution to ensure efficiency and to reduce the financial burden of theGovernment. While some of these services can be privatized due to low costand high demand, a few other services which need large investments and arenot directly linked to improvement in production cannot be promoted as selfsustainable activities. Some such activities need initial support, till the volumeof activities increase while others need to be continued by the Government asfarmers will not be interested in paying for such services. With thisunderstanding, public‐private partnership can be initiated in the developmentsector to enable the farmer to become self‐reliant to receive efficient andreliable services at reasonable costs.Critical Services required for Livestock Development9.2 Among various inputs and services needed by the livestock owners,services such as breeding, veterinary health care and vaccinations are availableeither free or at a subsidized cost by the Animal Husbandry Department,provided the farmers are ready to bring their animals to the veterinarydispensary. Barring these services, the farmers have to pay for the otherinputs and services, which are available either with the Animal HusbandryDepartment or with other agencies. Even with regard to breeding and healthcare, farmers are prepared to pay for the services when they own veryvaluable animals, which require superior quality services. When they pay forservices, they also expect reliability and efficiency and thus the serviceproviders have to be answerable to them. With this paradigm shift in thedelivery of services, the entire Animal Husbandry sector can progress furtheras is being witnessed in the poultry industry.9.3 Therefore, while promoting Public‐Private Partnership (PPP) in AnimalHusbandry Services, it is necessary to analyze the scope for privatization ofvarious activities based on the ability and interest of the farmers to pay forthem. It is also necessary to improve the infrastructure to deliver the servicesand to develop a comprehensive value chain to provide efficient backward andforward linkages to enhance the production. Thus, with the promotion of PPP,

89the sector can gradually become independent, while the Government canclosely monitor the services to ensure that the farmers get a fair deal.9.4 The value chain in Chapter V on Inputs and Services identifies variousplayers involved in promoting livestock development. They include, researchinstitutes, input producers, providers of services such as breeding, health care,extension and technical advices on fodder production, feeding, housing, cleanmilk production and linking with milk processing and marketing agencies.9.5 There are research institutions engaged in developing new technologiesand inputs such as vaccines and diagnostic kits, laboratories for providingdisease investigation services, genetic evaluation of sires and production offrozen semen and training centres engaged in building the capabilities of thefield technicians and farmers. There are many pharmaceutical firms engagedin commercial production of medicines and vaccines for selling to farmers andbanks and micro‐finance agencies which are engaged in providing finance tolivestock owners. There are also agencies involved in milk procurement,processing and marketing.9.6 While most of the activities can be self‐supportive as an enterprise,there are activities such as Research and Development, disease surveillance,genetic evaluation, breeding of new fodder varieties, etc. which require regularfinancial support to continue their services, as farmers will not be willing to payfor the cost, till they start realising the benefits and generating adequateincome. With this background, the following activities can be promoted underPublic‐Private Partnership wherein the Government should encourage theprivate agencies and People’s Organisations to provide these services, whilerestricting their role to monitoring, evaluation and surveillance. Table 1indicates the scope for promoting PPP for taking up delivery of various servicesand inputs.

90Table 9.1: Scope for Promoting PPPNo. Scope PrivateservicePublicserviceJointService1. Servicesa. Livestock breeding √b. Pregnancy diagnosis √c. Vaccination √d. Deworming √e. Veterinary services √f. Testing against various diseases (D. I.) √ √g. Nutritional analysis of various feedingredientsh. Advice on fodder cultivation andfeedingi. Milk collection, chilling, marketing √j. Efficient use of dung and carcass √2. Inputs Productiona. Fodder breedingFodder seed production√b. Fodder, feed and concentrates √c. Mineral mixtures and vitamins √d. Research on vaccines, medicinesProduction of vaccines, medicines √e. Milking vessels, milking equipments √f. Various farm equipment √√√√ √ √9.7 From the Table above, it can be observed that most of the activities canbe privatised except research and disease investigation services.Privatisation of Breeding and Health Care9.8 There are many agencies providing breeding services and prominentamong them are Animal Husbandry Departments, Livestock DevelopmentBoards, Dairy Federations and some NGOs. While the Animal HusbandryDepartments and Livestock Development Boards are providing free services,others are providing services either at subsidised or at actual costs. As thefarmers are willing to pay for good services, there should not be any difficulty√√√

91to shift over to paid services, particularly after the discontinuation of freeservices.9.9 Presently, there are very few non‐Government agencies who areengaged in providing breeding services, which may not have the capacity totake over the entire responsibility across the country. Therefore, additionalservice providers will have be promoted either directly or through someimportant players in the dairy value chain. For instance, the Dairy Federationsor private dairies engaged in milk collection and processing can take up thisprogramme.9.10 Privatisation of veterinary health care may require initial support for thenext few years, as the farmers owning unproductive and sick animals may notbe able to pay for the treatment of such animals. However, this will be atransitional phase when a nominal service charge can be introduced in thebeginning and subsequently the subsidy can be withdrawn and the entireactivity can be privatised during the next 5‐6 years.9.11 For popularisation of private service, awareness should be createdamong the farmers about the role of good quality services for improvinglivestock productivity. Simultaneously, the Animal Husbandry Departmentshould withdraw breeding and health care services in a phased manner, so thatfarmers start availing private services.9.12 Inputs such as fodder seeds, fodder concentrate, mineral mixture,dewormers and medicines required by the farmers are being procured at costswithout any subsidy but farmers maintaining low or unproductive animals,generally do not spend on treatment of such animals, as they are unable torecover this cost through enhanced production. These farmers gradually startculling such unproductive animals, thereby making this sector morecompetitive and profitable.9.13 Milk processing and marketing are the other major activities in the valuechain of dairy husbandry. Installation of modern dairy equipment and coldchain to preserve raw milk as well as processed products, require highlysophisticated equipment which are very expensive. Therefore, Farmers’Cooperatives on their own will not be able to invest. Hence, financial supportin the form of interest‐free loan or subsidies will be necessary, particularlywhere a majority of the farmers belong to the lower income group. Support isalso needed to strengthen them to be competitive in the international market,

92which is necessary to prevent the import of milk products and facilitate exportof milk products. With the support for capital investments, the processingactivities can be managed efficiently ensuring higher profit margin for milkproducers.Need for Public Investment for Research and Development9.14 The research institutions, agricultural and veterinary universities, Statebiological labs and national institutes engaged in animal science and forageresearch, require financial support to conduct research and to develop newtechnologies, as farmers cannot bear the cost. Thus, in conclusion, it can besaid that with some initial capital support, almost the entire dairy husbandryactivity can be brought under Public‐Private Partnership except for researchand technology development. Public support for research will help in taking upinnovative approaches to make livestock development more competitive andsustainable in the long run.9.15 Services of the Disease Investigation Laboratories need some supportfrom the Government, as farmers who are still not aware of the benefits, willnot come forward to make best use of the facilities by paying service fees.However, these labs are essential to monitor the disease outbreaks and tocontrol them. Therefore, the state has to carry out the activities for somemore years till the farmers start realising the utility of this service.9.16 Pharmaceutical firms and biologicals engaged in production of vaccines,medicines, diagnostics, etc. can continue to operate without any financialassistances, except for production of certain vaccines which are required insmall quantity and hence are not economically viable for private firms. Forproduction of such vaccines and biologicals, the Government may providefinancial assistance to ensure their supply at subsidised prices.

93CHAPTER XX. Review of Central Sector and Centrally‐Sponsored Schemes10.1 For providing assistance to state governments for furthering thedevelopment of animal husbandry and dairy activities, Department of AnimalHusbandry & Dairy, Government of India, is implementing a total of 24schemes (16 central sectors, 7 centrally‐sponsored and one EAP) withsubcomponents during the 11 th Plan. Out of the total schemes, 5 are orientedtowards breeding, 4 towards health, 2 towards fodder, 2 towards productionand 11 towards other aspects.10.2 The Committee looked into implementation of different schemes interms of relevance of individual scheme, budget allocation and utilization,performance by the states and modifications needed, if any, for making thescheme more effective. Review of the major schemes being implemented ispresented.National Project on Cattle and Buffalo Breeding10.3 The National Project on Cattle and Buffalo Breeding (NPCBB) has beenthe flagship scheme of DAHDF. The scheme which is being implemented sinceOctober 2000 as a Centrally‐sponsored Scheme with 100 per cent grant in aidto the implementing agencies envisages a major genetic improvement of cattleand buffalo germplasm in the country.10.4 NPCBB which has been planned for a period of 10 years completedPhase‐I in 2007 and in the Phase‐II with greater focus, two years have alreadybeen completed. The success of the scheme and its impact has to beessentially assessed from the parameters of productivity enhancement,number of progeny tested bulls used for AI, increase in area of coverage andhow effectively AI services are being delivered at farmers’ door step.10.5 Against the above impact parameters, NPCBB has done fairly well interms of infrastructure creation, setting up of exclusive implementing agency,improved AI delivery mechanism and enhanced coverage in most of the states.However, the scheme has not been able to make a significant dent inproductivity enhancement, which essentially is the principal outcome of thescheme. The limited success achieved in the scheme could primarily beascribed to the fact that it has been conceived in a holistic manner

94incorporating various inter‐related components like infrastructuraldevelopment, delivery mechanism, institutional arrangement, involvement ofNGOs and private AI workers, decentralised fund flow mechanism, qualityassurance, etc.10.6 Use of progeny tested bulls with high milk production potential which isa critical component for achieving envisaged success in the scheme has notbeen realised to the desired extent. Most of the semen stations acrossdifferent States do not have any progeny tested bulls for semen collection andfreezing and use of bulls of unknown genetic makeup for semen productionand use of low quality semen may cause more damage in the long run thanbenefit.10.7 In areas not covered by AI network, provision for induction of bulls ofsuperior quality for providing natural service exist. As against the targetrequirement of 76000 bulls for natural service, only about 12‐13 thousandbulls have been inducted resulting in slow progress of quick up‐gradation oflow yielding indigenous cattle and buffaloes. A concerted effort is to be madefor identifying and procuring of superior quality bulls by different StateGovernments from different institutions as well as breeding tracts of potentialbreeds of cattle and buffaloes for induction.10.8 Considerable investment has been made since the commencement ofthe scheme towards strengthening of sperm stations/semen banks. However,the facilities and performance of some of the semen stations have been belowthe required standards. Presently, out of 49 functional semen stations in thecountry, 12 have been graded as ‘A’, 14 as ‘B’ and 7 as ‘C’. 14 semen stationshave not been graded and 2 have not been evaluated till date. 32 semenstations have obtained ISO certifications and, in addition, stations located atMattupatti in Kerala, Haringhatta, Salboni and Beldanga in West Bengal havealso acquired HACCP certification. Maintaining the quality of semen productionis a critical component for success of the AI programme and periodicevaluation of the semen stations through technically competent agencies isrequired for ensuring that bulls maintained at the stations are free fromdiseases and minimum standard protocol as prescribed are being followed.10.9 In order to avoid establishment of new bull mother farms and semenstation in States which do not have any or establish additional stations in otherStates, the possibility of creating a central agency / central facility on regionalbasis for semen production to cater to needs of different States in the region

95could be explored. This would not only facilitate in maintaining minimumquality, uniform standards and a common protocol for semen production butalso help in reduction of investment on infrastructural development.10.10 Several models like ‘Pranibandhus’ in West Bengal, ‘Gopal Mitras’ inAndhra Pradesh, outsourcing to NGOs in Rajasthan and Jharkhand, etc. havebeen developed across the country for delivering AI services at the farmer’sdoor step with varying degree of success. What has come out clearly is that forensuring effective coverage at individual level, the AH Department machineryat the State level does not have either the required manpower or themechanism. For having a wider and effective reach, it would be advisable thatthe whole activity of AI input services be outsourced to private agencies/Paravet workers and doctors at veterinary dispensaries taking other higherresponsibilities like health coverage, disease control, etc. What is to beensured is that AI service providers have adequate and quality training and areplaced under the overall supervision of local veterinary officer.10.11 Further, for providing meaningful employment, income generation andself sustaining models, it is desirable that the scope of private AI serviceproviders like ‘Pranibandhus’ and ‘Gopal Mitras’ should not only be restrictedonly to provide AI services. The scope may be expanded and service providersmay be allowed to take up minor veterinary services and also help invaccination programmes. The model could be developed on similar lines as isbeing done in the human health sectors and the private AI service providerscould act as ‘Ashas’ in Animal Husbandry sector.10.12 It was observed that under the scheme, funding support to stateagencies is largely oriented towards infrastructural development andmechanism for AI input delivery. However, the desired focus on technicalsupport in terms of progeny testing, quality control of semen production andevaluation, embryo transfer technology, etc. has been lacking and need to bestrengthened.Feed and Fodder Development10.13 The scheme for feed and fodder development has undergoneconsiderable changes both in its focus and components since 10 th Plan. Thescheme has not been able to deliver the envisaged outputs and impact has notbeen visible. The Centrally‐sponsored ‘Fodder Development Scheme’ with four

96sub components which was initiated during 2005‐06 focussing on fourindependent and not interlinked components, appears to have not yielded thedesired results in addressing the problem of feed and fodder shortage.10.14 The AH department has large infrastructure available in its sevenregional stations of Central Fodder Development Organization and one unit ofCentral fodder seed production farm located in different agro‐climatic regionsof the country. Substantial investment has been made in these units but theseunits have served a limited purpose and outcomes have not beencommensurate with the investments made.10.15 Some of the schemes like Fodder Mini Kit Scheme are quite popularamong the farmers. However, the issues of insufficient quantity of kits, time ofsupply and supply of seeds not preferred by farmers has over the yearshampered the progress of the scheme to a great extent. The desired impact ofCentral Minikit Testing Programme on Fodder Crops being implemented byDAHD was not seen in most of the States. Fodder Mini Kit Scheme needs to becomprehensively relooked into if the desired impact is to be achieved.Health & Disease Control Oriented Schemes10.16 Under the Centrally‐sponsored Scheme of Livestock Health and DiseaseControl, four components are being addresseda) Assistance for Control of Animal Diseases (ASCAD);b) National Rinderpest Eradication Programme (NREP);c) Professional Efficiency Development (PED); andd) Foot & Mouth Disease Control Programme (FMD‐CP).Performance of the scheme in most of the states has been quite satisfactoryand control of most of the prevalent diseases is being achieved throughvaccination programme and wider area coverage. The success of the schemecould primarily be ascribed to the core competence the State AnimalHusbandry Departments have in dealing with health and disease controlaspects.10.17 Vaccination programme against different diseases in most of the Statesis being carried out with outbreak of the diseases rather than as a prophylacticmeasure. Regular programmes have to be necessarily carried out for

97immunization of livestock and poultry against economically importantdiseases.10.18 Large scale prevalence of diseases like FMD, PPR, etc. which significantlyaffect the productivity of livestock have been a big impediment for growth ofthe sector and also affects participation in the global market. In case of FMD itis estimated that the loss in production of milk following an episode of diseasecould be as high as 30 per cent and production loss continues for rest of theanimal’s life span. Loss due to FMD in milk production is estimated between Rs15000 to Rs.30000 crore per annum. In case of PPR the losses are much higheras in this case the mortality is more and could reach 100 per cent levels. Thisdirectly affects the sustenance of the marginal and landless farmers whoselivelihood depends on these few animals.10.19 Through concerted efforts made, diseases of Rinderpest andContagious Bovine Pleuro Pneumonia (CBPP) have been successfullyeradicated and the country has been declared FMD and CBPP infection free inMay 2006 and May 2007 respectively by the Office International des Epizooties(OIE). However, focussed approach is essential for eradication of othercommercially important diseases, like FMD and PPR.10.20 Production of most of the vaccines is with the government sector. OnlyFMD vaccine production is with the private agencies. Even though States havereported self sufficiency in meeting the demand of most of the vaccines, thereis an acute shortage of swine fever and goat and sheep pox vaccines. Shortageof required doses of these vaccines has been reported to be severely affectingpig and small ruminant production and consequently the livelihood of farmersin North Eastern states, Assam, Uttar Pradesh and West Bengal. The severemismatch between production and demand of swine fever vaccine has beenfurther aggravated by non‐adoption of available alternate technology enablingmass production of the vaccine in short time‐frame. The policy of thegovernment in not allowing import of swine fever vaccine from other countriesto meet the huge demand has also been an impediment in tackling thisimportant issue.10.21 As a long term strategy, it is recommended that production of vaccinesand other veterinary biologicals should be with the private sector with a stronggovernment regulatory mechanism for ensuring the desired standards ofproduction and quality of the vaccines.

98Schemes for Dairy Sector Development10.22 Under the Centrally‐sponsored Scheme of ‘Integrated DairyDevelopment’ which was launched in 1993‐94 and subsequently modified as‘Intensive Dairy Development Programme’, an investment to the tune ofRs.489.04 crore has been made. The investment has by and large gone to nonviableareas without conducting any studies to explore the potential for dairyactivities. With the current orientation of the scheme limiting itsimplementation only to non‐ operation flood areas it is anticipated that thescheme may not yield desired returns on investment made and further maynot contribute significantly either to growth of the dairy sector or improve thelivelihood of resource poor farmers. The scheme has been rather quite popularin North Eastern states since additional funds are available to AH departmentsfor taking up some activities for promoting dairy sector. Relevance ofcontinuation of this scheme has to be examined in light of the National DairyPlan which is expected to be launched in the near future. In the event ofcontinuation of IDDP scheme, it is essential to remove the restrictions oflimiting its implementation only in non‐operational flood areas and furtherareas of implementation have to be selected for expansion of the scheme, onlyafter conducting proper feasibility studies.10.23 The Central scheme of ‘Assistance to Cooperatives’ with a fundingpattern of 50:50 sharing basis between Centre and State is in operation since1999‐2000 with the objective of re‐vitalizing sick dairy cooperative unions atdistrict level and cooperative federations at state level. Since its inception, 34rehabilitation proposals of milk unions in 12 states have been supported.Against a total allocation of Rs.280 crore during 9 th and 10 th Plan, the actualexpenditure has been only to the tune of Rs.74.14 crore. During the 11 th Planperiod, the allocation has been reduced to Rs.50 crore. The issue of continuedsupport to sick district milk unions at the cost of public exchequer money is ofconsiderable concern. It is indicated by DAHD that currently 170 milk unions/state milk federations have accumulated losses for various reasons. Criticalimpact evaluation studies are required to be undertaken for assessing impactof the scheme since inception and whether providing monetary assistancealone without addressing other related issues would bring desired results inrevival of the sick unions. The Committee recommends that the ‘Assistance toCooperatives’ scheme should be discontinued and need not be pursued duringremaining period of the 11 th Plan.

9910.24 The scheme ‘Venture Capital Fund for Dairy and Poultry Sector’ whichwas initiated in 2004 during the 10 th Plan has the primary objective ofproviding financial assistance for organised development of dairy and poultrysectors and is being implemented by NABARD. Since the inception of thescheme, a sum of Rs. 107.19 crore has been sanctioned as loan amount forsetting up of 10526 dairy units and 190 poultry units, indicating greaterpreference towards dairy sector. The activities funded under the dairy sectorwere mostly towards procurement of milch animals in non‐OF areas and arelatively small portion has gone towards other activities like procurement ofmilking machines, automatic milk collection centres, bulk milk coolers,refrigerated vehicles, etc. There has been a demand by different States for notlimiting the scheme only to non‐OF areas and expand the same to OF areas,especially for purchase of milch animals. However, the utilization of VentureCapital Funds to provide assistance to purchase animals needs to be reexaminedcritically since this requirement is already being met by NABARD/Banks through its priority sector lending activities. The impact analysis of thescheme needs to be carried out.Overall observations10.25 It is normally expected that any of the central sector / centrallysponsored scheme should have a definite time‐frame for achieving the setobjectives of the scheme. Initiating new schemes frequently without closure ofseveral of the previous schemes which have been running since long haveresulted in a large number of schemes being currently implemented. This hasessentially resulted in a dilution of the needed focus for growth of the sector ina holistic manner.10.26 Though the investment being made for implementing these schemes isnot large as compared to schemes in other sectors, the outcomes and impactof many of the schemes is not commensurate with investment made.10.27 Most of the existing schemes are being implemented in all the Stateswithout assessing its necessity, relevance and utility to a particular state/ agroeco‐region. Such an approach would result in non‐development of theintervention in a focused manner. Further, the schemes are beingimplemented as standalone schemes as a result of which cumulative benefitsare not being accrued in a holistic manner.

10010.28 Some of the schemes which were initiated as early as Fourth Five YearPlan have been continuing even during the current Plan period. A criticalevaluation for continuing or otherwise of such schemes needs to be made onpriority.10.29 The component of monitoring and evaluation is, by and large, restrictedto assessing physical and financial progress and at present a suitablemechanism does not exist at present for monitoring of the progress andevaluating its impact at the level of actual implementation.10.30 Lack of coordination, and at times disconnect between differentdepartments of the State viz. Animal Husbandry, Dairy Federation andLivestock Development Board, has resulted in poor implementation and notderiving full benefits of the schemes.10.31 One of the conditions set for implementation of National Project forCattle and Buffalo Breeding (NPCBB) was setting up of dedicated StateImplementing Agency (SIA) by individual States. This was done with the viewthat funds under the scheme could be released directly to SIAs without goingthrough the regular channel of State Treasury as this would enable for timelyrelease and monitoring of funds in an effective manner. However, the fundflow mechanism followed in other schemes continues to be through the StateTreasury which consequently results in considerable delay. Severaladministrative issues like fund flow mechanism, non‐timely release ofinstalments, non submission of UCs in time, etc., has resulted in slow progressin its implementation.Suggestive action points for implementation10.32 Given the existing mechanism of formulating and implementation ofCentral Sector and Centrally‐sponsored Schemes for animal and dairydevelopment, there is ample reason to believe that it would be very difficultfor achieving the targeted growth in livestock sector during the remainingperiod of 11 th Plan and the ensuing 12 th Plan period. It is suggested thatAnimal Husbandry Department may like to consider a complete revamping ofthe manner in which the schemes are to be administered from 12 th Planonwards on the following lines:

101‣ Adopting a regionalised and need based approach/strategy fordevelopment of animal husbandry and dairy activities and support theseactivities in a holistic manner;‣ Two streams of schemes could be considered for development andimplementation. In the ‘Primary Stream’, core activities of breeding,disease diagnosis and prevention should remain with the Centre. Schemesdeveloped under these activities should be made mandatory forimplementation by the States as per the format developed in therespective scheme. Under the ‘Secondary Stream’, a shelf of schemes couldbe developed and individual states given the freedom for choosing theschemes, which should be need based and within overall budgetary outlayindicated for the state;‣ An inbuilt mechanism for concurrent monitoring and evaluation and onlinereporting system need to be developed and incorporated at the time offormulating an individual scheme itself. The monitoring and evaluationshould be carried out both in‐house and through external agencies;‣ Impact evaluation studies must be an integral component of all theschemes formulated and should be carried out by an independent and wellestablished third party agency. This component should be made mandatoryand the same conveyed to the states in the sanction letter of the schemeitself;‣ The relevance of establishing multiple institutional mechanisms forimplementation of various schemes needs to be critically reviewed. Asingle institutional agency like SIA in NPCBB scheme could be establishedthrough which funds for all the schemes being implemented in the Statecould be routed. Such a nodal agency established should restrict its roleonly for fund flow, fund management, monitoring and evaluation; and‣ For effectively implementing the above proposed mechanism, it isimperative that a substantial enhancement in the budgetary outlay of theDepartment of Animal Husbandry and Dairying should be made in planallocation.10.34 In context of National Dairy Plan, it is imperative that DAHD may have torelook into the existing schemes and also proposed new schemes withparticular reference to dairy sector. This would be essential to avoid overlap of

102activities, clear definition of roles by different players and better utilization offunds.10.35 Small ruminant production systems are the only means of livelihood forlandless and resource poor farmers in many parts of the country. No centrallysponsored/central sector schemes exist at present for development of smallruminants and it is recommended that the department may develop a suitableand comprehensive scheme for sheep and goats.

103Performance of Centrally‐sponsored/Central Sector SchemesSchemePerformance RecommendationStatusCentrally‐sponsored Schemes (AH)1. National Project for Livestock Development1.1 NPCBB Performance of the To have a better impact, use of onlyscheme has been quitesatisfactory.progeny tested bulls must be ensured atthe semen stations. Breeds of bulls tobe maintained for semen productionshould be in consonance with breedingpolicy of the concerned State. Thisshould be made mandatory forproviding further financial assistanceunder the scheme.1.2 Assistance toStatepoultry/duckfarms, backyardpoultry, poultryestates.1.3 Conservationof threatenedlivestock breeds.2.FodderDevelopmentScheme.With emergence ofPoultry sector as acommercial activity,support to Statepoultry/duck farms haslost relevance.The budgetary outlayhas been increasedfrom Rs. 16.00 crore in XPlan to Rs. 45.00 crorein 11 th Plan and till date7,271 threatenedanimals of differentbreeds and species havebeen conserved.The scheme hasundergone considerablechanges both in itsfocus and componentssince 10 th Plan. Thescheme has not beenable to deliver theenvisaged outputs andimpact has not beenvisible.The scheme need not be continued inthe remaining period of 11 th PlanThe criteria for conservation ofthreatened species and breeds ofanimals have to be clearly laid downand total number of animals to beconserved need to be fixed by the StateLevel Committee on Animal GeneticResources. Regular review of thescheme and impact assessment isessential to justify the investment beingmade.The scheme has to be accorded priorityas it aims to address the key componentof feed and fodder shortage. However,the scheme needs to be completelyredrafted with technically soundcomponent so as to have the desiredimpact at the field level.

104SchemePerformanceStatus3.Livestock Insurance The scheme beingimplemented since2005‐06 as a pilot hasbeen expanded tocover 300 districtsduring 2009‐10.4. Livestock Health & DiseaseControl4.1) ASCAD4.2) NPRE4.3) Professional EfficiencyDevelopment4.4) FMD Control Programme5. Livestock Extension & DeliveryservicesThe States have beenconsiderablybenefitted from thisscheme in controllingvarious diseaseseffectively.The scheme is notbeing implementedand approval of SFC isawaited.Central Sector Schemes (AH)1) Livestock Census Though the 18 thLivestock Census hasbeen conducted with15 th October, 2007 asthe reference date, thereport has not beenpublished till date.RecommendationA comprehensive impactevaluation by an independentthird party is recommendedfor assessing overall impact ofthe scheme, benefits accruedto farmers and the pattern ofassistance before taking adecision on continuation ofthe scheme or otherwise.The scheme may bestrengthened further to coverimportant emerging diseaseslike Brucellosis and PPR. TheNational Disease ReportingSystem should be developedin a comprehensive mannerfor ensuring timely reportingand monitoring of variousanimal diseases. Productionof vaccines to be with privatesector.Efforts to be made for timelypublication of Census reports,otherwise it may not havemuch relevance. Timely dataon livestock population isessential for planning shortterm and long termstrategies.

105SchemePerformanceStatus3) Integrated Sample Survey Is a regular ongoingscheme since 6 th Plan on50:50 funding pattern toStates and 100 per centbasis to UTs.4) Central Sheep BreedingFarmThe performance of theFarm at Hissarestablished during 4 thPlan has beenunsatisfactory and theExpert Committee in2001 had recommendedfor its relocation totemperate area.RecommendationThere is a need for prioritizingthe areas and components tobe taken up in the scheme. Acritical evaluation study isrecommended for assessing theextent to which theinformation generated is beingutilized.The Sheep Breeding Farm is notanymore serving the purposefor which it was establishedand it is strongly reiterated thatthe farm may be wound up atthe earliest and no furtherinvestment be made for revival/ strengthening.5) Central Fodder DevelopmentOrganization6.Central Poultry DevelopmentOrganization7. Directorate of Animal HealthThe scheme as a wholehas not been producingthe desired results asenvisaged and has madevery little impact.Outputs and outcomeshave not beencommensurate withinvestment made. Thefodder mini kitcomponent has beenpopular but lacks properimplementationstrategies.The Poultry BreedingFarms are playing animportant role in therural poultry sector. TheCentral Poultry TrainingInstitute has beenperforming quite well inimparting training andalso supporting feedquality aspects throughfeed analysis.A reorientation of focus andstrategies are essential to makethis scheme complementaryand supplementary to theCentrally sponsored Scheme ofFodder Development.Otherwise, investments wouldcontinue to be made withoutmuch benefit.A reorientation of focus andstrategies are essential to makethis scheme more vibrant andbeneficial especially to ruralsector poultry farmers.

106SchemeNew Schemes8. Integrated Development forSmall Ruminants and Rabbits9. Piggery Development10. Salvaging of Male BuffaloCalves11. Food Safety andTraceability12. Poultry Venture CapitalFundPerformanceStatusNew SchemesRecommendationPeriodic performance appraisalof the new schemes throughindependent agencies isessential for assessing theirimpact and accordinglydecision for their continuationor otherwise should be taken.Concurrent monitoring andevaluation should be inbuilt inthe design of the schemesitself.Centrally Sponsored Schemes (Dairy)1.1 Project for Dairy The scheme is quiteDevelopment (including clean popular, especially inmilk production)North Eastern States.The scheme is restrictedonly to non‐OF and Hillyand Backward areas.Considerableinvestment is beingmade in non‐viableareas without criticalanalysis of potential forgrowth in dairy sector inthe area.1.2 National Dairy Plan The necessary approvalfor the Scheme is stillawaited.A critical impact evaluationstudy of the scheme needs tobe conducted. Further, as andwhen the National Dairy Plan isapproved and implemented,continuation of the scheme onIntensive Dairy Developmenthas to be assessed from theview point of duplication ofefforts and investment. In themeantime, it is suggested thatthe scheme may be extendedto OF areas also. However,critical assessment of thepotential in the area isessential for development ofdairy sector before the projectsare approved.Many of the stakeholders andprofessionals are still notaware of components of theproposed scheme and themechanism for itsimplementation. It would bebeneficial to have inputs from awider cross section ofprofessionals and stakeholders,prior to finalisation of thescheme.

107SchemePerformanceStatusCentral Sector Schemes (Dairy)1. Assistance to Cooperatives 34 Milk Unions havebeen supported underthe rehabilitationproposal since inceptionof the scheme in 2000.The scheme is inoperation since the lastnine years and still 50per cent of the Unionssupported have beenincurring loss which isindicative of the lack ofconcerted efforts on thepart of Milk Unions toachieve a turn around.2. Delhi Milk Scheme The performance ofDMS has not beensatisfactory and the unitis incurring losses. TheCabinet has accorded inprinciple, approval forcorporatisation of DMS.3. Dairy Venture Capital Fund The scheme is quitepopular and performingquite well. However, inOF areas the scheme isnot being implementedespecially for purchaseof animals.RecommendationIt is recommended that thescheme may be discontinuedsince it appears to havecovered most of thosecooperatives that were eligibleto receive such assistanceunder the scheme.The process for corporatisationof Delhi Milk Scheme asapproved by the Cabinet shouldbe speeded up.Scheme should be expandedand the restriction of itsimplementation only to non‐OFareas should be removed. Thecost norms for differentcomponents need to berevised.

108Financial performance of Centrally Sponsored and Central Sector SchemesOutlay in Expenditure Outlay in ExpenditureX PlanXI Plan (2007-09)(Rs. in crore)Centrally Sponsored Schemes (AH)1.1 NPCBB 375.00 355.21 554.00 136.851.2 Assistance to State Poultry/Duck 25.00 78.15 141.00 28.17Farms, Backyard poultry, poultryestates.1.3 Conservation of threatened 15.00 15.20 45.00 3.31livestock breeds.2. Fodder Development Scheme 25.00 55.52 141.40 18.483. Livestock Insurance 0.00 24.40 51.00 22.674. Livestock Health & Disease Control 525.00 445.92 1300.00 269.484.1) ASCAD 255.00 250.07 550.00 188.204.2) NPRE 40.00 38.76 25.00 9.174.3) PED 30.00 14.78 25.00 7.854.4) FMD Control Programme 200.00 142.31 700.00 64.265. Livestock Extension & Delivery 0.00 0.00 15.00 0.00servicesCentral Sector Schemes (AH)1) Livestock Census 150.00 109.43 450.00 203.072)Central Cattle Development 70.00 54.96 105.00 30.13Organization3) Integrated sample Survey 29.00 29.45 80.00 12.584) Central Sheep Breeding Farm 25.00 6.90 13.00 3.325) Central Fodder Development 45.00 39.35 80.00 21.33Organization6.Central Poultry Development 40.00 26.90 50.00 16.53Organization7. Directorate of Animal Health 50.00 76.25 92.60 18.648. Integrated development for small 0.00 0.00 190.00 0.00ruminants and Rabbits9. Piggery Development 0.00 0.00 150.00 0.0010. Salvaging of Male Buffalo Calves 0.00 0.00 300.00 0.0011. Food safety and Traceability 0.00 0.00 50.00 0.0012. Poultry Venture Capital Fund 0.00 0.00 200.00 0.00Centrally Sponsored Schemes (Dairy)1.1 Project for dairy Development 205.00 211.72 224.99 87.59(including clean milk production)1.2 National Dairy Plan 0.00 0.00 0.00 0.00Central Sector Schemes (Dairy)1. Assistance to cooperatives 130.00 39.14 50.00 14.052. Delhi Milk Scheme 1.00 7.10 5.00 1.903. Dairy Venture Capital Fund 25.00 28.00 300.00 84.99

109CHAPTER XIXI. Suggested Central Sector and Centrally Sponsored Schemes11.1 At present the Department of Animal Husbandry, Dairying and Fisheries,Govt. of India, implements a number of Central Sector and Centrally‐sponsoredSchemes (24 schemes) for Animal Husbandry and Dairy Development. Theseschemes are formulated by Govt. of India and their pattern of assistance variesfrom scheme to scheme. However, the responsibility of their implementationrests with the state Govt. or State implementing agencies set up for the purpose.It is suggested that the present arrangement be replaced by an arrangement inwhich the Govt. of India formulates and executes only a few schemes which are ofnational importance leaving other schemes to be formulated and implemented bythe concerned State Governments. This would promote the project formulationand their management capabilities amongst the State’s Department of AnimalHusbandry and Dairying. Accordingly it is proposed that the schemes may begrouped into following three streams:Stream I11.2 This would include schemes of national importance that would beformulated by Govt. of India. The scheme would be implemented by the StateGovt./State implementing agency set up for the purpose and monitored closely bythe Department of Animal Husbandry & Dairying, GOI. The pattern of assistancewould be 100 per cent central. It is further suggested that except for NationalDairy Plan which is being formulated and implemented by NDDB, the DAHD mayconstitute a comprehensive Consultative Group of Experts includingrepresentatives from a few states for holistic formulation of the scheme, includingsub components in a focused manner. Following schemes are proposed under thiscategory:1. National cattle and buffalo breeding/development project;2. Control of animal diseases of national importance;3. National project on fodder development and utilization of crop residues;4. National Livestock Extension Project; and5. National Dairy Plan of NDDB.

110Stream II11.3 This would cover schemes of regional importance on species specific orState specific projects. The schemes would be prepared by State Govt. andsanctioned by GOI following the present procedures adopted for sanction ofschemes in the case of Rashtriya Krishi Vikas Yojana. The pattern of assistancewould be on 75:25 cost sharing basis between Centre and the State respectively.Under this stream following schemes are suggested:1. Development of Indian breeds of dairy cattle (Tharparkar, Gir and Rathi)2. Development of Indian Cattle of regional importance (dual purposebreeds);3. Development of sheep for mutton production;4. Development of sheep for fine/medium quality wool in Kashmir,Uttarakhand, and Northern areas of UP;5. Development of goat for meat production;6. Development of goat for mohair production’7. Development of Pig in the North‐Eastern states of India;8. Support for establishment of Disease Investigation Laboratories;9. Support for control of zoonotic‐diseases;10. Breeding and development of rabbit in selected areas;11. Support for establishment of modern slaughter houses;12. Support for establishment of carcass utilization centres;13. Support for establishment of laboratories for testing quality of milk;14. Support for building awareness among the producers and consumers formilk quality;15. Dairy development in areas not covered by National Dairy Plan;16. Support for modernization of manufacture of indigenous milk products;17. Support for training of the manufacturers of indigenous dairy products inmodern technology.18. Support to the States for collection of statistics on livestock and dairysector, including present pattern of utilisation of the products and the costof production;19. Support for rural/backyard poultry production;20. Support for development of quil production; and

11121. Promoting formation of Self Help Groups (SHGs)/User Groups(UGs)/Common Interest Groups (CIGs) for livestock production/processingactivities.Stream III11.4 This would cover schemes implemented through NABARD as VentureCapital Fund. It is suggested that the distinctions like OF and non‐OF areas forimplementation of Venture Capital Fund schemes may be dispensed with.

112CHAPTER – XIIXII. Institutional and Structural Reforms12.1 The existing institutional structure both at the Central and the Statelevel have not been able to effectively address emerging and new generationneeds for development of animal husbandry and dairy sectors on account ofseveral reasons. It is essential to have a critical look at the existing mechanismand bring a paradigm shift in the Institutional and Structural arrangements atdifferent levels for achieving the targeted growth in the remaining period ofthe 11 th Plan and also as a long term strategy.12.2 The major players in providing services in Animal Husbandry and Dairysector are i) Government, ii) Private sector, iii) Producer institution, iv)Autonomous bodies, and v) NGOs. The role of each of these institutions hasnot been clearly defined and at times there is considerable overlapping ofactivities and as such it becomes difficult to asses their performance in acomprehensive manner.12.3 In recent years, the government at the Centre has adopted a bottom upapproach and convergence mechanism for achieving growth in differentsectors and implementation of various developmental schemes. District isbeing considered as the basic unit and district plans have to essentially addressall inter‐related sectors in a holistic manner. Animal husbandry activities havealso to be reflected in district plans and converge with other developmentalactivities.12.4 Many of the issues in AH and dairy sectors are region specific and needsto be sorted out at the State/regional level itself. Interventions through Centrallevel should focus on core areas. There is a need for identifying and cleardemarcation of what activities could be centralised and what could not be.12.5 Institutional and structural reform has to take place at different levels. Asuggestive restructuring at different levels and role to be taken up is indicatedbelow:National Level12.6 Inter‐divisional convergence at the apex body, i.e., DAHDF is essentialfor formulating sectoral development policies at national and international

113level and designing various centrally‐sponsored and central sector schemes ina holistic manner which at present appears to be lacking.12.7 For providing comprehensive information on livestock related aspectsand drawing long term and short term policy/strategies, it is essential toestablish a separate National Body for Livestock Information and Policies whichcan advise the Ministry in all policy matters relating to livestock sector. Theproposed body can establish a channel of communication and coordinationwith all the State governments and the public/private organizations, bothnational and international dealing with livestock.12.8 With the focus on genetic improvement of livestock, especially cattleand buffaloes, the demand for superior breeding material has increasedconsiderably and as such the quality control aspects assume significantimportance. At present, besides public sector institutions, a number of privatesector bodies, ICAR and NGOs are engaged in the production of materialrequired for breeding of cattle, buffaloes and other species of animals. In theabsence of any regulatory authority there is no enforcement of standardrequired for production/import of frozen semen embryos and other breedingmaterial. There is a need for establishment of a separate authority forenforcing the standards.12.9 Livestock Extension which at present is the weakest link in animalhusbandry activities needs to be strengthened. Appropriate extension modelswith effective linkages between various stakeholders viz. Centre, State, SAUs,Research Institutes, NGOs, ATMAs and KVKs needs to be developed. It isrecommended that a separate Livestock Extension Division headed by a JointSecretary may be set up in DAHDF.12.10 Animal husbandry and dairy sector has not been able to attract externalassistance both through the government and private sector in a big way.Considerable opportunities exist and many external agencies are evincing keeninterest for making investment in the sector. A separate window may beopened for this purpose to facilitate investments.12.11 For achieving livestock feed security, the concept of establishing aNational Livestock Feed Agency on the pattern of Food Corporation of Indiaalong with the National Feed Grid has been mooted and discussed at variousplatforms. However, this has not been translated into action till date.

114State level12.12 The present structure of livestock improvement at the state level isbased on fixed model of a veterinary hospital/dispensary being the key nodalstructure at the ground level from where services and goods are currentlydistributed. In the recent years, there has been a shift in the approach foreffective delivery of input services especially those related to breeding andhealth aspects which essentially need to be provided at the farmer’s door step.Considering the infrastructure, manpower availability and administrative bottlenecks it is felt that in future, government departments may not be in a positionto provide the services at door steps of the farmers effectively. This calls forcreation and implementation of different delivery models. A right beginninghas been made In NPCBB programme for conversion of stationary models tomobile models for effective delivery of inputs. Further, the responsibility inareas like AI has been given to NGOs and private AI workers with thegovernment department taking up the role of monitoring agency for ensuringstrict quality control and efficient delivery to the farmers at reasonable costs.12.13 Different agencies viz. AH department, Dairy Federation, StateImplementing Agency, NGOs, private sector are involved in promoting animalhusbandry and dairy sector. The issues of disconnect and non‐convergencebetween different departments/ agencies implementing animal husbandry anddairying activities at the State level needs to be addressed for harnessing fullbenefits of various schemes.12.14 To promote and nurture the grass root level participatory bodies all overthe state as the organic link between the animal husbandry department andthe small holders, the State should encourage setting up of innovativeinstitutions like SHGs/ CIGs and UGs for production, supply of inputs,marketing and micro finance on the lines of Bangladesh Model. Establishmentof Producers Company for which the provision has been made in theCompanies Act will provide the advantages of retaining the basic elements ofcooperation while enjoying the regulatory regime as a private limitedcompany.12.15 A large investment is being made by many of the State departments forsetting up livestock farms without assessing their requirement. This tendencyneeds to be discouraged and the production of breeding males (bulls, rams)should be through identified farmers and farmers’ group. The activity of semen

115production should be placed with the proposed central agency for ensuringquality and standards.12.16 The production of vaccine and other biologicals should be transferred toprivate sector and the government should withdraw from these activities.Privatization of Veterinary Vaccine and biologicals is being recommended insuccessive Five Year Plans since last two decades but the suggestion have notbeen implemented by the States, who continue to maintain and operate theseunits. As a result, private sector has no initiative to produce animal vaccineand biologicals. Government of India should advise all states to privatize theirproduction of such activities under Centrally‐sponsored Scheme. Further, atpresent the production of vaccines as well as their quality control lies with thestate veterinary department which functions not only as user but alsoproducer and quality controller, which is not a satisfactory arrangement. Anindependent authority for Quality Control of Vaccines and other biologicalproducts produced both in the public and private sector as suggested in the11 th Plan should be set up.Public Private Partnership12.16 The future strategy should give greater emphasis on developing PublicPrivate Partnership (PPP) in different activities of animal husbandry and dairysector. Some of the areas, which can be taken more efficiently in PPP modeinclude, vaccine production and its delivery, meat production and processing,processing of fallen animals and animal by‐products, fodder seed production,management of community pastures and fodder banks, extension andtechnology transfer, etc.Rashtriya Krishi Vikas Yojana (RKVY)12.17 The RKVY which is being implemented as an Additional CentralAssistance Scheme with an envisaged outlay of Rs.25000 crore during the 11 thPlan period has provided an opportunity for the animal husbandry and dairysectors to get additional budget for implementing various activities. Thescheme aims at achieving 4 per cent annual growth in agriculture sector duringthe 11 th Plan period, by ensuring a holistic development of agriculture andallied sectors. The States are incentivised for increasing public investment inagriculture and allied sectors. Some of the issues related to animal husbandryand dairy sectors in RKVY scheme are:

116i. The allocation to AH and dairy sectors out of the total budget availableunder RKVY is extremely low. During 2007‐08 overall allocation to animalhusbandry activities was 11 per cent of the total RKVY budget for theyear. The allocation has substantially increased to about 20 per centduring 2008‐09, but in many of the States the AH sector continues toreceive lower priority in allocation;ii. AH departments at the State level are of the view that AgricultureDepartment being the nodal agency for implementing RKVY schemeshows a big brother attitude and as such AH and dairy sector tends toget neglected; andiii. It is also a fact that saleable and quality projects are not coming from theAH departments at the State level and many of the projects get turneddown at the screening level itself and do not go to SLSC level.Indian Council for Veterinary and Animal Science Education and Research12.18 A separate Indian Council for Veterinary and Animal Science Educationand Research (ICVAER) should be established by carving out the Animal ScienceInstitute of ICAR and placing them with DAHDF. Creation of ICVAER wouldovercome the shortage of technical manpower and infrastructure in theDAHDF for carrying out the regulatory and certification authority functionsincluding conservation of endangered breeds of livestock. This will also helpthe Department to undertake problem linked research and revitalization ofstate veterinary colleges as per the norms of Veterinary Council of India. Thiswould require amendment to the list of subjects allocated to the Departmentof Agriculture Research and Education and Department of Animal HusbandryDairying and Fisheries under list 1 of the Seventh Schedule to the Constitutionof India. The research and education in veterinary and animal sciences may bedeleted from the list of subjects allotted to Department of AgricultureResearch and Education and added to the list of subject allocated toDepartment of Animal Husbandry, Dairying and Fisheries.

117XIII. State Specific RecommendationsCHAPTER XIIIName of the stateAndhra PradeshAssamArunachal PradeshBiharChhatisgarhGoaGujaratSuggested Priority Area1. Dairy Development2. Sheep Development for Meat Production3. Commercial poultry production4. Fodder Seed1. Community based Pig Production2. Fodder seed production3. Goat production1. Yak & Mithun Production2. Goat Production3. Fodder trees production1. Dairy Development2. Production of crossbred cattle3. Poultry production based on maize grains1. Improvement of indigenous cattle2. Backyard poultry3. Fodder Production on rice fallow areas1. Dairy Development2. Piggery1. Dairy Development2. Sheep development in arid region3. Knowledge Portal for dairy development4. Poultry – South Gujarat

118Name of the stateHaryanaHimachal PradeshJ&KJharkhandKarnatakaKeralaMadhya PradeshMaharashtraSuggested Priority Area1. National repository for Buffalo germ plasm2. Knowledge Portal for Animal Husbandry3. Fodder seed production4. Poultry – Peri Urban Areas1. Sheep Development2. Development of Fodder trees3. Goat development1. Sheep Development for fine wool2. Development of Pashmina goat and Rabbits3. Dairy Development4. Poultry ‐ Jammu1. Improvement of indigenous breeds2. Backyard poultry3. Goat development1. Dairy Development2. Repository of crossbred cattle3. Sheep production for meat1. Fodder Development2. Repository of crossbred cattle3. Goat Development4. Piggery1. Improvement of indigenous cattle2. Goat Development3. Dairy Development4. Backyard Poultry1. Dairy Development2. Poultry ‐ Organised3. Development of crossbred cattle

119Name of the stateManipurMeghalayaMizoramNagalandOrissaPunjabRajasthanSikkimSuggested Priority Area1. Pig production2. Backyard Poultry1. Pig Production2. Backyard Poultry1. Pig Production2. Small holders dairy production3. Backyard Poultry1. Pig Production2. Mithun Production1. Goat production2. Improvement of Indigenous cattle3. Pig production in tribal areas1. Commercial Dairy Farming2. Knowledge portal for fodderproduction practices3. Integrated farming systems4. Commercial Poultry1.Improvement of Indigenouscattle Tharparkar and Rathi2. Dairy Development3. Development of sheep4. Camel Development1. Small holders dairy production2. Fodder tree seed production3. Yak Development

120Name of the stateTamil NaduTripuraUttar PradeshUttarakhandWest BengalSuggested Priority Area1. Dairy Development2. Commercial Poultry production3. Small ruminant production4. Human Resource Development & Training1. Pig Production in tribal areas2. Small holders dairy production3. Backyard Poultry1. Dairy Development2. Goat Development3. Fodder seed production1. Sheep Development in Hilly Areas2. Fodder tree seed production3. Backyard Poultry4. Rabbitry in Hilly Areas1. Dairy Cattle Production2. Development of goat for quality skin3. Backyard Poultry

1211. Andhra PradeshOf the 23 districts of the State, 16 districts are under rainfed agriculture. Inthese districts, Animal Husbandry is a major source of income andemployment. The annual milk production was 9.6 million tonnes, eggproduction 18300 million in numbers and meat production 0.6 milliontonnes. The per capita availability of milk is 269 gm/day, eggs ‐ 178 perannum and meat 3.5 kg per annum which are much higher than thenational average.Animal Husbandry Sector contributes about 27 per cent of the GrossDomestic Product from Agriculture. The growth rate in Animal Husbandryis 4.67 per cent and there is a good potential for higher growth looking tothe productivity of livestock, management practices, entrepreneurship andresources available.Recommendations• The State offers great potential to emerge as one of the leading dairyproduction state in the country. Dairy development should, therefore,be accorded high priority and high investment portfolio.• Improving productivity per animal through breeding, nutrition, healthand market interventions to support livestock products demand shouldreceive priority.• The effective population coverage through AI should be increased to 40per cent from the present level of 26 per cent.• There is a need to relocate the bull mother farm and semen station atVisakhapatnam due to old infrastructure and lack of bio security.• Gopal Mitra Model for AI service seems to be doing well and should beadopted by all agencies. These Gopals may be further involved ininsurance, vaccination, etc. for better sustainability.

122• Fodder calendar for all the three major regions of the State should bedrawn and appropriate seed input of both legume and non‐legumefodder varieties procured and made available to them.• The veterinary institutional facilities need to be upgraded and state‐ofthe‐artdiagnostic laboratories be established in these regions throughfunds under RIDF.• Veterinary and Animal Science University needs to be strengthened interms of infrastructure and facilities for training and clinics for whichone‐time grant assistance may be considered. The extension activitiesof university should be linked with KVKs and ATMA in the State.• In the dry areas like Anantpur district, sheep breeding offersconsiderable scope for growth. The emphasis should be orientedtowards raising sheep for mutton with adequate marketing support.• The State has emerged as a leading hub for commercial poultryproduction and supplier of breeding material as well as the products toother states of the country, especially NE Region. The state shouldprovide further incentives/support for the development of this sectorand also to tap the existing vast potential of export.• Livestock extension activities including training and dissemination oftechnologies which are critical in livestock production system should begiven higher priority and budget allocation.• Technological interventions of ICAR/Agricultural or Veterinary Universitywill further enhance the productivity of livestock.2. Arunachal PradeshArunachal Pradesh with about 11 lakh non‐vegetarian population offergood potential for livestock and poultry sector. However, the performanceof the sector is not satisfactory due to several reasons. The managementpractices of livestock sector are primitive and most of the livestock are nondescriptwith poor yields. Quality inputs is one of the constraints in the

123state, however, there is a good potential to enhance the productivity ofpiggery, mithun, poultry and yak in the state by adopting improvedmanagement practices.Recommendations• The primary area of focus in the state should be development of yak andgoat production systems. The coordination between ICAR Yak ResearchCenter and DAH may be better utilized for conservation and sustainabilityof yaks, thus better health and management. Formulation of sustainedbreeding policy should be adopted.• Cattle should receive the secondary priority as a subsistence occupation forproviding livelihood opportunities in selected areas. Thus, there is no needto establish frozen semen technology and semen station. The requirementcan be met from other sources.• There is need to sustain Bhutia pony project and give it more attentionunder conservation of threatened breeds.• Piggery sector should be accorded high priority for reducing thedependency on import of pig and pig products from outside the region. Theapproach for development of this sector should be through communityapproach for pig breeding involving SHGs.• There exists considerable scope for backyard poultry. The capacity of theCentral Poultry Farm, Nirjuli, should be strengthened. Introduction ofimproved germ plasm of backyard poultry (Vanaraja, Grampriya, CARIpriya) should be promoted.• Area specific mineral (Mg, Cu, Mm) supplementation needs to be promotedfor overcoming infertility problems, thereby improving the returns from thelivestock.• There is a need to strengthen livestock extension and training facilities forpig and other livestock farmers.

124• Hygienic meat production is essential. There is a need for modern slaughterhouse. The Itanagar meat market is very unhygienic, which should be onmodern lines with installation of deep freezer in the meat shops to ensuresupply of hygienic meat.• Tebu Lappa Welfare Society is registered for protection and conservation ofMithuns. A proper identification mechanism would help in resolving theprevailing ownership problems for yak and mithun.3. AssamThe economy of Assam is agrarian where more than 70 per cent of thepopulation is engaged in agriculture, animal husbandry, fishery, sericultureetc. The contribution of agriculture to total GDP of state is 33 percent,while the contribution of livestock sector to total agriculture / total GDP isnot available separately. The livestock sector plays a key role in the farmers’economy. This sector is responsible for providing food and nutritionalsecurity of the people by producing milk, meat, egg etc. More than 90 percent of the population of the state are non–vegetarian and depend onanimals for fulfilling their protein requirement through various animalproducts which are rich in essential amino acids and are easily digestible.The state has great potential for pig production and to enhanceproductivity of cattle, goat and poultry various technologies should beadopted.Recommendations• The focus should shift from production at State farms to production bymasses by organizing them into producers’ groups/SHGs.• Priority should be given for productivity enhancement.• The State has potential for pig production and to enhance productivityof cattle, goat and poultry by adopting appropriate technologies. Thepotential for breeding Black Bengal goat having higher twinningpercentage should be fully exploited. In the rural areas, backyard poultryas subsistence occupation should be promoted.

125• The Regional Disease Diagnostic Laboratory established in the stateshould become fully functional and cater to the needs of the whole NEregion.• The existing facility for commercial production of balanced livestockfeeds needs to be strengthened for achieving higher livestockproduction levels in the state.• Livestock and dairy forms an important component of World BankAgricultural Competitiveness Project. The performance of the sector is,however, not satisfactory due to a number of reasons, includingproblems associated with release of funds to the implementingdepartment. There is a need to re‐look at the procedure to fully utilizethe opportunities in the project.4. BiharThe contribution of agriculture to total GDP of the State is 33.1 percent.Livestock sector contributes 38.7 per cent of Agriculture GDP at currentprices (2005‐06). Animal Husbandry and Dairying holds ample potential ofgrowth in the state, but unfortunately, this vast potential has not beentapped fully. Cooperative Dairy Federation has done fairly well in the state.The State Department of Animal Husbandry is in moribund condition. Tomake the sector more viable and vibrant, the State has to essentiallyaddress various aspects in a comprehensive manner.Recommendations• The vast amount of infrastructure available in the state for providing AIservices in cattle and buffalo needs to be revived. Alternatively, theresponsibility of AI should be handed over to the well established NGOsfor providing the services on PPP mode; and the departmentalinfrastructure should be disinvested.

126• The Milk Federation is doing an excellent job in the state and thefederation can be entrusted with the responsibility of forward andbackward linkages, at least in the milk shed areas. The Federationshould now take up the responsibility of enhancing the area coverage.• The state has been the leading producer and supplier of maize grain inthe country for poultry sector. Commercial poultry production utilizingthe available resources produced within the state will make it morecompetitive and increase returns to the farmers besides providingmarket outlet to the maize produced. The linkage between maize grainproducers and poultry entrepreneurs should be promoted andstrengthened.• The integrated farming systems should be encouraged for harnessingthe available natural resources in the state.5. ChhattisgarhCattle and buffaloes constitute the major livestock population of the stateand are characterized by low productivity. Currently, the state governmentis following a three‐pronged strategy for enhancing productivity –implementing a breed improvement programme, inducting crossbred cowsand Murrah buffaloes from Haryana state and improving productivitythrough improved management practices.The milk production of Chhattisgarh state is about 2276 tonnes per daywith the per capita availability of 109 grams, which is far below theNational Consumption standards. The sub‐marginal, marginal, small andsemi‐medium group of farmers own the majority of sheep and goat in ruralChhattisgarh. Pig keeping is specific to some tribes and Dalits. Traditionally,backyard poultry forms a part of the livelihood systems of households inthe State. There is a significant growth in case of improved poultrypopulation (212 per cent) over 2003 livestock Census.

127Recommendations• The state is having breedable population of 33.46 Lakh and the annualnumber of inseminations is 5 Lakh. This indicates a huge gap. Hence,the number of centres offering mobile AI services needs to be increasedeither through the private AI workers trained under NPCBB programmeor allotment of additional centres to the NGOs.• The frozen semen bull station located at Anjora needs to bestrengthened by introducing quality bulls with high genetic merit.• The Milk Producer, Co‐operative Unions should be organized on regionallevel and the exiting staff to be re‐developed. The plant and chillingcentre machinery established is almost 25 years old and requiresrehabilitation. The State Government should prepare suitable proposalsand seek funding from appropriate source, including RKVY.• The DVCF (Dairy Venture Capital Fund) scheme needs to be dovetailedwith other existing programmes being implemented in the State. Thereis a greater need for convergence between Union and the Dept. ofAnimal Husbandry in respect of providing inputs services to the MilkProducers Union.• There is a need to strengthen the extension wing of Department ofAnimal Husbandry to provide extension service to a large number of livestock farmers.6. GoaThe growth in livestock production is almost stagnant as the State dependsmostly on the neighboring States for the raw materials/inputs. Thecontribution of Agriculture sector to GDP is around 6 per cent and thecontribution of livestock sector to Agri GDP is around 27 per cent. Thedemand for milk is 3 lakh liters per day, while the local production is only0.45 lakh liters per day and the balance is coming from the neighboringStates like Karnataka and Maharashtra. The per capita availability of milk is

128118 gms as against the National Average of 240 gms. Similarly, the percapita availability of meat and eggs is also low compared to the Nationalaverage, while the demand for meat and eggs is very high because of nonvegetarianpopulation. The present growth in milk and egg production is1.76 per cent and 0.36 per cent per annum, respectively.The State has limited potential to achieve further growth in AH and dairysectors over the next 10‐15 years as they have to depend mostly on theneighbouring States (Maharashtra and Karnataka) for the inputs (feed,fodder, vaccines, medicines, etc) and also due to lack of enthusiasm amongthe unemployed youth to go for livestock farming activities.Recommendations• Considering the limited availability of inputs (green fodder, dry fodder,concentrated feed and semen) and lack of inclination of rural people totake up livestock development activities, Goa may set a target of around2 per cent growth during the 11 th Plan and 2.5 per cent during 12 th Planfor the sector as a whole.• The State Government (Department of AH and milk unions) may preparea comprehensive plan for the next 10 years. The role of two agenciesshould be spelt out clearly.• Looking at the limited availability of good quality animals, the focus hasto be re‐oriented for rearing of crossbred female calves for milkproduction. Future programmes to be drawn by the State needs to bere‐oriented towards this direction.• Pig rearing activity should be intensified by making the weanersavailable to the needy farmers and also by encouraging the breedingfarms under the Piggery Development Fund of DAH.• Considering the demand for meat and eggs, it is worthwhile toencourage buffalo male calf rearing and piggery and poultry activities inthe State.

129• Innovative PPP models need to be developed and implemented foreffective input delivery system and market linkages.• The allocation of funds under RKVY is very low to the State, out of whichthe Department of AH and Dairy Union get meager amounts. Hence,higher allocation is suggested under RKVY to meet the requirements ofDAH for conversion of stationery veterinary institutions into mobileunits to provide the services at the doorstep of farmers.• A one‐time grant may be considered for setting up of feed plant andfodder bank by the milk union.• Encouraging green fodder cultivation at farmers’ level as intercrop inplantations and also setting up of fodder bank by DAH/milk union tosupply dry fodder during lean season.• For providing the veterinary services at the doorstep of farmers, theexisting stationary centers may be converted into mobile units.• The milk union should concentrate on supply of concentrated feed andfodder seeds/root slips for increased production in the State.• Target may be fixed for setting up of bulk milk coolers in the dairycooperative societies for procuring more milk from interior areas.7. GujaratGujarat State with a total geographical area of 1.96 lakh square kilometersis divided into three distinct regions i.e. South Gujarat, North Gujarat andSaurastra‐Kutch. The total number of districts is 26 and the humanpopulation is 5.06 crore (2001 census). About 62.6 per cent of thepopulation is in rural areas and the percentage of population below povertyline is 14.06. AMUL is well known worldwide.In the state, the contribution of gross value of output from livestock sectoris 5 to 5.5 per cent to the Gross State Domestic Product (GSDP) of the stateand its share in agriculture is 22 per cent. During 2003‐2007, cattle

130population has increased by 7.4 per cent, mainly the crossbreds (79 percent), buffaloes by 23.1 per cent and goat 22 per cent. Sheep populationhas declined by 2.9 per cent. The growth in milk, egg and wool sector in thestate is 6, 16 and 1 per cent respectively as compared to 4, 6 and 2.1 percent of national average. The state has potential for achieving furthergrowth in milk and egg sectors.Recommendations• The State should continue to lead the development of dairy sector in thecountry. Saurashtra and Kutch region has to be focused for harnessinguntapped potential in dairy sector.• NDDB and the Milk Federation has over the years provided theknowledge and skill up‐gradation to farmers and professionalsthroughout the country in dairy sector. This activity has to be continuedand State should become the knowledge hub in the sector. A knowledgeportal needs to be developed and implemented by the state.• Animal husbandry sector has not kept the same pace in development incomparison to dairy sector. The coverage of animals under AI networkneeds to be improved. Although different agencies are involved in thebreeding programme, only 50 per cent of the breedable population iscovered through AI. The Gujarat State Livestock Development Boardmust take a lead to enhance the coverage.• The State may like to relook into its decision of establishing a new SemenCentre at Patan. The requirement of semen doses could be met throughthe existing semen stations with NDDB and Dairy Federation whichpresently are catering to the demand from other states.• The progress achieved by the State in disease control as indicated bylesser number of disease outbreaks needs to be continued without anycomplacency. Efforts should be made for strengthening of vaccineproduction institute with modern state‐of‐the‐art infrastructure forquality vaccine production keeping in view the GMP imposed by drugand cosmetic acts.

131• Considering the progressive nature of livestock farmers in the state,considerable scope exists for productivity enhancement throughtechnology driven approach. The introduction of by‐pass nutrient feeds,complete feed blocks, area specific mineral mixture, etc. which havebeen taken up by different agencies in the state need to be expanded toa wider area.• Sheep development holds potential to a large extent in arid regions ofthe state. This sector has to be promoted with greater focus forproviding livelihood opportunities for resource poor farmers in theregion.• Poultry sector has made significant growth in recent years. Furtherdevelopment of this sector, especially in South Gujarat, may be taken asa priority area.• The State has to address the problem of burning of paddy and wheatstraws in the field after harvest in some of the regions of the state onpriority.8. HaryanaHaryana, with a total human population of 2.11 crore (2001 census) isspread over in a geographical area of 44,200 lakh sq. kms. The State isdivided into 21 districts and the literacy rate is 68 per cent. More than 70per cent of the population lives in rural area.The total GDP of the State is Rs.92050 crore and the contribution ofagriculture sector to total GDP is 26 per cent. The livestock sector iscontributing to the tune of 36.1 per cent of Agriculture GDP (at currentprices). Based on the critical analysis of information provided in the format,observations made during the field visit and from the discussion with theofficials concerned, it is evident that the state has been performing well inthese sectors. The state has very good potential for further growth overnext 10‐15 years, probably in the range of 6‐7 per cent.

132Recommendations• Haryana is not only the home tract for Murrah breed of buffaloes butalso the largest supplier of superior quality buffaloes to other states. Thestate should essentially aim at becoming the national repository forMurrah buffalo germplasm.• Formation of breeders association by Haryana Livestock DevelopmentBoard (HLDB) is a step in the right direction and needs to be extended toall other parts of the state.• Only 60 per cent of breedable population is being covered throughartificial insemination services. It is essential to enhance the coveragethrough activities of HLDB and milk unions to achieve the projectedgrowth in dairy sector.• The potential for the state to develop as a knowledge portal in animalhusbandry activities is immense. The pioneering work being carried outby National Dairy Research Institute, Agricultural University, Hissar, andthe enterprising nature of dairy farmers could be beneficially utilized indeveloping an appropriate knowledge portal/hub for the benefit oflivestock farmers in other parts of the country.• Fodder seed production needs to be given greater emphasis and withconcerted efforts the state can emerge as a major fodder seed supplierin the country.• Block level hospitals are to be strengthened with diagnostic labs.Polyclinics need to be set up at district levels and they need to beequipped with latest diagnostic tools. Sufficient budgetary provisionsare required for purchase of medicines.• Higher allocation in RKVY for calf rearing scheme is suggested.• Cooperative sector is very weak in the state. Haryana DairyDevelopment Federation (HDDF) has to be geared up by providing

133required support to enhance milk procurement, processing andmarketing activities.• The State could further enhance the productivity of cattle, buffalo andpoultry with the technologies developed by ICAR/Agricultural University.• Commercial poultry production especially in peri‐urban areas needsfurther strengthening.9. Himachal PradeshThe state of Himachal Pradesh has an area of 55,673 sq. km. The State isbordered by Jammu & Kashmir in the North, Punjab in the West and South‐West, Haryana in the South, Uttar Pradesh in the South‐East and China inthe East. One of the striking features about the distribution of population inthe state is that about 90 per cent population of the state lives in ruralareas, and the directly or indirectly, depends on agriculture. Thus,agriculture sector is the mainstay of the state economy. The state is dividedinto 12 districts.It is observed that there is a positive growth in crossbred cattle, goats andpoultry in the state in 2007 as compared to 2003 Census. The 11 th Plantargets for various livestock products are milk – 920,000 tonnes, eggs –1,090 lakh, and wool 1,675 tonnes. With the increased population ofcrossbred cattle and poultry, it may be possible to achieve higher growth inproduction.Recommendations• Sheep and rabbit production for fine wool and mutton holds promisefor development in the state. There is a great potential to enhanceproductivity of sheep and rabbit for mutton and fine wool productionusing improved germplasm of fine wool sheep (Bharat Merino, Gaddisynthetic) and rabbit (German Angora).

134• Goat production systems with stall feeding systems should bepromoted systematically.• Biomass available as forest grass in forest areas especially in the fringeforest villages needs to be beneficially exploited for augmentinglivestock feed. The mechanism of Joint Forest Management Committees(JFMs) for livestock integration in fringe forest areas should be utilizedbeneficially.• Silvi‐pasture based farming system for increasing fodder resource andimprovement of natural pastures/ grazing lands through reseeding,fertilizer application, proper grazing policy, etc. needs focused attention.• The state is a leading producer / processor of fruits and vegetables. Thewaste from processing units should be tapped for feeding livestockthrough use of appropriate technologies10. Jammu & KashmirThe overall growth in the livestock sector between 1992 and 2006 was 6.4per cent as against 2.3 per cent in crops. The annual compound growth rateduring the period was 7.3 per cent for milk, 7.9 per cent for meat, and 13per cent for other livestock products. Livestock population increased by6.19 per cent from 92.24 lakh in 1997, to 105.39 lakh in 2007. The Stateproduces 15.8 lakh tonnes milk, 510 million eggs, 438 lakh kg poultry meatand 297 lakh kg mutton. However, this remained much lower than thedemand. In addition to its own people, the State caters to the requirementsof a large number of army and tourists.As a consequence, the requirement is met through importation of 46 percent eggs, 31 per cent poultry meat and 42 per cent mutton. This, alongwith the import of milk, day‐old chicks, animal feed and fodder, costsaround Rs. 1400 crores annually. Import of live animals for mutton hasincreased by 57 per cent over the last 10 years. Around 30‐50 per cent ofthe various food items of animal origin (eggs and meat) are being importedfrom the adjoining states. The State has resources and strengths to produce

135these food items locally through strengthening programmes on sheep andpoultry.The total agriculture (including livestock) contributes 25.94 per cent to netGross State Domestic Product (GSDP) at constant prices. The livestocksector alone contributes 11 per cent to the GSDP, which is about 40 percent of the contribution of the agriculture and allied sectors. In absoluteterms, the sector contributes Rs. 3874 crore to the State economy atcurrent prices, as per Gross State Domestic Product (GSDP) estimates.Recommendations• In view of shortage of feed and fodder, the number of indigenous cattleshould be reduced while maintaining total milk production throughpropagation of high yielding cows and buffaloes.• Looking at the contributions of the livestock sector to the state GDP, andto the employment scenario, much higher budgetary allocations arewarranted to further exploit State’s potential for livestock production.• Crossing all nondescript cows with Holstein / Jersey semen wouldrequire strengthening of existing AI services. The effective populationcoverage through AI should be increased by converting the existingstationary into mobile services. There is the need for training specializedmanpower as in other States (Gopal Mitra, etc.) to deliver the AIservices.• Local LN2 production should be strengthened to take care of the semenproduced at home or imported from outside.• Attention is needed to conserve and upgrade Nili Ravi buffalo usingsemen/bulls of high genetic potential of the same breed.• Focus should be to provide AI services to the migratory buffalo herds.Alternatively, quality breeding bulls for natural service should be madeavailable.

136• Crossbreeding of sheep needs to be continued, especially in the highaltitude suitable for quality wool production. Utmost care, however,must be taken to avoid in‐breeding.• A well‐designed goat production programme in the Sate supported withnecessary services to the farmers is required to be initiated. It isproposed to procure sufficient breeding bucks and semen for thepurpose.• There is, however, a good scope to increase fodder production by (i) useof vacant fallow land available especially in Rabi season, (ii) promotingsilviculture with emphasis on fodder trees instead of timber, and (iii)growing fodder in vacant forest land and/or in‐between the trees. Thishowever, involves several different departments with varied interestsand policies. It is proposed that a consortium of various linedepartments including that of agriculture, livestock, forestry andrevenue, should be constituted to develop a comprehensive fodderproduction policy.• The State needs at least 3000 new veterinary dispensaries with AIfacilities and about 1000 veterinarians. The required infrastructuralsupport and manpower should be made available.• It is recommended to establish multi‐specialty Poly Clinics equippedwith good disease diagnostic laboratories and Hotline Power Supply ateach district headquarter.• Keeping in view the existing vaccine production scenario, it would beprudent to close the State level vaccine production units and makeexhaustive arrangements to procure required vaccines from otherreliable sources.• There is an urgent need for establishing Bulk Milk Cooling Plants atdistrict headquarters and other strategic places (surrounded by thicknomadic population). This will create an assured milk market, andtherefore, a boost dairy development and income to farmers in the farflung areas.

137• The productivity of sheep, yak and poultry could be enhanced in thestate by adopting new technologies.11. JharkhandMilk production in Jharkhand increased, on an average, by 16.2 per centannually from 2002‐03 to 2006‐07, the quantity produced in 2006‐07 being14.01 lakh tonnes. However, poor productivity of the milch animals (1.59kg/day vs. the national average of 3.29 kg/day) is the major cause of lowmilk production in the state. The growth registered during the same periodwas 73 per cent for eggs (711 million in 2006‐07) and 10.6 per cent formeat (43.6 million kg). The per capita milk availability in Jharkhand stood at152 g/day as against the average figure of 240 g/day for the country. Theper capita availability of 25 eggs per annum works out to be a deficit of37.8%, the total requirement being 1,143 million eggs annually. Theshortage of meat is also significant viz. 19.8 per cent, the annualrequirement and per capita availability being 8.7 lakh tons and 7.0 g/day.However, the AH&D sector seems to have a potential to grow at a higherrate than at present. As evidenced by data which shows that milkproduction in the state grew by 6.21 per cent to 14.88 lakh tonnes duringthe first year of the 11 th Five Year Plan as against 4.94 per cent during 2006‐07, whereas meat production exhibited an increase of 3.53 per cent to44.14 million kg during 2007‐08 in contrast with 1.95 per cent growthduring 2006‐07.Recommendations• Primary focus has to be essentially on genetic improvement ofindigenous dairy cattle and buffaloes through a properly structuredanimal breeding plan.• It is essential to bring a large population of breedable female cattle andbuffalo under AI coverage at the earliest. The present arrangement of

138involving NGOs for providing AI at farmers’ doorstep should beexpanded for wider area coverage.• Goat rearing could provide much needed livelihood opportunitiesespecially in the tribal areas. Goat production systems on communitybased approach through formation of SHGs may be promoted in theseareas.• Similarly, rural backyard poultry needs to be supported through use ofimproved birds like Vanraja, Grampriya and CARI Priya.• The dairy activities under the cooperative sector have not been welldeveloped. Establishment of milk cooperatives for collection, creatingadditional processing facilities and efficient input delivery mechanismwould lead to development of a vibrant dairy sector in the state.• Enhanced budgetary support for the milk production and processingprogrammes of the state of Jharkhand could be ensured throughsubstantially higher allocation of funds under RKVY. A one‐time grantfor setting up of a cattle feed plant and new processing facilities wouldprovide the much needed impetus to Dairying in the state.12. KarnatakaAnimal Husbandry and Dairy sectors in Karnataka state have been animportant component contributing significantly to the state’s economy.Contribution from these sectors is to the extent of 2.97 per cent of thestate’s overall GDP and 22 per cent of the agricultural GDP. The dairy sectorhas made considerable progress with extremely well developedcooperative network for milk collection, processing, providing inputservices and efficient marketing mechanism. Currently, the annual milkproduction is 42.8 lakh MT with an annual growth rate of 2.7 per cent.Poultry sector is growing at 3.6 per cent annually with the egg productionat 183.76 lakh eggs. However, not much progress has been made in themeat and wool production.

139The sectoral growth in animal husbandry and dairy is currently at 4 percent. The State has the potential to achieve a minimum of 6 per centgrowth in the remaining period of 11 th Plan and to enhance the same to 8per cent during 12 th Plan. The state is endowed with a wealth of naturalresources, favourable climate, progressive farming community and higherinvestment capacity. In such a favourable scenario, Karnataka has thepotential for achieving higher growth in AH and dairy sectors at a fasterpace.Recommendations• Considering the availability of natural resources, infrastructure andinvestment capacity, Karnataka should essentially set a target ofachieving 6 per cent growth during the 11 th Plan and 8 per cent duringthe 12 th Plan in animal husbandry and dairy sectors.• Dairy production should be accorded top most priority in the state. Thestate can serve as a repository for superior quality crossbred cattlegermplasm in the country. This would not only incentivize the farmersfor breeding of good quality crossbred cattle but also help in meetingthe demand of crossbred cattle from other states.• The issue of regional imbalance in development of animal husbandryand dairy sector has to be addressed on a priority basis and focusing onregions where the existing potential has not been tapped wouldcontribute in achieving the set targets.• The state should prepare a comprehensive prospective plan for the next10‐15 years period and draws a clear cut road map. The roles of thedifferent agencies involved have to be well defined, objectives specifiedand milestones set. All strategies and developmental activities shouldessentially be focused for achieving the set targets.• The state should set a target of increasing AI coverage by at least 20 percent from the present level of 56 per cent. For this, the state mayexplore the possibility of implementing the policy of providing AI

140services entirely through NGOs and Gopal Mitras. This would enableveterinary officers to assume higher responsibility/ role at the field level.• Induction of crossbred elite bulls (50 per cent and 62.5 per cent bloodlevel) at semen stations would meet the farmers’ for CB semen.• Initiate suitable measures like efficient cold chain, better deliverysystem, capacity building, etc. for achieving higher efficiency in ArtificialInseminations per conception / calf born. The state should set a targetof 1.2 to 1.4 inseminations/conception.• In milk shed areas with higher crossbred cattle population, breedingstrategy may be oriented towards providing AI service with high qualityimported semen of progeny tested bulls with not less than 12,000 kgdam yield.• Strengthen progeny testing programme for raising progeny tested bullsat the semen stations.• Set the target for having 25 to 30 per cent of the existing dairycooperative societies upgraded with Bulk Milk Coolers (BMCs) facility.• Export potential of milk and milk products should be tapped.• Fodder seed production and distribution on the model developed byKMF may be enlarged for higher coverage.• Looking into the limited potential of developing sheep sector for woolproduction, focus has to be reoriented for developing sheep sector formeat production. Future programmes to be drawn by the state needs tobe oriented towards this direction. For production of hygienic meat,setting up of rural abattoirs for small ruminants should be encouraged.• Innovative PPP models need to be developed and implemented forproviding effective input delivery system, creating infrastructure andmarket linkages.

14113. KeralaKerala has a high demand for milk, meat and eggs as most of the populationis non‐vegetarian. The milk production of the state has 21.9 lakh tonnesduring 2007‐08 and the growth in milk production was around 4.04 percent from 1990‐91 to 2001‐02 and then onwards it showed a decline. Thepopulation of all species of livestock declined from 1997 onwards and thereason for such a drastic decline is due to shortfall in fodder and feedingredients, high cost of labour and lack of marketing support. Thecontribution of agriculture and allied sectors to the Gross State DomesticProduct is steadily declining over the years. Considering the constraints, thestate has limited potential to achieve the targets of 35 lakh tonnes 2,395million eggs and 3.00 lakh tonnes of meat by the end of 11 th Plan period,while the demand is growing.Recommendations• Dairy production in the state is almost entirely dependent on externalinputs sourced from neighbouring states. The state has to undertake acomprehensive study on economics of milk production in order toprioritize the strategies needed for making dairy enterprising moreprofitable.• Kerala has been the pioneering state in the country to have introducedcrossbreeding programme in cattle. Performance of ‘Sunandini’ breeddeveloped in the state through crossbreeding programme appears tohave declined over the years. This issue needs to be addressed onpriority.• The state can emerge as a repository for crossbred cattle of superiorgermplasm in the country. The focus of commercial dairy farms beingestablished through investment made by the state as well as NRIsshould focus on this area.• Enhancement of green fodder production through appropriatetechnology and integration in plantation crops should receive priority.

142• Promoting piggery and goat sector on commercial lines in suitableregions of the state should be considered.14. Madhya PradeshMadhya Pradesh accounts for about 14 per cent of total cattle populationand 11.7 per cent of the total milk production in the country. Livestocksector alone contributes 12.5 per cent of the overall GDP at current prices.The agro climatic conditions are conducive to development of not onlydairy and poultry sector but also to development of sheep, goat and pigrearing. Bullocks of Nimari, Kenkatha and Malvi Breeds of M.P. are knownfor their superior draught power. The climate of the state is conducive toadoptability of crossbred and up‐graded bovine and caprine as well asexotic swines. Breeding policy of the state recommends indigenous milchbreeds like Hariana, Gir, Tharparkar, Sahiwal etc to be taken up on a largescale, especially in rural areas along with crosses of Jersey as well asHolstein Friesian in urban or semi‐urban areas. Jamnapari and Barberibreeds of caprine and White York Shire breed of swine have beenintroduced in different parts of the state. The production targets for 11 thPlan are 76.60 lakhs tonnes of milk, 1,005 million eggs, 0.295 lakh tonnes ofmeat and 4.72 lakh kg of wool.Recommendations• The state should focus on genetic improvement of indigenous cattle andbuffalo through well‐structured breeding programmes. The coverage ofthe breedable bovine population through AI at present is about 8 percent. Concerted efforts need to be made for bringing at least 50 per centof the breedable females under AI coverage during 11 th Plan.• A regionally differentiated approach should be pursued for promotingappropriate region specific production system.• In Bundelkhand region of the state, small ruminant production holdsconsiderable potential as provider of livelihood opportunity to resourcepoor farmers. Innovative approaches through promotion of SHGs, UGs

143and CIGs and providing appropriate market linkages would give therequired boost to these sectors.• Based on the critical performance assessment of producer companiesset up in the poultry and dairy sectors, expansion of the same may beconsidered in other parts of the state as alternate institutionalmechanism for promoting animal husbandry and dairy activities.• Rural backyard poultry using improved birds like Vanraja, Grampriya andCARI Priya may be promoted for enhancing egg production overindigenous birds.• Complete feed blocks and area specific mineral (P, zn and Mn)supplementation may be promoted for 10‐15 per cent improvement inproductivity.15. MaharashtraMaharashtra ranks sixth in milk production and 3rd in egg production. Theproduction targets of livestock products for 2009‐10 is 76.22 million tonnesof milk, 40.100 lakh eggs, 1.779 million kg wool and 2.56 lakh tonnes ofmeat. The per capita availability of milk in the State is 175 gms per day asagainst all India Average of 245 gms per day and as against the NationalAverage of 42 eggs per annum. Similarly, the average per capita availabilityof egg is 33 per annum. Considering the present growth in milk and eggproduction, there is a good potential to reach higher targets. Thecontribution of the livestock sector to Gross State Domestic Product fromAgriculture sector during 2006‐07 was about 25 per cent.Recommendations• Dairy development offers considerable scope and, therefore, highpriority should be given for achieving higher growth rates in dairy sectorby developing a comprehensive plan and implementing the same in asystematic way.

144• The cooperative sector in dairy has developed considerably well and isimplementing innovative inputs delivery mechanism for dairy farmers.This needs to be strengthened and also aim at wider area coverage.• A well laid out strategy for promoting livestock activities in Vidarbharegion should be accorded priority attention. This would provide muchneeded livelihood support to resource poor farmers and as an effectivecoping mechanism against crop failure in the region.• The outcome of many of the successful watershed programmesimplemented in the state have been improved livestock activities andenhanced milk production. Effective integration of livestock inwatershed programmes should be taken up by AH department in amission mode.• Crossbred cattle production systems which are suitable in particularregions of the state should be promoted with greater focus for achievingset targets of milk production in the state.• There is considerable scope for value addition of milk and milk productsfor realizing higher returns. Strengthening of processing facilities andadoption of newer technologies in the area of value addition may belooked into.• Organised poultry sector holds promise for development and as suchthis sector has to be accorded priority addressing various activitiesranging from production, processing to market linkages in a holisticmanner.• Use of complete feed blocks, area specific mineral supplementation andby‐pass protein technology may be promoted for productivityenhancement.• Technological interventions of ICAR/Agricultural or Veterinary Universitywill further enhance the productivity of livestock.

14516. ManipurManipur, with a geographical area of 22,300 sq. km. has 2.76 lakhindigenous cattle, 65,694 crossbred cattle, 62,167 buffaloes, 50,577 goats,8205 sheep, 3.14 lakh pigs and 22.89 lakh poultry, offering good scope forlivestock sector. The State depends on the other states for eggs, poultrymeat and also for various inputs for the livestock sector. The State hasscope for promoting livestock development as there is demand for milk,meat and eggs. All the natural conditions are favourable for widerexpansion of dairy, goatery, piggery and poultry across the state.Recommendations• There is substantial scope for developing piggery sector in the state.Integrated pig production through formation of SHGs, introduction ofexotic breeds of Hampshire and Yorkshire, developing market linkagesneeds to be promoted.• Linkage of pig production with cultivation of tapioca and sweet potatoneeds to be promoted for addressing the problem of feed quality andshortage.• Small holder dairy production systems hold promise in the state. Effortsneed to be directed towards promoting these systems.• The current arrangement of procurement of high quality semen strawsfrom other states should continue and the state need not embark onestablishing semen production station till the number of AI increasesubstantially.• Serious attention should be given to conservation of swamp buffalobreed, which is on the verge of extinction.• Establishing modern slaughter houses around Imphal for meatprocessing under Public‐Private Partnership.

146• Facilities for production of liquid nitrogen should be strengthened toexpand the cattle breeding facilities.• Fodder development should be an integral activity. Promotion of silageproduction should also be encouraged to make efficient use of naturallygrown forage.• For promotion of poultry, apart from supplying chicks of Kroilers,Vanaraja breed can also be popularized.• The state may consider distributing capital goods and inputs directly tofield centres instead of providing money to the field officers.• North Eastern Council should encourage with a proactive role forpromoting livestock based activities in the state.17. MeghalayaMeghalaya is mainly an agriculture based economy. Nearly two‐thirds ofthe total people of Meghalaya earn their livelihood through this. But stillthe contribution of the agricultural sector is only one third to the state’sNet State Domestic Product (NSDP). The contribution of livestock sector toAgriculture GDP is only 10 per cent.There is an increasing trend in the overall livestock population in referenceto 2003 census versus 2007. Overall performance of animal husbandrysector is very good and almost all the programmes are being implementedin proper form. The state has the potential for further growth of the sectorwith provision of strengthening of existing facilities and also creating newinfrastructures. The state is having potential in pig and poultry sector alongwith health management where focus needs be given. For variousprogrammes, infrastructures are already available which need to be furtherimproved for future growth in the sector.

147Recommendations• Pig and backyard poultry sector offer vast potential for developmentand as a source of livelihood to livestock farmers in the state. Therefore,the focus of development has to be primarily in these sectors.• There is no organized marketing group of livestock and poultry forproducts produced in the state. Therefore, for regular transportation ofthese products the transportation network has to be strengthened atthe district level.• In order to encourage farmers for rearing poultry for production of eggsand meat, it is necessary to provide inputs for taking up a unit with 5000layers and 5000 broilers.• In order to meet the requirements of weaners for beneficiaries, thepresent capacity of the pig farms need to be increased from the presentlevels.• Strengthening of veterinary and animal health services by establishingtwo Polyclinics at Shillong and Tuna and 3 veterinary hospitals at Jowai,Nongpoh and Nongtoin is recommended.• The present establishment of two vocational training centres is not ableto meet the demand of the entire state. Establishment of additionalcentres at district levels may be considered for the benefit of thefarmers and youth.18. MizoramAs majority of the population is non‐vegetarian, the State offers goodpotential for livestock sector, especially meat and egg. The per capitaavailability of milk is 51 gms as against the National average of 240 gms.Similarly, the per capita availability of eggs and meat is 45 and 12.864 kg,respectively, which is above the National Standards. However, the demandfor these products is very high. The eggs and poultry birds are coming from

148other parts of the country. The present growth rate in milk, egg and meatproduction is 2.28 per cent, 1.99 per cent and 9.19 per cent, respectively.The State has limited potential to achieve considerable growth in AH anddairy sectors over the next 10‐15 years as they have to depend mostly onthe other States for quality animals, some of the feed ingredients, semen,vaccines and also high cost of transportation of goods. The State hastargeted a moderate growth rate of 3.0 per cent for milk and 2.29 per centfor eggs during 11 th Plan period. The contribution of livestock sector to AgriGDP is 9.10 per cent only.Recommendations• The state has to focus on development of piggery, dairy and poultry asthese sectors offer considerable scope for growth. The State AH anddairy departments may prepare a comprehensive plan for the next 10years covering these sectors.• The ongoing cattle breeding programme has to be further strengthenedfor achieving quick progress and enhance milk production.• Only such of those areas which have the potential for dairy developmentshould be taken up under IDDP scheme and a comprehensive projectplans are to be prepared. Innovative PPP models need to be developedand implemented for effective input delivery system and marketlinkages.• Mizoram is the pioneer state in the country practicing ArtificialInsemination in pigs. The success of this approach may be documentedfor dissemination in other neighbouring states also.• The concept of technology mission for animal husbandry and dairysector suiting NE States may have to be planned at least for 12 th Plan.• PIGFED may plan to utilize the existing feed plant of the department ofAH to produce economic ration for their members instead of procuringat a higher price from neighbouring States.

149• The existing slaughter house may be put in use for production of meatunder hygienic conditions.19. NagalandNagaland with about 20 lakh non‐vegetarian human population offers agood scope for livestock sector. There is a positive growth in crossbred pigsand improved poultry during 2003—2007. The estimates of production ofmilk, meat, egg of Nagaland state is 74,000 tonnes, 63,250 tonnes and 868lakh, respectively (2005‐06). The per capita availability of meat in Nagalandis 105 gm/day (2008‐09), milk (115 gm/day) and egg (50 nos./annum).Nagaland is deficient to meet the demand for milk, meat and egg. Thestate imports meat (19,000 tonnes), milk (5000 tonnes) and egg (275 lakhnumbers) to supply the consumers demand. The monetary value of theimport of these products comes to about 220 crores (2007‐2008). Thecontribution of livestock sector to Agriculture GDP of the State is 10.34 percent. Considering the demand for livestock products, there is a goodpotential for the sector.Recommendations• As the largest consumer state in the country of pork, it is essential thatprimary focus of development has to be in pig sector.• A huge expenditure is being incurred presently on import of pig and pigproducts from other states for meeting the demand in the state. Allstrategies and developmental plans should orient towards reversing theroles and make the state not only self sufficient, but also self sufficientin pig production.• Growth of dairy sector has been slow but progressing. Primary focus hasto be essentially on genetic improvement of indigenous dairy cattle andbuffaloes through a properly structured animal breeding plan.• The negative growth trend in Mithun production needs to be stemmedand reversed on priority. Providing value addition to mithun hide, skin

150and milk (bags, shoes, jacket, rasgolla, cheese, etc) needs to bepromoted for higher returns.• Innovative PPP model can be developed and implemented for providinglogistic support to animal husbandry and dairy sectors.• Livestock products commodity group/cooperative society could beformed in each district to assist producers for efficient production andmarketing.• Integrated livestock product processing and marketing unit should beestablished in centralised locations of the state.• Different agro‐forestry models with tree fodders, leguminous, non–leguminous pasture grasses should be established in CPR lands tointegrate livestock (like silvipasture, hortipasture models).• Infrastructure facilities at Veterinary Hospitals, Veterinary Dispensariesand Diagnostic Centres should be strengthened for quality health caredelivery system.• To improve income generation capacity of the women and improvenutritional status of the farm family, backyard poultry with colour birds,turkey, backyard goat units.20. OrissaLivestock sector plays an important role in providing the much neededlivelihood opportunities to the resource poor farmers in Orissa. Thecontribution of livestock sector to the total value of output in the state wasRs.2678 crore during 2005‐06 and contribution of milk sub sector alone wasto the tune of Rs. 1426 crore.

151Recommendations• The state has to essentially pursue the livestock breeding programme ina focused manner on technically sound footing. Earlier crossbreedingprogrammes have not yielded the desired outcome, resulting in verylow productivity of crossbred cattle.• For providing better livelihood opportunities and higher incomegeneration to resource poor farmers, especially in the tribal areas, goatproduction provides a great scope. The focus in these regions has to beon promoting goat rearing on community based approach.• Small holder dairy production systems hold promise in the state. Effortsneed to be directed towards promoting these systems.• It is essential that only superior progeny tested bulls are maintainedand used for AI programmes for achieving a rapid progress inproductivity enhancement.• The Dairy Federation has aimed at enhancing the procurement of milkthrough cooperatives from the existing level of 3.12 lakh liters per dayto about 10.1 lakh liters per day by the year 2013‐14. Concurrent focushas to be made towards expansion of the capacity of the processingplants for handling the anticipated increased volumes.• The area of feed and fodder development needs a focused attention ifthe benefits of improved breeding programme is to be harnessedeffectively.• The scope which exists in backyard poultry and pig productionespecially in tribal and backward areas need to be fully utilized andspecific programmes may be drawn for promoting these sectors as well.• A strong and meaningful linkage with SAUs and animal science researchinstitutes needs to be developed for development and transfer ofappropriate region specific technologies in the state.

15221. PunjabThe state of Punjab is witnessing a silent revolution in animal husbandryand dairy sectors and there is a likelihood of the growth assuming similardimensions of the Green Revolution witnessed in the region during 1970s.The movement is essentially coming from the farmers themselves in theform of establishment of commercial dairy farms and integrated farmingsystems. Milk sector has been currently witnessing a growth of 3 per centwith a distinct possibility of furthering this to 6 per cent in the remainingperiod of 11 th Plan and to enhance the same to 8 per cent during 12 th Plan.Similarly, poultry sector has the potential to achieve 8 to 10 percent growthfrom the current level of 6 per cent. Piggery sector has also taken strongroots in the state and considerable potential exist for growth oncommercial lines. Animal husbandry sector, especially the dairy sectorprovides a viable opportunity for much needed diversification in the state.In Punjab, production systems are slowly but surely reorienting themselvesinto demand driven systems with greater emphasis on technologicaladoption. What is required to give the sector a further fillip is to addressvarious issues in production, processing, value addition, marketing andextension needs in a holistic manner. With likelihood of National Dairy Planbeing implemented in the country in the near future, Punjab has toessentially take the lead in ushering a second White Revolution in India.Recommendations• The state of Punjab has to essentially take the lead in ushering the newlivestock revolution in the country. The state has to think big and higherinvestments are to be made for achieving further growth in AH and dairysectors.• Available resources with the state are indicative of sustaining higherproduction levels. There is ample scope for further development.• The concept of commercial dairy farms has caught up in a big way. Themodels developed here could be replicated in other states also.

153However, emerging issues in commercial dairies like credit availability,market linkages, input supplies etc. are to be addressed on a prioritybasis.• The issue of burning paddy straw needs to be addressed on a prioritybasis. The state should act as the central warehouse for supply of dryfodder to deficit states. This would provide the much needed copingmechanism, especially during times of drought.• Fodder conservation through silage making is picking up in the state.There is a need for scaling up and providing support.• Fodder extension should primarily focus on promoting fodderconservation, enhancing area under green fodder, silvi‐pasture, etc. Thestate needs to develop and implement a knowledge portal on greenfodder production to be made use of by other states.• The training modules and training infrastructural facilities developed inthe state are unique and serve as models for adoption by other states.Constant efforts for updating training modules with latest technologiesare to be made.• Salvaging of male calves for breeding purposes should be done.• Setting up of piggery processing units under PPP model should beestablished.• Innovative PPP models need to be developed and implemented forproviding effective input delivery system, creating infrastructure andmarket linkages.• Looking at the role GADVASU has to play in overall development of AHand dairy sector in the state, higher budgetary allocation has to beessentially made to the University for providing appropriatetechnological interventions.

15422. RajasthanAnimal Husbandry is an important sector for supporting the rural economyin Rajasthan, contributing 10 per cent to the State GDP. The livestock‐tohumanpopulation ratio in Rajasthan is 1:1 and the per capita availability ofmilk is 408 gm per day. The State is contributing 9 per cent of milk, 30 percent of goat meat and 35 per cent of wool to the national production. Thepresent growth in milk production is 7.61 per cent.Rajasthan is home tract to many important breeds of livestock. Prominentamong them are Tharparkar, Rathi, Gir, Kankrej, Haryana, Nagauri andMalvi breeds of cattle, Sirohi, Marwari and Jhakhan breeds of goat, Chokla,Nali, Magra, Jaisalmeri, Sonadi, Malpura, and Pugal breeds of sheep andJaisalmeri and Bikaneri breeds of camel, which cover 90 per cent of thecamel population in India.Recommendations• The focus of development should be oriented towards improvement ofmilch breeds of Tharparkar and Rati for achieving higher milkproduction.• A comprehensive livestock development plan should be prepared by theState Nodal Agency by involving all the stakeholders.• Livestock based activities provide higher livelihood opportunities thancrop cultivation in certain regions of the state. Livestock centric activitiesand convergence of other activities around this need to be promoted inthese areas.• The scope of sheep production systems in arid regions is considerable.However, the demand for sheep wool especially the carpet wool both indomestic and international market has been drastically reduced. In thisscenario, raising sheep for wool production may not be remunerativeand as such there is need in shifting the focus to raising sheep primarilyfor mutton.

155• The registration of indigenous breed of cattle is being carried out in thestate successfully. Farmers are benefitting from this as registeredanimals fetch higher prices. This activity should be pursued with greatervigour.• Camel production needs to be accorded importance. The therapeuticvalue of camel milk should be harnessed and propagated extensively.• The state has to initiate action for developing a comprehensive livestockdrought mitigation strategy on priority. Most parts of the state areprone to frequent drought like situations; consequently resulting insevere feed shortage and thereby affecting livestock production systemsadversely.• The Department may involve voluntary organizations in breeding andminor veterinary practices and also private partners in taking up postproduction processing and marketing of milk and other products.• Creating higher milk handling and processing facilities, value additionand marketing network needs to be given greater thrust in thecooperative sector for tapping higher amounts of marketable surplus.• Development of community pasture lands, wastelands and forest landsthrough watershed development, silvipasture and fodder developmentshould be accorded priority by involving various stakeholders.• The scale of operation of the dairies should be enhanced to reduce thecost of processing. This can be done by concentrating dairydevelopment around the dairies, setting up efficient system of milkcollection with bulk milk coolers, and better pricing.• Efforts can be made to eradicate important diseases. Such coordinatedefforts can help in producing clean milk at low cost which will motivatefarmers to share the cost of health care.

156• Financial institutions should closely work with the farmers and dairies toensure availability of finance for procurement of milking animals, feedand other inputs.• The State has potential to further enhance productivity throughimproved germplasm of sheep, (Bharat Merino, Marwari, Avikalin) forenhanced mutton and wool yield, cattle (Frieswal) and Murrah Buffalofor 5 per cent increase in milk production and camel (Bikaneri, Kachchi)for improved draftability and milk yields.23. SikkimSikkim has high demand for livestock products. Animal husbandry plays aprominent role in the State economy. Development of animal husbandryand dairy sectors in Sikkim has to be viewed in relation to difficult terrain ofthe state, low livestock population, limited land availability for cropcultivation, dependency on external inputs for livestock rearing, etc.The contribution of livestock sector to the state gross domestic product isabout 6 per cent. As the availability of land for agriculture is just 13 per centin Sikkim, livestock sector holds immense potential for diversification andmake higher contribution to state’s economy.Recommendations• Small holder dairy production systems hold promise in the state. Effortsneed to be directed towards promoting these systems.• There is substantial scope for developing piggery sector in the state. Pigproduction through formation of SHGs, introduction of exotic breeds ofHampshire and Yorkshire, developing market linkages needs to bepromoted.• The current arrangement of procurement of high quality semen strawsfrom other states should continue and the state need not embark on

157establishing semen production station till the number of AI increasesubstantially.• Promoting fodder tree cultivation and focus on fodder tree seedproduction need to be made.• Considering the difficulty in operation of milk routes in difficult terrainsand rainy season for collection of milk, setting up of more numbers ofBulk Milk Coolers / chilling units should be accorded priority.• Dairy plants have to necessarily explore the possibility of processing ofre‐constituted milk along with milk procured from the societies forrunning the plant to full capacity and make some profit.• Yak production systems need to be given greater emphasis. Providingvalue addition of yak milk (churpi, cheese) and hair (carpet, broomingbrush) holds considerable promise which needs to be harnessed.24. Tamil NaduLivestock plays a major role in the rural economy of Tamil Nadu. During theyear 2007‐08, the Gross value of output of livestock in the Tamil Nadu statewas Rs.11652 crores. The contribution of Livestock sector to Tamil Nadustate GDP is 3 per cent and to the Agriculture and Allied activities it is 28per cent.The estimated milk production was 56.74 lakh tonnes while egg productionwas 8394 million units. The per capita availability of milk per day was235gm and that of eggs was 123 per annum. The state contributed 5.3 percent of total milk production, 15.7 per cent of total egg production and 15.5per cent of total meat production in India. The value of leather and leatherproducts exported from Tamil Nadu was Rs.5373 crores accounting for 38.4per cent of all India exports.The potential for the growth of Animal Husbandry and Dairy Sector in TamilNadu is quite impressive, i.e. the Dairy sector grew from 2.87 percent of

158annual compounded growth to 5 to 6 percent. The poultry and meatsectors showed phenomenal growth rate of more than 10 percent perannum. In 2006‐07, egg production in Tamil Nadu increased by 31.13 percent over the previous year. The State is poised to achieve an overallgrowth of 6 per cent in Animal Husbandry sector during 11 th Plan period.Recommendations• There is ample scope for furthering the growth in dairy sector and thispotential has to be harnessed effectively through a holistic approach.• Commercial poultry production has developed impressively in some ofthe regions in the state. Further growth has to come from newgeneration technologies for achieving higher FCR, reduced mortality anddisease control. Strengthening of processing facilities and providingvalue addition for higher returns should be targeted.• With the progress achieved in human resource development, the statehas the potential to act as the nerve centre in the country for HRdevelopment and training. This area needs to be developed.• Frozen semen production from progeny tested bulls has to be increasedto cover more number of breedable population from the present levelof 50.76 per cent to 70 – 75 per cent.• Target should be set for distribution of fodder slips and fodder seeds toeach district, taluk, panchayat union and revenue village to augmentfodder production.• Straw block making units should be established at the rate of one perdistrict where straw resources are plenty.• Animal Disease diagnostic facilities should be provided to each district(32) from the current facilities of 20 units.• Logistic support and infrastructure facilities should be provided in all theveterinary clinician centres, veterinary hospitals, veterinary dispensaries

159and sub centres for delivery of quality veterinary service to livestockfarmers.• Uninterrupted cold chain should be maintained at vaccine storagecentres in all districts and veterinary institutions.• Sheep and goat breeding cooperative societies should be established /rejuvenated for production of feeder lamb / kids for meat production.• Piggery development programmes could be taken up under theproposed scheme of DAHDF by the unemployed rural youth.• Establishment of district abattoir or rural slaughterhouse for smallruminants and poultry to facilitate hygienic meat production.25. TripuraThe State with a population of 35 lakhs is divided into four districts withover 60 per cent area under forests with three sides of the state boundaryspread over 456 km sharing with Bangladesh. Contribution of agricultureand allied sectors to the GDP of the State is 24 per cent, in whichcontribution of livestock is 5.4 per cent. Milk is an important diet of Tripura,particularly for sweets. However, the per capita availability of milk is only73.41 gm per day as against the national availability of 246 gm. The percapita meat availability is 5.39 kg per year as against national availability of5 kg. Availability of eggs is 39 per year against the national average of 42.Total milk production in the State in the year 2007‐08 was 91,312 tonnes,which is expected to increase to 1.25 lakh tons in 2011‐12. Meat and eggproduction is also likely to increase at 9‐12 per cent annually, while theexpected egg production of 18.12 crores in 2009‐10 is expected to grow at20‐25 per cent annually. Thus there is good scope for tapping the potentialof livestock sector for providing sustainable livelihood to rural communities.

160Recommendations• Small holder dairy production systems hold promise in the stateespecially in non‐tribal areas. Efforts need to be directed towardspromoting these systems.• In the tribal areas in the state there is substantial scope for developingpiggery sector. Pig production through formation of SHGs, introductionof exotic breeds of Hampshire and Yorkshire, developing marketlinkages need to be promoted.• Organisation of goat keepers for sustainable goat husbandry with directlinkage with the market, preferably by establishing modern slaughterhouses under Public Private Partnership may be promoted.• Promoting fodder tree cultivation and focus on fodder tree seedproduction need to be made.• Production of cattle feed through Dairy Federation or under publicprivatepartnership, and streamlining the procurement of feedingredients at competitive price is needed.• Promotion of private paravets for intensifying cattle breeding, minorveterinary care and organizing goat development activities.• There is scope for multiplication of superior germplasm on State Farmsfor expanding goatery, piggery and duckery.• The dairy plant of the Tripura Dairy which was established in 1982,needs modernization. The economics of marketing reconstituted milkvis‐à‐vis cost of milk production need to be studied, and suitablestrategy should be developed to meet the demand for milk in urbanareas, while safeguarding the interest of dairy farmers.• The State could enhance productivity of goat and poultry with improvedgerm plasm of backyard poultry (Venaraja, Grampriya) for 100 per cent

161increase in egg production over indigenous birds and Black Bengal goatfor improved meat production.26. Uttar PradeshUttar Pradesh is one of the largest states in the country with a largelivestock population representing 10 per cent of cattle, 23 per centbuffaloes, 10 per cent goats and 17% pig population in the country. Thestate produced 19.43 million tonnes of milk during 2008‐09, occupying thefirst position in the country. The state has an ambitious plan for enhancingmilk production to 29.5 million tonnes by 2011‐12. The state is third inmeat production and during 2008‐09 the meat production was to the tuneof 0.23 million tonnes and the targeted production, is 0.26 million tonnesby 2011‐12. While the present rate of growth of Animal Husbandry sector is4.6 per cent, the state is focusing to achieve an annual growth rate of 10per cent by end of 11 th Plan.Recommendations• The state has the potential for promoting major livestock productionsystems. However, a regionally differentiated approach for promotingregion specific livestock production systems will ensure uniform andhigher growth rates. The state is advised for according priority forplanning and implementation of such a strategy.• The dairy sector holds considerable promise for achieving highergrowth rates over the years. However to achieve this, certain key issueslike strengthening of dairy cooperative network, increasing the share ofmarketable surplus milk in the organized sector, enhancing processingfacilities and other related aspects need to be addressed with greaterfocus.• The dairy cooperative sector at present handles just 4 percent of themarketable surplus which is indicative of the weak institutionalstructure.

162• Even though Uttar Pradesh is the largest milk producing state in thecountry, the average productivity both in cattle and buffalo is lowerthan that of Punjab. The future priority needs to be oriented towardsproductivity enhancement.• Buffalo production systems in Western Uttar Pradesh need furtherfocus and a large share of marketable surplus has to be brought underorganised sector. Efforts need to be made for promoting hygienic milkproduction for creating better market opportunities.• Bundelkhand region with an average milk production of 21.66 lakh kgper day contributes hardly 5 percent of the total milk production in thestate. The state has to take necessary initiatives for promoting smallholder dairy production systems in this region through establishment ofinnovative institutional mechanism like producer companies /cooperatives, well developed market linkages and adequate collectionand processing facilities.• Only 13 per cent of the total milk is currently being processed whichneeds to be increased substantially by creating adequate processingfacilities and promoting value addition.• Small ruminant production can provide the much needed livelihoodopportunities for landless/assetless and resource poor farmers in regionlike Bundelkhand. Promotion of SHGs, UGs and CIGs for promoting thissector in an effective manner is needed. Similarly, pig production canalso be promoted in certain regions of the state.• The state has considerable potential for developing the meat sector.Buffalo meat processing facilities should be further strengthened anduntapped potential for small ruminant mutton production throughappropriate PPP models need to be beneficially harnessed.• A comprehensive action plan needs to be developed and implementedfor addressing the problem of ‘Annapratha’ in Bundelkhand regionwhich is not only affecting the dairy development but also the kharifcrop production in the region.

163• An effective linkage with IGFRI, Jhansi, and other SAUs needs to bedeveloped in fodder development sector.27. UttarakhandAnimal Husbandry activities contribute significantly to income andemployment generation in rural areas. The level of milk production in thestate was 12.20 lakh tonnes during 2007‐08. The per capita availability ofmilk is 353 gm/day as against the recommended level of 240 gm/day.Similarly, the per capita availability of eggs and meat was 20 per annum and820 gm per annum, respectively. Recently, the State Government haslaunched ‘Dudhganga’ programme for increasing the production andprocessing of milk in the state through SHG model. Thus, the state has agood potential for livestock development.Recommendations• Development of sheep sector for production of fine quality wool offersconsiderable scope. Efforts need to be made for developing this sectorin a comprehensive and focused manner.• Small holder dairy production systems hold promise in the state. Effortsneed to be directed towards promoting these systems. Currently, only12.4 per cent of the breedable animals are covered through AI. Hence,there is a need to strengthen the breeding services in the state throughparavets or NGOs for providing effective AI service at farmers’doorstep.• Goat farming can be promoted in the state especially among womenentrepreneurs by providing quality breeding bucks.• Livestock extension activities should be strengthened through higherbudget allocation.

164• Release of funds sanctioned under RKVY for setting up of JapaneseQuail Unit and expansion of animal breeding farm, Kalsi.• Strengthening of coordination between Livestock Development Boardand GBPU Agriculture & Tech., Pantnagar, for effective breedingprogramme.• Milk Federation is running in loss due to under utilization of capacityand it needs to be strengthened.• There is a great potential to enhance productivity of rabbit for fine woolproduction using improved germplasm (German Angora).28. West BengalThe current growth in Animal husbandry and Dairy sectors in West Bengal is3 per cent. There is ample potential for enhancing the growth rate to 5‐6per cent during 12 th Plan. However, the state has to gear up for this and hasto address a host of issues in a holistic manner and provide requiredimpetus for achieving the set goals.Development of Animal Husbandry and Dairy sectors in West Bengal hasbeen essentially a case of ample opportunities which have not been fullyexploited in a systematic manner. Contribution from these sectors is to theextent of 5 per cent to State Domestic Product (SDP) and nearly 20 per centof agricultural production. Piggery and goat development holdsconsiderable potential which has not been fully exploited.Recommendations• West Bengal has the potential of achieving a growth of around 5 percent in animal husbandry and dairy sectors during the remaining periodof 11 th Plan and in the 12 th Plan period. The state has to essentiallycapitalise on resources available for achieving this target.

165• A well‐defined and scientifically sound livestock breeding policyespecially for cattle and buffalo need to be developed. The policy sodeveloped should be a long term policy and should not be subjected tofrequent changes. The state may like to consider setting up of a taskgroup comprising of experts in livestock breeding both from outside andwithin the state for drawing out a comprehensive livestock breedingpolicy.• Development of goat sector requires greater focus and needs to bepromoted in a large scale in identified agro‐eco regions of the state. Thissector holds considerable promise for providing much needed livelihoodsupport for landless, small and marginal farmers especially from theweaker and backward sections of the community. The BAIF modelsoperating in Bankura and Purulia in goat sector could be replicated inother areas/ regions also.• Piggery sector also holds promise for growth and should be tapped forbenefiting a large section of economically and socially backwardpopulation. Setting up of beacon processing units and creating marketlinkages would help in development of this sector on commercial lines.• Innovative procurement models need to be developed andimplemented for increased tapping of marketable surplus milk by thedairy cooperative sector. The joint venture models (metro dairy)developed in the state can be considered for replication if such modelsare viable and help in the growth of dairy sector.• For sustaining the viability of milk cooperative unions it is essential thatmany of the unions have to initiate steps for enhancing the financialturnover. The loss making unions must take necessary action for comingout of the red.• The State has the potential to enhance productivity of cattle, goats andpoultry with various technological interventions developed by the ICARinstitutes/Veterinary University.