REPORTOF

THE ADVISORYCOMMITTEE ON ANIMALHUSBANDRY&DAIRYING

VolumeI

MAINREPORT

Constitutedbythe

PLANNINGCOMMISSION
GovernmentofIndia YojanaBhawan,NewDelhi.

January2010

1 PREFACE ThePlanningCommission,GovernmentofIndia,videitsorderNo.Q13017/2/2008Agri dated 4th February, 2009, constituted a Committee to look into the various developmental programmes followed in the Animal Husbandry & Dairy Sector and suggestedmeasuresforacceleratingthegrowthratewiththeobjectiveofachievingthe targets set for the 11th Plan. The constitution of the Committee and its term of referencehavebeenannexed. The members of the Committee visited all the states of the country to study the field level implementation of the various programmes. Wrap up meetings were organized with the representatives of the states at Bengaluru, Mumbai, Bhubaneshwar, Chandigarh and Lucknow, where the findings of the groups were presented and future developmental strategies in animal husbandry and dairying sector was discussed. In these meetings, in addition to various development programmes, Venture Capital fund andCDAP,whichisanessentialrequirementforRKVY,werealsodiscussed. ThreesubgroupsoftheAdvisoryCommitteewereconstitutedonFodderDevelopment, Livestock Extension and Value Addition (Milk and Meat). They took an independent studyvisitingvariousstatesandinteractingwiththestakeholders. The Committee places on record the contribution made by the State Governments and the hospitality extended to them during visit to their states. The Committee also wants to express its gratitude to Honble Shri Abhijit Sen, Member, Planning Commission, and Shri L. Rynjah, Principal Advisor (Agriculture), for their guidance and suggestions during thedeliberationsofthemeeting.ThecontributionmadebyNationalDairyDevelopment Board, Anand; National Dairy Research Institute, Karnal; Indian Grassland and Fodder Research Institute, Jhansi and Guru Angad Dev University of Veterinary and Animal Science,Ludhiana,isalsoacknowledged. In the capacity of Chairman, I have great pleasure in expressing gratitude and thanks to all members of the Committee for their hard work and their cooperation. It was due to the hard work put in by every member that it has been possible to complete the task within the given time frame. Many others who helped in the task included Dr. R.M.Acharya,Retd.Dy.DirectorGeneral(AS),ICAR,NewDelhi;theircontributionisalso gratefullyacknowledged. (N.R.Bhasin) January6,2010 Chairman

CONTENTS

Chapters/AnnexPageNo.
Preface ExecutiveSummary Chapter1:LivestockinNationalEconomy Chapter2:GrowthofAnimalHusbandryandDairySectors Chapter3:PotentialforGrowthinAnimalHusbandryandDairySectors Chapter4:PublicInvestment Chapter5:InputsandServices Chapter6:DevelopmentalStrategy Chapter7:ResearchandTechnologySupportforAnimalHusbandry Chapter8:LivestockCreditandInsurance Chapter9:PublicPrivatePartnership Chapter10:ReviewofCentralSectorandCentrallySponsoredSchemes Chapter11:SuggestedCentralSectorandCentrallySponsoredSchemes Chapter12:InstitutionalandStructuralReforms Chapter13:StateSpecificRecommendations AnnexureI:ReportofSubgrouponFodderProduction AnnexureII:ReportofSubgrouponLivestockExtension AnnexureIII:ReportofSubgrouponValueAddition Enclosures 1. ConstitutionoftheCommittee 2. ConstitutionoftheSubgroups 166209 210224 225269 1 211 1220 2123 2429 3035 3647 4871 7279 8087 8892 93108 109111 112116 117165

EXECUTIVESUMMARY 1. Livestock is an important subsector of Indian Agricultural Economy and plays a multifaceted role in providing livelihood support to the rural population.Livestocksectorapartfromcontributingtonationaleconomyin general and to agricultural economy in particular also provide employment generation opportunities, asset creation, coping mechanism against crop failureandsocialandfinancialsecurity. 2. Even though there has been deceleration in growth rate of livestock output per se after mid 1990s, the growth in livestock sector has been fasterthancropsector.Thecontributionoflivestocksectorinagriculturein termsofoutput,whichwas17.3percentduring198081,increasedto26.9 per cent in 200708. Similarly, contribution of the sector to National GDP has been around 5.5 per cent over the years despite pronounced variation observed in contribution of crop sector to National GDP; indicating the stabilityofthelivestocksector. 3. NearlytwothirdsoffarmhouseholdsinIndiaareassociatedwithone ortheotherformoflivestockproductionand80percentofthemaresmall landholders (< 2ha), livestock contribute substantially to their livelihood and provides coping mechanism during the period of crop failure. The contribution of livestock income varies from region to region; it being highest in the case of arid region followed by irrigated and hill and mountain eco region. Another significant feature of income from livestock is its high Gini Coefficient indicating uniformity in its distribution irrespectiveofthesizeofholding. 4. Thedemand driven growthbeingwitnessed in livestockintherecent years is an important pathway for increasing the income of marginal and small and landless labourers. Market opportunities due to the anticipated rise in demand for livestock products will provide an avenue for resource poor farmers to increase production, improve their livelihoods, reduce malnutrition and thereby contribute to the goal of overall poverty alleviation. The growth attained in livestock sector hitherto has been attributed largely to increase in animal numbers and to a lesser extent on

productivity enhancement. The future growth has to sustain primarily on enhancedproductivityandnotonincreaseoflivestockpopulation. 5. In the rural areas, most of the livestock rearing activities are handled by women force. As many as 75 million women are engaged in livestock sector as against 15 million men. There is an increasing trend towards participation of women in livestock development activities. This has led to empowermentofwomenheadedhouseholdsintheruralcommunities. 6. In recent years, a gradual shift is taking place in livestock sector from resource driven systems to demand driven systems and involvement of educated youth in livestock production activities. The increase in the processing of especially milk and meat had provided a fillip to this development. Livestock production systems have also provided much needed diversification opportunities especially in the states like Punjab, Haryana and Uttar Pradesh and also in the poorly endowed regions like Bundelkhand. 7. Processing and value addition has been primarily limited to the milk subgroup. The meat sector continues to be handled in an unorganized manner. For making the meat sector more vibrant, profitable, export oriented and provider of safe meat, a greater emphasis needs to be given onestablishmentofmodernslaughterandprocessingfacilities. 8. The growth of the livestock sector during the 8th Plan was 4.01 per centperannum,whichdeceleratedto3.45percentinthe9thPlanand3.91 percentinthe10thPlan.Thecontributionofmilksectortothetotaloutput from livestock is about 68 per cent and in some of the states it is as high as 80 per cent. After the completion of Operation Flood, there has hardly been any investment in the cooperative sector. The investment under centrally sponsored schemes has gone to nonviable areas mainly in the North East. The private sector has made considerable investment but mainly in the processing sector, which has not given the required impetus for achieving higher growth rate in milk subsector; consequently the growth has decelerated to 3.91 per cent in the 10th Plan. During the same period the growth in egg production was positive and increased from 4.41 percentinthe8thPlanto7.26percentinthe10thPlan.Thegrowthinwool

subsector has been seriously affected due to lack of focused policy and alsoliberalizationoftheimportpolicyforwool. 9. With higher purchasing power due to higher income over the years demand for consumption of livestock products is going to enhance during the 11th and 12th Plan. The future strategy for achieving the targeted livestock production should be through productivity enhancement and this is possible through innovative approach of breeding, feeding and management aspects. The future strategy should be based on obtaining higher return per unit of product through value addition, which in turn wouldbenefittheprimaryproducer. 10. Over the years there has been a quantum jump after the liberalization in the export policy of livestock product especially meat and milk which during the last year have achieved an export of Rs. 5000 crores in the case of meat and Rs. 1000 crores in the case of milk. India is geographically situated at an advantages place in South East Asia and can capitalize on the growing market in Africa, Middle East and South East Asia inthegrowinglivestockmarket. 11. From the visits made by the Advisory Committee constituted by the Planning Commission, to different states of the country, it has been clearly establishedthattherearelargedifferencesinthepotentialofthegrowthof sector across the states/regions. Considering the geography and natural resourceavailability,thedairydevelopmentshouldhaveideallytakenplace in IndoGangetic plain comprising the states of Punjab, Haryana, Uttar Pradesh and Bihar, which has not happened to the desirable level. On the contrary, traditionally low potential areas like Karnataka, Maharashtra, Andhra Pradesh and Rajasthan have shown better performance. To a great extent this variation can be explained due to the emphasis put in these statesoncooperativesystemofdairydevelopmentwhichnotonlyprovides marketbutalsotherequisiteinputservicesforincreasingmilkproduction. 12. The small ruminant sector offers considerable opportunities for providing employment to the resource poor farmers especially in the arid and Northhilly region of the country. A focused approach with higher

investmentcommunityapproachanddevelopingprocessingfacilitieswould providetherequiredboosttothesector.Thishasbeenlackingsofar. 13. Performance of poultry sector has been more than satisfactory and the sector has emerged from a meager backyard nature to a fully commercialized production system, which could be attributed to technology in the form of high producing strains, role of private sector, efficientmarketlinkagesandadequateprocessingfacilities. 14. The demand for pork and other pig products is significantly higher in NorthEastern states and almost 80 per cent of the production in the country is consumed by people of NE region. In spite of this, development of piggery sector has almost been neglected in NE region; probably on account of lack of feed and other resources. Therefore, it calls for a comprehensivestrategyforpiggerydevelopmenttomeetthedemand.The state governments and North Eastern Council should emphasize in promotingthissector. 15. The overall investment made in livestock and dairy sector has been very meager over the Plan period. The 10th Plan outlay (20022007) for DAHDF was Rs. 2500 crore which constituted 11.84 per cent of the total budgetary outlay of agriculture and allied sector. Out of this, the outlay allocation for DAHDF (excluding fisheries) was Rs. 1760 crores accounting for 8.35 per cent of the total outlay for agriculture and allied sector. In terms of expenditure the performance of the department has been even poorer and was 8.02 per cent during the entire Plan period; varying between 6.42 per cent to 10.03 per cent from year to year. On the contrary,contributionoflivestocksectorhasbeenincreasingovertheyears (26.9 per cent in 200708) as indicated in earlier paragraphs. With the meager budgetary allocation made to the sector, it would not be possible to achieve the desired growth rate of 6 per cent targeted in the 11th Plan. Not only the public investment has been low there has also been serious lack of investment by the private sector in animal husbandry and that too limited to dairying mainly in the processing sector. In the 11th Plan, a provision of Rs. 11000 crores was made for DAHDF. However, the expenditure during the Plan period is likely to be no more than Rs. 6000 crores. One of the reasons of poor allocation made in the Plan is attributed

to low absorption capacity of the department, which also needs to be improvedtoachievehighergrowth. DevelopmentalStrategies 16. The strategies during the last few Plans has been to improve the genetic potential of indigenous cattle through crossbreeding with exotic breeds.Inthe10thPlanacentrallysponsoredNationalProjectonCattleand Buffalo breeding has been taken up covering the whole of the country. A number of bull production farms, frozen semen bank and AI centers have been established. The project was allocated Rs. 375 crores in the 10th Plan, which has been enhanced to Rs. 500 crores during the 11th Plan. This has resulted in a quantum jump in the number of artificial inseminations and the production of crossbreds. However, most of the bulls used in the projects are not progeny tested; and adequate strategy for field recording and progeny testing of the bulls has not been built in the project. It is well known that the high producing animals can give its performance only in comparativelybetterenvironment.However,thestrategydoesnotprovide for simultaneous improvement of feed and fodder resources, due to which it has not been possible to harness the full potential of the scheme. It is, therefore, recommended that in all areas covered under NPCBB programme efforts should be made to develop feed and fodder resources simultaneously. 17. The strategy for development of small ruminant sector as a whole is lacking.Duetoanumberofreasonsthesheepproductioninmajorpartsof the country is at the cross roads. Large sheep breeding farm for production of exotic rams was set up in Hissar, Haryana, along with seven large farms instateswhereimportedsheepofMerinoandRambouiltbreedswerekept for production of rams. In the case of Rajasthan, projects were taken up on wool grading and marketing and production of fine and medium quality wool for quality production. All these projects have failed. It is suggested that the future strategy should be to improve quality of wool in sheep limitedtoNorthernstatesofthecountrynamelyJ&K,Uttarakhandandhilly partsofUP.Inotherpartsofthecountrythestrategyshouldbetoimprove sheep for mutton production. Various programmes in the states should be redefined and redrafted on these lines. Despite the fact that goat offers

great potential no strategy has been developed for its improvement. There is no central sector or centrally sponsored schemes for development of smallruminants.Thissectorappearstohavebeencompletelyneglected. 18. As indicated earlier, in the case of Pig production, there a mismatch between the consumption and production centers. While the major demand of bacon and other products is in the NE, the production is limited to areas of Uttar Pradesh and Andhra Pradesh. It is suggested that the present approach of individual farming should be replaced by cluster approach in the NE region with simultaneous development of processing facilities. 19. Although the poultry sector has been completely commercialized, backyard poultry offers scope in the rural areas for providing income to weaker sections of the community. The Central Avian Research Institute has developed suitable technologies for development of backyard poultry, which would enhance its productivity and returns. It must, however, be realized that in view of competition from the commercial sector, backyard poultry has to be considered essentially as a sector limiting itself for providinglivelihoodopportunitiestolandlessandresourcepoorfarmers. 20. In the case of animal health, the major emphasis is limited to providing curative treatment by opening hospitals and dispensaries. The disease investigation support is quite weak. Most of these facilities are stationaryinnature,thereby,reducingtheirefficiency.Thepresentstrategy should be replaced by mission mode approach. A national network on the disease investigation and reporting should be established. Epizootic maps ontheoccurrenceofvariousdiseasesinvariouspartsofthecountryshould beprepared.Astrategytostampoutthediseasesshouldbedevelopedand implemented following the approach adopted in eradication of Rinderpest disease. The existing manpower with the state veterinary and animal husbandry department is not sufficient to provide services at the doorstep of the farmers. This gap can be filled by putting more emphasis on training of paravets who would be in a position to provide the desired services and relieving the veterinary doctors to assume higher responsibilities. The production of vaccine is an area which needs to be privatized either

completely or taken up on PPP models for efficient utilization of limited resourcesavailabletothesector. 21. Under dairy development milk producers cooperative will continue to play a major role despite liberalization of the sector. However, the dairy cooperativeswillhaveto reformthemselvesandbecomecompetitive.Milk producers institutions registered under companys law have been found to be more effective than the cooperatives. NDDB has prepared a National Dairy Plan, which has been submitted to the World Bank for financial assistance. Under the project the processing capacity would be expanded and also investment made in progeny testing and fodder production to supportthebreedingprogramme.R&Deffortsindevelopingprocessedand packaging technology for Indian milk products as also other innovative milk products need to be supported. With the implementation of National Dairy Plan in the near future there is a need to relook at the various schemes presently funded by DAHDF for avoiding duplication and overlapping of investment. 22. Support should be provided to modernization of meat sector. Registration of all slaughter houses in cities/towns is essential for meat production and protection of environment. The establishment of rural based abattoir in animal breeding track would reduce the need for transportation of live animals to urban area for slaughter. In addition, modern abattoir/meat processing plant should be supported to promote export. 23. The existing institutional mechanism is not sufficient to cater to the needs of various stakeholders of the sector. For meeting emerging challenges both at national and international levels a paradigm shift in the institutionalmechanismwouldbeessential.Structuralreformsarerequired at various levels viz. national, state and production levels. For providing comprehensive information on livestock related aspects and drawing long term and short term policy/strategies, it is essential for establishing a separate National Body for Livestock Information and Policies which can advise the Ministry in all policy matters relating to livestock sector. The proposed body can establish a channel of communication and coordination with all the state governments and the public/private organizations, both

nationalandinternationaldealingwithlivestock.Presently,nowelldefined mechanism exists on import of germ plasm in the form of live animals, frozen semen and embryos. An adhocism prevails while taking the decision on these issues. An authority for quality control on breeding material, which is being suggested since 8th Five Year Plan, should now be set up on priority basis. At present the vaccine production as well as quality control lies with the state veterinary department which functions not only as user but also as producer and quality controller, which is not a satisfactory arrangement.AnindependentauthorityforQualityControlofVaccinesand other biological products produced both in the public and private sector as suggestedinthe11thPlanshouldbesetup. 24. Many of the state departments have been setting up livestock farms without assessing their requirements. This tendency needs to be discouraged and the production of breeding males (bulls, rams) should be throughidentifiedfarmersandfarmersgroup.Theissuesofdisconnectand nonconvergence between different departments implementing animal husbandry and dairying activities at the state level needs to be addressed for harnessing full benefits of various schemes. The activity of semen productionshould beplaced withtheproposedcentralagencyforensuring qualityandstandards. 25. The future strategy should give greater emphasis on developing public private partnership (PPP) in different activities of animal husbandry and dairy sector. Some of the areas, which can be taken more efficiently in PPP mode include: vaccine production and its delivery, meat production andprocessing,processingoffallenanimalsandanimalbyproducts,fodder seed production, management of community pastures and fodder banks, extensionandtechnologytransfer,etc. 26. There is a serious shortage of quality fodder seeds availability in the country. The State Seed Corporations do not own the responsibility of producingfodderseeds.Fodderseedproductionisbasicallyinthehandsof private sector and groups of farmers. The strategy comparable to the crop sector will have to be developed for production of fodder seed, which should incorporate production of breeder seed, foundation seed, certified

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seed and truthfully labeled seed. Extension efforts will have to be made to thetypeoftheseedsuitableforhisareaanditsavailability. 27. Livestock extension services to the farmers will be the key for improving livestock productivity and making the livestock sector competitive in the liberalized economy, which at present is almost non existing. Livestock extension services should include transfer of technology and also strengthening locally relevant innovative systems; advisory service and provision of access to range of services. It is evident that extension services need to undergo a paradigm shift. There is a need to have a livestock extension policy built into the National Agriculture Policy. A well developedknowledgeportalneedstobedevelopedandestablished. 28. Nonavailability of credit especially to landless and asset less farmers is one of the major impediments in development and growth of the sector. At present, short term credit to livestock farmers for meeting the requirement for production purposes is not easily available. Livestock Farmers Credit Card (like Kissan Credit Card) should be introduced for providing shortterm credit to solve the problem of working capital and to avoid paying very heavy rate of interest to the money lenders. Innovative creditfacilitiesthroughjointliabilitygroups/SHGsneedtobepromoted. 29. The DAHDF is implementing a number of centrally sponsored and central sector schemes with different funding pattern. The different components of the schemes, which are decided at the central level are being implemented by the states and the states do not have any say in deciding their pattern and technical contents. It is suggested that only schemes of national importance/relevance pertaining to breeding, disease control, feed and fodder, and National Dairy Plan should be planned at the central level and implemented as central sector schemes. A second stream with a shelf of schemes may be developed and the states may be allowed to choose relevant schemes based on state/region specific needs. A third stream of scheme to be implemented through NABARD as venture capital fundisalsosuggested. 30. The developmental programmes initiated by Government of India in therecentyearsviz.RKVY,NREGA,BRGF,WatershedProgrammes,etc.also provide an opportunity for promoting livestock activities. Effective

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convergence and dovetailing of animal husbandry and dairy sector with thesedevelopmentalschemesneedtobemade. 31. Consideringtheperformanceofdifferentstatesinimplementationof various programmes of animal husbandry and dairy sectors, absorption capacity and constraints of manpower and infrastructure, it is unlikely that it would be possible to achieve the set target of 67 per cent growth per annum during the 11th Plan period. As such, the target for overall growth rate in livestock sector may have to be revised to 5 per cent during the current plan with a 4 per cent growth rate for milk sector and 68 per cent forpoultryandmeatsector. 32. Implementation of the developmental strategies suggested by the Committeefordifferentsectorsalongwiththehigherinvestmentportfolios would accelerate the growth in the livestock sector. This would result in achievingagrowthrateof67percentinthe12thPlanperiod.

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CHAPTER I I.

Livestock in National Economy

1.1 Livestock is an important subsector of Indian Agricultural Economy and plays a multifaceted role in providing livelihood support to the rural population. Livestock sector apart from contributing to national economy in general and to agricultural economy in particular also provides employment generation opportunities, asset creation, coping mechanism against crop failureandsocialandfinancialsecurity. 1.2 Overtheyears,livestocksectorhasbeenmakingsignificantcontribution tonationaleconomyaswellastotheagriculturesectoroutput.Growthratein output of crop sector has witnessed a deceleration over the years particularly after mid 1990s. Even though there has been deceleration in growth rate of livestockoutputperseaftermid1990s,thegrowthinlivestocksectorhasbeen faster than crop sector leading to its increased share in the total agriculture sector 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 crore duringtheyear200708(atcurrentprices)accountingfor26.90percentofthe valueofoutputfromagricultureandalliedsectors. PercentageContributionofLivestockSectortoAgricultureandNationalGDP (at199394prices) Year PercentContributionofLivestocksectorto AgricultureGDP NationalGDP 199000 24.39 5.59 200001 25.92 5.67 200102 25.91 5.70 200203 29.27 5.70 200304 27.26 5.40 200405* 24.90* 4.70* 200607 31.70 5.26 200708 26.90 5.21 At19992000prices. 1.3 The sustained economic and income growth in the country and integration of global agrifood markets provide considerable scope for future

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growth of livestock sector and opportunity of increased income generation for livestock farmers, especially small holders. Nearly twothirds of farm household in India are associated with livestock production and 80 percent of themaresmall land holders( 2ha).Whatis requiredisto identify the existing and emerging opportunities and develop a comprehensive road map for harnessingtheseopportunities. 1.4 Thefactthatabout 90million farmingfamiliesowningmilchanimalsare involved in milk production amply signifies the important role of the sector. Livestock provides a large share of draught power, with about half the cattle populationand25percentofthebuffalopopulationbeingusedtocultivate60 million hectare of cropland. Draught animal power is making a significant contribution to agricultural production and thus to the rural economy. The contribution is roughly estimated to be to the tune of Rs. 10,000 crores per year besides saving approximately six million tonnes of petroleum worth Rs. 6,000 crores. Draught animal power is still relevant and useful due to the fact that it is suitable to the needs of the farmers with small land holding and the areas where mechanized implements cannot be brought to use. A significant outputfromsmallandbackyarddairyfarmingistheproductionofdung,which isan importantorganic manure.Onan average,800million tonnesof manure is produced. Of this, some 300 million tonnes are burnt as fuel and the balanced used as manure. Even this could be improved upon by scientific yet pragmatic planning like biogas production. However, the dung cakes are the sole source of energy of the poor, for cooking and for heating their dwellings duringwinter. 1.5 Contribution of livestock to overall household income is significant but differs across different agroclimatic regions of the country. Agriculture with a share of 44 per cent in household income is the dominant income source in irrigated and rain fed zones. Nonfarm income is more than agriculture in coastal zone and almost the same in hill and mountain zone. In arid zone contribution of livestock income is higher than agriculture income implying greaterrisksincropproductioninthiszone.

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Incomebysourcesindifferentagroclimaticzones(%) Agroclimatic Agriculture Livestock Wages Nonfarm zone businessincome Arid 31.6 36.0 17.0 15.4 Coastal 28.5 7.6 24.3 39.5 Hill&mountain 33.8 13.6 23.1 29.5 Irrigated 44.5 18.0 16.1 21.4 Rainfed 43.8 11.4 21.8 23.0 Source:Brithaletal.,2007. 1.6 Livestock is considered as second most equally distributed source of income after agriculture with a Gini coefficient (Gk) of 0.745 and contributes least (10.6 per cent) to total income equality which is mainly ascribed to its weak correlation with total income and even distribution of livestock ownership. Further, the significant contribution of livestock rearing as an effective coping mechanism against crop failure has been amply proved in recent years in Vidharba region of Maharashtra and suicide prone districts of other states like Karnataka and Andhra Pradesh. Farmers owning livestock asset have been able to overcome the hardships of crop failure and loan burdenandnosuicidecaseshavebeenreportedoffarmersowninglivestock. 1.7 The demand driven growth being witnessed in livestock in the recent years is an important pathway for increasing the income of marginal and small farmers and landless labourers. However, the benefits which can accrue depend on a) scale of production and marketable surplus b) efficiency of production, and c) market linkages / access to domestic and international markets. Market opportunities due to the anticipated rise in demand for livestock products will provide an avenue for resourcepoor farmers to increase production, improve their livelihoods, reduce malnutrition and thereby, contribute to the goal of overall poverty alleviation. Providing an enabling environment in which small producers are able to take advantage of the opportunities, overcome the challenges and meet the threats should be accordedpriority. 1.8 The growth attained in livestock sector hitherto has been attributed largely to increase in animal numbers and to a lesser extent on productivity enhancement. The future growth has to sustain primarily on enhanced productivity and not on increase of livestock population. The current trend in stabilization of livestock population and increased number of crossbred cattle

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and milch animal population is an indication that focus has gradually shifted towards productivity enhancement. The extent to which growth in livestock production can be accelerated would depend on how technology, institutions and policies address constraints facing the livestock sector. This will require overcoming feed and fodder scarcity and improvements in delivery of animal healthandbreedingservices. Contributiontoemployment 1.9 Livestock is an important source for employment generation and increased production implies higher employment. Dairying is labour intensive at farm level and participation of women is substantial. It is estimated that each 610 kg per day additional milk processed in India adds one manday for feeding and care. Animal husbandry is a year round activity engaging labour force particularly the household members for all the 365 days of the year and this is of particular significance to rain fed areas where mono cropping being the usual practice, the number of mandays engaged in agricultural activities gets restricted only during the cropping season. Milk and meat processing sectors also generate employment and contributes to limiting emigration from villages. Small scale milk processing is labour intensive and generates both employmentandincome. 1.10 Gender equity is more pronounced in livestock sector, as women participation is 71 per cent of the labour force while it is only 33 per cent in cropfarming.Asmanyas75millionwomenareengagedinthelivestocksector as against 15 million men. Women play a major role in livestock production and most of them have good knowledge about livestock behaviour and local feeds. Extent and nature of their involvement varies within and between regions. Despite variations, women mostly handle aspects like milking, care of young and sick animals, cleaning and feeding. In the poultry sector, women mostly look after rural poultry. Similarly, women play a prominent role in rearing of sheep, goat and small ruminants. Animal Husbandry increases the earning capacity of women and ultimately leads to their economic empowerment. There is an increasing trend towards participation of women inlivestockrearingactivities.Onereasonforthisphenomenonisthemigration ofmenfromruralareastotownsandcitiesinsearchofpaidemployment.This hasresultedinanincreaseintheproportionofhouseholdsheadedbywomen. Viewed from an economic dimension, the daytoday activities performed by women are crucial inputs for either directly through sale of livestock and livestockproductsortheuseoflivestockinvariouslivelihoodactivities.

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LivestockproductionsystemsinIndia 1.11 Livestock production systems in India have been traditionally practiced mainly as an extensive, low input subsistence systems integrated with crop production. However, with liberalisation of Indian economy, sustained economic and income growth, opportunities for export, etc. in the last two decades or so has also brought about a subtle but sure change in livestock productionsystems.Themajorchangesbeingseenintherecentyearsare: Shiftfromresourcedriventodemanddrivenproductionsystems Shift from extensive subsistence systems to semiintensive / intensive commercialsystems Many educated youth taking up animal husbandry activities, especially commercialdairyfarmingasbusinessenterprises The subtle changes happening in the sector also calls for reorientation in the approach for future development and growth. Currently, 4 per cent of croplivestock systems are exclusive grassland based and with the decline in both area and quality of grasslands it is expected that these systems would slowly be reduced. Mixed rain fed (46 per cent) and mixed irrigated (37 per cent) are the major existing livestock production systems. It is anticipated that the share of these systems would see a reduction in coming years. Semiintensive and industrial production systems which at presentaccountfor13percentareexpectedtoexpandsubstantially.

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Crop - Livestock systems in India Such change also necessitates reorientation of approach, planning and implementation strategies for facilitating growth of animal husbandry and dairysectors: Future growth in AH and dairy sector would primarily be market driven growthanddependsonhowwellthemarketingstrategiesareconceived andputinplace; One of the key drivers for the sectoral growth is that livestock farming systems would be technologydriven. It is imperative that cost effective, region specific technologies need to be developed and delivered effectivelyforadoptionatthefieldlevel; A paradigm shift in existing input delivery mechanism system would have to be developed and put in place for delivering the services at farmersdoorstep; A greater role for private sector through appropriate PPP business models;and Enabling policies of the government for facilitating speedier growth of thesector Diversificationopportunities 1.12 Livestockproductionsystemsprovidescopefordiversificationoffarming systems. In recent years over exploitation of ground water, rapid decline of

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watertable,unsuitabilityofirrigationwater,andstagnationincropproduction has become an issue of concern in many parts of the country, more so in Punjab and Haryana. In such situations, livestock production systems, especially commercial dairy farming are being considered and promoted as most viable alternate diversification opportunities for traditional crop productionsystems. Governmentalpolicies 1.13 For accelerated growth of livestock sector, it is imperative that a strong and focused government policy is required. However, the fact remains that despite the importance of livestock sector in the Indian economy, especially towards livelihood of resource poor farmers and landless labourers, governmentpolicyforthesectorhassufferedfromthelackofclearandstrong thrust and focus. One of the indicators of priority to a sector could be judged from budgetary allocation under various plan periods to the sector. Even though the total budget allocation for the sector as a whole has increased, the allocation to animal husbandry and dairying as percentage of total plan outlay has either remained stagnant or has decreased both in the central as well as states plan outlay. At the national level, the allocation to Animal husbandry department was 0.98 per cent during the Fourth Plan which was reduced to about0.28percentduringTenthPlancomparedtothesectorscontributionto thenationalGDPofover5percent.InthefirstthreeyearsoftheEleventhPlan the allocation has varied from 0.25 per cent to 0.28 per cent of the total CentralPlanofGOI. 1.14 Severaloftheflagshipschemes/programmesintroducedbytheCentral Government in the recent past like RKVY, Integrated Watershed Management Programme,NREGA,BRGF,etc.provideanopportunityforaccessingadditional funds for promoting activities in animal husbandry and dairy sectors. The available avenues and funds have to be efficiently accessed by the respective states. AlternateInstitutionalArrangements 1.15 With the perceptible change happening in animal husbandry and dairy sectors and to meet newer emerging challenges both at national and international scenario, it is essential for a paradigm shift in the institutional setup for meeting these challenges. Alternate and efficient institutional arrangements are called for at different levels. The efforts should be aimed at

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promoting and nurturing the grass root level participatory bodies all over the state as the organic link between the animal husbandry department and the small holders. It should also encourage and promote adoption of appropriate technologies, enhance productivity, increase effectiveness, and ensure returns proportional to the investment of time, energy and resources that small holders, particularly women, make for livestock development and management. 1.16 Most of small animal rearers are landless, small and marginal farmers and there is a unique case of scaling up to maximize profits. Increasing inputs, product developments, processing and marketing is essential to realize economics of scale. Formulation and implementation of innovative and bold policies and institutional mechanism specifically suited for different regions is highly desirable. Milk cooperatives on the pattern of Gujarat (Anand) model are not in place in many of the regions especially in rain fed areas and have also not been universally successful. Establishment of models like Producers Company in the Companies Act will provide the advantages of retaining the basic elements of cooperation while enjoying the regulatory regime as a privatelimitedcompany. 1.17 For achieving livestock feed security, the concept of establishing a National Livestock Feed Agency on the pattern of Food Corporation of India along with the National Feed Grid has been mooted and discussed at various platforms.However,thishasnotbeentranslatedintoactiontilldate. 1.18 Another important issue which is relevant for effective integration of livestock is that of credit and insurance. Credit and insuring risks of different kinds require unique innovations for coping with market failures and disasters. A total livelihood credit portfolio providing muchneeded credit facility of resource poor farmers needs to be developed and implemented. Livestock insurance though being implemented has not been scaled up to the desired level. 1.19 Someoftheareaswhichrequirefocusare: a) Increasing involvement of community organizations in decisionmaking has become the common agenda of all developmental programmes that are initiated by the government. However, in animal husbandry schemes it is more of a top down approach or target oriented schemes. Convergence of AH activities holistically as a significant component in

20

natural resource management holds considerable promise. For realising this,aparadigmshiftisnecessaryforeffectiveinvolvementofcommunity basedorganizations. b) Instead of the State departments taking complete responsibility in the area of providing AI and minor veterinary services, major responsibility could be entrusted to well established NGOs, private institutions, etc., withawelldrawnmonitoringandevaluationstrategy. c) With the amendment to Part IX of the Companies Act made in 2002, considerable scope exists for promoting Producer Companies in agricultural sector. Presently, more than 150 producer companies have been established and operating in the country. However, such companies dealing in animal husbandry sector are very few and such alternate institutions are relevant in rainfed areas. NDDB has been working on establishinggreenfieldproducercompaniesindairysectorforharnessing the benefits available for a producer company while at the same time retaining the basic structure of cooperatives. Such initiatives need to be exploredforotherlivestockproductsalso.

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CHAPTERII II.GrowthofAnimalHusbandryandDairySectors 2.1 The 11th Plan document has set a target of achieving an annual growth of67percentinthesectorasawholewithmilkgroupachievingagrowthof5 per cent per annum and meat and poultry group achieving a growth of 10 per cent per annum during the Plan period. This has been considered essential for achieving an overall growth of 4 per cent in agriculture sector during the period. 2.2 The deceleration in growth of crop sector over the years has been the major concern which is limiting the overall growth in agricultural sector. Fortunately, the growth rate in livestock sector has been relatively steady compensating for the slow growth in crop sector. However, a sign of decelerationisalsoseeninthelivestocksectorwhichcouldmainlybeascribed tosharpdeclineingrowthofmilksector. GrowthinvalueofOutputfromLivestockSector(at199394prices) SlNo. Item GrowthduringPlanPeriod(%) 8th 9th 10th 1 ValueofoutputfromAgriculture 3.26 1.39 1.70 2 Valueofoutputfromlivestock 4.01 3.45 3.90 3 Milkgroup 4.25 4.07 3.19 4 Meatgroup 4.17 2.70 4.91 5 Eggs 4.41 4.44 7.26 6 Woolandhair 3.51 2.93 0.05 7 Dung 0.92 0.03 3.96 8 Incrementinstock 15.56 3.48 11.57 2.3 Considerable variation in growth rate of output of livestock sector is seen across different states. Except in the states of Andhra Pradesh, Gujarat, Himachal Pradesh and Uttar Pradesh which have achieved a growth of more than 5 per cent per annum between 8th and 10th Plan, the growth in remaining states have remained below 4 per cent. A slow growth in potential states like Punjab, Haryana, Maharashtra, Karnataka and Rajasthan is an issue of concern andthereasonsforthisneedtobecriticallylookedinto.

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Averagegrowthinoutputoflivestockduring8th to10th Planperiod 2.4 Average contribution of milk sector to the total output from livestock sector is about 68 per cent and in the states of Gujarat, Haryana, Madhya Pradesh, 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 the overallgrowthoflivestocksector.Sharpdeclineingrowthofmilksectorduring 10th Plan might be due to lower investments in this sector post Operational FloodwhichwasbeingimplementedbyNDDB.

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2.5 GrowthinPoultrysector,especiallyintheeggproductionhasbeenquite encouraging during the past three decades. The average annual growth in egg production which was around 4.5 per cent during 8th and 9th Plan increased to 7.26 per cent during 10th Plan period. The sector witnessed considerable turmoil due to outbreak of Avian Influenza during 2006 and 2007 and in the firsttwoyearsofthe11thPlanaverageannualgrowthhasbeenaround5.2per cent. The sector as a whole has made significant progress over the years and thecountryranks4thineggproductionintheworld.GrowthinoutputofMeat sectorhasmoreorlessremainedstagnantataround4percentannually.

24

CHAPTERIII IIIPotentialforGrowthinAnimalHusbandryandDairySectors 3.1 Potential for growth in animal husbandry and dairy sectors varies considerably across the states and is governed by a host of factors viz. geographical conditions, crop production, climatic conditions, socioeconomic dynamics, outlook of the state towards development of these sectors and financialinvestmentmade. 3.2 Future growth in animal husbandry and dairy sector would primarily be market driven growth and depend on how well the marketing strategies are conceived and put in place. With the speedy economic growth in the country and higher disposable incomes, the needs and wants of the domestic consumers have considerably changed. However, adequate efforts have not been made to understand the emerging needs and wants. Further, the required infrastructure and strategic plans for marketing and branding of dairy andotherlivestockproductshavenotbeenputinplace. 3.3 Thestrategyforgrowthinanimalhusbandryanddairysectorsshouldbe oriented primarily towards developing a marketled growth and exploit the vast potential available both in the domestic as well as export market. While creating the necessary infrastructure and putting in place relevant institutional mechanisms, focus has also to be made towards developing market intelligence(bothdomesticandinternational). MilkSector 3.4 The success of growth in milk sector over the years could primarily be ascribed to establishment of well developed market linkages and marketing infrastructure. Implementation of Operation Flood Project by National Dairy Development Board (NDDB) helped in development of marketing aspects at a very fast pace. A sharp decline in growth of output from the milk subsector is ofconcernasthissectorcontributestoabout70percentofthetotaloutputof thelivestocksector.Itisessentialthatthepotentialforgrowthinmilksectorin these states should be fully harnessed by creating overall enabling conditions, higher investments, focused approach and infrastructural development. The states of Punjab, Haryana, Gujarat, Karnataka, Tamil Nadu, Rajasthan and Andhra Pradesh have potential for achieving higher growth rates of 6 8 per centduringtheremainingpartof11thPlan.

25

3.5 For achieving the targeted production of 180 million MT of milk by 2020 the orientation has to be essentially directed towards productivity enhancement of cows and buffaloes. Quantum jump in productivity is possible through innovative approach in breeding, feeding and management aspects. The Punjab governments steps in encouraging setting up of hitech commercial dairy farms, private investments being made in Andhra Pradesh, verticalintegrationofdairyanimalsoncommerciallinesinKarnatakaaresome of the positive indicators that the approach is slowly shifting towards productivityenhancement. 3.6 In the present day market driven economy, providing value addition to raw material always pays higher dividends. However, this key component has been addressed inadequately in the milk sector. A whole set of issues on policy, regulatory mechanism, infrastructural development, capacity building, institutional setup, etc., have to be addressed. Currently, only 1617 per cent of the fluid milk is being processed in the country of which buffalo and cow milkaccountfor55percentand45percentrespectively.Ofthetotalcowmilk being processed 26 per cent is from indigenous cow milk and the rest from crossbred cow milk. It is essential to enhance the quantum of milk being processed to make it safe for consumption and increase its keeping quality. The process of value addition begins from the moment milk is drawn from cow/buffalo;andateverystepfromproductiontoconsumptionthereisample scopeforvalueaddition. 3.7 Almost 70 per cent of milk is consumed as liquid milk and conversion of milk into various value added products is to a very limited extent, especially in the organized dairy sector. Anand Cooperative Milk Union (AMUL), Gujarat, has been the pioneer in diversification process and manufactures a range of value added milk and milk products on commercial basis. Some of the other Cooperative Milk Unions like KMF in Karnataka; MILKFED in Punjab; SARAS in Rajasthan; and VERKA in Haryana have also been performing considerably well inprovidingvalueadditiontomilkandmilkproducts. 3.8 Some of the areas which need to be focused for value addition in dairy sectorare: a) The extent of collection and processing has to be enhanced. A target of enhancing milk processing from current level of 1617 per cent to at least25percentinthenextfiveyearshastobeset.

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b) Average collection of marketable surplus milk by organized dairies (both cooperative and private) is only to an extent of 30 per cent except in Gujarat where 85 per cent of surplus milk is collected by Dairy Federation. For enhancing production and collection of liquid milk, each ofthestateshouldcreate23newmilkshedareaseveryyear. c) TheNationalDairyPlanenvisagesthatforachievingthetargetedgrowth in dairy sector, the handling of marketable surplus by private and cooperative institutions has to essentially increase from current level of 50 million Kg/ day to 160 million Kg/ day by 202021. For achieving this, all producers/processors should develop a milk collection network on themodelofGujarat. d) At least 68 zones which have potential for high milk collection and processing facilities (like Kolar area in Karnataka) should be identified anddevelopedasexportpromotionzones. e) Traditional Indian dairy products which have huge potential for value addition and export have not been focused. More research has to be done in indigenous milk products and organized dairy processing plants shouldessentiallyharnesstheexistingopportunity. f) Training and capacity building in the area of value addition has been neglected. Focused training mechanisms at different levels need to be developed and implemented. Adequate number (about 100) of Polytechnics may be established for imparting a 2year certification course. MeatSector 3.9 For accelerating the growth in meat sector there is a need for providing greater assistance to the sector in terms of more public funding through central assistance/ schemes and enabling policy environment. Presently, no Central assistance or schemes are available for this sector and even the incentives given to the sector in the form of export subsidy, etc., have been gradually withdrawn. The restrictions imposed by OIE are posing hindrance to export.Thecertificationprocessneedstobestreamlined. 3.10 Value addition in meat sector has been almost nonexistent except in case of buffalo meat processing which is primarily meant for export market. The top most priority in meat sector should be to ensure production of safe and quality meat and promote the concept of FarmtoFork in a sustained manner. Livestock markets and abattoirs are mostly in unorganized sector and for making the meat sector more vibrant, profitable, export oriented and

27

provider of safe meat, it is necessary that a perceptible shift from unorganized to organized sector takes place. Currently, only buffalo meat export is well organized and 0.5 million tonnes of buffalo meat worth US$ 600 million was exported in 200809. The potential which exist for export of buffalo meat and poultry products especially to Asian and African countries should be exploited asanimmediatestrategy. 3.11 The Meat and Poultry Processing Board setup recently in 2009 by the Ministry of Food Processing would provide considerable impetus for meat processing sector. However, the production side still remains unaddressed. With the likelihood of CODEX standards becoming applicable in the next four years time, the traceability issue would be a major concern for meat export sector. For overcoming this problem, probably in future, large commercial meat farms may have to be set up exclusively for rearing animals for meat purpose. 3.12 Very little effort has been made by Animal Husbandry department both at state and central level for development and growth of small ruminant sector.Presently,noeffectivecentrallysponsored/centralsectorschemesare available for providing much needed assistance. The vast potential of developing goat sector, which exists in some of the regions like Bundelkhand, partsofRajasthanandHimachalPradeshneedsto bebeneficiallyharnessed. A focused approach with higher investment, community approach, establishing meatprocessingplantanddevelopingadequatemarketlinkagesistobemade. 3.13 Development of sheep sector has been at crossroads. The population has stagnated during the last two decades except for a marginal increase of about 6 per cent between 1997 and 2003. The wool production has also remained constant at 40 million kg, of which 4 million kg is of fine wool. The trade policy of permitting import of wool under OGL has affected domestic traditional market. A clear cut policy direction is needed on priority as to whether the focus should continue to raise sheep for wool production or the focusshouldshifttowardsmuttonproduction. 3.14 The North Eastern region holds considerable potential for developing Piggery sector as the pig husbandry is the most important activity in the states of North East especially in the tribal areas. Even though more than 80 per cent of the pork produced in the country is consumed in north eastern region, no serious attempts have been made by the state governments, central

28

government or North Eastern Council in promoting pig production on commercialbasis. PoultrySector 3.15 Poultry sector in India, over the years, has slowly transformed from a meagre backyard farming to a well structured, organised industry on commercial lines. The organised sector of the industry has addressed all the interlinked issues like breeding farms, hatchery, feed mills, equipment manufacture, feed supplements, drug and vaccine production, etc. in a holistic manner. However, marketing of the final product is the weak link in the chain and is still under the control of traders. Potential for further growth in this organised sector has to come primarily through focusing on achieving improved Feed Conversion Ratios (FCR) and tackling of outbreak of diseases likeAvianInfluenzaandotherneweremergingdiseases. 3.16 Promoting of rural backyard poultry has to be considered essentially as a sector limiting itself for providing livelihood opportunities to landless and resource poor farmers since it is difficult for this sector to compete with well organisedcommercialsector. 3.17 Considering the performance of different states in implementation of various programmes of animal husbandry and dairy sectors, absorption capacity and constraints of manpower and infrastructure, the Committee is of the view that it is unlikely that we would be in a position to achieve the set target of 67 per cent growth per annum during the 11th Plan period. As such, the target for overall growth rate in livestock sector may have to be revised to 5percentduringthecurrentPlanwitha4percentgrowthrateformilksector and68percentforpoultryandmeatsector.

29

Annualgrowthrateinlivestocksector(currentandpotential)inmajor StatesofIndia State CurrentAnnualgrowth PotentialAnnualgrowth rate(%) rate(%) AndhraPradesh 5.56 68 Assam 2.19 34 Gujarat 5.47 68 Haryana 3.40 56 HimachalPradesh 4.33 56 Karnataka 2.73 56 Kerala 0.95 23 MadhyaPradesh 2.68 56 Maharashtra 3.77 67 Punjab 3.48 68 Rajasthan 3.32 67 TamilNadu 2.40 56 UttarPradesh 4.09 67 WestBengal 2.66 34

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CHAPTERIV IVPublicInvestment TenthPlanOutlayandExpenditure 4.1 The outlay and expenditure during the 10th Plan period for the three departments of the Union Ministry of Agriculture, namely the Department of Agriculture and Cooperation (DAC), the Department of Animal Husbandry, Dairying and Fisheries (DAHDF) and the Department of Agricultural Research & Education (DARE) is presented in Table 4.1. As may be seen, a substantial increase in outlay was provided to Ministry of Agriculture since 200405 taking the Central Government share of total planexpenditureonAgricultureandalliedsectorsfrom33percentin2002 03 to 44 per cent in 200607. The major expenditure was however on crop sector. The Ministry introduced several new programmes during the 10th Plan aimed at diversification of agriculture, strengthening technology validation, demonstration and dissemination, water saving and developmentofinfrastructure. 4.2 Despite larger allocation to the agriculture and allied sector, the share of public fund to Department of Animal Husbandry & Dairying has been very low. The DAHDF accounted for 11.87 per cent of the total outlay of the Ministry of Agriculture during the 10th Plan. Out of Rs. 2500 crores allocated, the actual expenditure was Rs. 2345.60 crores by DADF. Out of this, the expenditure on fisheries was Rs. 570.33 crores and the expenditure by Department of Animal Husbandry & Dairying was Rs. 1775.24 crores. The DAHD accounted for only 8.35 per cent of the outlay madeavailabletoMinistryofAgriculture.

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Table4.1 OutlayandExpenditureofMinistryofAgricultureDuringthe TenthFiveYearPlan DAHDF CurrentPrice as DAC DAHDF DARE Total %of S.No. Period Total Outlay forMoA TenthPlan 1. Outlay(2002 13200.00 2500.00 5368.00 21068.00 11.87 07) 200203 2. 1655.94 238.90 650.75 2536.95 (Expenditure) 200304 3. 2050.34 271.76 748.98 3068.67 (Expenditure) 200405 4. 2656.26 566.22 816.01 4035.72 (Expenditure) 200506 5. 3817.46 589.37 1046.75 5453.37 (Expenditure) 200607 6. (Revised 4860.00 679.32 1430.00 7040 Estimate) Total 7. 15040.00 2345.57 4692.49 22134.71 Expenditure DAC=DepartmentofAgriculture DAHDF=Deptt.ofAnimalHusbandry,DairyingandFisheries DARE=DepartmentofAgriculture,ResearchandEducation DAHD=DepartmentofAnimalHusbandry&Dairying Fish=Fisheries

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Table4.2 OutlayandExpenditurebyDepartmentofAnimalHusbandryDairying &FisheriesinTenthFiveYearPlan CurrentPrice DAHDF Fisheries DAHD DAHDas S.No. Period %oftotal outlayforMoA 1. Tenth Plan Outlay 2500.00 740.00 1760.00 8.35 (200207) 2. 200203 238.90 75.90 162.92 (Expenditure) 3. 200304 271.76 68.72 203.00 (Expenditure) 4. 200405 566.22 150.51 415.12 (Expenditure) 5. 200506 589.37 109.00 480.00 (Expenditure) 6. 200607 670.32 166.12 513.20 (Expenditure) 7. Total 2345.57 570.33 1775.24 DAC=DepartmentofAgriculture DAHDF=Deptt.ofAnimalHusbandry,DairyingandFisheries DARE=DepartmentofAgriculture,ResearchandEducation DAHD=DepartmentofAnimalHusbandry&Dairying Fish=Fisheries EleventhPlanOutlay 4.3 The 11th Plan outlay for the DAHDF is Rs. 8174 crores. The pace of expenditure during the last two years has been slow. Against an allocation of Rs. 910 crores during 200708, an expenditure of Rs. 784 crores was made.Similarly,during200809,againstanallocationofRs.1000crores,an expenditure of Rs. 872.86 crores has been made. Similarly, in 200910 the

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original allocation of Rs. 1100 crores has been revised downwards to Rs. 920 crores. It is feared that the total expenditure during the 11th Plan will notreachevenRs.5000crores. 4.4 The Animal Husbandry & Dairying contributes between 25 per cent to30percentoftheGDPoftheagriculture.Despitethissignificantsharein GDP, 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 4 percentduringthe10thFiveYearPlan. StatePlans 4.5 The resources made available under state plans to the Animal Husbandry & Dairying have also been insufficient and small in almost every state of India. In states also the bulk of the expenditure has been made on the crop sector and Animal Husbandry & Dairying has not received the adequateshareintheresourceallocation. ExternalAssistance 4.6 Dairy sector has received massive external assistance. Operation Flood I was implemented through funds (over Rs. 100 crores) generated from the sale of commodities (SMP and Butter Oil) donated by European Union. IDA of World Bank assisted state dairy projects in Rajasthan, Madhya Pradesh and Karnataka. Operation Flood II and III also received assistance from IDA of World Bank. But for these assistance, it would have not been possible for India to make a significant contribution in increasing milk production and processing capacity. A National Dairy Plan prepared by National Dairy Development Board has been submitted to the World Bank forassistanceandisunderdiscussion. 4.7 Livestock development has been a component of a number of agricultural projects assisted by World Bank. This includes UP Diversified Agriculture Project, Assam Infrastructure and Agriculture Development Project, Rajasthan Agriculture Development Project, Watershed Development projects in various states, and is currently a component in

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Assam Agriculture Competitiveness Project, Tank Development Project in AndhraPradesh,etc. BilateralAssistance 4.8 Animal husbandry has received assistance under a number of bilaterally assisted projects. DANIDA and CIDA have assisted projects in various states, including Tamil Nadu Livestock Development Project. Most oftheseprojectshavebeencompletedwithpositiveresults. RashtriyaKrishiVikasYojana 4.9 AnovalschemetosupportagriculturedevelopmentRKVYhasbeen introduced in the 11th Five Year Plan with a provision of Rs. 25,000 crores. Animal Husbandry & Dairying (and Fisheries also) are eligible for assistance underthisscheme. However, theallocationtothe animalhusbandrysector has been quite poor. During 200708 the Animal Husbandry sector (includingfisheries)receivedRs.111.25crores(9.53percent).During2008 09 the sector received Rs. 394.29 crores (14.56 per cent). The poor allocation made to the Animal Husbandry sector is basically due to inability toformulateprojectsfollowingtheguidelinesofRKVY. 4.10 The Agriculture Departments function as nodal departments for RKVYintheStates.TheAnimalHusbandryofficerscomplainofbigbrotherly approach of state agriculture departments in matters of allocation of resources. The Union Minister for Agriculture, Shri Sharad Pawar has advised all the state governments to give favourable consideration to Animal Husbandry sector and allocate at least 30 per cent of the resources duringaparticularyeartoAnimalHusbandryandDairying.

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PrivateSectorInvestment 4.11 There is hardly any private sector investment in Animal Husbandry except in states like Gujarat and Rajasthan where people assist in the development of Gaushala and Gosadans. In the case of dairy development, with the liberalization of economy, considerable private sector investment has been made in the processing, value addition and marketing. The dairying is no longer a monopoly of the cooperative sector; as a matter of fact privately owned dairy plants account for 51 per cent of the total milk processedinIndia.Thedairyprocessingwasnotincludedunderthepriority sector lending by the banks. In his budget speech 2009, the Finance Minister announced the Government decision to treat dairying as a Food Processing Industry which would extend priority sector lending besides providing a host of concessions. However, a notification is awaited. With these measures, it would be possible for the private sector to invest in the processingandmarketingsectors.

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CHAPTERV V.InputsandServices Background 5.1 Animal husbandry has been recognized as an important source of livelihood across the country, particularly in providing gainful selfemployment to Below Poverty Line (BPL) families. This is because of the growing demand formilkandotheranimalproductstotheextent,thattheproduction fromthe present level will have to be doubled during the next 15 years. As most of the BPL families in rural India maintain livestock for supplementary income, this is an excellent opportunity to improve the productivity to meet the growing demand while enhancing their incomes. However, the success depends on the abilitytoimprovethequalityandyieldwhilereducingthecostofproductionto avoidpressurefromtheinternationalmarket. 5.2 Indeed, the lack of quality and inefficiency of livestock development in most of the states are bottlenecks for the farmers engaged in the livestock sector,toharnessthepotentialandtoenhancetheirincome. 5.3 The important reasons for suboptimal performance of the livestock developmentprogrammesinIndiaare: Lackofawarenessamonglivestockownersaboutopportunitiesandbest practicesavailabletoimprovetheproductionandprofitmargins; Shortageoftrainedhumanresourcestoprovidetechnicalservicesatthe doorstepsoflivestockowners; Inadequate and untimely supply of critical inputs to ensure optimum production; Involvementof multipleagenciesengagedinvariousaspects oflivestock developmentwithoutanyfocussedgoals;and Lack of value chain approach to establish coordination among all the playerstoenhancetheproductionandprofitability 5.4 Due to the above hurdles, livestock husbandry is not able to register significant progress in spite of its inherent potentials and huge financial outlays. To overcome this problem, it is essential to identify various activities

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and players in the value chain under different production systems in the livestocksector. ValueChaininLivestockHusbandry 5.5 Among various species of livestock, milch cattle and buffaloes are the major contributors to the economy as milk is the main livestock product contributing to the National GDP in India. Starting from livestock breeding to milk processing and marketing, there are several players involved in the sector between the dairy farmers and the milk consumer. Figure 1 lists some of the majorplayersinthevaluechainofdairyhusbandry. Figure1:ValueChainforDairyDevelopment
Water conservation/ supply Plant breeders Soil scientists Seeds Fertilizers Feed/Minerals Micro-finance Monitoring / Evaluation Milk collection Milk processing/ marketing Training / Capacity building

Crop residues Fodder production Fodder producers / Traders Pasture development Small holder/ Dairy cattle

Hub/ Local org.

Consumer

Paravet Veterinarian Breed selection

Breeding services Superior germplasm Vaccinations Performance evaluation Deworming Disease Investigation Lab services Veterinary services Input supply 5.6 Similar value chains can be developed for meat, egg, fish and wool production. Although, we observe that the dairy farmers are availing the breedingandveterinaryservicestoproducemilkandsupplytomilkprocessing units through their cooperatives or middlemen, there are many agencies involved in providing support to these farmers directly or indirectly. Dairy farmers need the following services and inputs for successful management of theirenterprises:

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Services Breeding Pregnancydiagnosis Vaccination Deworming Veterinaryservices Testingagainstvariousdiseases(diseaseinvestigation) Nutritionalanalysisofvariousfeedingredients Adviseoffoddercultivationandbalancedfeeding Milkcollection,chilling,marketing Efficientuseofdungandcarcass Inputs Fodderseeds Fodder,feedandconcentrates Mineralandvitamins Dewormers,vaccines,medicines Milkingvessels,milkingequipments Variousfarmequipments 5.7 Thesuppliersoftheaboveservicesandinputsarepartofthevaluechain of the dairy industry. Availability of these services and inputs well in time are very critical for ensuring the profitability of dairy entrepreneurs. Introduction of various efficiency measures will not only enhance the production but also reducethecostofmilkproduction.Hence,itisadvisabletodevelopasuitable strategyfortimelysupplyofservicesandinputstolivestockowners. AgenciesintheValueChain 5.8 Presently, the following agencies are involved in providing the above services. While some of them are engaged as service organisations on behalf of the Government or other development organisations, others are engaged forgenerationofemploymentandprofitsforthemselves. Table 5.1 indicates the role of various players involved in different activities whicharerelatedtotheenhancementoflivestockproductivity.

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Table5.1:AgenciesEngaged
Agencies Semen Production Activities

AI/ PI

Minor Veterinary Services

Major Services

Input Supply

Other Inputs

Credit

Remarks

Vaccination Animal Husbandry Departments Livestock Development Boards Dairy Federations Private Agencies / Manufacturers DI Laboratories / Vaccine Production Units Universities / Veterinary Colleges NGOs Private Veterinarians Banks / Micro Finance Units

Deworm - ing

DI Surveillance

Feed

Mineral Mixture

Fodder Seeds Free

Free Nominal Cost On Payment Free to AHD Sponsored Research Free / subsidised On Payment Business Terms

RoleofDifferentAgencies 5.9 Animal Husbandry Department: While the Animal Husbandry Department is the most important agency engaged in livestock development, the activities carried out by the department are mainly based on the availability of funds to cover different activities in smaller pockets. The progress of these activities are measured on the basis of the budget spent and physical targets covered without any evaluation of the quality of services provided and the impact of the work on the overall productivity of the livestock and the benefits derived by the farmers. In the absence of any parametersformeasuringtheperformance,theimpactisnotvisible. The AHD is handicapped in providing all the required services to livestock owners due to lack of adequate funds to meet the field demands and a large number of vacancies at all levels. For instance, inputs such as vaccines, medicines and fodder minikits provided to veterinary dispensaries is not adequate even to cover 2530 per cent of the demand. With regard to the

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veterinary services, with over 2530 per cent posts of veterinary doctors vacant, many veterinary hospitals are operating without any veterinarians. Furthermore, in the absence of clear cut priorities given by the AHD, the officers often set their own priorities, depending on their convenience, inputs available and benefits, rather than the needs of farmers. There are many instances where farmers are unable to avail the breeding services from other agencies,whicharemoreefficientandeconomical,buttheofficersoftheAHD continue this work instead of concentrating on major veterinary services, allowingthebreedingservicestobeperformedbysemiskilledparavets. 5.10 Livestock Development Boards: Livestock Development Boards are the latest creations at the instance of the Government of India to implement the programme under the NCPBP. The mandate of the Livestock Development Boards is to carry out breeding, extension and management to enhance livestock productivity. However, the implementation of the programme is dependent on the staff, deputed from the AHD, who are partially occupied with various administrative duties. Thus, the Livestock Development Boards have not been able to make significant contribution to livestock development in many states, while a few states have encashed this opportunity for acceleratingtheprogress.Although,theBoardshavesetcleartargetsforwork outputs,intheabsenceofsystematiclinkagewiththeservicesandmarket,the impacthasnotbeenverysignificant. 5.11 Dairy Federations: Since the launching of the Operation Flood in the 1970s, most of the states have promoted Dairy Cooperatives and their State level Federation to organise the marketing of milk and other products. This programme was launched as a viable business model to organise marketing and also to establish a value chain through various backward linkages. These servicesincludedAIthroughparavets,diseasediagnosticservices,cattlehealth camps, vaccinations, production and distribution of cattle feed, etc., which indeed enabled the dairy farmers to improve their performances and profitability.However,thequalityofserviceshavebeenwidelyvaryingintheir efficiency and coverage. Many of the Federations had to discontinue some of the services due to constraints of finance, human resources and poor management of the core business of milk processing and marketing. Often, they had to discontinue to avoid duplication of similar services by other agencies. Presently, very few State Dairy Federations are in good financial health to continue some of these activities efficiently. Nevertheless, their

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approach and operations indicate the potential to deliver various services to rebuildthevaluechain. Indeed, this is the only sector where business planning is done to a great extent and policy for clean and economic production to meet the future challenges are discussed, after reviewing the present value chains. Empowering the Dairy Federations to take a lead to reestablish the value chain based on the business opportunities can accelerate the growth in the livestock sector and enable the dairy husbandry programme to provide gainful selfemploymenttosmallfarmersinthecountry. However, many of the State Dairy Federations in the country are suffering due to poor administration, weak business plan and overdomination of vested interests at the cost of the dairy farmers. To overcome this, a new generation Cooperatives and Producer Companies have emerged on a pilot scale whose performanceonawiderscaleisyettobeobserved. 5.12 Biological Production Units: Many of the States have their Veterinary Biological Units for production of vaccines, antigens, diagnostic kits and also for providing disease investigation services to farmers through decentralized disease investigation laboratories. Many of these laboratories have successfully producing all the required vaccines. However, providing support servicestothedecentralizedDIlaboratoryandtakingupdiseasesurveillancein the field has been a weak link. This being an independent activity providing critical support for animal production, additional capacity building and strengtheningisrequired.Biologicalproductionunitsanddiseaseinvestigation laboratories play a very critical role in promoting clean milk production while bringingdownthecostofproduction. 5.13 State Agricultural Universities: The policy behind the establishment of State Agricultural Universities, Veterinary Colleges and KVKs was to support the farmers by way of transfer of technology through training and field demonstration as well as to design research studies based on the field problems. However, many of the veterinary faculties in Universities are often isolated from the field. As a result, this close interaction between the farmers and scientists has been disconnected. This has severely affected the delivery of services and transfer of new technologies. Nevertheless, some of the Universities are involved in breeding of forage crops and development of good

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productionpracticesforoptimisingthefodderyields.Goodworkhasalsobeen done by many Research Institutions in development of superior quality feeds and mineral mixtures, mineral mapping of the field areas to identify the mineral deficiencies in different regions, etc., with good extension services. Thebenefitsoftheseresearchescanreachtheneedyfarmers. There is an urgent need to understand the communication breakdown between the farm and the laboratories and strengthen the linkage to ensure that the Research Institutions form an active and important part of the value chain. 5.14 Voluntary Organisations: There are a few important NGOs currently engaged in promotion of livestock production in the country. Prominent among them are BAIF, IndiaGen and JK Trust which are engaged in providing livestock breeding and minor veterinary care services in many States. Apart from these organisations, there are also others like Pradan, Anthra, Nimbkar Research Institute, etc., which are involved in promotion of small ruminants in different parts of the country. The services of these agencies, particularly of those engaged in providing livestock breeding services have been very effective and very well accepted by the farmers, even on payment of service charges. Many of these agencies are working in close coordination with the respective State Governments as well as the Government of India. These agencies have a long standing reputation and ability to extend the services, if financial support and wholehearted cooperation are extended by the State AHDsandtheDairyFederations. Apart from providing breeding services and animal health care, NGOs can also take up miniveterinary services such as deworming, vaccination, disease investigation, disease surveillance, supply of cattle feeds, mineral mixture, fodder seeds, etc., at reasonable cost, under strict monitoring of the State Veterinary Department or donor agencies. A strong coordination between the AHD and these NGOs can help the State in expanding the programme at a low cost while saving precious time of the veterinary graduates working in the Departmenttotakeimportantandhigherresponsibilities. 5.15 Private Veterinarians and Paravets: There are many private veterinarians who are involved primarily in providing veterinary services and some of them are also engaged in providing breeding services. However, the

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qualityofserviceisquestionableandthecostsareveryhigh,mainlybecauseof lack of monitoring on the quality of their services. As their objective is to generateincomeforthemselves,strictcontrolonthemisnecessarytoprevent exploitationoffarmers. Many State Governments have promoted the appointment of Paravets in the State. However, many of them have not been successful, particularly where they are not able to get the assured and steady supply of liquid nitrogen and frozen semen at their places of work. In many states, their working is totally dependent on the mercy of the veterinary officers and such a programme is not sustainable. Promoting the services of paravets can be a sustainable activity, if they are assured of regular supply of inputs and their quality of servicesareperiodicallymonitored. 5.16 Private Business Enterprises: There are many pharmaceuticals and feed manufacturers in the private sector who are primarily engaged in providing inputs through some of the above agencies on demand basis. Primarily, these agencies having business motivation, require regular monitoring about the quality and price by the Government authorities. As their operational and overheads are high, they will not be able to compete with other agencies in providingbreedingandhealthcareservicesdirectly. 5.17 Banks and MicroFinance Institutions: Microfinance plays a very significant role in livestock development in the country. It has been reported that over 25 per cent of the disbursements through leading microfinance agencies have been invested in livestock sector. This indicates the potential of the sector and the scope for turning livestock husbandry into an important income generation activity in rural India. Microfinance agencies and banks can play a very significant role by establishing a link with various service providerstoensurethatthefarmersareabletoavailtheseservicesoncredit. StrategyforDeliveryofInputsandServices 5.18 For establishing an efficient value chain in dairy husbandry, the milk processing unit either operated by the Federation or the new generation cooperatives can assume the prime position for establishing various support services and linkages. There can be a consortium of AHD and milk processing

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agencies to bring in all the players and identify their responsibilities and targets. While the Agricultural Universities can take up breeding of important fodder crops and varieties and develop best fodder management practices and coordinate fodder seed production, the Veterinary Universities or Animal Science Department of the Agricultural Universities can take up research on genetic improvement of livestock development of superior quality inputs such assemen,vaccinesandbiologicalsdevelopmentofcompletefeedsandmineral mixtures, utilisation of nontraditional and unutilised agricultural byproducts for feeding animals and other research activities related to animal genetics, physiology and health. The outcome of the research can be passed on to private agencies and Farmers Organisations for the development of products andservicesatreasonablecosts. Awareness on the opportunities for livestock development and extension of services like breeding, pregnancy diagnosis, vaccination, deworming and distribution of feed, fodder seeds and mineral mixture can be entrusted to Paravets or Voluntary Organisations engaged in such activities under the strongmonitoringoftheAHDortheDairyconsortium. The AHD may concentrate on veterinary health care, disease surveillance and organising infertility and other health camps, and strong monitoring of the breedingandhealthcareactivitiesundertakenbytheParavetsandNGOs. The Dairy Federations which have rich experience in taking up production of cattle feed and mineral mixture should expand this activity, while allowing eventheprivateplayerstoestablishtheirunitstocreatehealthcompetitionin thefield.Thedairyfederations/newgenerationcooperativesshouldalsotake the responsibility of organising milk collection at various levels through village level/blocklevelcooperativesorusergroups/dairyfarmersorganisations. They can also establish a fair link between the farmers and microfinance organisationsaswellasserviceorganisations,playingtheroleoffacilitator.All the payments for the services can also be coordinated through the milk processing units as they have opportunity to deduct the service charges from themilksuppliedbythefarmers.

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Similar value chains will have to be prepared for the meat, poultry and fishery sectors and players such as various input producers, meat processors and distributorswillhavetobeidentifiedandameaningfulnetworkwillhavetobe established. Fortunately, there are many success stories in the meat, poultry and fishery sectors and there is a good scope for promoting Public Private Enterprises to promote these sectors. In this process, the role of all the agencies isidentifiedandtheirperformancecanbedirectly measured interms of their contribution to productivity enhancement. This will also prevent duplication of work, which will be a significant saving in the Governments spending. PromotionofForageProduction 5.19 Availability of good nutritious forage plays a significant role in turning Dairy Industry into a profitable venture. Therefore, emphasis should be given to promote forage production directly by the dairy farmers. Apart from livestock owners, other farmers can also take up fodder production for supplying to the needy farmers. Many farmers in periurban areas take up fodderproductionontheirownandsellinlocalmarket. It is important to note that presently only 4 per cent of the cropping area is underfoddercultivationandover55percentofthefodderforlivestockismet from crop residues and agricultural byproducts. Hence, it is necessary to take a holistic view of the available fodder sources and try to optimise the productionandsupplyusingallthesources. The most important step is to promote selected varieties of food crops which can yield higher quantity of crop residues having fodder value. Some of these cropsaresorghum,maize,bajra,paddy,wheat,groundnutandawiderangeof pulses. Plant breeders in India, of late, have identified varieties which have higher quality and yield of crop residues, without any reduction in the yield of grains. Serious attempts should be made to popularise the cultivation of such crops by involving the Agriculture Extension Division, under the ATMA programme and KVKs at the district level. It is necessary to work out the cost benefitanalysisaswiththeincreasingvalueforthefodder,itislikelythatsuch fodder varieties may generate higher income compared to high yielding varietieswheretheyieldsofcropresidueshavebeensignificantlylow.

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Efficient use of crop residues by proper treatment, storing and processing can furtherreducethegapbetweenthe demandand supply.Thisshould betaken up simultaneously along with treatment of fodder crop production in the milk shed areas. A striking example is conversion of paddy straw into silage in bulk after treating with urea, instead of following the old recommendation of urea treatmentofpaddystrawonasmallscale. For taking up direct production of fodder by dairy farmers, the critical factor is timely availability of required fodder seeds, apart from availability of land and water resources. The cultivation of fodder crops is also influenced by profitability in milk production, efficient marketing of milk and remunerative price for the commodity. Thus, economics of fodder crop production is not only influenced by the yield and nutritive value of the fodder, but also the productivity of the livestock which consume this fodder and transforms into milk and the value realised for milk and other products. It has been observed that whenever the dairy societies fail to procure milk or pay a remunerative price, the farmers discontinue cultivating fodder, as this venture of fodder productionisnolongerattractivetothem. Assuming that there is no hurdle in milk marketing and paying a remunerative price, the next step is to motivate the farmers to cultivate fodder crops by establishing fodder demonstration trials in different areas followed by a study of the economics of cultivation in comparison with other local crops to ensure that the fodder is also a remunerative crop. With such demonstrations, the demand for fodder seeds will increase and then the infrastructure will be strengthened for timely supply of fodder seeds. Needless to mention, the selection of suitable fodder crops is dependent on the type of soil, climate and water availability. Hence, identification of suitable fodder crops and their varieties should also be carried out periodically and farmers should be advised accordingly through the Extension Agencies. It has been observed that fodder cropscanbemoreprofitablethanmanyagriculturalcrops,providedthereisan attractive market like in some periurban areas or when farmers own high yieldinganimals.Hence,withasuitableextensionandmarketingstrategy,itis possibletopopularisefoddercropsacrossthecountry. With the field demonstrations, followed by field publicity and extension activities, many farmers will come forward to take up fodder cultivation. However, this programme should be simultaneously supported with efficient

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livestock breeding and health care services in the target areas. The Paravets involved in animal breeding and veterinary extension officers working in the AHdepartmentoftheStateGovernmentneedtomakefurtherenquiriesinthe target villages to assess the need of fodder seeds of different species and varieties. Based on this compiled information, Agricultural Universities, KVKs and the National Seed Corporation should be assigned the task of taking up fodder seed production, either independently or through progressive farmers under Contract Farming. The seed production agencies should be assured of buying the seeds for distribution to needy farmers. The seed distribution can be coordinated by the Dairy Federations through their cooperatives. This activity should be supported by field technical advisory services, by appointing forageproductionspecialiststoguidethefarmers. Many experts have observed that farmers have to invest a large sum on procurement of fodder seeds, as compared to the seeds of food crops, due to high seed rate. Hence, to encourage small farmers, fodder seeds which are priced very high may be subsidised in the initial stages, till the farmers are confidentofgettingbacktheirinvestmentwithhigherreturns. There is also a need for supporting dairy farmers to make efficient use of fodder by chopping and processing into silage and hay. Suitable schemes will have to be designed to facilitate these activities. With such a comprehensive programme,fodderproductioncanbegivenaboostasseeninmanymilkshed areas across the country and the gap between the demand and supply can be reducedsignificantly.

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CHAPTERVI VI.DevelopmentStrategy a)CattleandBuffaloes Background 6.1 Over 65 per cent of the population in India is still living in rural areas and most of them are dependent on agriculture for their livelihood. However, more than 75 per cent of them being small and marginal landholders, deprived of fertile soils and assured water for irrigation and even landless, are dependent on livestock for supplementaryincome.Livestockistheonlysourceoflivelihoodinmany arid and semiarid regions in the country and cattle and buffaloes are prominent among them. However, in spite of its economic importance, the performance of the livestock sector has not been optimum, due to nonavailability of critical inputs and services, and poor linkage with the market. Under such a situation, even these valuable assets turn into liabilities and start making negative contribution to sustainable development. We are now at the crossroads of livestock development and should not miss the opportunity of transforming this sector into a lucrative one to enable millions of small farmers and rural poor to earn theirlivelihood. 6.2 In spite of India having the largest livestock population in the world, the contribution to the national economy has been substantially low. Among the livestock, the population of cattle ranks first with 185.2 million, followed by goat (124.4 million), buffaloes (97.9 million), sheep (61.5 million) and others (16.0 million). While the population of cattle has been stable, the population of buffalo has been increasing significantly probably due to high demand for buffalo milk and meat. While buffaloes are maintained for milk production, cattle are maintained for milk as well as for use as bullocks. In fact, among the nativebreedsofcattle,therearemoredraftbreedsascomparedtomilk and dual purpose breeds. This could be the main reason for low milk yieldofIndiancattlebreeds. 6.3 Among 35 important breeds of Indian cattle breeds, Gir, Sahiwal, Red Sindhi and Tharparkar breeds were for milk, with an average milk production of 1500 kg/lactation and 68 dual purpose breeds with an

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average milk yield of 10001500 kg/ lactation (Haryana, Kankrej, Rathi, Ongole, Dangi, etc.) and the rest of the 1215 breeds were draft breeds with an average milk yield below 500 kg/lactation. Since 1950s, with the progressoffarmmechanisationinIndianagriculture,mostofthesedraft breeds started losing their importance, leading to neglect and indiscriminate breeding and resulting in a large population of non descript, low productive animals, which yield less than 200300 litres/lactation. Thus, inspite of 8 million high yielding crossbred cows, theaveragemilkyieldinIndiaislessthan1000kg/lactationascompared to 4500 kg/lactation in the western countries and over 10,000 litres in Israel. Lack of breeding and health care facilities at the doorsteps of the farmers, severe shortage of feed and fodder and poor linkages with the marketareothermajorproblemsaffectingtheproductivityofcattleand buffaloes in the country. In the absence of culling of unproductive livestock, mainlyduetosentimentalreasonsand banoncattleslaughter in many states, the population of unproductive livestock continues to grow, exerting pressure on fodder, feed and forest resources, while contributing significantly to global warming and climate change. Inefficient use of dung which can be utilised for production of biogas before converting into farmyard manure is another cause of global warming,apartfromthelossofopportunitytomeettheenergyneeds. 6.4 There is good scope to restrict the population growth while increasing the production of milk and other products through breed improvement, balanced feeding, and timely action on preventive and curativehealthcareandpostproductionsupportforenrichingthevalue chain. Hence, the development strategy should address all these problems faced by the farmers in improving the productivity and facilitate congenial conditions to earn sustainable livelihood without depletingthenaturalresourcesandtheenvironment. ConstraintsinManagementofLargeRuminants 6.5 Major issues affecting the performance of large ruminants like cattleandbuffaloesinthecountryarepresentedbelow: Over 6570 per cent female cattle are low productive, due to indiscriminate breeding and neglect, thereby turning dairy husbandryuneconomical;

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While the cows of most of the draft breeds are very low in milk production, the males have lost their utility as bullocks due to mechanisationinagriculture; In the absence of reliable data on the economics of nondescript anddraftbreedsandlossofopportunity,farmershavenointerest inselectionandmaintenanceofhighvalueanimals; Poor quality bulls used for semen collection and poor semen freezing facilities further affect the productivity of cattle and buffaloes; Poor access to breeding and veterinary care at the doorsteps of farmersisleadingtogeneticerosionandpoorhealthstatus; Poor skills of paravets are resulting in infertility and other breedingproblems; Lack of coordinated efforts for disease containment is causing majorhealthproblems; Increasing shortage of fodder and feed and poor emphasis on utilisationofcropresiduesareaffectingtheproduction; Due to nonavailability of superior quality inputs at reasonable price,farmersareexploitedbylocaltraders; Lack of breeding policy and data on performance is leading to extinction ofgoodnativebreedsandincreasingexoticblood level, causingsusceptibilitytomanydiseases; Inabilitytotakeupbiogasproductionduetooutdatedtechnology, poorservicesandhighcost; Lack of facilities for housing of unproductive and diseased animals poseburdenonsmallfarmers;

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Lack of awareness about clean milk production, poor market linkage, unfair trade practices and consumerbiased pricing for milk,whichisnonremunerativeforfarmers; Inadequate facilities for fattening of buffaloes, particularly males and processing of buffalo meat, resulting in neglect of males and poorpricerealization;and Lack of awareness among small farmers about various opportunities for enhancing the production and increasing communication gap between male extension workers and female livestockowners,causingdelayinadoptingmoderntechnologies. GoalsforDevelopmentofLargeRuminantSector 6.6 As a result of the above unsolved problems, the dairy sector in particular is not able to achieve the expected annual growth of 56 per cent. Therefore, we need to refocus on the policies and programmes of dairydevelopmenttoachievethefollowinggoals: Conservationofelitenativebreeds; Breeding and selection of superior sires and setting up of high quality semen production laboratories to promote genetic improvement; Delivery of essential services at the doorsteps of farmers through well trained paravets, supported by veterinary doctors under publicprivatepartnership; Coordinated efforts to take up preventive vaccination and health campstostampoutmajordiseases; Efficient feed and fodder management by utilising community lands,wastelandsandcropresidues; Easy availability of superior quality inputs, without exploitation by traders. Facilitiesforhousingculledanddiseasedanimalsinisolation.

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Clean milk production through awareness, timely health care and infrastructural support for efficient post handling of milk and otherproducts; Strengthening of market value chain, eliminating exploitative middlemen,ensuringfairdealforfarmers; Development of efficient farm implements to be operated by bullocks;and Development of farmerfriendly policies to promote growth and enhanceprofits. ProposedStrategyforDevelopmentofCattleandBuffaloes 6.7 To accelerate the growth and to achieve the above goals, it is necessarytopromotethefollowingactivities: 6.7.1 GeneticImprovement:Thefocusongeneticimprovementoflarge ruminants should be to enhance milk production, while conserving native breeds, including the draft breeds of cattle. The proposed activities can be grouped into research, technology development and fieldservices. Theresearchactivitiesproposedtobeundertakenbythepublicresearch institutionsandagriculturalandanimalscienceuniversitiesare: Genomic studies to identify the genes/DNA sequences for various economic traits and resistance to stress and diseases and genetic engineering to incorporate them for improvement of new progeny; Production of sexed semen and sexed embryos and creation of genebanksofexoticandindigenousbreeds; Identification of elite cows and buffaloes in the field for herd registration;

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Field data recording and establishment of national data bank for evaluation of sires under progeny testing and studying the performance and economics of various indigenous breeds and different blood levels of exotic breeds, should be the base for formulatingthenationalbreedingpolicy;and Standardisationofoestroussynchronisationtechniquetoenhance the coverage of large ruminants under artificial insemination programme. Technological developments required to promote genetic improvement are: Well coordinated programme for sire production, screening for genetically transmitted diseases, selection and evaluation of sires throughprogenytesting; Registrationofallthebullsselectedforsemenfreezingandsetting minimumstandardsforsemenproduction;and Setting up high quality semen freezing facilities in public sector as well as under public private partnership, to ensure high quality andhealthycompetition. Field services required for promoting genetic improvement of cattle and buffaloes owned by farmers are establishment of livestock breeding facilitiestoprovide breedingservicesalongwithminor veterinaryhealth careatthedoorstepsoffarmerseveninremotevillages. Presently, breeding services are provided by the Animal Husbandry Departments, Cooperatives, Dairy Federations, private and Government sponsored paravets and a few nonprofit organisations. Among them, the performance of nonprofit organisations is far more superior because of the cost, quality, efficiency and reliability. With an initial development support for 46 years, these agencies can establish their services and continue to provide breeding services without any further financial burden on the Government. In comparison to their services, the services provided by the AHD will need huge financial and human resources, which are becoming scarce. The services of these nonprofit agencies can also cover distribution of critical inputs such as fodder

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seeds, feeds, mineral mixture, dewormer, etc., apart from carrying out vaccination and minor veterinary services. The paravets working independently or with the support from AHD have not been providing reliable services, mainly due to poor technical skills, poor quality semen used, unassured supply of inputs and lack of supervision. This scheme needs to be strengthened by placing them directly under Dairy Federations or NGOs for quality control and regulation of the service feeschargedtofarmers. The paravets and the development agencies engaged in providing breeding services may also be entrusted with the responsibility of identifyingeliteanimalswhichcanberegisteredandusedforproduction of bull mothers and breeding bulls required for future breed improvement. 6.7.2 LivestockHealth:Providingtimely,preventiveandcurativehealth care can play a significant role in promoting economic and clean milk production. Therefore, the following activities need to be promoted to improvetheproductionoflargeruminants: Regular vaccinations, creation of diseasefree zones and stamping outofmajordiseases; Facilities for production of vaccines and diagnostics under Public PrivatePartnership; Establishment of Disease Investigation Labs at the district level and linking them with livestock breeding centres to provide diagnosticandadvisoryservicesthroughBlockVeterinaryOfficers; Establishment of disease investigation units at major livestock market yards to screen animals before selling and purchasing to preventthespreadofdiseasesandfarmersfrombeingcheated; Organising periodic livestock health camps for handling problems ofinfertility,mastitisandotherhealthrelatedissues;and Promotingprivateveterinaryservicesunderthesupervisionofthe AHDorDairyFederation.

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6.7.3 Animal Nutrition: Balanced feeding is essential not only to enhance the milk production but also to economise the operation and tomaintaingoodhealthoftheanimals.Asthereisasevereshortageof animal feeds and fodder in the country, serious efforts are needed to developfeedandfodderresourceswhileexpandingthedairyindustry. Some of the major initiatives need to be promoted are presented below: Development of high yielding forage varieties and popularisation offoodcrops/varietieshavinghighstrawyield; Facilities for production and distribution of good quality seeds of outstanding varieties by establishing networking between AgriculturalUniversities,NationalSeedCorporationandfarmers; Establishment of fodder banks to collect and store surplus crop residues in fodder surplus areas, under publicprivate partnership fordistributioninfodderscarcityareas; Promotionoffodderproductionondegradedandwastelandsand communitypasturelandsandunderdifferentfarmingsystems; Promotion of postharvest technologies for storage of fodder and improvingnutritivevalueofroughages; Popularisation of complete feed, feed with bypass protein, microbial protein, azola, spirulina and nontraditional feed ingredients;and Decentralised production of complete feed through community initiatives,usinglocallyavailablebiomass. 6.7.4 Value Addition and Market Linkage: The success of the livestock development programme is dependent on value addition and better price realisation of the produce. Milk being a perishable commodity, facilities for timely collection near their homes and payment of remunerative price are essential to encourage the dairy farmers. Preventing wastage of milk due to contamination, unfair trade practices

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and elimination of unnecessary intermediate agencies in marketing can furtherenhancetheprofitmargins. Presently only 30 per cent of the milk is sold through the organised sector. The major players in this sector are Cooperative Dairy Federations and a few private agencies engaged in selling of fresh milk and milk products and confectionaries. There are a large number of sweet makers in most of the urban and semiurban areas who are engaged in procurement of raw milk either directly or through middlemen. However, most of the farmers selling milk through the unorganised sector are unable to get a better deal, either due to compulsion or ignorance. Unfortunately, they have no other option, particularly in areas where Dairy Cooperatives are defunct or operating without efficiency and transparency. It is, therefore, necessary to address these problems and strengthen the network of milk collection centres and theirdirectlinkagewiththemilkprocessingunits. Someoftherecommendationsinthisareaare: - Installation of automated bulk milk coolers, which can assess the qualityofmilkandfixthepriceandtotalvalueofmilkonthespot; - Awareness about clean milk production and methods to keep the bacterial count low from the period of milking till delivery to bulk milkcoolers; - Decentralised minidairies which can ensure transparency and efficiency, while generating local employment and reducing the cost ofprocessingandmarketingofmilkandmilkproducts; - Development of new, healthy dairy products to attract new consumers;and - Consumerawarenessaboutmilkquality.

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6.7.5 OtherSupportActivities A few more initiatives are needed to strengthen the development of the largeruminantsector.Thesearepresentedbelow: 1. Development and popularisation of efficient bullockdrawn implements and machines, particularly implements which can be drawnbyasinglebullock; 2. Identification of opportunities for using bullocks as an alternative sourceofenergy; 3. Policy for regular culling of unwanted and sick animals and facilities forhousingtheminquarantine; 4. Facilitiesforfatteningofbuffaloes; 5. Establishment of modern meat processing units and linking them withfarmersrearingbuffaloesformeat; 6. Developmentofefficientdesignsforcompactbiogasplants;and 7. Research and development for reduction in methane emission by livestock,particularlythroughmodifiedfeedingandhousing. Many of these aspects can be addressed through suitable policies. Various recommendations can be incorporated in the ongoing schemes toboostdairyhusbandryinthecountry. B.SheepandGoatProduction 6.8 Of the two small ruminant species, goat both in numbers, distribution, and contribution to food, incomes and rural employment is more important than sheep. However, this species has not received the required research and development inputs for the reason that the National Commission on Agriculture (NCA) in its report submitted in 1975 had recommended that considering the role of goat in desertification, its number should not be allowed to exceed 40 million. This had led to a total absence of R&D programmes in goat improvementpriortoandafter1970.

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6.9 Sheep has received a much larger R&D support primarily to improve apparel wool production. However carpet wool and mutton production did not receive similar attention. To give an impetus to R&D in sheep production for apparel wool, a Central Sheep and Wool Research Institute was established in 1962 at Avikanagar (Rajasthan), with regional stations in HP and hilly regions of TN. The major programmes were to improve fine wool production and study various aspects of its quality and industrial processing for various woolen products. Prior to 1970s, the ICAR had also supported some R&D schemes in improving goat production primarily for milk/fibre. An AICRP on Goats was approved to take up improvement in goats for milk/fibre (pashmina/ mohair). Subsequently a component of goat for meat was also added in 5th Plan. A Central Institute for Research on Goats (CIRG) wasestablishedbytheICARin1977totakeupresearchonallaspectsof goatproductionandtheentiregoatyieldsviz.milk,meatandfibre. 6.10 The current population of sheep is 61.5 m which ranks 3rd in the world and accounts for 5.5 per cent of the world sheep population. There has been a rapid increase in sheep population after 1980 after having remained between 4050m from 19501980. The current production of greasy wool is 44.0 m kg and most of it is of coarse carpet qualityandisusedonlyformanufacturinghandknotted/machinetufted carpets, the latter through blending with synthetic fibers, the felts and blankets.Thereisalargeexportofthesecarpets.Inaddition,Indiahasa large installed capacity in worsted and hosiery sectors and most of the wool, except around 5 m kg apparel wool which is produced in J&K, HP and Uttrakhand, is imported. However, there is a large export of hosiery andwoolenclothinadditiontothecarpets.Sheepproduces2.6mkgof mutton annually. In spite of large increase in the sheep population in the last 25 years there has not been any increase in wool production; rathertherehasbeenagradualdecline. 6.11 The country has implemented large R&D programmes in sheep production, primarily related to improving apparel wool production. Large programmes were started with Intensive Sheep Development Projects (ISDP) in 1960s followed by a large plan for improving fine wool production in seven states starting with an establishment of a large Central (Australian) Sheep Breeding Farm at Hissar, Haryana, to produce exotic fine wool rams to be distributed to the seven large State Sheep

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Breeding Farms to produce crossbred rams to be distributed to the farmersforimprovingwoolproductionandqualityoftheirsheep.Earlier schemes for machine shearing of wool, wool grading and marketing were undertaken in most of the States. Department of Sheep and Wool and Department of Sheep Husbandry were established in Rajasthan and J&K, respectively. The Sheep Husbandary Department in Rajasthan has now been merged with the Department of Animal Husbandry. The J&K now has two Departments, one in Srinagar and the other in Jammu to serve the two regions of the state. The J&K Government has a large number of exotic fine wool sheep breeding farms to produce rams for distribution for a short period during summer when the sheep flocks are in alpine pastures and are withdrawn and maintained in Government ram centres. This programme has led to evolution of a new fine wool breed Kashmir Marino, 75 per cent of sheep in J&K are crossbred and producearound3kgapparelwool/sheep.Thecrossbreedingwithexotic fine wool breeds in other states did not succeed and has been abandoned. Similarly, most of the programmes related to wool grading and marketing except in northern temperate region have been closed. Even the Department of Sheep and Wool in Rajasthan has been merged withtheDepartmentofAnimalHusbandry. Region/StateWiseSheepImprovementProgrammes 6.12 Considering the past experience in improving apparel wool production the programme should be confined in the Northern temperate region and the modal for maintenance of exotic sheep and production of rams for distribution to the sheep farmers as followed in the state of J&K should also be followed in HP and Uttrakhand for crossbreedingprogrammeforfinewoolproductiontobesuccessful. 6.13 Earlier, the purebred and crossbred rams from Central Sheep Breeding Farm at Hissar were made available to the State Animal Husbandry Department for improving fine wool production. These animals were maintained at the seven large state sheep breeding farms for producing crossbred rams with the major indigenous breed of the state. The crossbred rams were to be distributed to the farmers for use intheirflocksforimprovingwoolproductionandqualitythroughnatural service. With the change in sheep breeding policy and restricting crossbreeding with exotic fine wool breeds only to the northern temperate region, the demand for exotic fine wool/ crossbred rams

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declined. A similar situation occurred in the large state sheep breeding farms. Most of these farms except in Hissar and Rajasthan have now stopped maintaining exotic stocks/ producing crossbred rams. A high power committee was appointed by DOAHD& F of GOI to consider the feasibility of the Central Sheep Breeding Farm at Hissar. It had recommendedthatthefarmforthepurposeitwasestablishedneednot continue at Hissar and may be relocated in northern temperate region where there is demand for exotic / crossbred rams for improving wool production and quality in the local sheep. This, however, has not been accepted and the farm continues at Hissar without much utilization of theramsproduced.SimilarlythestatebreedingfarminRajasthanisalso serving little purpose as the exotic and crossbred rams are no more requiredinthelightofchangedsheepbreedingpolicy. 6.14 The future breeding programme should be directed towards stabilization of exotic inheritance of around 75 per cent and further improvement be brought in greasy fleece weight through selection of ram lambs, around nine months of age, on the basis of their greasy fleece weight. There is a large consumption of mutton in hilly regions, especially in J&K and a large number of animals are brought by road from thestatesofRajasthanandGujarat.Thecost oftransportationand the loss in weight during transport and in addition mortality that occurs, leads to very high cost of mutton. It may be desirable that frozen dressed carcasses or frozen, meat is transported for consumption in J&K andinotherstatesintheregion. 6.15 IntheNorthWesternregiontheemphasisshouldbeonimproving meat production along with carpet wool production. Since the carpet woolqualityinmost breedsof sheepintheregion isreasonablysuitable for carpet manufacture except in Southern Rajasthan, the emphasis should be on improving wool weight. Improving body size to increase meat production will automatically increase wool production. The emphasis should be on selecting ram lambs around nine months of age which are heavier in body weight and may be used for breeding in the same flock. After a year of use, they may be sold or exchanged with similarramsfromanotherflock. 6.16 In the Southern and Eastern region the emphasis should be on improving mutton production through selection of rams on their body weightaroundninemonthsofageandextensiveutilizationofsuchrams

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in the farmers flocks. The rams should be changed every year to avoid inbreeding through exchange with other flock owners in the same or neighboringareas. 6.17 For production of rams, the farmers may be organized into group breeding schemes where all the flocks in a village or a group of villages areconsideredasasingleflocksincetherewill benoserious differences in the breed or genetic merit of the animals among the cooperating flocks. The ram lambs may be selected on the basis of their body weight at around three month of age and such lambs may be either reared in the sameflockorgroupedtogetherandreared ina separate flockinthe same area but with some better feed and management and distributed to the cooperating farmers for breeding of their ewes and should be exchanged every year. In case these ram lambs cannot be reared by the farmers they may be purchased at weaning age by the Department of Animal Husbandry and reared at its cost by one of the farmer in the breedingareaandsold/supplyfreetotheflockownersorinexchangeof their males which may be disposed of by the Department. The Department may get insured all the ram lambs/ rams distributed to the farmers at its cost so that any loss that occurs is compensated to it. In addition to provision of breeding rams, health cover in terms of vaccination against enterotoxaemia and regular treatment against external and internal parasites should be assured at least a fortnight beforetheanimalsarebred.TheDepartmentmaychargetheactualcost ofmedicinesandvaccine.Thereisnoseasonalityofbreedinginsheepin India although the sheep are bred in a season so that when the lambs are born the weather is not stressful and there are sufficient natural feed resources available for the ewes to rear the lamb. This is true in case of migratory flocks but in stationary flocks breeding can be done throughout the year and more than one lamb can be produced. Some supplemental feed consisting of tree leaves, harvested grasses or cultivated fodder hay with some quantity of cheap grains may help in improving survival and body weight gains and thus higher returns per eweperyear. 6.18 Inmorearidregionswithextremelylimitedfeedandwatersupply andwheretheremaynotbeanysentimentagainsttheslaughterofvery young lambs, lamb pelt production may be undertaken. This will save large losses of lambs due to mortality at an early age, allow the milk of such ewes to be utilized for human consumption and such ewes may be

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againbredandthusproducemorelambsperyear.Thereturnsfromsale of pelt are much higher than the sale of wool and lamb put together in more difficult hot / cold arid areas. Experience of such breeding at BikanerandatKargilhasbeenverysuccessful. 6.19 The number of lambs born per ewe per year are currently limiting mutton production in the country in addition to nonavailability of adequate quantity and quality of feed, health and management inputs. Commercial mutton production may be introduced, where young lambs are bought at around 10 kg live weight and are intensively fed and managed to reach market weight of 2530 kg, depending upon the market demand. This will increase lamb survival, lamb growth, higher carcass yield and quality and bring larger returns through lamb meat production. 6.20 There are breeds of sheep in India like Garole in Sunderban area of West Bengal which though small in size and having adult body weight ofaround15kgproducesinexcessof50percenttwinsandtriplets.The crossing of Garole with medium/ large size sheep breeds has led to productionofinexcessof150percentoflambsper100ewescompared to 80 per cent in the larger sheep breeds. If such lambs are properly raisedandfattened,theycanyieldprofitablemuttonproduction. GOATPRODUCTION 6.21 Goat is the major species of meat animal in India. It has all the characteristics required for efficient meat production viz. high prolificacy, more often breeding in a year, higher milk production and capacity to rear twins and triplets. Goat meat is further preferred and fetches higher prices in national and international markets. There is a large scope of export of meat to Gulf and South East Asian countries where there is a large expatriate Indian population which likes goat meat. Goat meat is also preferred over mutton within the country exceptinsomestateslikeJ&K. 6.22 The current population of goat is 124.4 m which has grown faster thananyotherspeciesoflivestockinspiteoftheprejudiceagainstitand little development efforts in its improvement. The little programme which existed earlier was to improve the milk production through breeding with largesized, better milk producing breeds or crossing with

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exotic dairy breeds. Both the programmes have led to reduction in number of kid born / kidding and the little improvement in milk productioncouldnotcompensateforthelossofreproductiveefficiency and the number of saleable kids available. The major emphasis in improving goat production should be on meat (chevon) production throughensuringlargernumberofkidsbornperdoeperyear,improving their survival and body weight gains both in preweaning and post weaningperiodtilltheyreachthemarketweightofaround25kgatnine months of age when they may be disposed off for the slaughter. If such kidsaresoldatfestiveoccasionsuchasId,theycanfetchinexcessofRs. 2000peranimal. 6.23 In addition to meat, production of fibre especially pashmina in pashmina goats viz. Changthangi in Ladakh, J&K and Chegu in higher altitude mountains in Himachal Pradesh. The current pashmina productionislowcomparedtobetterpashminaproducinggoatsinother countriesandselectionforpashminaproductionhasnotresultedinvery large and fast improvement. Crossing of low pashmina producing goats with Angora, a mohair goat has resulted in production of a usable total fleece weighing around 1 kg of cashgora in higher grades of Angora with low pashmina producing goats which has average fibre diameter very close to the finest wool but has longer, stronger and lustrous fibres which can be used for fine garments blended with fine wool and processedonworstedsystem. 6.24 Themajorlimitingfactorsinimprovingsheepandgoatproduction are lack of pastures and fodder shrubs and trees in the area where the sheep and goat abound, especially in the states of Rajasthan and the whole of the northern hill region. All efforts for improving high altitude pastures through arial reseeding with perennial temperate grasses and legumes have not been very successful. Most of the pastures are now invadedwithweedsbecauseofexcessivegrazingandlittlerestexceptin very high altitude pastures which can be utilized from May to August when the snow has melted and the new grasses and legumes have grown and till such time it again starts snowing. The sheep on these pastures get flushed and breed and lamb by the time they come to mid hills where it is not that cold. Most of the flocks again start migrating to the plains in search of feed. Although there are certain advantages of such permanent migratory/transhuman system of rearing sheep such as in reduced parasitic load and having better nutrition but they also suffer

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losses in body weight due to continuous migration and this system is veryuncomfortablefortheshepherds.Theimprovementofthepastures and development of feed reserves at the points where the migratory flock stay during migration and also provision of drinking water, some shelters for the sheep and the shepherds and provision of health cover viz. prophylactic vaccination and drenching against gastrointestinal parasites and spraying/dipping against ectoparasites and further provision of shearing and marketing of wool, can help in improving economicreturnstosheepfarmers. 6.25 Properorganizationofmarketingofliveanimalsandwoolthrough sheep farmers cooperatives which may undertake sheep shearing, wool skirting and grouping and marketing of large quantities of wool and live animals 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 facilities for shearing of wool/pashmina and marketing of produce from sheep andgoataswellasprovisionofhealthcover. 6.26 The two species, sheep and goat, have entirely different managementsystemsandproductsexceptformeat,althoughtheinputs requiredwithrespecttofeed,managementandhealthcoveraresimilar. The farmers maintaining the two species need to be organized and helped through proper training in management and marketing so that theycanimproveeconomicreturnsfromsheepandgoatfarming. 6.27 A large number of educated unemployed and retired army personnel are taking keen interest in learning commercial goat production and taking up such enterprises through support from NABARD and financial institutions such as nationalized banks. The Government of India under various rural development and poverty alleviation programmes is providing longterm institutional finance (loans) at low interest rates. Greater emphasis should be laid on improving goat production for the reason it has larger numbers, wider distribution,higherofftakeandthushighereconomicreturns. SheepandGoatFarmersOrganizations

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6.28 The programme may involve primarily helping formation of sheep and goat farmers organizations like cooperatives or self help groups to undertake provision of major inputs and undertake marketing of products. The role of the Government should be in providing training in various aspects of goat production, ensuring protection of animals against major infectious diseases through proper monitoring and surveillanceandtakingstrategiccontrolmeasures.TheGovernmentmay also assist in development of feed resources through allocation of large grazing areas and improving their feed resources through reseeding of pastures, plantation of fodder shrubs and trees and controlling grazing intensity. The control of such feed resources should also be left to the farmers groups which will not only ensure that these resources are not overutilized but also are conserved so that reseeding could take place at least in conserved areas. Rotational grazing or deferred rotational grazingwillhelpinconservationofthesefeedresources. 6.29 There is a need for sedantrisation of major migratory flocks through establishment of adequate feeding and marketing facilities at least for young lambs and kids for meat. This may further help in reducing the numbers through improved production and more assured inputs and remunerative returns to the farmers and make the small ruminantproductionnotonlyasourceofincome,employmentandfood tothefarmersbutsupplybetterqualityproductsfromthesetwospecies to the people and the industry without causing any environmental degradation. C.PigProduction 6.30 Pig is an important meat animal especially for the economically and socially backward classes. There are no specific breeds of pig in the country although in the North East there are a large variety of pigs ranging from extremely small (pigmy) to very large pigs. From time to time exotic breeds of pigs such as Landrace, Yorkshire, etc., have been introduced for crossing with indigenous pigs to improve their body size and litter size and survival. The central and state governments have maintained large exotic pig breeding farms for production of purebred pigs and supplying purebred boars/crossbred boars to private pig keepers. This has resulted in improvement in the performance of such crosses. These crossbreds have also been maintained under extensive management and on scavenging with little supplementary feed provided. There are a very few commercial pig breeding farms primarily

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maintained by private entrepreneurs to produce quality pig meat products. 6.31 The ICAR has an All India Coordinated Research Project on pigs which earlier involved crossing indigenous nondescript pigs with exotic high producing breeds like Landrace, Yorkshire, etc., and studying the performance of their crosses under different management systems. The technical programme was, however, modified to only study the performance of indigenous pigs under different systems of management, both under housing and intensive feeding and under free range management with small supplementary feed to study the economics of pig production as well as to recommend various management practices for increasing pig production both under commercial and extensive management systems. Some recommendations have become available and transferred to be extensionagenciesofthestategovernments.Thereishardlyanyserious effort on the part of the state governments for improving pig production.Eventhediseaseinvestigationandidentifyingseriouscauses of pig mortality have not been carried out. Pig essentially both with respect to health and management has been left to the natural conditions of management. However, there is a great possibility of commercial pig production and utilizing its meat for making products which have high value and is liked by neorich people. There is also a large demand for pig products in 5star hotels and there is a great scope both for improving meat production of pigs and utilizing it for making high value products. Pig has up till now been left to be reared by poor people who neither had knowledge nor technology nor financial resources to utilize it. A proper organization can be put up, possibly in the form of pig producers cooperatives where the state/ a large cooperative farm may produce the piglets and supply them to the farmers to be raised under intensive feeding and management like in case of broiler poultry, and in the process, provide the feed and health inputs and purchase the fattened piglets on the basis of their body weight and at a remunerative prices. This will help increase pig meat production and provide self employment to a large number of rural and periurbanpeople. D.Yak

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6.32 Yak is located in extremely cold and high altitude mountainous north and north eastern region of the country. Although the largest population of Yak and genetic variants are found in Tibet, a large number of Yaks are also located in countries with high mountains such asRussianRepublic,Mangolia,NepalandBhutan. 6.33 Yak meets all the human requirements. It is extremely adaptable to cold arid environment, extremely high altitude and extremely poor feed resources. It is used for transport, carrying human and material loads, for food through meat and milk, protection through providing heat to the owner, who sits in the middle of the herd and also providing skins and hair. The long tail has a bunch of long hair, which is called Chauri and is used for religious purposes. The droppings of the animal are 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. Yak further has thick outer coat consisting of long fibres which are used for making tents and coarse cloth. The undercoat is very fine like Pashmina andcanbeusedformakingfinergarments.Theonlymaterialrequiredin areas in which Yak abounds from outside is the salt which both the humanmaintainingtheYakandtheanimalneeds. 6.34 Yakisalmostkeptcontinuouslymovingforcarryingheavyloadsor for finding grazing resources. During summer they are taken to high altitude in excess of 5000 m and during winter are brought to lower altitudeofaround3000m. 6.35 Yakisalsocrossedwithindigenouscattleforimprovingadaptation to lower altitude and the males of such crosses are sterile and this requires the crossbred females to be again bred either to Yak or to cattle.ThebackcrosstoYakdoesnotmakeitadaptabletoloweraltitude andrequiresittostayathigheraltitude.Similarly,thecrosseswithcattle malehavebettermilkproductionbutarenotadaptedtohigheraltitude. Thisisresultingincontinuousbackwardandforwardcrossingandalarge unstablepopulationexistsinadditiontopurebredYak. 6.36 The ICAR has established an NRC on Yak at Nikmadang in Arunachal Pradesh to undertake research on all aspects of Yak production and health. Initially, it was to carry extensive surveys for studying the present status of Yak genetic resources and their production systems as well as their limitations especially in relation to

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feed and nutrition and health, and further studying the products arising fromitandtheir utilization.Asmentionedearlier, Yakisamultipurpose animal providing draught animal power, food, skins and fibre and protectionfromcold.Underthecircumstances,itismanagedandforthe purposes for which it is maintained, it is extremely difficult to have a very comprehensive study on all aspects of production and health. But considering it as a unique animal and further its meeting all the human needs,itisessentialthatmoreelaboratestudiesshouldbecarriedout. 6.37 China has the largest and the most productive research on Yak throughanumberofinstitutionsworkingonYakand,furtherhasamuch vaster numbers and wider genetic resources. Cooperation with China may help in developing Yak as a more productive animal that meets all the needs of the farmer who maintains Yak. Introduction of cattle for crossbreeding are likely to introduce a number of diseases which would require to be properly studied and preventive measures taken as such diseases which do not prevail in the region could cause a serious mortalityinanalreadysmallpopulationofYakinthecountry. 6.38 Cooperation in studies on Yak with China will be profitable and international society on studies on Yak exists which organize annual conferences to review the status of the knowledge on Yak production and identifies the priority problems related to research and development. A closer link with China will help in more elaborate developmentofresearchanddevelopmentprogrammesonYak. E.Mithun 6.39 Mithun the domestic bovine species is an important livestock in the North Eastern region of India. This unique species had been domesticated some 8000 years back from wild gaur. The animal predominatesinthefournortheasternhillystatesofArunachalPradesh, Nagaland, Mizoram and Sikkim. It is also available in neighbouring countries, especially Bhutan. The current population is 0.278 million. Mithun is a semidomesticated animal and is the real under free grazing inforestandisadaptedtohumidclimateandhillyterrainatanelevation of 3000 m above sea level. It is an extremely efficient grazer on steep hilly slopes. It is primarily reared for meat which is highly preferred in North Eastern region. It also plays an important role in economic, social andculturallifeofthepeopleintheregion.AlthoughMithunisprimarily

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used for meat, it is also milked; and milk contains high protein and fat. Mithun has been crossed with cattle and such crosses have higher milk production and composition. The only relationship the animal has with itsowneristhroughofferingofsalt. 6.40 Mithun is an important animal to be given in dowry at the time of marriage. In fact, the higher number of Mithuns, the family of the bridegroom offers, the greater are the possibilities of the marriage proposalbeingaccepted. 6.41 The ICAR, considering the importance of Mithun as a special livestock species in North Eastern region, had established an NRC on Mithun in Nagaland and is undertaking studies on the identification, evaluation and characterization of Mithun genetic resources apart from takingstepsfortheirconservationandmanagement.Italsostudyingthe problems related to health, nutrition, reproduction and management so that their productivity can be maximized. Studies on crosses of Mithun with cattle or its reciprocal are being studied with respect to their adaptability,diseasesusceptibilityandproduction.Thecrosseswithhigh producing cattle either indigenous or exotic not only increases the size but also increases milk production both of which help in providing more nutritious food in the region. However, the management of such an animal especially with respect to feed and health needs to be more seriously studied before large scale crossbreeding programmes are taken. The initial studies do indicate promise and acceptability by the peoplewhoownMithun. F.BackyardPoultryFarming 6.42 BeforetheestablishmentofcommercialpoultryfarminginIndiain the early 1970s, most of the poultry farming was through maintenance of small number of indigenous birds under free range and with little supplementary feeding and that too mostly on household wastes. There was hardly any cost of maintenance of birds, the production was low and was primarily meant for meeting the household needs. Subsequently, improving the productivity of such birds through grading withexoticlayers/broilerswastakenupthroughdistributionofbreeding males produced at government poultry farms. Some assistance in terms of feed and health cover was also provided. The backyard poultry has gradually reduced in terms of its contribution to eggs and meat as

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commercial poultry farming for eggs and broilers have provided cheaper eggsandchickenmeat. 6.43 The commercial poultry farming is only located in urban and peri urbanareasandmostoftheproductsareonlyavailableforconsumption in these areas. The rural areas have been bypassed in this development. The earlier effort of the State Animal Husbandry Departments in supplying dayold chicks/feed to poultry farmers in rural areas has also declined.AnotherattemptwasmadebytheStateDepartmentofAnimal Husbandry to propagate poultry production in periurban areas by establishing poultry estates where the government established a large number of small poultry production units through creating small poultry shelters and providing dayold chicks, compounded feeds and health cover and also helped in marketing of eggs and chicken. This, however, could not stand competition with large poultry breeding farms, which notonlyhadalargeandmoreefficientproductionbutalsohadaproper marketing system. Over time, both the backyard poultry in the rural areas and the periurban small scale commercial poultry, production has declined or has totally been eliminated in these areas where large commercial poultry production have been taken up or where large scale marketing of eggs and broilers exists. This development has essentially bypassedlargeruralpopulationbothinproductionandconsumption. 6.44 Majorpopulationinthecountry(inexcessof70percent)stilllives in rural and periurban areas and has little access to commercially produced layers and broilers. Either there is no consumption or the consumption is essentially based on limited availability of rural/peri urban produced eggs and broilers. This situation is highly unsatisfactory as a large population in the country is being bypassed from the development of poultry industry and is not availing the cheap protein availabilityfrompoultryeggsandmeat. 6.45 The model earlier tried in periurban areas, which could not compete with commercials could be revised after examining its weaknesses. It appears that the weaknesses were both in the organization as well as in proper marketing. Before establishing rural productionunitseitherindividuallyorascooperatives,thetotaldemand forpoultryeggsandmeatmustbedeterminedandthecurrentsituation with respect to the availability and the costs must be investigated so that the newer production units ensure not only more abundant

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availability but at costs the rural people can afford. The experience of cooperative dairy farming can be a model for cooperative poultry production where the cooperative maintains its own large layer and broiler farm and produce dayold chicks to be supplied to production units in the cooperatives to be raised for producing eggs/broilers by the individual farmers and the feed and health inputs are provided by the cooperative. It also ensures the purchase of eggs and broilers at remunerative prices and their proper handling, processing and marketing as in case of dairy cooperatives. This would not only help in improving the economic status of the rural people through sale of eggs and broilers but also will have some of them available for their own consumption. Since they will be available with them, it will be possible for the rural people to consume them instead of buying them. This has been seen in the case of dairy farming, even in the case of small and marginal farmers and landless dairy farmers that at least some milk produced by them is consumed within the family. The rural poultry production does not mean that it should only be based on indigenous lowproducingbirds. 6.46 Inadditiontothechicken,thereareotheravianspecieslikeQuail, Ducks, Pheasants and Guinae Fowl, which are special avian species and have not been seriously exploited commercially because of the preoccupation of the urban poultry producers with layer and broiler chicken.Thesespecies,ifintroducedintheruralareasandraisedlikethe layerandbroilerchickenthroughfarmerscooperativesandmarketedby them directly can help in increasing rural poultry production and thus betteremployment,incomesandfoodfortheruralpeople.

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CHAPTERVII VII. ResearchandTechnologySupport 7.1 Majorareasthatinfluencelivestockproductionefficiency,economics andincomearebreedingandreproduction,diseases,inputs,especiallyfeed and fodder, value addition, food safety and quality, marketing and mechanisms/platforms for dissemination of technologies. The emerging diseases and unpredictable climate changes are the other areas that would be vital. Some of the major researchable issues and technology needs criticaltosupportandenhancelivestockproductivityaregivenbelow: 1.ManagementofAnimalGeneticResources 7.2 Diversity: Characterization, Conservation and Improvement: LivestockGeneticResourcesarenationalheritagethatneedtobeoptimally managed in their native environment for present and future use. Some of the indigenous breeds of livestock have strengths of better adaptability, disease resistance, high prolificacy and growth, etc. Nevertheless, many of these breeds are not economically viable in the changing production systems. As a consequence, some of the later breeds are showing decline in numbers and are even threatened. It is therefore essential to evaluate their strengths before they disappear. Although molecular characterization of these breeds to identify genes and polymorphism associated with traits of economic importance has been taken up, this needs to be completed on priority.Suchgenes/genotypeswithstrengthscouldbeusedfordeveloping new genotypes. As insitu conservation of these breeds is cost prohibitive, invitro conservation in the form of oocytes, semen, embryos, somatic cells and DNA should be ensured for future use. It will be desirable to establish somatic cell (fibroblasts) and DNA banks for breeds facing extinctiononpriority. 2.EnhancingReproductiveandProductionEfficacy 7.3 Integrating Conventional and Molecular Breeding Technologies: Conventional breeding technologies coupled with ETT and Marker Assisted Selection can greatly help in achieving higher genetic gains. Identification

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and localization of Quantitative Trait Loci (QTL) for traits of fertility, production and disease resistance, and their fine dissection to identify the QuantitativeTraitNucleotide(QTN)inthecandidategenesshouldbetaken onpriority. Several noncompensable traits viz. sperm nuclear vacuoles, defective chromatin structure and immaturity, sperm nuclear denaturation and DNA mutation result in reduced fertilization. About half a dozen of holandric genes are known to control male fertility. There is a need to establish specificgenomicDNAmarkersforthevarioustraitsoffertility.Screeningof male calves at birth for these traits would greatly help in improving genetic potential for fertility and production in livestock. Establishment of Molecular / Cytogenetic Laboratories for such studies in dairy cattle and buffalowouldalsogreatlyhelp. 3.AnimalHealthCare:DiseaseManagementandPrevention 7.4 India losses US$ 4.45 billion (Rs. 20,000 crore) because of various livestock diseases, particularly the FMD (43 per cent), diarrhea (14 per cent), septicemia fever (12 per cent) and HS (8 per cent) followed by brucellosis, IBR, mastitis and tick borne diseases. Lack of comprehensive understanding of disease epidemiology, efficient diagnostic procedures/facility/infrastructure and effective preventive strategies are the major limiting factors to curtail the losses. Preventive technologies and strategies are too ineffective. Part of the problem is due to incomplete coverage of vaccination. Creation of sufficient facility for absolute immunological coverage is a supreme necessity. Available vaccines are effective only partially, and for short duration. It is imperative to develop novel vaccines with merits of long lasting immunity and 100 per cent efficacy. 7.5 Proper diagnosis and disease epidemiology is a prerequisite to managementofdiseaseoutbreaksandtocurtaillosses.However,thereisa widespread lack of appropriate reachable diagnostic facility. The conventional tests, even where available, lack sensitivity and reliability. Often the treatment of infectious diseases is ineffective due to emergence of drug/insecticide resistant strains of (micro) organisms. Rampant

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indiscriminate/ misuse of medicines is a serious menace. Above all, there is no scientifically collected authentic database on these issues to support policy decisions. Following points warrant urgent attention to effectively dealwithsomeoftheseissues: (i) Effective database, surveillance and reporting systems involving molecular diagnostic and monitoring strategies for each major infectious and parasitic disease are required. Establishment of at least one P3 laboratory in each region would greatly help research and diagnosis for effectivediseasecontrol; (ii) Development of molecular diagnostic tests, recombinant protein based ELISA kits, and mechanism for fast, reliable and costeffective diagnosis for the various infectious diseases is warranted. Penside tests should be developed for onthespot diagnosis and decisions on treatment inthefield; (iii) Genetically modified marker vaccines, DNA vaccines and other tools forimproved,saferandprolongedimmunizationagainstinfectiousdiseases inanimalsarewarranted; (iv) Economics of disease and the treatment (including zoonosis) need to be worked out to properly understand the impact and a befitting emphasis ontheissue;and (v) Integrated parasitic control strategies need to be developed and implemented including methods of biological control, immunoprophylaxis, genetic manipulations of vectors to curtail transmission, development of genomic information on parasites to design multifocal drugs). Geographic mapping of worm infestations against area, season and species need to be developed. An understanding of the life cycles of the different parasites within the whole soilplantanimal system will help in reducing the detrimentaleffectsofparasites.

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4.Zoonoses: 7.6 Over 200 infectious diseases transmissible from animals to humans (Zoonoses)areaseriousrisk.About75percentofthenewhumandiseases emerged over the past 10 years have origin in animals. New trends in animal production practices, changing patterns of wildlife populations, demographic changes such as population growth, mobility and urbanization, and globalization of the food industry contribute to this. Resistance to antimicrobials among zoonotic microbes is of increasing concern. 7.7 These developments call for increased levels of epidemiological surveillance and preparedness, and for novel approaches to control and prevention involving interface of animal and human health studies. Risk based programmes should, therefore, aim at preventing or decreasing the transmission of zoonoses, through appropriate scientific approach, adequatepolicyframeworks,controlmeasures,andeducation. 5.LivestockProductsTechnology 7.8 Value addition to livestock products and technologies to develop readytocook and readytoeat nonfood products of animal origin having longerkeepingqualityandshelflifeisachallengingthrustareaofeconomic importance. Production of safe, wholesome and high quality livestock products by the application of quality harvesting, processing, preservation, packagingandproperdistributionistheneedofthehour. 7.9 Thereisanalarminglackoftrainedhumanresourcesandtechnology. It would benefit to design equipment, especially for small scale entrepreneursinthebusinessofmeat,eggandleather. 6.FoodSafety:FoodQualityAssuranceandQualityControl 7.10 Diarrhoeal diseases alone, caused mostly by food and waterborne pathogens, contribute 8.2 per cent to the total burden of human diseases. Indialosesanastoundingtotal of180 million mandaysanda whopping Rs. 12 billion due to diarrhoea and other related diseases. Hazards related

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foods of animal origin occur due to microbial contamination of foods or from toxic levels of residues (pesticides, heavy metals, veterinary drugs, packaging material ingredients, growth promoters, and adulterant chemicals). India, therefore, often underperforms in export of food of animaloriginduetoqualityproblems. 7.11 Development and validation of molecular assays for rapid detection of pathogens and toxins in food from animal origin, their prevalence and epidemiology, and databases on categorical prevalence with particular reference to geographical, epidemiological and climatic data, would go a longway inimprovingourcredentialsinexportoflivestockproductsandin curtaining related diseases in India. There, however, is a glaring absence of stateoftheart laboratory facilities dedicated to advanced research and diagnosis on food safety, quality assurance and quality control. Establishmentofsuchfacilitiesisapriorityarea. 7.EnvironmentalPollutants 7.12 Toxic residues in foods of animal origin especially antibiotics, pesticides and heavy metals are on the increase. Pesticide consumption in India has increased from 2353 MT in 1955 to 43,630 MT in 200708. Preliminary studies have revealed high concentrations of pesticide residues in animal feed, milk and meat of food animals, which may cause cancer, epilepsy, liver and kidney dysfunctions, somatic growth, depression and neuritis.Indiasshareintheinternationalmilktradeislimitedtolessthan1 percentprimarilybecauseofqualityissuesincludinghighresidues. 7.13 The issue warrants serious attention and strategic interventions, starting with development of techniques and establishment of facility for constant monitoring and reporting, and an effective mechanism in place to control the contaminations. Studies on soilwater/foddermilk, meat relationshipofenvironmentalresiduesshouldreceivehighfocus. 8.AnimalNutrition 7.14 India suffers from serious deficiency of feed and fodder to fully exploit the production potential of our livestock. The seasonal fodder

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production trends/lean production periods, coupled with environmental uncertainties further compound the problem. Therefore, new non conventional energy and protein supplements should be tapped (may be region specific) and their nutritional worth should be assessed for different speciesunderdifferentphasesofgrowthandproduction. 7.15 As the area under fodder production is almost constant, the increasing fodder requirement has to be met through development of high yielding fodder varieties with better nutritive value. Therefore, new dual purpose, highyielding, disease resistant hybrid varieties of forages should be developed and their nutritive value for different categories of livestock assessed. 7.16 Fodder seed production and availability is a major constraint in fodder production. Production of quality seed of high yielding varieties of foddercropsandpasturegrasses/legumesshouldbeensured. 7.17 Tappingofunconventionalfeedandfodderresources (i) Azolla: Technology for cultivation and supplementation of Azolla, a floatingfernthatfixesatmosphericnitrogenisneeded.Ondrymatterbasis, azolla contains 2030 per cent protein, 1015 per cent minerals and 710 per cent amino acids, vitamins (vitamin A, vitamin B12 and Carotene), growthpromoterintermediariesbioactivesubstancesandbiopolymers. (ii) Fruit and vegetable wastes (FVW): In most States, losses in fruits and vegetables are to the tune of 30 per cent, thereby, resulting in the production of huge quantities of FVW. Only 4 per cent of fruits and vegetables produced in the country are processed, as compared to countrieslikeUSA(65percent),Philippines(78percent)andChina(23per cent). Comprehensive plans to utilize FVW in India (including development and provision of appropriate technology and mechanism for marketing, etc.)needtobedeveloped. (iii) Straw and stover from major food crops, like wheat, rice, maize and pulses are in abundance. Most of these are burnt, causing environmental

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pollution/global warming. Technologies to harvest and pack the straws as balesordensifiedcompletefeedblock,etc.,foruseasbasalroughage,with or without urea treatment should be developed. Urea treatment of crop residues lacks mechanization. Suitable technology (like drip technology) shouldbedevelopedforeffectiveutilizationofstrawsandstover. 9.ClimateChangevisvisLivestockProduction 7.18 The threat of climatic change and global warming is now recognized worldwide. There is discernible increase in mean air temperature during various parts of year to the tune of 0.8 C to 1.02 C, increase in sea level duetoexcessheatingofairandmelting oficecovers,changeintherainfall patterns due to variations in the convectional current (both in time and direction) caused by difference in heating pattern of earth's air as also the changeinseasonsandseasonalcharacters. 7.19 Effectson livestock production:Animal healthand production canbe affected by emergence or reemergence of diseases in various ways, e.g. (A) Green House Effect; (B) Extreme Weather Exigencies, (C) Environmental Pollutionand(D)BiologicalAdaptationofDiseaseProducingOrganismsand Vectors. 7.20 There is need to establish the effects of possible climate changes on livestock production and to develop appropriate strategies to deal with the eventualitiesthrough: Studies on the effects of environmental stress on livestock productionandhealth; Fodder varieties resistant to elevated temperatures, draught and floodsituations; Genetically superior animal germplasm with merits of resistance to climatechangesintermsofproductionanddiseases;and Models of perceived disease epidemic threats and mitigations strategies. 7.21 Curtailing environmental pollution of animal origin: Animal agriculture sector emits 18 per cent, or nearly onefifth, of human induced

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GHG emissions, more than the transportation sector. Methane is formed in therumenbymethanogensbyconvertingH2andCO2toCH4andrepresents asignificantlossofdietaryenergy,thusbyreducingentericCH4production, feed efficiency may be improved. A sheep can produce about 30 l while a dairy cow can produce between 200 and 600 l of methane/day, representing a loss of 212 per cent of the gross energy intake. Suitable feeding strategies should be developed for mitigation of enteric methane production, which seems to be the most logical and practical approach for optimumnutritionandenvironmentsecurity. 7.22 Management of Dung: Millions of tons of dung, urine and poultry droppings are produced each year. The animal organic waste is a rich source of nitrogen (nitrous oxide, nitrate, and ammonia), phosphorus, and heavy metals which, if not used properly, pollute the surface and ground water, produce neurotoxins, etc. The enteric bacteria and organic manure contributes 68 per cent of methane in the environment. Methane and nitrousoxidecontribute75percentoftotalfarmglobalwarmingpotential. At present, most of the dung mixed with urine containing excess of unutilizednutrients(NandP)isdumpedinthewastelandandthenusedas farm yard manure, causing environmental pollution. But animal organic wastes can be effectively utilized in producing biofuel (bio gas/ electricity) and the nutrient rich biogas slurry can be utilized as manure. Utilization or disposal of animal wastes and slurry as energy source and animal feed though possible, could not be popularized due to the prohibitive costs and labour involved. Development of appropriate technology for this is required. The challenge lies in utilizing CO2 instead of releasing it into the environment.

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CHAPTERVIII VIII.LivestockCreditandInsurance 8.1 Credit is one of the major requirements for development of any sector, especially when majority of the farmers are resource poor. Most of the animal husbandry activities are viable and bankable provided all the backward and forward linkages exist. Studies reveal that though there is vast potential for animal husbandry, it is not being exploited due to lack of infrastructural facilities. These deficiencies were highlighted in state specific reports of the members of the Advisory Committee. They need to be corrected to ensure increased credit supplytothesector. 8.2 Ground level credit flow to animal husbandry in comparison to total agricultureloansandtotalloansisgivenbelow (Rs.crore)
S.No. 1. 2. Purpose/Year CropLoans Investment Credit/Term Loans for Agriculture and AlliedActivities TotalLoans(1+2) Animal Husbandry out of TermLoans Term Loan for Attachments as%oftotaltermloan 200203 200304 200405 200506 63,141 17,555 54,977 22,486 76,062 49,247 200607 200708 181,393 73,265

105,350 138,455 75,136 90,945

3. 4. 5.

80,696 2,637 15.2

77,463 2,928 13.02

125,309 3,097 6.29

180,486 7,341 9.77

229400 8,045 8.85

254,658 9,034 12.33

8.3 Though there is increase in the ground level credit for animal husbandry over the years, its percentage in total term loans is not keeping a similar trend. During 200203 credit to animal husbandry constituted 15 per cent of the term loans which has declined to 13 per cent during 200304, 6 per cent in 200405, increased to 10 per cent during 200506, fell down marginally to 9% in 200607 andrecoveredto12percentduring200708.However,theshareofthesectorin total agricultural loans was more or less constant, between 3.5 per cent to 4 per cent,exceptduring200405whenitwas2.5percent.

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PotentialLinksCreditPlansofNABARD 8.4 NABARD prepares potential linked credit plans for all the districts where the potentialsaregivenforall thesectors.Fortheyear200708,itwas estimated that about Rs 10645 crore was the potential for animal husbandry against which theactutalgroundlevelcreditflowwasRs9034crore. 8.5 Thelimitingfactorstoachieve this potentialasobserved duringour studies were: Inadequatebreedingandveterinaryaidfacilities.Indistrictsplacementwas not uniform at the required number of veterinary institutions. Most of the institutions are concentrated in developed areas leaving backward areas in thedistrictfarbehind; Huge gap between the requirement and actual availability of feed and fodder; Diminishinggrasslandsandgrazinglands; Inadequate marketing facilities whereby producers are not given remunerativerate;and Landless/Women/SC & ST beneficiaries are deprived of credit in the absenceofpropersecurity. 8.6 Allthesefactorsandthosegiveninstatespecificreportsneedtobetackled toincreasethecreditflowforthesector. 8.7 Besides the above, capital subsidy for identified activities and interest subsidy for timely repayment may be considered. Special incentivising by interest subsidy in case of timely repayments will motivate the borrowers to repay the loans 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, timely repaymentswilleventuallyleadtodisbursementofmoreloansforthesector.

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8.8 Credit should be made available and landless/women/SC & ST beneficiaries should be encouraged for livestock enterprises by setting up of Joint Liability Groups(JLG)andSHGs. 8.9 Theprocessingsectorneedhugeworkingcapital requirementsandthesame shouldbeextendedinthetermsofprioritysectorlending. 8.10Eligible activities for financing by banks under animal husbandry is given in theAnnexure. RefinanceAssistance 8.11 NABARD extends refinance assistance to these financial institutions to an extent of 8095 per cent of the bank loan provided to the beneficiaries. On an average, 1012 per cent of total refinance disbursed is for AH Sector. The State wise refinance disbursements of NABARD under animal husbandry from 200203 to200708isgiveninAnnexure. VentureCapitalFund(VCF)forDairyandPoultry VCF for dairy and poultry is a central sector scheme of Department of Animal Husbandry,DairyingandFisheries,MinistryofAgriculture,GoIbeingadministered byNABARD. Theschemeisunderimplementationsince200506andiscontinuinginthe 11thPlanperiod. Assistance extended is in the form of interest free loan (IFL) to an extent of 50 per cent of the outlay of identified components under dairy and poultry sector. Milch animals (up to 10) in nonOperation Flood areas purchase of milking machines, bulk milk coolers dairy processing equipment, transportation facilities,etc.areeligiblecomponentsunderdairysector. 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 for exports, retail poultry dressing units, etc., are the components under poultrysector.

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Cumulative sanctions under the scheme as on 31 September 2009 stood at Rs132.63croreinrespectof12806dairyand213poultryunits. ShareofNorthEasternStatessofaris19percent. Maharashtra,Assam,Rajasthan,Karnataka,MizoramandUttarakhandhave availedmajorshareunderthescheme.

RuralInfrastructureDevelopmentFund(RIDF) 8.12ObjectiveofRIDF To provide costeffective loan support to State Governments to develop infrastructureinruralareas. NABARDsRole NABARD is the appraising, sanctioning, financing, monitoring and evaluating agencyforRuralInfrastructurefundingfromRIDF. RIDF A strategic meshing of the infrastructural gap in rural areas and the lendinggapofthecommercialbanks. GrowthofRIDF The RIDF was created out of commercial banks shortfall in lending to agriculture. StartedwithRs.2,000crorein199596(RIDFI). Cumulativesanctionstill31August2009Rs.93,412.93crore. Corpus for 200910 (RIDFXV) Rs.14000 crore + Rs.4000 crore for Bharat Nirman. 8.13ActivitiesandTermsofLoan Provides financial assistance to State Governments for 31 activities (rural roads and bridges, irrigation, rural drinking water schemes, marketing infrastructure,hospitals,educationalinstitutions,etc.) Repaymentperiod7years,including2yearsgraceperiod. Implementation period (phasing of project) 4 years in North East, J&K, HP, Uttarakhandand3yearsforotherstates.

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Quantumofloan95percentofprojectcost. Currentrateofinterestonloans6.5percent. Mobilization advance 20 per cent/30 per cent of the loan amount immediatelyonsanction. Security Time Promissory Note (TPN), mandate with RBI / Principal Banker toStateGovernment. 8.14 FundingforAnimalHusbandryProjects So far Rs.493.18 crore sanctioned forming 0.53 per cent of total sanctions andstatewisesactionsaregivenintheAnnexure. Types of projects sanctioned Veterinary hospitals/dispensaries (new and renovation),dairyrehabilitationprogramme,dairyprocessingplants,pigbreeding farms, vaccine production centres, livestock knowledge centres, semen bank and laboratory,poultryhatcheryandstrengtheningofcattlebreedingfarms. 8.15State Department of Animal Husbandry may be proactive in bridging the infrastructive gap for livestock production activities and get them practiced in the State Planning for availing the funds under RIDF, as there is a constraint of resourceswiththerespectiveStateGovernments. LivestockInsurance 8.16 Animal husbandry sector provides large self employment opportunities. Out of 22.45 million engaged in animal husbandry sector, 16.84 million are females. About 7580 per cent of these workforces are small and marginal farmers. Livestock holdings are more equitable than land holdings. Small holders andlandlesstogethercontrol75percentofthecountryslivestockresourcesand arecapableofproducinganimalproductsatalowercostbecauseofavailabilityof sufficientlaborwiththem.Evidenceshowsthatsmallholdersobtainnearlyhalfof theirincomefromlivestock. 8.17 Livestock, especially large animals like cattle and buffaloes, are costly and theresultantrisksduetodisease,lossofanimalduetotheft,accidentwillalsobe expensive. When their animals fall sick, these small and marginal farmers face enormous losses and it would be difficult to recoup them. Thousands are pushed into poverty once they lose their animals due to disease and/or accident. In case

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of drought when there is scarcity of fodder and water, they resort to distress sale of animals. So there is need for a mechanism to take care of these risks and insulate the farmers against any losses. Insurance is one such mechanism to mitigatetheserisks. 8.18 Evolutionoflivestockinsurance Theevolutionoflivestockinsuranceinthecountryovertheyearsisgivenbelow: 1971 Cattle Insurance Scheme by Small Farmers Development Agency. Nationalized banks began to finance the purchase of cattle and agreed to collect premium from beneficiaries. Cover was for one year and premium wascollectedannually. 1983 Cattle insurance policy under Integrated Rural Development Program. Livestock and asset insurance was extended to the poor along with the IRDP subsidized loans (50 per cent subsidy). Compulsory product. Devised by General Insurance Company (GIC) and implemented through its four subsidiary agencies of GIC 1983 onwards. Premium 2.25 per cent (death) + 0.85percentforPTD,noagelimit. 1983 Market agreement. No subsidy and voluntary product. For nonscheme animals. Premium 2.854 per cent. Age specified: milch cow 28 years, buffalo312yrs. 1999 IRDA.InceptionofIRDA,liberalizationofIndianinsuranceindustry. 2001 onwards Private players registered. ICICI Lombard, IFFCOTOKYO, HDFC ERGO,RoyalSundaram. 2005 Microinsurance regulation, 2005. MicroFinance Institutions (MFIs), Non Government Organizations (NGOs) and SelfHelp Groups (SHGs) can act as agents for insurance companies to increase the penetration of insurance in theruralmarkets. 200506 Livestock Insurance Scheme. A Centrallysponsored scheme implemented by State Livestock Development Boards (SLDB) and State AnimalHusbandryDepartments. Premium of the insurance is subsidized to the tune of 50 per cent; Competition increased between public and private players premium not to exceed 4.5 per cent for annual policies and 12 per cent for three year policies. Scheme is extendedin11thFiveYearPlan(20072012)tocover100districts.

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8.19 As may be observed from the above, livestock insurance is in vogue for the past three decades. However, its penetration is very little. Presently only 7 per cent 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 this lowpenetration. Premiumrate 8.20 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 premia will be less when a large number of animals are insured as in the case of bank financed animals under Governmentsponsored programmes. In other words if a large number of animals are insured, the premia will come down. So, awareness programmes on livestock insurance need to be organised. Simultaneously, provision of subsidy for premia payment may also enthuse the farmers to go in forlivestockinsurance. SchemeonLivestockInsurancebyGOI 8.21 The Government implemented the Livestock Insurance Scheme as a Centrallysponsored scheme on a pilot basis during 200506 to 200708 in 100 selected districts across the country. The scheme has twin objectives of providing protection mechanism to the farmers and cattle rearers against any eventual loss of their animals and to demonstrate the benefit of the scheme to the people and popularize it with the ultimate goal of attaining qualitative improvement in livestock and their products. Under the scheme, 50 per cent subsidy on premium was provided by the Government of India to insure crossbred and high yielding cattle and buffaloes and the beneficiary paid 50 per cent of the premium. The benefit of the subsidy was restricted to two crossbred cows or buffaloes per beneficiary for a policy of maximum period of three years. The scheme was implemented in the states through the respective State Livestock Development Boards. As per information received from various states, during pilot period, 9.55 lakh animals were insured and out of 37,776 cases of claims made, 30,745 cases were settled. During the remaining period of the 11th Five Year Plan, the scheme is being implemented as a regular scheme as per existing guidelines in the 100

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newlyselecteddistricts.ThereisprovisionofRs.153.43croreinthe11thFiveYear Plan for the Livestock Insurance scheme. The expenditure incurred by Department of Animal Husbandry, Dairying and Fisheries on livestock insurance was Rs 16.17 crore during 200708 and Rs 6.5 crore during 200809. About 3.28 lakh animals were insured during 200809. Detailed guidelines of the scheme are givenintheAnnexure. SchemesofStateGovernments 8.22 Similar schemes for sheep are implemented by Andhra Pradesh and Rajasthan.InAndhraPradesh,theStateGovernmentisprovidingsubsidyof66.67 per cent on insurance premium and the balance has to be borne by the shepherds/flock owners. All the animals in the flock have to be insured to avail this benefit. Shepherds are given an identity card with the flock details so that theycanpaythepremiaandlodgeclaimsanywhereintheState.Thisschemewas launchedinNovember2008. PlayersinLivestockInsurance 8.23 Presently, there are four companies in the public sector engaged in livestock insurance. In the private sector, there are about 16 companies which also want to enter the sector. Companies like Royal Sundaram and ICICI Lombard havealreadyenteredthesector. 8.24 Livestock Insurance Scheme, presently under operation for milch animals, maybeevaluatedandbasingonitsfindingspossibilityofextendingtheschemeto otherlivestockandpoultryandalsothroughoutthecountrymaybeexplored.

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CHAPTERIX IX.PublicPrivatePartnership 9.1 Gradually, with economic reforms and resource crunches being faced by the Government, the idea of promoting private services is being considered as a solution to ensure efficiency and to reduce the financial burden of the Government. While some of these services can be privatized due to low cost and high demand, a few other services which need large investments and are not directly linked to improvement in production cannot be promoted as self sustainable activities. Some such activities need initial support, till the volume of activities increase while others need to be continued by the Government as farmers will not be interested in paying for such services. With this understanding, publicprivate partnership can be initiated in the development sector to enable the farmer to become selfreliant to receive efficient and reliableservicesatreasonablecosts. CriticalServicesrequiredforLivestockDevelopment 9.2 Among various inputs and services needed by the livestock owners, servicessuchasbreeding,veterinaryhealthcareandvaccinationsareavailable either free or at a subsidized cost by the Animal Husbandry Department, provided the farmers are ready to bring their animals to the veterinary dispensary. Barring these services, the farmers have to pay for the other inputs and services, which are available either with the Animal Husbandry Department or with other agencies. Even with regard to breeding and health care, farmers are prepared to pay for the services when they own very valuable animals, which require superior quality services. When they pay for services, they also expect reliability and efficiency and thus the service providers have to be answerable to them. With this paradigm shift in the delivery of services, the entire Animal Husbandry sector can progress further asisbeingwitnessedinthepoultryindustry. 9.3 Therefore, while promoting PublicPrivate Partnership (PPP) in Animal Husbandry Services, it is necessary to analyze the scope for privatization of various activities based on the ability and interest of the farmers to pay for them. It is also necessary to improve the infrastructure to deliver the services andtodevelopacomprehensivevaluechaintoprovideefficientbackwardand forwardlinkagestoenhancetheproduction.Thus,withthepromotionofPPP,

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the sector can gradually become independent, while the Government can closelymonitortheservicestoensurethatthefarmersgetafairdeal. 9.4 The value chain in Chapter V on Inputs and Services identifies various players involved in promoting livestock development. They include, research institutes, input producers, providers of services such as breeding, health care, extension and technical advices on fodder production, feeding, housing, clean milkproductionandlinkingwithmilkprocessingandmarketingagencies. 9.5 There are research institutions engaged in developing new technologies and inputs such as vaccines and diagnostic kits, laboratories for providing disease investigation services, genetic evaluation of sires and production of frozen semen and training centres engaged in building the capabilities of the field technicians and farmers. There are many pharmaceutical firms engaged in commercial production of medicines and vaccines for selling to farmers and banks and microfinance agencies which are engaged in providing finance to livestock owners. There are also agencies involved in milk procurement, processingandmarketing. 9.6 While most of the activities can be selfsupportive as an enterprise, there are activities such as Research and Development, disease surveillance, geneticevaluation,breedingofnewfoddervarieties,etc.whichrequireregular financialsupporttocontinuetheirservices,asfarmerswillnotbewillingtopay for the cost, till they start realising the benefits and generating adequate income. With this background, the following activities can be promoted under PublicPrivate Partnership wherein the Government should encourage the private agencies and Peoples Organisations to provide these services, while restricting their role to monitoring, evaluation and surveillance. Table 1 indicatesthescopeforpromotingPPPfortakingupdeliveryofvariousservices andinputs.

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Table9.1:ScopeforPromotingPPP No. Scope

1. a. b. c. d. e. f. g. h. i. j. 2. a. b. c. d. e. f.

Services Livestockbreeding Pregnancydiagnosis Vaccination Deworming Veterinaryservices Testingagainstvariousdiseases(D.I.) Nutritionalanalysisofvariousfeed ingredients Adviceonfoddercultivationand feeding Milkcollection,chilling,marketing Efficientuseofdungandcarcass InputsProduction Fodderbreeding Fodderseedproduction Fodder,feedandconcentrates Mineralmixturesandvitamins Researchonvaccines,medicines Productionofvaccines,medicines Milkingvessels,milkingequipments Variousfarmequipment

Private Public Joint service service Servic e

9.7 From the Table above, it can be observed that most of the activities can beprivatisedexceptresearchanddiseaseinvestigationservices. PrivatisationofBreedingandHealthCare 9.8 There are many agencies providing breeding services and prominent among them are Animal Husbandry Departments, Livestock Development Boards, Dairy Federations and some NGOs. While the Animal Husbandry Departments and Livestock Development Boards are providing free services, others are providing services either at subsidised or at actual costs. As the farmers are willing to pay for good services, there should not be any difficulty

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to shift over to paid services, particularly after the discontinuation of free services. 9.9 Presently, there are very few nonGovernment agencies who are engaged in providing breeding services, which may not have the capacity to take over the entire responsibility across the country. Therefore, additional service providers will have be promoted either directly or through some important players in the dairy value chain. For instance, the Dairy Federations or private dairies engaged in milk collection and processing can take up this programme. 9.10 Privatisation of veterinary health care may require initial support for the next few years, as the farmers owning unproductive and sick animals may not be able to pay for the treatment of such animals. However, this will be a transitional phase when a nominal service charge can be introduced in the beginning and subsequently the subsidy can be withdrawn and the entire activitycanbeprivatisedduringthenext56years. 9.11 For popularisation of private service, awareness should be created among the farmers about the role of good quality services for improving livestock productivity. Simultaneously, the Animal Husbandry Department shouldwithdrawbreedingandhealthcareservicesinaphasedmanner,sothat farmersstartavailingprivateservices. 9.12 Inputs such as fodder seeds, fodder concentrate, mineral mixture, dewormersandmedicinesrequiredbythefarmersarebeingprocuredatcosts without any subsidy but farmers maintaining low or unproductive animals, generally do not spend on treatment of such animals, as they are unable to recover this cost through enhanced production. These farmers gradually start culling such unproductive animals, thereby making this sector more competitiveandprofitable. 9.13 Milkprocessingandmarketingaretheothermajoractivitiesinthevalue chain of dairy husbandry. Installation of modern dairy equipment and cold chain to preserve raw milk as well as processed products, require highly sophisticated equipment which are very expensive. Therefore, Farmers Cooperatives on their own will not be able to invest. Hence, financial support in the form of interestfree loan or subsidies will be necessary, particularly where a majority of the farmers belong to the lower income group. Support is also neededtostrengthenthemtobecompetitiveinthe internationalmarket,

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which is necessary to prevent the import of milk products and facilitate export of milk products. With the support for capital investments, the processing activities can be managed efficiently ensuring higher profit margin for milk producers. NeedforPublicInvestmentforResearchandDevelopment 9.14 The research institutions, agricultural and veterinary universities, State biological labs and national institutes engaged in animal science and forage research, require financial support to conduct research and to develop new technologies, as farmers cannot bear the cost. Thus, in conclusion, it can be said that with some initial capital support, almost the entire dairy husbandry activity can be brought under PublicPrivate Partnership except for research andtechnologydevelopment.Publicsupportforresearchwillhelpintakingup innovative approaches to make livestock development more competitive and sustainableinthelongrun. 9.15 Services of the Disease Investigation Laboratories need some support from the Government, as farmers who are still not aware of the benefits, will not come forward to make best use of the facilities by paying service fees. However, these labs are essential to monitor the disease outbreaks and to control them. Therefore, the state has to carry out the activities for some moreyearstillthefarmersstartrealisingtheutilityofthisservice. 9.16 Pharmaceutical firms and biologicals engaged in production of vaccines, medicines, diagnostics, etc. can continue to operate without any financial assistances, except for production of certain vaccines which are required in small quantity and hence are not economically viable for private firms. For production of such vaccines and biologicals, the Government may provide financialassistancetoensuretheirsupplyatsubsidisedprices.

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CHAPTERX X.ReviewofCentralSectorandCentrallySponsoredSchemes 10.1 For providing assistance to state governments for furthering the development of animal husbandry and dairy activities, Department of Animal Husbandry & Dairy, Government of India, is implementing a total of 24 schemes (16 central sectors, 7 centrallysponsored and one EAP) with subcomponents during the 11th Plan. Out of the total schemes, 5 are oriented towards breeding, 4 towards health, 2 towards fodder, 2 towards production and11towardsotheraspects. 10.2 The Committee looked into implementation of different schemes in terms of relevance of individual scheme, budget allocation and utilization, performance by the states and modifications needed, if any, for making the scheme more effective. Review of the major schemes being implemented is presented. NationalProjectonCattleandBuffaloBreeding 10.3 The National Project on Cattle and Buffalo Breeding (NPCBB) has been the flagship scheme of DAHDF. The scheme which is being implemented since October 2000 as a Centrallysponsored Scheme with 100 per cent grant in aid totheimplementingagenciesenvisagesamajorgeneticimprovementofcattle andbuffalogermplasminthecountry. 10.4 NPCBB which has been planned for a period of 10 years completed PhaseI in 2007 and in the PhaseII with greater focus, two years have already been completed. The success of the scheme and its impact has to be essentially assessed from the parameters of productivity enhancement, number of progeny tested bulls used for AI, increase in area of coverage and howeffectivelyAIservicesarebeingdeliveredatfarmersdoorstep. 10.5 Against the above impact parameters, NPCBB has done fairly well in terms of infrastructure creation, setting up of exclusive implementing agency, improvedAIdeliverymechanismandenhancedcoverageinmostofthestates. However, the scheme has not been able to make a significant dent in productivity enhancement, which essentially is the principal outcome of the scheme. The limited success achieved in the scheme could primarily be ascribed to the fact that it has been conceived in a holistic manner

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incorporating various interrelated components like infrastructural development, delivery mechanism, institutional arrangement, involvement of NGOs and private AI workers, decentralised fund flow mechanism, quality assurance,etc. 10.6 Use of progeny tested bulls with high milk production potential which is a critical component for achieving envisaged success in the scheme has not been realised to the desired extent. Most of the semen stations across different States do not have any progeny tested bulls for semen collection and freezing and use of bulls of unknown genetic makeup for semen production and use of low quality semen may cause more damage in the long run than benefit. 10.7 In areas not covered by AI network, provision for induction of bulls of superior quality for providing natural service exist. As against the target requirement of 76000 bulls for natural service, only about 1213 thousand bulls have been inducted resulting in slow progress of quick upgradation of low yielding indigenous cattle and buffaloes. A concerted effort is to be made for identifying and procuring of superior quality bulls by different State Governments from different institutions as well as breeding tracts of potential breedsofcattleandbuffaloesforinduction. 10.8 Considerable investment has been made since the commencement of the scheme towards strengthening of sperm stations/semen banks. However, the facilities and performance of some of the semen stations have been below the required standards. Presently, out of 49 functional semen stations in the country, 12 have been graded as A, 14 as B and 7 as C. 14 semen stations have not been graded and 2 have not been evaluated till date. 32 semen stations have obtained ISO certifications and, in addition, stations located at Mattupatti in Kerala, Haringhatta, Salboni and Beldanga in West Bengal have alsoacquiredHACCPcertification.Maintainingthequalityofsemenproduction is a critical component for success of the AI programme and periodic evaluation of the semen stations through technically competent agencies is required for ensuring that bulls maintained at the stations are free from diseasesandminimumstandardprotocolasprescribedarebeingfollowed. 10.9 In order to avoid establishment of new bull mother farms and semen stationinStateswhichdonothaveanyorestablishadditionalstationsinother States, the possibility of creating a central agency / central facility on regional basis for semen production to cater to needs of different States in the region

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could be explored. This would not only facilitate in maintaining minimum quality, uniform standards and a common protocol for semen production but alsohelpinreductionofinvestmentoninfrastructuraldevelopment. 10.10Several models like Pranibandhus in West Bengal, Gopal Mitras in Andhra Pradesh, outsourcing to NGOs in Rajasthan and Jharkhand, etc. have been developed across the country for delivering AI services at the farmers doorstepwithvaryingdegreeofsuccess.Whathascomeoutclearlyisthatfor ensuring effective coverage at individual level, the AH Department machinery at the State level does not have either the required manpower or the mechanism. For having a wider and effective reach, it would be advisable that the whole activity of AI input services be outsourced to private agencies/ Paravet workers and doctors at veterinary dispensaries taking other higher responsibilities like health coverage, disease control, etc. What is to be ensuredisthatAIserviceprovidershaveadequateandqualitytrainingandare placedundertheoverallsupervisionoflocalveterinaryofficer. 10.11 Further, for providing meaningful employment, income generation and self sustaining models, it is desirable that the scope of private AI service providers like Pranibandhus and Gopal Mitras should not only be restricted only to provide AI services. The scope may be expanded and service providers may be allowed to take up minor veterinary services and also help in vaccination programmes. The model could be developed on similar lines as is being done in the human health sectors and the private AI service providers couldactasAshasinAnimalHusbandrysector. 10.12 It was observed that under the scheme, funding support to state agencies is largely oriented towards infrastructural development and mechanism for AI input delivery. However, the desired focus on technical support in terms of progeny testing, quality control of semen production and evaluation, embryo transfer technology, etc. has been lacking and need to be strengthened. FeedandFodderDevelopment 10.13 The scheme for feed and fodder development has undergone considerable changes both in its focus and components since 10th Plan. The schemehasnotbeenabletodelivertheenvisagedoutputsandimpacthasnot been visible. The Centrallysponsored Fodder Development Scheme with four

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sub components which was initiated during 200506 focussing on four independent and not interlinked components, appears to have not yielded the desiredresultsinaddressingtheproblemoffeedandfoddershortage. 10.14 The AH department has large infrastructure available in its seven regional stations of Central Fodder Development Organization and one unit of Central fodder seed production farm located in different agroclimatic regions of the country. Substantial investment has been made in these units but these units have served a limited purpose and outcomes have not been commensuratewiththeinvestmentsmade. 10.15 Some of the schemes like Fodder Mini Kit Scheme are quite popular amongthefarmers.However,theissuesofinsufficient quantityofkits, timeof supply and supply of seeds not preferred by farmers has over the years hampered the progress of the scheme to a great extent. The desired impact of Central Minikit Testing Programme on Fodder Crops being implemented by DAHD was not seen in most of the States. Fodder Mini Kit Scheme needs to be comprehensivelyrelookedintoifthedesiredimpactistobeachieved. Health&DiseaseControlOrientedSchemes 10.16 Under the Centrallysponsored Scheme of Livestock Health and Disease Control,fourcomponentsarebeingaddressed a) AssistanceforControlofAnimalDiseases(ASCAD); b) NationalRinderpestEradicationProgramme(NREP); c) ProfessionalEfficiencyDevelopment(PED);and d) Foot&MouthDiseaseControlProgramme(FMDCP). Performance of the scheme in most of the states has been quite satisfactory and control of most of the prevalent diseases is being achieved through vaccination programme and wider area coverage. The success of the scheme could primarily be ascribed to the core competence the State Animal Husbandry Departments have in dealing with health and disease control aspects. 10.17 Vaccination programme against different diseases in most of the States isbeingcarriedout withoutbreakofthediseasesratherthanasaprophylactic measure. Regular programmes have to be necessarily carried out for

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immunization of livestock and poultry against economically important diseases. 10.18 Large scale prevalence of diseases like FMD, PPR, etc. which significantly affect the productivity of livestock have been a big impediment for growth of the sector and also affects participation in the global market. In case of FMD it is estimated that the loss in production of milk following an episode of disease could be as high as 30 per cent and production loss continues for rest of the animalslifespan.LossduetoFMDinmilkproductionisestimatedbetweenRs 15000to Rs.30000 croreper annum.IncaseofPPRthe lossesaremuchhigher as in this case the mortality is more and could reach 100 per cent levels. This directly affects the sustenance of the marginal and landless farmers whose livelihooddependsonthesefewanimals. 10.19Through concerted efforts made, diseases of Rinderpest and Contagious Bovine Pleuro Pneumonia (CBPP) have been successfully eradicated and the country has been declared FMD and CBPP infection free in May2006andMay2007respectivelybytheOfficeInternationaldesEpizooties (OIE). However, focussed approach is essential for eradication of other commerciallyimportantdiseases,likeFMDandPPR. 10.20Production of most of the vaccines is with the government sector. Only FMD vaccine production is with the private agencies. Even though States have reported self sufficiency in meeting the demand of most of the vaccines, there is an acute shortage of swine fever and goat and sheep pox vaccines. Shortage of required doses of these vaccines has been reported to be severely affecting pig and small ruminant production and consequently the livelihood of farmers in North Eastern states, Assam, Uttar Pradesh and West Bengal. The severe mismatch between production and demand of swine fever vaccine has been further aggravated by nonadoption of available alternate technology enabling mass production of the vaccine in short timeframe. The policy of the governmentinnotallowingimportofswinefevervaccinefromothercountries to meet the huge demand has also been an impediment in tackling this importantissue. 10.21As a long term strategy, it is recommended that production of vaccines andotherveterinarybiologicalsshouldbewiththeprivatesectorwithastrong government regulatory mechanism for ensuring the desired standards of productionandqualityofthevaccines.

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SchemesforDairySectorDevelopment 10.22 Under the Centrallysponsored Scheme of Integrated Dairy Development which was launched in 199394 and subsequently modified as Intensive Dairy Development Programme, an investment to the tune of Rs.489.04 crore has been made. The investment has by and large gone to non viable areas without conducting any studies to explore the potential for dairy activities. With the current orientation of the scheme limiting its implementation only to non operation flood areas it is anticipated that the scheme may not yield desired returns on investment made and further may not contribute significantly either to growth of the dairy sector or improve the livelihoodofresourcepoorfarmers.Theschemehasbeenratherquitepopular in North Eastern states since additional funds are available to AH departments for taking up some activities for promoting dairy sector. Relevance of continuation of this scheme has to be examined in light of the National Dairy Plan which is expected to be launched in the near future. In the event of continuation of IDDP scheme, it is essential to remove the restrictions of limiting its implementation only in nonoperational flood areas and further areasofimplementationhavetobeselectedforexpansionofthescheme,only afterconductingproperfeasibilitystudies. 10.23The Central scheme of Assistance to Cooperatives with a funding pattern of 50:50 sharing basis between Centre and State is in operation since 19992000 with the objective of revitalizing sick dairy cooperative unions at district level and cooperative federations at state level. Since its inception, 34 rehabilitation proposals of milk unions in 12 states have been supported. Against a total allocation of Rs.280 crore during 9th and 10th Plan, the actual expenditure has been only to the tune of Rs.74.14 crore. During the 11th Plan period, the allocation has been reduced to Rs.50 crore. The issue of continued support to sick district milk unions at the cost of public exchequer money is of considerable concern. It is indicated by DAHD that currently 170 milk unions/ state milk federations have accumulated losses for various reasons. Critical impact evaluation studies are required to be undertaken for assessing impact of the scheme since inception and whether providing monetary assistance alone without addressing other related issues would bring desired results in revival of the sick unions. The Committee recommends that the Assistance to Cooperatives scheme should be discontinued and need not be pursued during remainingperiodofthe11thPlan.

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10.24The scheme Venture Capital Fund for Dairy and Poultry Sector which was initiated in 2004 during the 10th Plan has the primary objective of providing financial assistance for organised development of dairy and poultry sectors and is being implemented by NABARD. Since the inception of the scheme, a sum of Rs. 107.19 crore has been sanctioned as loan amount for setting up of 10526 dairy units and 190 poultry units, indicating greater preference towards dairy sector. The activities funded under the dairy sector were mostly towards procurement of milch animals in nonOF areas and a relatively small portion has gone towards other activities like procurement of milking machines, automatic milk collection centres, bulk milk coolers, refrigerated vehicles, etc. There has been a demand by different States for not limiting the scheme only to nonOF areas and expand the same to OF areas, especially for purchase of milch animals. However, the utilization of Venture Capital Funds to provide assistance to purchase animals needs to be re examined critically since this requirement is already being met by NABARD/ Banks through its priority sector lending activities. The impact analysis of the schemeneedstobecarriedout. Overallobservations 10.25It is normally expected that any of the central sector / centrally sponsored scheme should have a definite timeframe for achieving the set objectivesofthescheme.Initiatingnewschemesfrequentlywithoutclosureof several of the previous schemes which have been running since long have resulted in a large number of schemes being currently implemented. This has essentiallyresultedinadilutionoftheneededfocusforgrowthofthesectorin aholisticmanner. 10.26 Though the investment being made for implementing these schemes is not large as compared to schemes in other sectors, the outcomes and impact ofmanyoftheschemesisnotcommensuratewithinvestmentmade. 10.27Most of the existing schemes are being implemented in all the States without assessing its necessity, relevance and utility to a particular state/ agro ecoregion. Such an approach would result in nondevelopment of the intervention in a focused manner. Further, the schemes are being implemented as standalone schemes as a result of which cumulative benefits arenotbeingaccruedinaholisticmanner.

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10.28Some of the schemes which were initiated as early as Fourth Five Year Plan have been continuing even during the current Plan period. A critical evaluation for continuing or otherwise of such schemes needs to be made on priority. 10.29 The component of monitoring and evaluation is, by and large, restricted to assessing physical and financial progress and at present a suitable mechanism does not exist at present for monitoring of the progress and evaluatingitsimpactatthelevelofactualimplementation. 10.30 Lack of coordination, and at times disconnect between different departments of the State viz. Animal Husbandry, Dairy Federation and Livestock Development Board, has resulted in poor implementation and not derivingfullbenefitsoftheschemes. 10.31One of the conditions set for implementation of National Project for Cattle and Buffalo Breeding (NPCBB) was setting up of dedicated State Implementing Agency (SIA) by individual States. This was done with the view that funds under the scheme could be released directly to SIAs without going through the regular channel of State Treasury as this would enable for timely release and monitoring of funds in an effective manner. However, the fund flow mechanism followed in other schemes continues to be through the State Treasury which consequently results in considerable delay. Several administrative issues like fund flow mechanism, nontimely release of instalments, non submission of UCs in time, etc., has resulted in slow progress initsimplementation. Suggestiveactionpointsforimplementation 10.32 Given the existing mechanism of formulating and implementation of Central Sector and Centrallysponsored Schemes for animal and dairy development, there is ample reason to believe that it would be very difficult for achieving the targeted growth in livestock sector during the remaining period of 11th Plan and the ensuing 12th Plan period. It is suggested that Animal Husbandry Department may like to consider a complete revamping of the manner in which the schemes are to be administered from 12th Plan onwardsonthefollowinglines:

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Adopting a regionalised and need based approach/strategy for development of animal husbandry and dairy activities and support these activitiesinaholisticmanner; Two streams of schemes could be considered for development and implementation. In the Primary Stream, core activities of breeding, disease diagnosis and prevention should remain with the Centre. Schemes developed under these activities should be made mandatory for implementation by the States as per the format developed in the respectivescheme.UndertheSecondaryStream,ashelfofschemescould be developed and individual states given the freedom for choosing the schemes, which should be need based and within overall budgetary outlay indicatedforthestate; An inbuilt mechanismforconcurrent monitoring andevaluationand online reporting system need to be developed and incorporated at the time of formulating an individual scheme itself. The monitoring and evaluation shouldbecarriedoutbothinhouseandthroughexternalagencies; Impact evaluation studies must be an integral component of all the schemesformulatedandshouldbecarriedoutbyanindependentandwell establishedthirdpartyagency.Thiscomponentshouldbemademandatory and the same conveyed to the states in the sanction letter of the scheme itself; The relevance of establishing multiple institutional mechanisms for implementation of various schemes needs to be critically reviewed. A single institutional agency like SIA in NPCBB scheme could be established through which funds for all the schemes being implemented in the State could be routed. Such a nodal agency established should restrict its role onlyforfundflow,fundmanagement,monitoringandevaluation;and For effectively implementing the above proposed mechanism, it is imperative that a substantial enhancement in the budgetary outlay of the Department of Animal Husbandry and Dairying should be made in plan allocation. 10.34 IncontextofNationalDairyPlan,itisimperativethatDAHDmayhaveto relook into the existing schemes and also proposed new schemes with particularreferencetodairysector.Thiswouldbeessentialtoavoidoverlapof

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activities, clear definition of roles by different players and better utilization of funds. 10.35 Small ruminant production systems are the only means of livelihood for landless and resource poor farmers in many parts of the country. No centrally sponsored/central sector schemes exist at present for development of small ruminants and it is recommended that the department may develop a suitable andcomprehensiveschemeforsheepandgoats.

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PerformanceofCentrallysponsored/CentralSectorSchemes Scheme Performance Recommendation Status

CentrallysponsoredSchemes(AH) 1.NationalProjectforLivestockDevelopment 1.1NPCBB Performance of the To have a better impact, use of only scheme has been quite progenytestedbullsmustbeensuredat satisfactory. the semen stations. Breeds of bulls to be maintained for semen production should be in consonance with breeding policy of the concerned State. This should be made mandatory for providing further financial assistance underthescheme. 1.2 Assistance to With emergence of The scheme need not be continued in State Poultry sector as a theremainingperiodof11thPlan poultry/duck commercial activity, farms, backyard support to State poultry, poultry poultry/duck farms has estates. lostrelevance. 1.3 Conservation The budgetary outlay The criteria for conservation of of threatened has been increased threatened species and breeds of livestockbreeds. fromRs.16.00croreinX animals have to be clearly laid down Plan to Rs. 45.00 crore and total number of animals to be in 11th Plan and till date conserved need to be fixed by the State 7,271 threatened Level Committee on Animal Genetic animals of different Resources. Regular review of the breeds andspecies have scheme and impact assessment is beenconserved. essentialtojustifytheinvestmentbeing made. 2.Fodder The scheme has The scheme has to be accorded priority Development undergone considerable asitaimstoaddressthekeycomponent Scheme. changes both in its of feed and fodder shortage. However, focus and components the scheme needs to be completely since 10th Plan. The redrafted with technically sound scheme has not been component so as to have the desired able to deliver the impactatthefieldlevel. envisaged outputs and impact has not been visible.

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Scheme
3.LivestockInsurance

Performance Status
The scheme being implemented since 200506 as a pilot has been expanded to cover 300 districts during200910.

Recommendation
A comprehensive impact evaluation by an independent third party is recommended forassessingoverallimpactof the scheme, benefits accrued to farmers and the pattern of assistance before taking a decision on continuation of theschemeorotherwise.

The scheme may be strengthened further to cover important emerging diseases like Brucellosis and PPR. The National Disease Reporting System should be developed in a comprehensive manner for ensuring timely reporting and monitoring of various animal diseases. Production of vaccines to be with private sector. 5. Livestock Extension & Delivery The scheme is not services being implemented and approval of SFC is awaited. CentralSectorSchemes(AH) 1)LivestockCensus Though the 18th Efforts to be made for timely Livestock Census has publication of Census reports, been conducted with otherwise it may not have 15th October, 2007 as much relevance. Timely data the reference date, the on livestock population is report has not been essential for planning short publishedtilldate. term and long term strategies.

4. Livestock Health & Disease Control 4.1)ASCAD 4.2)NPRE 4.3)Professional Efficiency Development 4.4)FMDControlProgramme

The States have been considerably benefitted from this scheme in controlling various diseases effectively.

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Scheme
3)IntegratedSampleSurvey

Performance Status
Is a regular ongoing schemesince6thPlanon 50:50fundingpatternto States and 100 per cent basistoUTs.

Recommendation
There is a need for prioritizing the areas and components to be taken up in the scheme. A critical evaluation study is recommendedforassessingthe extent to which the information generated is being utilized. TheSheepBreedingFarmisnot anymore serving the purpose for which it was established anditisstronglyreiteratedthat the farm may be wound up at the earliest and no further investment be made for revival /strengthening.

4) Central Sheep Breeding The performance of the Farm Farm at Hissar established during 4th Plan has been unsatisfactory and the Expert Committee in 2001hadrecommended for its relocation to temperatearea. 5)CentralFodderDevelopment The scheme as a whole Organization has not been producing the desired results as envisagedandhasmade very little impact. Outputs and outcomes have not been commensurate with investment made. The fodder mini kit component has been popularbutlacksproper implementation strategies. 6.Central Poultry Development The Poultry Breeding Organization Farms are playing an important role in the rural poultry sector. The Central Poultry Training Institute has been performing quite well in imparting training and also supporting feed quality aspects through feedanalysis. 7.DirectorateofAnimalHealth

A reorientation of focus and strategiesareessentialtomake this scheme complementary and supplementary to the Centrally sponsored Scheme of Fodder Development. Otherwise, investments would continue to be made without muchbenefit.

A reorientation of focus and strategiesareessentialtomake this scheme more vibrant and beneficial especially to rural sectorpoultryfarmers.

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Scheme NewSchemes
8. Integrated Development for SmallRuminantsandRabbits 9.PiggeryDevelopment 10. Salvaging of Male Buffalo Calves 11. Food Safety and Traceability 12. Poultry Venture Capital Fund

Performance Status
NewSchemes

Recommendation

Periodic performance appraisal of the new schemes through independent agencies is essential for assessing their impact and accordingly decision for their continuation or otherwise should be taken. Concurrent monitoring and evaluation should be inbuilt in the design of the schemes itself.

CentrallySponsoredSchemes(Dairy) 1.1 Project for Dairy The scheme is quite Development (including clean popular, especially in milkproduction) North Eastern States. The scheme is restricted only to nonOF and Hilly and Backward areas. Considerable investment is being made in nonviable areas without critical analysis of potential for growthindairysectorin thearea.

1.2NationalDairyPlan

A critical impact evaluation study of the scheme needs to be conducted. Further, as and when the National Dairy Plan is approved and implemented, continuation of the scheme on Intensive Dairy Development has to be assessed from the view point of duplication of efforts and investment. In the meantime, it is suggested that the scheme may be extended to OF areas also. However, critical assessment of the potential in the area is essential for development of dairy sector before the projects areapproved. The necessary approval Many of the stakeholders and for the Scheme is still professionals are still not awaited. aware of components of the proposed scheme and the mechanism for its implementation. It would be beneficialtohaveinputsfroma wider cross section of professionals and stakeholders, prior to finalisation of the scheme.

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Scheme

Performance Status

Recommendation

CentralSectorSchemes(Dairy) 1.AssistancetoCooperatives 34 Milk Unions have been supported under the rehabilitation proposal since inception of the scheme in 2000. The scheme is in operation since the last nine years and still 50 per cent of the Unions supported have been incurring loss which is indicative of the lack of concerted efforts on the part of Milk Unions to achieveaturnaround. 2.DelhiMilkScheme The performance of DMS has not been satisfactory and the unit is incurring losses. The Cabinet has accorded in principle, approval for corporatisationofDMS. 3.DairyVentureCapitalFund The scheme is quite popular and performing quite well. However, in OF areas the scheme is not being implemented especially for purchase ofanimals.

It is recommended that the scheme may be discontinued since it appears to have covered most of those cooperatives that were eligible to receive such assistance underthescheme.

The process for corporatisation of Delhi Milk Scheme as approvedbytheCabinetshould bespeededup.

Scheme should be expanded and the restriction of its implementation only to nonOF areas should be removed. The cost norms for different components need to be revised.

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Financial performance of Centrally Sponsored and Central Sector Schemes Outlay in Expenditure Outlay in Expenditure X Plan XI Plan (2007-09) (Rs. in crore) Centrally Sponsored Schemes (AH) 1.1 NPCBB 375.00 355.21 554.00 136.85 1.2 Assistance to State Poultry/Duck 25.00 78.15 141.00 28.17 Farms, Backyard poultry, poultry estates. 1.3 Conservation of threatened 15.00 15.20 45.00 3.31 livestock breeds. 2. Fodder Development Scheme 25.00 55.52 141.40 18.48 3. Livestock Insurance 0.00 24.40 51.00 22.67 4. Livestock Health & Disease Control 525.00 445.92 1300.00 269.48 4.1) ASCAD 255.00 250.07 550.00 188.20 4.2) NPRE 40.00 38.76 25.00 9.17 4.3) PED 30.00 14.78 25.00 7.85 4.4) FMD Control Programme 200.00 142.31 700.00 64.26 5. Livestock Extension & Delivery 0.00 0.00 15.00 0.00 services Central Sector Schemes (AH) 1) Livestock Census 150.00 109.43 450.00 203.07 2)Central Cattle Development 70.00 54.96 105.00 30.13 Organization 3) Integrated sample Survey 29.00 29.45 80.00 12.58 4) Central Sheep Breeding Farm 25.00 6.90 13.00 3.32 5) Central Fodder Development 45.00 39.35 80.00 21.33 Organization 6.Central Poultry Development 40.00 26.90 50.00 16.53 Organization 7. Directorate of Animal Health 50.00 76.25 92.60 18.64 8. Integrated development for small 0.00 0.00 190.00 0.00 ruminants and Rabbits 9. Piggery Development 0.00 0.00 150.00 0.00 10. Salvaging of Male Buffalo Calves 0.00 0.00 300.00 0.00 11. Food safety and Traceability 0.00 0.00 50.00 0.00 12. Poultry Venture Capital Fund 0.00 0.00 200.00 0.00 Centrally 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 0.00 Central Sector Schemes (Dairy) 1. Assistance to cooperatives 130.00 39.14 50.00 14.05 2. Delhi Milk Scheme 1.00 7.10 5.00 1.90 3. Dairy Venture Capital Fund 25.00 28.00 300.00 84.99

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CHAPTERXI XI.SuggestedCentralSectorandCentrallySponsoredSchemes 11.1 At present the Department of Animal Husbandry, Dairying and Fisheries, Govt. of India, implements a number of Central Sector and Centrallysponsored Schemes (24 schemes) for Animal Husbandry and Dairy Development. These schemes are formulated by Govt. of India and their pattern of assistance varies from scheme to scheme. However, the responsibility of their implementation rests 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 in whichtheGovt.ofIndiaformulatesandexecutesonlyafewschemeswhichareof nationalimportanceleavingotherschemestobeformulatedandimplementedby the concerned State Governments. This would promote the project formulation and their management capabilities amongst the States Department of Animal Husbandry and Dairying. Accordingly it is proposed that the schemes may be groupedintofollowingthreestreams: StreamI 11.2 This would include schemes of national importance that would be formulated by Govt. of India. The scheme would be implemented by the State Govt./Stateimplementingagencysetupforthepurposeandmonitoredcloselyby the Department of Animal Husbandry & Dairying, GOI. The pattern of assistance would be 100 per cent central. It is further suggested that except for National Dairy Plan which is being formulated and implemented by NDDB, the DAHD may constitute a comprehensive Consultative Group of Experts including representativesfromafewstatesforholisticformulationofthescheme,including subcomponentsinafocusedmanner.Followingschemesareproposedunderthis category: 1. Nationalcattleandbuffalobreeding/developmentproject; 2. Controlofanimaldiseasesofnationalimportance; 3. Nationalprojectonfodderdevelopmentandutilizationofcropresidues; 4. NationalLivestockExtensionProject;and 5. NationalDairyPlanofNDDB.

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StreamII 11.3 This would cover schemes of regional importance on species specific or State specific projects. The schemes would be prepared by State Govt. and sanctioned by GOI following the present procedures adopted for sanction of schemes in the case of Rashtriya Krishi Vikas Yojana. The pattern of assistance would be on 75:25 cost sharing basis between Centre and the State respectively. Underthisstreamfollowingschemesaresuggested: 1. DevelopmentofIndianbreedsofdairycattle(Tharparkar,GirandRathi) 2. Development of Indian Cattle of regional importance (dual purpose breeds); 3. Developmentofsheepformuttonproduction; 4. Development of sheep for fine/medium quality wool in Kashmir, Uttarakhand,andNorthernareasofUP; 5. Developmentofgoatformeatproduction; 6. Developmentofgoatformohairproduction 7. DevelopmentofPigintheNorthEasternstatesofIndia; 8. SupportforestablishmentofDiseaseInvestigationLaboratories; 9. Supportforcontrolofzoonoticdiseases; 10. Breedinganddevelopmentofrabbitinselectedareas; 11. Supportforestablishmentofmodernslaughterhouses; 12. Supportforestablishmentofcarcassutilizationcentres; 13. Supportforestablishmentoflaboratoriesfortestingqualityofmilk; 14. Support for building awareness among the producers and consumers for milkquality; 15. DairydevelopmentinareasnotcoveredbyNationalDairyPlan; 16. Supportformodernizationofmanufactureofindigenousmilkproducts; 17. Support for training of the manufacturers of indigenous dairy products in moderntechnology. 18. Support to the States for collection of statistics on livestock and dairy sector, including present pattern of utilisation of the products and the cost ofproduction; 19. Supportforrural/backyardpoultryproduction; 20. Supportfordevelopmentofquilproduction;and

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21.

Promoting formation of Self Help Groups (SHGs)/User Groups (UGs)/Common Interest Groups (CIGs) for livestock production/processing activities.

StreamIII 11.4 This would cover schemes implemented through NABARD as Venture Capital Fund. It is suggested that the distinctions like OF and nonOF areas for implementationofVentureCapitalFundschemesmaybedispensedwith.

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CHAPTERXII XII.InstitutionalandStructuralReforms 12.1 The existing institutional structure both at the Central and the State level have not been able to effectively address emerging and new generation needs for development of animal husbandry and dairy sectors on account of several reasons. It is essential to have a critical look at the existing mechanism and bring a paradigm shift in the Institutional and Structural arrangements at different levels for achieving the targeted growth in the remaining period of the11thPlanandalsoasalongtermstrategy. 12.2 The major players in providing services in Animal Husbandry and Dairy sector are i) Government, ii) Private sector, iii) Producer institution, iv) Autonomous bodies, and v) NGOs. The role of each of these institutions has not been clearly defined and at times there is considerable overlapping of activities and as such it becomes difficult to asses their performance in a comprehensivemanner. 12.3 In recent years, the government at the Centre has adopted a bottom up approach and convergence mechanism for achieving growth in different sectors and implementation of various developmental schemes. District is beingconsideredasthebasicunitanddistrictplanshavetoessentiallyaddress all interrelated sectors in a holistic manner. Animal husbandry activities have also to be reflected in district plans and converge with other developmental activities. 12.4 Many of the issues in AH and dairy sectors are region specific and needs tobesortedoutattheState/regionallevelitself.InterventionsthroughCentral level should focus on core areas. There is a need for identifying and clear demarcationofwhatactivitiescouldbecentralisedandwhatcouldnotbe. 12.5 Institutionalandstructuralreformhastotakeplaceatdifferentlevels. A suggestive restructuring at different levels and role to be taken up is indicated below: NationalLevel 12.6 Interdivisional convergence at the apex body, i.e., DAHDF is essential for formulating sectoral development policies at national and international

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level and designing various centrallysponsored and central sector schemes in aholisticmannerwhichatpresentappearstobelacking. 12.7 For providing comprehensive information on livestock related aspects and drawing long term and short term policy/strategies, it is essential to establishaseparateNationalBodyforLivestockInformationandPolicieswhich can advise the Ministry in all policy matters relating to livestock sector. The proposed body can establish a channel of communication and coordination with all the State governments and the public/private organizations, both nationalandinternationaldealingwithlivestock. 12.8 With the focus on genetic improvement of livestock, especially cattle and buffaloes, the demand for superior breeding material has increased considerably and as such the quality control aspects assume significant importance.Atpresent,besidespublicsectorinstitutions,anumberofprivate sector bodies, ICAR and NGOs are engaged in the production of material required for breeding of cattle, buffaloes and other species of animals. In the absence of any regulatory authority there is no enforcement of standard required for production/import of frozen semen embryos and other breeding material. There is a need for establishment of a separate authority for enforcingthestandards. 12.9 Livestock Extension which at present is the weakest link in animal husbandry activities needs to be strengthened. Appropriate extension models with effective linkages between various stakeholders viz. Centre, State, SAUs, Research Institutes, NGOs, ATMAs and KVKs needs to be developed. It is recommended that a separate Livestock Extension Division headed by a Joint SecretarymaybesetupinDAHDF. 12.10 Animal husbandry and dairy sector has not been able to attract external assistance both through the government and private sector in a big way. Considerableopportunitiesexistandmanyexternalagenciesareevincingkeen interest for making investment in the sector. A separate window may be openedforthispurposetofacilitateinvestments. 12.11 For achieving livestock feed security, the concept of establishing a National Livestock Feed Agency on the pattern of Food Corporation of India along with the National Feed Grid has been mooted and discussed at various platforms.However,thishasnotbeentranslatedintoactiontilldate.

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Statelevel 12.12 The present structure of livestock improvement at the state level is based on fixed model of a veterinary hospital/dispensary being the key nodal structure at the ground level from where services and goods are currently distributed. In the recent years, there has been a shift in the approach for effective delivery of input services especially those related to breeding and healthaspectswhichessentiallyneedtobeprovidedatthefarmersdoorstep. Consideringtheinfrastructure,manpoweravailabilityandadministrativebottle necksitisfeltthatinfuture,governmentdepartmentsmaynotbeinaposition to provide the services at door steps of the farmers effectively. This calls for creation and implementation of different delivery models. A right beginning has been made In NPCBB programme for conversion of stationary models to mobile models for effective delivery of inputs. Further, the responsibility in areas like AI has been given to NGOs and private AI workers with the government department taking up the role of monitoring agency for ensuring strictqualitycontrolandefficientdeliverytothefarmersatreasonablecosts. 12.13 Different agencies viz. AH department, Dairy Federation, State Implementing Agency, NGOs, private sector are involved in promoting animal husbandry and dairy sector. The issues of disconnect and nonconvergence betweendifferentdepartments/agenciesimplementinganimalhusbandryand dairying activities at the State level needs to be addressed for harnessing full benefitsofvariousschemes. 12.14 Topromoteandnurturethegrassrootlevelparticipatorybodiesallover the state as the organic link between the animal husbandry department and the small holders, the State should encourage setting up of innovative institutions like SHGs/ CIGs and UGs for production, supply of inputs, marketing and micro finance on the lines of Bangladesh Model. Establishment of Producers Company for which the provision has been made in the Companies Act will provide the advantages of retaining the basic elements of cooperation while enjoying the regulatory regime as a private limited company. 12.15 A large investment is being made by many of the State departments for setting up livestock farms without assessing their requirement. This tendency needs to be discouraged and the production of breeding males (bulls, rams) shouldbethroughidentifiedfarmersandfarmersgroup.Theactivityofsemen

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production should be placed with the proposed central agency for ensuring qualityandstandards. 12.16 The production of vaccine and other biologicals should be transferred to private sector and the government should withdraw from these activities. Privatization of Veterinary Vaccine and biologicals is being recommended in successive Five Year Plans since last two decades but the suggestion have not been implemented by the States, who continue to maintain and operate these units. As a result, private sector has no initiative to produce animal vaccine and biologicals. Government of India should advise all states to privatize their production of such activities under Centrallysponsored Scheme. Further, at present the production of vaccines as well as their quality control lies with the state veterinary department which functions not only as user but also producer and quality controller, which is not a satisfactory arrangement. An independent authority for Quality Control of Vaccines and other biological products produced both in the public and private sector as suggested in the 11thPlanshouldbesetup. PublicPrivatePartnership 12.16 The future strategy should give greater emphasis on developing Public Private Partnership (PPP) in different activities of animal husbandry and dairy sector. Some of the areas, which can be taken more efficiently in PPP mode include, vaccine production and its delivery, meat production and processing, processing of fallen animals and animal byproducts, fodder seed production, management of community pastures and fodder banks, extension and technologytransfer,etc. RashtriyaKrishiVikasYojana(RKVY) 12.17 The RKVY which is being implemented as an Additional Central Assistance Scheme with an envisaged outlay of Rs.25000 crore during the 11th Plan period has provided an opportunity for the animal husbandry and dairy sectors to get additional budget for implementing various activities. The schemeaimsatachieving4percentannualgrowthinagriculturesectorduring the 11th Plan period, by ensuring a holistic development of agriculture and allied sectors. The States are incentivised for increasing public investment in agriculture and allied sectors. Some of the issues related to animal husbandry anddairysectorsinRKVYschemeare:

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i.

ii.

iii.

The allocation to AH and dairy sectors out of the total budget available underRKVYisextremelylow.During200708overallallocationtoanimal husbandry activities was 11 per cent of the total RKVY budget for the year. The allocation has substantially increased to about 20 per cent during 200809, but in many of the States the AH sector continues to receivelowerpriorityinallocation; AH departments at the State level are of the view that Agriculture Department being the nodal agency for implementing RKVY scheme shows a big brother attitude and as such AH and dairy sector tends to getneglected;and Itisalsoafactthatsaleableandqualityprojectsarenotcomingfromthe AH departments at the State level and many of the projects get turned downatthescreeninglevelitselfanddonotgotoSLSClevel.

IndianCouncilforVeterinaryandAnimalScienceEducationandResearch 12.18 A separate Indian Council for Veterinary and Animal Science Education andResearch(ICVAER)shouldbeestablishedbycarvingouttheAnimalScience Institute of ICAR and placing them with DAHDF. Creation of ICVAER would overcome the shortage of technical manpower and infrastructure in the DAHDF for carrying out the regulatory and certification authority functions including conservation of endangered breeds of livestock. This will also help the Department to undertake problem linked research and revitalization of state veterinary colleges as per the norms of Veterinary Council of India. This would require amendment to the list of subjects allocated to the Department of Agriculture Research and Education and Department of Animal Husbandry Dairying and Fisheries under list 1 of the Seventh Schedule to the Constitution ofIndia.Theresearchandeducationinveterinaryandanimalsciencesmaybe deleted from the list of subjects allotted to Department of Agriculture Research and Education and added to the list of subject allocated to DepartmentofAnimalHusbandry,DairyingandFisheries.

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CHAPTERXIII XIII.StateSpecificRecommendations Nameofthestate SuggestedPriorityArea AndhraPradesh 1.DairyDevelopment 2.SheepDevelopmentforMeatProduction 3.Commercialpoultryproduction 4.FodderSeed Assam 1.CommunitybasedPigProduction 2.Fodderseedproduction 3.Goatproduction ArunachalPradesh 1.Yak&MithunProduction 2.GoatProduction 3.Foddertreesproduction Bihar 1.DairyDevelopment 2.Productionofcrossbredcattle 3.Poultryproductionbasedonmaizegrains Chhatisgarh 1.Improvementofindigenouscattle 2.Backyardpoultry 3.FodderProductiononricefallowareas Goa 1.DairyDevelopment 2.Piggery Gujarat 1.DairyDevelopment 2.Sheepdevelopmentinaridregion 3.KnowledgePortalfordairydevelopment 4.PoultrySouthGujarat

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Nameofthestate Haryana HimachalPradesh J&K Jharkhand Karnataka Kerala MadhyaPradesh Maharashtra

SuggestedPriorityArea 1.NationalrepositoryforBuffalogermplasm 2.KnowledgePortalforAnimalHusbandry 3.Fodderseedproduction 4.PoultryPeriUrbanAreas 1.SheepDevelopment 2.DevelopmentofFoddertrees 3.Goatdevelopment 1.SheepDevelopmentforfinewool 2.DevelopmentofPashminagoatandRabbits 3.DairyDevelopment 4.PoultryJammu 1.Improvementofindigenousbreeds 2.Backyardpoultry 3.Goatdevelopment 1.DairyDevelopment 2.Repositoryofcrossbredcattle 3.Sheepproductionformeat 1.FodderDevelopment 2.Repositoryofcrossbredcattle 3.GoatDevelopment 4.Piggery 1.Improvementofindigenouscattle 2.GoatDevelopment 3.DairyDevelopment 4.BackyardPoultry 1.DairyDevelopment 2.PoultryOrganised 3.Developmentofcrossbredcattle

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Nameofthestate Manipur Meghalaya Mizoram Nagaland Orissa Punjab Rajasthan Sikkim

SuggestedPriorityArea 1.Pigproduction 2.BackyardPoultry 1.PigProduction 2.BackyardPoultry 1.PigProduction 2.Smallholdersdairyproduction 3.BackyardPoultry 1.PigProduction 2.MithunProduction 1.Goatproduction 2.ImprovementofIndigenouscattle 3.Pigproductionintribalareas 1.CommercialDairyFarming 2.Knowledgeportalforfodder productionpractices 3.Integratedfarmingsystems 4.CommercialPoultry 1.ImprovementofIndigenous cattleTharparkarandRathi 2.DairyDevelopment 3.Developmentofsheep 4.CamelDevelopment 1.Smallholdersdairyproduction 2.Foddertreeseedproduction 3.YakDevelopment

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Nameofthestate TamilNadu Tripura UttarPradesh Uttarakhand WestBengal

SuggestedPriorityArea 1.DairyDevelopment 2.CommercialPoultryproduction 3.Smallruminantproduction 4.HumanResourceDevelopment&Training 1.PigProductionintribalareas 2.Smallholdersdairyproduction 3.BackyardPoultry 1.DairyDevelopment 2.GoatDevelopment 3.Fodderseedproduction 1.SheepDevelopmentinHillyAreas 2.Foddertreeseedproduction 3.BackyardPoultry 4.RabbitryinHillyAreas 1.DairyCattleProduction 2.Developmentofgoatforqualityskin 3.BackyardPoultry

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1.AndhraPradesh Ofthe23districtsoftheState,16districtsareunderrainfedagriculture.In these districts, Animal Husbandry is a major source of income and employment. The annual milk production was 9.6 million tonnes, egg production 18300 million in numbers and meat production 0.6 million tonnes. The per capita availability of milk is 269 gm/day, eggs 178 per annum and meat 3.5 kg per annum which are much higher than the nationalaverage. Animal Husbandry Sector contributes about 27 per cent of the Gross Domestic Product from Agriculture. The growth rate in Animal Husbandry is 4.67 per cent and there is a good potential for higher growth looking to the productivity of livestock, management practices, entrepreneurship and resourcesavailable. Recommendations The State offers great potential to emerge as one of the leading dairy production state in the country. Dairy development should, therefore, beaccordedhighpriorityandhighinvestmentportfolio. Improving productivity per animal through breeding, nutrition, health and market interventions to support livestock products demand should receivepriority. The effective population coverage through AI should be increased to 40 percentfromthepresentlevelof26percent. There is a need to relocate the bull mother farm and semen station at Visakhapatnamduetooldinfrastructureandlackofbiosecurity. Gopal Mitra Model for AI service seems to be doing well and should be adopted by all agencies. These Gopals may be further involved in insurance,vaccination,etc.forbettersustainability.

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Fodder calendar for all the three major regions of the State should be drawn and appropriate seed input of both legume and nonlegume foddervarietiesprocuredandmadeavailabletothem. The veterinary institutional facilities need to be upgraded and stateof theart diagnostic laboratories be established in these regions through fundsunderRIDF. Veterinary and Animal Science University needs to be strengthened in terms of infrastructure and facilities for training and clinics for which onetime grant assistance may be considered. The extension activities ofuniversityshouldbelinkedwithKVKsandATMAintheState. In the dry areas like Anantpur district, sheep breeding offers considerable scope for growth. The emphasis should be oriented towardsraisingsheepformuttonwithadequatemarketingsupport. The State has emerged as a leading hub for commercial poultry production and supplier of breeding material as well as the products to other states of the country, especially NE Region. The state should provide further incentives/support for the development of this sector andalsototaptheexistingvastpotentialofexport. Livestock extension activities including training and dissemination of technologies which are critical in livestock production system should be givenhigherpriorityandbudgetallocation. TechnologicalinterventionsofICAR/AgriculturalorVeterinaryUniversity willfurtherenhancetheproductivityoflivestock. 2.ArunachalPradesh Arunachal Pradesh with about 11 lakh nonvegetarian population offer good potential for livestock and poultry sector. However, the performance of the sector is not satisfactory due to several reasons. The management practicesoflivestocksectorareprimitiveandmostofthelivestockarenon descript with poor yields. Quality inputs is one of the constraints in the

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state, however, there is a good potential to enhance the productivity of piggery, mithun, poultry and yak in the state by adopting improved managementpractices. Recommendations The primary area of focus in the state should be development of yak and goat production systems. The coordination between ICAR Yak Research Center and DAH may be better utilized for conservation and sustainability of yaks, thus better health and management. Formulation of sustained breedingpolicyshouldbeadopted. Cattleshouldreceivethesecondarypriorityasasubsistenceoccupationfor providing livelihood opportunities in selected areas. Thus, there is no need to establish frozen semen technology and semen station. The requirement canbemetfromothersources. There is need to sustain Bhutia pony project and give it more attention underconservationofthreatenedbreeds. Piggery sector should be accorded high priority for reducing the dependencyonimportofpigandpigproductsfromoutsidetheregion.The approach for development of this sector should be through community approachforpigbreedinginvolvingSHGs. There exists considerable scope for backyard poultry. The capacity of the Central Poultry Farm, Nirjuli, should be strengthened. Introduction of improved germ plasm of backyard poultry (Vanaraja, Grampriya, CARI priya)shouldbepromoted. Areaspecificmineral(Mg,Cu,Mm)supplementationneedstobepromoted forovercominginfertilityproblems,therebyimprovingthereturnsfromthe livestock. There is a need to strengthen livestock extension and training facilities for pigandotherlivestockfarmers.

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Hygienicmeatproductionisessential.Thereisaneedformodernslaughter house. The Itanagar meat market is very unhygienic, which should be on modern lines with installation of deep freezer in the meat shops to ensure supplyofhygienicmeat. TebuLappaWelfareSocietyisregisteredforprotectionandconservationof Mithuns. A proper identification mechanism would help in resolving the prevailingownershipproblemsforyakandmithun. 3.Assam The economy of Assam is agrarian where more than 70 per cent of the population is engaged in agriculture, animal husbandry, fishery, sericulture etc. The contribution of agriculture to total GDP of state is 33 percent, while the contribution of livestock sector to total agriculture / total GDP is notavailableseparately.Thelivestocksectorplaysakeyroleinthefarmers economy. This sector is responsible for providing food and nutritional security of the people by producing milk, meat, egg etc. More than 90 per cent of the population of the state are nonvegetarian and depend on animals for fulfilling their protein requirement through various animal products which are rich in essential amino acids and are easily digestible. The state has great potential for pig production and to enhance productivity of cattle, goat and poultry various technologies should be adopted. Recommendations The focus should shift from production at State farms to production by massesbyorganizingthemintoproducersgroups/SHGs. Priorityshouldbegivenforproductivityenhancement. The State has potential for pig production and to enhance productivity of cattle, goat and poultry by adopting appropriate technologies. The potential for breeding Black Bengal goat having higher twinning percentageshouldbefullyexploited.Intheruralareas,backyardpoultry assubsistenceoccupationshouldbepromoted.

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The Regional Disease Diagnostic Laboratory established in the state should become fully functional and cater to the needs of the whole NE region. The existing facility for commercial production of balanced livestock feeds needs to be strengthened for achieving higher livestock productionlevelsinthestate. Livestock and dairy forms an important component of World Bank Agricultural Competitiveness Project. The performance of the sector is, however, not satisfactory due to a number of reasons, including problems associated with release of funds to the implementing department. There is a need to relook at the procedure to fully utilize theopportunitiesintheproject. 4.Bihar The contribution of agriculture to total GDP of the State is 33.1 percent. Livestock sector contributes 38.7 per cent of Agriculture GDP at current prices (200506). Animal Husbandry and Dairying holds ample potential of growth in the state, but unfortunately, this vast potential has not been tapped fully. Cooperative Dairy Federation has done fairly well in the state. The State Department of Animal Husbandry is in moribund condition. To make the sector more viable and vibrant, the State has to essentially addressvariousaspectsinacomprehensivemanner. Recommendations The vast amount of infrastructure available in the state for providing AI services in cattle and buffalo needs to be revived. Alternatively, the responsibility of AI should be handed over to the well established NGOs for providing the services on PPP mode; and the departmental infrastructureshouldbedisinvested.

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The Milk Federation is doing an excellent job in the state and the federation can be entrusted with the responsibility of forward and backward linkages, at least in the milk shed areas. The Federation shouldnowtakeuptheresponsibilityofenhancingtheareacoverage. The state has been the leading producer and supplier of maize grain in the country for poultry sector. Commercial poultry production utilizing the available resources produced within the state will make it more competitive and increase returns to the farmers besides providing market outlet to the maize produced. The linkage between maize grain producers and poultry entrepreneurs should be promoted and strengthened. The integrated farming systems should be encouraged for harnessing theavailablenaturalresourcesinthestate. 5.Chhattisgarh Cattle and buffaloes constitute the major livestock population of the state andarecharacterizedbylowproductivity.Currently,thestategovernment is following a threepronged strategy for enhancing productivity implementing a breed improvement programme, inducting crossbred cows and Murrah buffaloes from Haryana state and improving productivity throughimprovedmanagementpractices. The milk production of Chhattisgarh state is about 2276 tonnes per day with the per capita availability of 109 grams, which is far below the National Consumption standards. The submarginal, marginal, small and semimediumgroup offarmersownthe majorityofsheepandgoatinrural Chhattisgarh.PigkeepingisspecifictosometribesandDalits.Traditionally, backyard poultry forms a part of the livelihood systems of households in the State. There is a significant growth in case of improved poultry population(212percent)over2003livestockCensus.

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Recommendations The state is having breedable population of 33.46 Lakh and the annual number of inseminations is 5 Lakh. This indicates a huge gap. Hence, the number of centres offering mobile AI services needs to be increased either through the private AI workers trained under NPCBB programme orallotmentofadditionalcentrestotheNGOs. The frozen semen bull station located at Anjora needs to be strengthenedbyintroducingqualitybullswithhighgeneticmerit. TheMilkProducer,CooperativeUnionsshouldbeorganizedonregional level and the exiting staff to be redeveloped. The plant and chilling centre machinery established is almost 25 years old and requires rehabilitation. The State Government should prepare suitable proposals andseekfundingfromappropriatesource,includingRKVY. The DVCF (Dairy Venture Capital Fund) scheme needs to be dovetailed with other existing programmes being implemented in the State. There is a greater need for convergence between Union and the Dept. of Animal Husbandry in respect of providing inputs services to the Milk ProducersUnion. There is a need to strengthen the extension wing of Department of AnimalHusbandrytoprovideextensionservicetoalargenumberoflive stockfarmers. 6.Goa The growth in livestock production is almost stagnant as the State depends mostly on the neighboring States for the raw materials/inputs. The contribution of Agriculture sector to GDP is around 6 per cent and the contribution of livestock sector to Agri GDP is around 27 per cent. The demand for milk is 3 lakh liters per day, while the local production is only 0.45 lakh liters per day and the balance is coming from the neighboring StateslikeKarnatakaandMaharashtra.Thepercapitaavailabilityofmilkis

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118 gms as against the National Average of 240 gms. Similarly, the per capita availability of meat and eggs is also low compared to the National average, while the demand for meat and eggs is very high because of non vegetarian population. The present growth in milk and egg production is 1.76percentand0.36percentperannum,respectively. The State has limited potential to achieve further growth in AH and dairy sectors over the next 1015 years as they have to depend mostly on the neighbouring States (Maharashtra and Karnataka) for the inputs (feed, fodder, vaccines, medicines,etc)andalsoduetolackofenthusiasmamong theunemployedyouthtogoforlivestockfarmingactivities. Recommendations Considering the limited availability of inputs (green fodder, dry fodder, concentrated feed and semen) and lack of inclination of rural people to takeuplivestockdevelopmentactivities,Goamaysetatargetofaround 2 per cent growth during the 11th Plan and 2.5 per cent during 12th Plan forthesectorasawhole. TheStateGovernment(DepartmentofAHandmilkunions)mayprepare a comprehensive plan for the next 10 years. The role of two agencies shouldbespeltoutclearly. Looking at the limited availability of good quality animals, the focus has to be reoriented for rearing of crossbred female calves for milk production. Future programmes to be drawn by the State needs to be reorientedtowardsthisdirection. Pig rearing activity should be intensified by making the weaners available to the needy farmers and also by encouraging the breeding farmsunderthePiggeryDevelopmentFundofDAH. Considering the demand for meat and eggs, it is worthwhile to encourage buffalo male calf rearing and piggery and poultry activities in theState.

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Innovative PPP models need to be developed and implemented for effectiveinputdeliverysystemandmarketlinkages. TheallocationoffundsunderRKVYisverylowtotheState,outofwhich the Department of AH and Dairy Union get meager amounts. Hence, higher allocation is suggested under RKVY to meet the requirements of DAH for conversion of stationery veterinary institutions into mobile unitstoprovidetheservicesatthedoorstepoffarmers. A onetime grant may be considered for setting up of feed plant and fodderbankbythemilkunion. Encouraging green fodder cultivation at farmers level as intercrop in plantations and also setting up of fodder bank by DAH/milk union to supplydryfodderduringleanseason. For providing the veterinary services at the doorstep of farmers, the existingstationarycentersmaybeconvertedintomobileunits. The milk union should concentrate on supply of concentrated feed and fodderseeds/rootslipsforincreasedproductionintheState. Target may be fixed for setting up of bulk milk coolers in the dairy cooperativesocietiesforprocuringmoremilkfrominteriorareas. 7.Gujarat Gujarat State with a total geographical area of 1.96 lakh square kilometers is divided into three distinct regions i.e. South Gujarat, North Gujarat and SaurastraKutch. The total number of districts is 26 and the human population is 5.06 crore (2001 census). About 62.6 per cent of the populationisinruralareasandthepercentageofpopulationbelowpoverty lineis14.06.AMULiswellknownworldwide. In the state, the contribution of gross value of output from livestock sector is5to5.5percenttotheGrossStateDomesticProduct(GSDP)ofthestate and its share in agriculture is 22 per cent. During 20032007, cattle

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population has increased by 7.4 per cent, mainly the crossbreds (79 per cent), buffaloes by 23.1 per cent and goat 22 per cent. Sheep population hasdeclinedby2.9percent.Thegrowthinmilk,eggandwoolsectorinthe state is 6, 16 and 1 per cent respectively as compared to 4, 6 and 2.1 per cent of national average. The state has potential for achieving further growthinmilkandeggsectors. Recommendations TheState shouldcontinuetoleadthe developmentof dairysectorinthe country. Saurashtra and Kutch region has to be focused for harnessing untappedpotentialindairysector. NDDB and the Milk Federation has over the years provided the knowledge and skill upgradation to farmers and professionals throughout the country in dairy sector. This activity has to be continued and State should become the knowledge hub in the sector. A knowledge portalneedstobedevelopedandimplementedbythestate. Animal husbandry sector has not kept the same pace in development in comparison to dairy sector. The coverage of animals under AI network needs to be improved. Although different agencies are involved in the breeding programme, only 50 per cent of the breedable population is covered through AI. The Gujarat State Livestock Development Board musttakealeadtoenhancethecoverage. TheStatemayliketorelookintoitsdecisionofestablishinganewSemen Centre at Patan. The requirement of semen doses could be met through the existing semen stations with NDDB and Dairy Federation which presentlyarecateringtothedemandfromotherstates. The progress achieved by the State in disease control as indicated by lesser number of disease outbreaks needs to be continued without any complacency. Efforts should be made for strengthening of vaccine production institute with modern stateoftheart infrastructure for quality vaccine production keeping in view the GMP imposed by drug andcosmeticacts.

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Considering the progressive nature of livestock farmers in the state, considerable scope exists for productivity enhancement through technology driven approach. The introduction of bypass nutrient feeds, complete feed blocks, area specific mineral mixture, etc. which have been taken up by different agencies in the state need to be expanded to awiderarea. Sheep development holds potential to a large extent in arid regions of the state. This sector has to be promoted with greater focus for providing livelihood opportunities for resource poor farmers in the region. Poultry sector has made significant growth in recent years. Further development of this sector, especially in South Gujarat, may be taken as apriorityarea. The State has to address the problem of burning of paddy and wheat straws in the field after harvest in some of the regions of the state on priority. 8.Haryana Haryana, with a total human population of 2.11 crore (2001 census) is spread over in a geographical area of 44,200 lakh sq. kms. The State is divided into 21 districts and the literacy rate is 68 per cent. More than 70 percentofthepopulationlivesinruralarea. The total GDP of the State is Rs.92050 crore and the contribution of agriculture sector to total GDP is 26 per cent. The livestock sector is contributing to the tune of 36.1 per cent of Agriculture GDP (at current prices).Basedonthecriticalanalysisofinformationprovidedintheformat, observations made during the field visit and from the discussion with the officials concerned, it is evident that the state has been performing well in these sectors. The state has very good potential for further growth over next1015years,probablyintherangeof67percent.

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Recommendations Haryana is not only the home tract for Murrah breed of buffaloes but alsothelargestsupplierofsuperiorqualitybuffaloestootherstates.The state should essentially aim at becoming the national repository for Murrahbuffalogermplasm. Formation of breeders association by Haryana Livestock Development Board(HLDB)isastepintherightdirectionandneedstobeextendedto allotherpartsofthestate. Only 60 per cent of breedable population is being covered through artificial insemination services. It is essential to enhance the coverage through activities of HLDB and milk unions to achieve the projected growthindairysector. The potential for the state to develop as a knowledge portal in animal husbandry activities is immense. The pioneering work being carried out by National Dairy Research Institute, Agricultural University, Hissar, and the enterprising nature of dairy farmers could be beneficially utilized in developing an appropriate knowledge portal/hub for the benefit of livestockfarmersinotherpartsofthecountry. Fodder seed production needs to be given greater emphasis and with concerted efforts the state can emerge as a major fodder seed supplier inthecountry. Block level hospitals are to be strengthened with diagnostic labs. Polyclinics need to be set up at district levels and they need to be equipped with latest diagnostic tools. Sufficient budgetary provisions arerequiredforpurchaseofmedicines. HigherallocationinRKVYforcalfrearingschemeissuggested. Cooperative sector is very weak in the state. Haryana Dairy Development Federation (HDDF) has to be geared up by providing

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required support to enhance milk procurement, processing and marketingactivities. The State could further enhance the productivity of cattle, buffalo and poultrywiththetechnologiesdevelopedbyICAR/AgriculturalUniversity. Commercial poultry production especially in periurban areas needs furtherstrengthening. 9.HimachalPradesh The state of Himachal Pradesh has an area of 55,673 sq. km. The State is borderedbyJammu&KashmirintheNorth,PunjabintheWestandSouth West, Haryana in the South, Uttar Pradesh in the SouthEast and China in theEast.Oneofthestrikingfeaturesaboutthedistributionofpopulationin the state is that about 90 per cent population of the state lives in rural areas, and the directly or indirectly, depends on agriculture. Thus, agriculturesectoristhemainstayofthestateeconomy.Thestateisdivided into12districts. It is observed that there is a positive growth in crossbred cattle, goats and poultry in the state in 2007 as compared to 2003 Census. The 11th Plan targets for various livestock products are milk 920,000 tonnes, eggs 1,090 lakh, and wool 1,675 tonnes. With the increased population of crossbredcattleandpoultry,itmaybepossibletoachievehighergrowthin production. Recommendations Sheep and rabbit production for fine wool and mutton holds promise for development in the state. There is a great potential to enhance productivity of sheep and rabbit for mutton and fine wool production using improved germplasm of fine wool sheep (Bharat Merino, Gaddi synthetic)andrabbit(GermanAngora).

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Goat production systems with stall feeding systems should be promotedsystematically.

Biomass available as forest grass in forest areas especially in the fringe forest villages needs to be beneficially exploited for augmenting livestock feed. The mechanism of Joint Forest Management Committees (JFMs) for livestock integration in fringe forest areas should be utilized beneficially. Silvipasture based farming system for increasing fodder resource and improvement of natural pastures/ grazing lands through reseeding, fertilizerapplication,propergrazingpolicy,etc.needsfocusedattention. The state is a leading producer / processor of fruits and vegetables. The waste from processing units should be tapped for feeding livestock throughuseofappropriatetechnologies 10.Jammu&Kashmir The overall growth in the livestock sector between 1992 and 2006 was 6.4 percentasagainst2.3percentincrops.Theannualcompoundgrowthrate during the period was 7.3 per cent for milk, 7.9 per cent for meat, and 13 per cent for other livestock products. Livestock population increased by 6.19 per cent from 92.24 lakh in 1997, to 105.39 lakh in 2007. The State produces 15.8 lakh tonnes milk, 510 million eggs, 438 lakh kg poultry meat and 297 lakh kg mutton. However, this remained much lower than the demand.Inadditiontoitsownpeople,theStatecaterstotherequirements ofalargenumberofarmyandtourists. As a consequence, the requirement is met through importation of 46 per cent eggs, 31 per cent poultry meat and 42 per cent mutton. This, along with the import of milk, dayold chicks, animal feed and fodder, costs around Rs. 1400 crores annually. Import of live animals for mutton has increased by 57 per cent over the last 10 years. Around 3050 per cent of the various food items of animal origin (eggs and meat) are being imported fromtheadjoiningstates.TheStatehasresourcesandstrengthstoproduce

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these food items locally through strengthening programmes on sheep and poultry. The total agriculture (including livestock) contributes 25.94 per cent to net Gross State Domestic Product (GSDP) at constant prices. The livestock sector alone contributes 11 per cent to the GSDP, which is about 40 per cent of the contribution of the agriculture and allied sectors. In absolute terms, the sector contributes Rs. 3874 crore to the State economy at currentprices,asperGrossStateDomesticProduct(GSDP)estimates. Recommendations In view of shortage of feed and fodder, the number of indigenous cattle should be reduced while maintaining total milk production through propagationofhighyieldingcowsandbuffaloes. LookingatthecontributionsofthelivestocksectortothestateGDP,and to the employment scenario, much higher budgetary allocations are warrantedtofurtherexploitStatespotentialforlivestockproduction. Crossing all nondescript cows with Holstein / Jersey semen would require strengthening of existing AI services. The effective population coverage through AI should be increased by converting the existing stationaryintomobileservices.Thereistheneedfortrainingspecialized manpower as in other States (Gopal Mitra, etc.) to deliver the AI services. Local LN2 production should be strengthened to take care of the semen producedathomeorimportedfromoutside. Attention is needed to conserve and upgrade Nili Ravi buffalo using semen/bullsofhighgeneticpotentialofthesamebreed. Focus should be to provide AI services to the migratory buffalo herds. Alternatively, quality breeding bulls for natural service should be made available.

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Crossbreeding of sheep needs to be continued, especially in the high altitude suitable for quality wool production. Utmost care, however, mustbetakentoavoidinbreeding. A welldesigned goat production programme in the Sate supported with necessary services to the farmers is required to be initiated. It is proposed to procure sufficient breeding bucks and semen for the purpose. Thereis,however,agoodscopetoincreasefodderproductionby(i)use of vacant fallow land available especially in Rabi season, (ii) promoting silviculture with emphasis on fodder trees instead of timber, and (iii) growing fodder in vacant forest land and/or inbetween the trees. This however, involves several different departments with varied interests and policies. It is proposed that a consortium of various line departments including that of agriculture, livestock, forestry and revenue, should be constituted to develop a comprehensive fodder productionpolicy. The State needs at least 3000 new veterinary dispensaries with AI facilities and about 1000 veterinarians. The required infrastructural supportandmanpowershouldbemadeavailable. It is recommended to establish multispecialty Poly Clinics equipped with good disease diagnostic laboratories and Hotline Power Supply at eachdistrictheadquarter. Keeping in view the existing vaccine production scenario, it would be prudent to close the State level vaccine production units and make exhaustive arrangements to procure required vaccines from other reliablesources. There is an urgent need for establishing Bulk Milk Cooling Plants at district headquarters and other strategic places (surrounded by thick nomadic population). This will create an assured milk market, and therefore, a boost dairy development and income to farmers in the far flungareas.

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The productivity of sheep, yak and poultry could be enhanced in the statebyadoptingnewtechnologies. 11.Jharkhand Milk production in Jharkhand increased, on an average, by 16.2 per cent annually from 200203 to 200607, the quantity produced in 200607 being 14.01 lakh tonnes. However, poor productivity of the milch animals (1.59 kg/day vs. the national average of 3.29 kg/day) is the major cause of low milkproductioninthestate.Thegrowthregisteredduringthesameperiod was 73 per cent for eggs (711 million in 200607) and 10.6 per cent for meat(43.6millionkg).ThepercapitamilkavailabilityinJharkhandstoodat 152 g/day as against the average figure of 240 g/day for the country. The per capita availability of 25 eggs per annum works out to be a deficit of 37.8%, the total requirement being 1,143 million eggs annually. The shortage of meat is also significant viz. 19.8 per cent, the annual requirementandpercapitaavailabilitybeing8.7lakhtonsand7.0g/day. However, the AH&D sector seems to have a potential to grow at a higher rate than at present. As evidenced by data which shows that milk production in the state grew by 6.21 per cent to 14.88 lakh tonnes during thefirstyearofthe11thFiveYearPlanasagainst4.94percentduring2006 07, whereas meat production exhibited an increase of 3.53 per cent to 44.14 million kg during 200708 in contrast with 1.95 per cent growth during200607. Recommendations Primary focus has to be essentially on genetic improvement of indigenous dairy cattle and buffaloes through a properly structured animalbreedingplan. It is essential to bring a large population of breedable female cattle and buffalo under AI coverage at the earliest. The present arrangement of

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involving NGOs for providing AI at farmers doorstep should be expandedforwiderareacoverage. Goat rearing could provide much needed livelihood opportunities especially in the tribal areas. Goat production systems on community based approach through formation of SHGs may be promoted in these areas. Similarly, rural backyard poultry needs to be supported through use of improvedbirdslikeVanraja,GrampriyaandCARIPriya. The dairy activities under the cooperative sector have not been well developed. Establishment of milk cooperatives for collection, creating additional processing facilities and efficient input delivery mechanism wouldleadtodevelopmentofavibrantdairysectorinthestate. Enhanced budgetary support for the milk production and processing programmes of the state of Jharkhand could be ensured through substantially higher allocation of funds under RKVY. A onetime grant for setting up of a cattle feed plant and new processing facilities would providethemuchneededimpetustoDairyinginthestate. 12.Karnataka Animal Husbandry and Dairy sectors in Karnataka state have been an important component contributing significantly to the states economy. Contribution from these sectors is to the extent of 2.97 per cent of the statesoverallGDPand22percentoftheagriculturalGDP.Thedairysector has made considerable progress with extremely well developed cooperative network for milk collection, processing, providing input services and efficient marketing mechanism. Currently, the annual milk production 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 production at 183.76 lakh eggs. However, not much progress has been made in the meatandwoolproduction.

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The sectoral growth in animal husbandry and dairy is currently at 4 per cent. The State has the potential to achieve a minimum of 6 per cent growth in the remaining period of 11th Plan and to enhance the same to 8 per cent during 12th Plan. The state is endowed with a wealth of natural resources, favourable climate, progressive farming community and higher investment capacity. In such a favourable scenario, Karnataka has the potential for achieving higher growth in AH and dairy sectors at a faster pace. Recommendations Considering the availability of natural resources, infrastructure and investment capacity, Karnataka should essentially set a target of achieving 6 per cent growth during the 11th Plan and 8 per cent during the12thPlaninanimalhusbandryanddairysectors. Dairy production should be accorded top most priority in the state. The state can serve as a repository for superior quality crossbred cattle germplasm in the country. This would not only incentivize the farmers for breeding of good quality crossbred cattle but also help in meeting thedemandofcrossbredcattlefromotherstates. The issue of regional imbalance in development of animal husbandry and dairy sector has to be addressed on a priority basis and focusing on regions where the existing potential has not been tapped would contributeinachievingthesettargets. Thestateshouldprepareacomprehensiveprospectiveplan forthe next 1015 years period and draws a clear cut road map. The roles of the different agencies involved have to be well defined, objectives specified and milestones set. All strategies and developmental activities should essentiallybefocusedforachievingthesettargets. Thestate shouldsetatargetofincreasingAIcoveragebyat least20per cent from the present level of 56 per cent. For this, the state may explore the possibility of implementing the policy of providing AI

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services entirely through NGOs and Gopal Mitras. This would enable veterinaryofficerstoassumehigherresponsibility/roleatthefieldlevel. Induction of crossbred elite bulls (50 per cent and 62.5 per cent blood level)atsemenstationswouldmeetthefarmersforCBsemen. Initiate suitable measures like efficient cold chain, better delivery system, capacity building, etc. for achieving higher efficiency in Artificial Inseminations per conception / calf born. The state should set a target of1.2to1.4inseminations/conception. In milk shed areas with higher crossbred cattle population, breeding strategy may be oriented towards providing AI service with high quality imported semen of progeny tested bulls with not less than 12,000 kg damyield. Strengthen progeny testing programme for raising progeny tested bulls atthesemenstations. Set the target for having 25 to 30 per cent of the existing dairy cooperativesocietiesupgradedwithBulkMilkCoolers(BMCs)facility. Exportpotentialofmilkandmilkproductsshouldbetapped. Fodder seed production and distribution on the model developed by KMFmaybeenlargedforhighercoverage. Looking into the limited potential of developing sheep sector for wool production, focus has to be reoriented for developing sheep sector for meatproduction.Futureprogrammestobedrawnbythestateneedsto be oriented towards this direction. For production of hygienic meat, settingupofruralabattoirsforsmallruminantsshouldbeencouraged. Innovative PPP models need to be developed and implemented for providing effective input delivery system, creating infrastructure and marketlinkages.

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13.Kerala Keralahasahighdemandformilk,meatandeggsasmostofthepopulation is nonvegetarian. The milk production of the state has 21.9 lakh tonnes during 200708 and the growth in milk production was around 4.04 per cent from 199091 to 200102 and then onwards it showed a decline. The population of all species of livestock declined from 1997 onwards and the reason for such a drastic decline is due to shortfall in fodder and feed ingredients, high cost of labour and lack of marketing support. The contribution of agriculture and allied sectors to the Gross State Domestic Productissteadilydecliningovertheyears.Consideringtheconstraints,the state has limited potential to achieve the targets of 35 lakh tonnes 2,395 million eggs and 3.00 lakh tonnes of meat by the end of 11th Plan period, whilethedemandisgrowing. Recommendations Dairy production in the state is almost entirely dependent on external inputs sourced from neighbouring states. The state has to undertake a comprehensive study on economics of milk production in order to prioritize the strategies needed for making dairy enterprising more profitable. Kerala has been the pioneering state in the country to have introduced crossbreeding programme in cattle. Performance of Sunandini breed developed in the state through crossbreeding programme appears to have declined over the years. This issue needs to be addressed on priority. The state can emerge as a repository for crossbred cattle of superior germplasm in the country. The focus of commercial dairy farms being established through investment made by the state as well as NRIs shouldfocusonthisarea. Enhancement of green fodder production through appropriate technologyandintegrationinplantationcropsshouldreceivepriority.

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Promoting piggery and goat sector on commercial lines in suitable regionsofthestateshouldbeconsidered. 14.MadhyaPradesh Madhya Pradesh accounts for about 14 per cent of total cattle population and 11.7 per cent of the total milk production in the country. Livestock sector alone contributes 12.5 per cent of the overall GDP at current prices. The agro climatic conditions are conducive to development of not only dairy and poultry sector but also to development of sheep, goat and pig rearing. Bullocks of Nimari, Kenkatha and Malvi Breeds of M.P. are known for their superior draught power. The climate of the state is conducive to adoptability of crossbred and upgraded bovine and caprine as well as exotic swines. Breeding policy of the state recommends indigenous milch breeds like Hariana, Gir, Tharparkar, Sahiwal etc to be taken up on a large scale, especially in rural areas along with crosses of Jersey as well as Holstein Friesian in urban or semiurban areas. Jamnapari and Barberi breeds of caprine and White York Shire breed of swine have been introduced in different parts of the state. The production targets for 11th Planare76.60lakhstonnesofmilk,1,005millioneggs,0.295lakhtonnesof meatand4.72lakhkgofwool. Recommendations Thestateshouldfocusongeneticimprovementofindigenouscattleand buffalo through wellstructured breeding programmes. The coverage of the breedable bovine population through AI at present is about 8 per cent.Concertedeffortsneedtobemadeforbringingatleast50percent ofthebreedablefemalesunderAIcoverageduring11thPlan. A regionally differentiated approach should be pursued for promoting appropriateregionspecificproductionsystem. In Bundelkhand region of the state, small ruminant production holds considerable potential as provider of livelihood opportunity to resource poor farmers. Innovative approaches through promotion of SHGs, UGs

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and CIGs and providing appropriate market linkages would give the requiredboosttothesesectors. Based on the critical performance assessment of producer companies set up in the poultry and dairy sectors, expansion of the same may be considered in other parts of the state as alternate institutional mechanismforpromotinganimalhusbandryanddairyactivities. RuralbackyardpoultryusingimprovedbirdslikeVanraja,Grampriyaand CARI Priya may be promoted for enhancing egg production over indigenousbirds. Complete feed blocks and area specific mineral (P, zn and Mn) supplementation may be promoted for 1015 per cent improvement in productivity. 15.Maharashtra Maharashtra ranks sixth in milk production and 3rd in egg production. The productiontargets oflivestockproductsfor200910is76.22milliontonnes of milk, 40.100 lakh eggs, 1.779 million kg wool and 2.56 lakh tonnes of meat. The per capita availability of milk in the State is 175 gms per day as against all India Average of 245 gms per day and as against the National Averageof42eggsperannum.Similarly,theaveragepercapitaavailability of egg is 33 per annum. Considering the present growth in milk and egg production, there is a good potential to reach higher targets. The contribution of the livestock sector to Gross State Domestic Product from Agriculturesectorduring200607wasabout25percent. Recommendations Dairy development offers considerable scope and, therefore, high priorityshouldbegivenforachievinghighergrowthratesindairysector by developing a comprehensive plan and implementing the same in a systematicway.

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The cooperative sector in dairy has developed considerably well and is implementing innovative inputs delivery mechanism for dairy farmers. Thisneedstobestrengthenedandalsoaimatwiderareacoverage. A well laid out strategy for promoting livestock activities in Vidarbha region should be accorded priority attention. This would provide much needed livelihood support to resource poor farmers and as an effective copingmechanismagainstcropfailureintheregion. The outcome of many of the successful watershed programmes implemented in the state have been improved livestock activities and enhanced milk production. Effective integration of livestock in watershed programmes should be taken up by AH department in a missionmode. Crossbred cattle production systems which are suitable in particular regionsofthestateshouldbepromotedwithgreaterfocusforachieving settargetsofmilkproductioninthestate. There is considerable scope for value addition of milk and milk products for realizing higher returns. Strengthening of processing facilities and adoption of newer technologies in the area of value addition may be lookedinto. Organised poultry sector holds promise for development and as such this sector has to be accorded priority addressing various activities ranging from production, processing to market linkages in a holistic manner. Use of complete feed blocks, area specific mineral supplementation and bypass protein technology may be promoted for productivity enhancement. TechnologicalinterventionsofICAR/AgriculturalorVeterinaryUniversity willfurtherenhancetheproductivityoflivestock.

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16.Manipur Manipur, with a geographical area of 22,300 sq. km. has 2.76 lakh indigenous 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 for livestock sector. The State depends on the other states for eggs, poultry meat and also for various inputs for the livestock sector. The State has scope for promoting livestock development as there is demand for milk, meat and eggs. All the natural conditions are favourable for wider expansionofdairy,goatery,piggeryandpoultryacrossthestate. Recommendations There is substantial scope for developing piggery sector in the state. Integrated pig production through formation of SHGs, introduction of exotic breeds of Hampshire and Yorkshire, developing market linkages needstobepromoted. Linkage of pig production with cultivation of tapioca and sweet potato needs to be promoted for addressing the problem of feed quality and shortage. Smallholderdairyproductionsystemsholdpromiseinthestate.Efforts needtobedirectedtowardspromotingthesesystems. The current arrangement of procurement of high quality semen straws from other states should continue and the state need not embark on establishing semen production station till the number of AI increase substantially. Serious attention should be given to conservation of swamp buffalo breed,whichisonthevergeofextinction. Establishing modern slaughter houses around Imphal for meat processingunderPublicPrivatePartnership.

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Facilities for production of liquid nitrogen should be strengthened to expandthecattlebreedingfacilities. Fodder development should be an integral activity. Promotion of silage production should also be encouraged to make efficient use of naturally grownforage. For promotion of poultry, apart from supplying chicks of Kroilers, Vanarajabreedcanalsobepopularized. The state may consider distributing capital goods and inputs directly to fieldcentresinsteadofprovidingmoneytothefieldofficers. North Eastern Council should encourage with a proactive role for promotinglivestockbasedactivitiesinthestate. 17.Meghalaya Meghalaya is mainly an agriculture based economy. Nearly twothirds of the total people of Meghalaya earn their livelihood through this. But still the contribution of the agricultural sector is only one third to the states Net State Domestic Product (NSDP). The contribution of livestock sector to AgricultureGDPisonly10percent. There is an increasing trend in the overall livestock population in reference to 2003 census versus 2007. Overall performance of animal husbandry sector is very good and almost all the programmes are being implemented inproperform.Thestatehasthepotentialforfurthergrowthofthesector with provision of strengthening of existing facilities and also creating new infrastructures.Thestateishavingpotentialinpigandpoultrysectoralong with health management where focus needs be given. For various programmes,infrastructuresarealreadyavailablewhichneedtobefurther improvedforfuturegrowthinthesector.

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Recommendations Pig and backyard poultry sector offer vast potential for development andasasourceoflivelihoodtolivestockfarmersinthestate.Therefore, thefocusofdevelopmenthastobeprimarilyinthesesectors. There is no organized marketing group of livestock and poultry for products produced in the state. Therefore, for regular transportation of these products the transportation network has to be strengthened at thedistrictlevel. In order to encourage farmers for rearing poultry for production of eggs andmeat,itisnecessarytoprovideinputsfortakingupaunitwith5000 layersand5000broilers. In order to meet the requirements of weaners for beneficiaries, the presentcapacityofthe pigfarms needtobeincreasedfrom the present levels. Strengthening of veterinary and animal health services by establishing two Polyclinics at Shillong and Tuna and 3 veterinary hospitals at Jowai, NongpohandNongtoinisrecommended. The present establishment of two vocational training centres is not able to meet the demand of the entire state. Establishment of additional centres at district levels may be considered for the benefit of the farmersandyouth. 18.Mizoram As majority of the population is nonvegetarian, the State offers good potential for livestock sector, especially meat and egg. The per capita availability 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,whichisabovetheNationalStandards.However,thedemand fortheseproductsisveryhigh.Theeggsandpoultrybirdsarecomingfrom

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other parts of the country. The present growth rate in milk, egg and meat productionis2.28percent,1.99percentand9.19percent,respectively. The State has limited potential to achieve considerable growth in AH and dairy sectors over the next 1015 years as they have to depend mostly on the other States for quality animals, some of the feed ingredients, semen, vaccines and also high cost of transportation of goods. The State has targeted a moderate growth rate of 3.0 per cent for milk and 2.29 per cent foreggsduring11thPlanperiod.ThecontributionoflivestocksectortoAgri GDPis9.10percentonly. Recommendations The state has to focus on development of piggery, dairy and poultry as these sectors offer considerable scope for growth. The State AH and dairy departments may prepare a comprehensive plan for the next 10 yearscoveringthesesectors. The ongoing cattle breeding programme has to be further strengthened forachievingquickprogressandenhancemilkproduction. Onlysuchofthoseareaswhichhavethepotentialfordairydevelopment should be taken up under IDDP scheme and a comprehensive project plans are to be prepared. Innovative PPP models need to be developed and implemented for effective input delivery system and market linkages. Mizoram is the pioneer state in the country practicing Artificial Insemination in pigs. The success of this approach may be documented fordisseminationinotherneighbouringstatesalso. The concept of technology mission for animal husbandry and dairy sectorsuitingNEStatesmayhavetobeplannedatleastfor12thPlan. PIGFED may plan to utilize the existing feed plant of the department of AH to produce economic ration for their members instead of procuring atahigherpricefromneighbouringStates.

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The existing slaughter house may be put in use for production of meat underhygienicconditions. 19.Nagaland Nagaland with about 20 lakh nonvegetarian human population offers a goodscopeforlivestocksector.Thereisapositivegrowthincrossbredpigs and improved poultry during 20032007. The estimates of production of milk, meat, egg of Nagaland state is 74,000 tonnes, 63,250 tonnes and 868 lakh, respectively (200506). The per capita availability of meat in Nagaland is 105 gm/day (200809), milk (115 gm/day) and egg (50 nos./annum). Nagaland is deficient to meet the demand for milk, meat and egg. The state imports meat (19,000 tonnes), milk (5000 tonnes) and egg (275 lakh numbers) to supply the consumers demand. The monetary value of the import of these products comes to about 220 crores (20072008). The contribution of livestock sector to Agriculture GDP of the State is 10.34 per cent. Considering the demand for livestock products, there is a good potentialforthesector. Recommendations As the largest consumer state in the country of pork, it is essential that primaryfocusofdevelopmenthastobeinpigsector. A huge expenditure is being incurred presently on import of pig and pig products from other states for meeting the demand in the state. All strategies and developmental plans should orient towards reversing the roles and make the state not only self sufficient, but also self sufficient inpigproduction. Growthofdairysectorhasbeenslowbutprogressing.Primaryfocushas to be essentially on genetic improvement of indigenous dairy cattle and buffaloesthroughaproperlystructuredanimalbreedingplan. The negative growth trend in Mithun production needs to be stemmed and reversed on priority. Providing value addition to mithun hide, skin

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and milk (bags, shoes, jacket, rasgolla, cheese, etc) needs to be promotedforhigherreturns. Innovative PPP model can be developed and implemented for providing logisticsupporttoanimalhusbandryanddairysectors. Livestock products commodity group/cooperative society could be formed in each district to assist producers for efficient production and marketing. Integrated livestock product processing and marketing unit should be establishedincentralisedlocationsofthestate. Different agroforestry models with tree fodders, leguminous, non leguminous pasture grasses should be established in CPR lands to integratelivestock(likesilvipasture,hortipasturemodels). Infrastructure facilities at Veterinary Hospitals, Veterinary Dispensaries and Diagnostic Centres should be strengthened for quality health care deliverysystem. To improve income generation capacity of the women and improve nutritional status of the farm family, backyard poultry with colour birds, turkey,backyardgoatunits. 20.Orissa Livestock sector plays an important role in providing the much needed livelihood opportunities to the resource poor farmers in Orissa. The contributionoflivestocksectortothetotalvalueofoutputinthestatewas Rs.2678croreduring200506andcontributionofmilksubsectoralonewas tothetuneofRs.1426crore.

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Recommendations Thestatehastoessentiallypursuethelivestockbreedingprogrammein a focused manner on technically sound footing. Earlier crossbreeding programmes have not yielded the desired outcome, resulting in very lowproductivityofcrossbredcattle. For providing better livelihood opportunities and higher income generation to resource poor farmers, especially in the tribal areas, goat production provides a great scope. The focus in these regions has to be onpromotinggoatrearingoncommunitybasedapproach. Smallholderdairyproductionsystemsholdpromiseinthestate.Efforts needtobedirectedtowardspromotingthesesystems. It is essential that only superior progeny tested bulls are maintained and used for AI programmes for achieving a rapid progress in productivityenhancement. The Dairy Federation has aimed at enhancing the procurement of milk through cooperatives from the existing level of 3.12 lakh liters per day to about 10.1 lakh liters per day by the year 201314. Concurrent focus has to be made towards expansion of the capacity of the processing plantsforhandlingtheanticipatedincreasedvolumes. The area of feed and fodder development needs a focused attention if the benefits of improved breeding programme is to be harnessed effectively. The scope which exists in backyard poultry and pig production especially in tribal and backward areas need to be fully utilized and specificprogrammesmaybedrawnforpromotingthesesectorsaswell. AstrongandmeaningfullinkagewithSAUsandanimalscienceresearch institutes needs to be developed for development and transfer of appropriateregionspecifictechnologiesinthestate.

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21.Punjab The state of Punjab is witnessing a silent revolution in animal husbandry and dairy sectors and there is a likelihood of the growth assuming similar dimensions of the Green Revolution witnessed in the region during 1970s. The movement is essentially coming from the farmers themselves in the form of establishment of commercial dairy farms and integrated farming systems. Milk sector has been currently witnessing a growth of 3 per cent with a distinct possibility of furthering this to 6 per cent in the remaining period of 11th Plan and to enhance the same to 8 per cent during 12th Plan. Similarly,poultrysectorhasthepotentialtoachieve8to10percentgrowth from the current level of 6 per cent. Piggery sector has also taken strong roots in the state and considerable potential exist for growth on commercial lines. Animal husbandry sector, especially the dairy sector providesaviableopportunityformuchneededdiversificationinthestate. In Punjab, production systems are slowly but surely reorienting themselves into demand driven systems with greater emphasis on technological adoption. What is required to give the sector a further fillip is to address various issues in production, processing, value addition, marketing and extension needsinaholisticmanner.Withlikelihoodof National Dairy Plan being implemented in the country in the near future, Punjab has to essentiallytaketheleadinusheringasecondWhiteRevolutioninIndia. Recommendations The state of Punjab has to essentially take the lead in ushering the new livestock revolution in the country. The state has to think big and higher investmentsaretobemadeforachievingfurthergrowthinAHanddairy sectors. Available resources with the state are indicative of sustaining higher productionlevels.Thereisamplescopeforfurtherdevelopment. The concept of commercial dairy farms has caught up in a big way. The models developed here could be replicated in other states also.

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However, emerging issues in commercial dairies like credit availability, market linkages, input supplies etc. are to be addressed on a priority basis. The issue of burning paddy straw needs to be addressed on a priority basis. The state should act as the central warehouse for supply of dry fodder to deficit states. This would provide the much needed coping mechanism,especiallyduringtimesofdrought. Fodder conservation through silage making is picking up in the state. Thereisaneedforscalingupandprovidingsupport. Fodder extension should primarily focus on promoting fodder conservation, enhancing area under green fodder, silvipasture, etc. The state needs to develop and implement a knowledge portal on green fodderproductiontobemadeuseofbyotherstates. The training modules and training infrastructural facilities developed in the state are unique and serve as models for adoption by other states. Constant efforts for updating training modules with latest technologies aretobemade. Salvagingofmalecalvesforbreedingpurposesshouldbedone. Setting up of piggery processing units under PPP model should be established. Innovative PPP models need to be developed and implemented for providing effective input delivery system, creating infrastructure and marketlinkages. Looking at the role GADVASU has to play in overall development of AH and dairy sector in the state, higher budgetary allocation has to be essentially made to the University for providing appropriate technologicalinterventions.

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22. Rajasthan Animal Husbandry is an important sector for supporting the rural economy in Rajasthan, contributing 10 per cent to the State GDP. The livestockto human population ratio in Rajasthan is 1:1 and the per capita availability of milk is 408 gm per day. The State is contributing 9 per cent of milk, 30 per cent of goat meat and 35 per cent of wool to the national production. The presentgrowthinmilkproductionis7.61percent. Rajasthan is home tract to many important breeds of livestock. Prominent among them are Tharparkar, Rathi, Gir, Kankrej, Haryana, Nagauri and Malvi breeds of cattle, Sirohi, Marwari and Jhakhan breeds of goat, Chokla, Nali, Magra, Jaisalmeri, Sonadi, Malpura, and Pugal breeds of sheep and Jaisalmeri and Bikaneri breeds of camel, which cover 90 per cent of the camelpopulationinIndia. Recommendations The focus of development should be oriented towards improvement of milch breeds of Tharparkar and Rati for achieving higher milk production. Acomprehensivelivestockdevelopmentplanshouldbepreparedbythe StateNodalAgencybyinvolvingallthestakeholders. Livestock based activities provide higher livelihood opportunities than cropcultivationincertainregionsofthestate.Livestockcentricactivities and convergence of other activities around this need to be promoted in theseareas. The scope of sheep production systems in arid regions is considerable. However,thedemandforsheepwoolespeciallythecarpetwoolbothin domestic and international market has been drastically reduced. In this scenario, raising sheep for wool production may not be remunerative and as such there is need in shifting the focus to raising sheep primarily formutton.

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The registration of indigenous breed of cattle is being carried out in the state successfully. Farmers are benefitting from this as registered animals fetch higher prices. This activity should be pursued with greater vigour. Camel production needs to be accorded importance. The therapeutic valueofcamelmilkshouldbeharnessedandpropagatedextensively. Thestatehastoinitiateactionfordevelopingacomprehensivelivestock drought mitigation strategy on priority. Most parts of the state are prone to frequent drought like situations; consequently resulting in severefeedshortageandtherebyaffectinglivestockproductionsystems adversely. The Department may involve voluntary organizations in breeding and minor veterinary practices and also private partners in taking up post productionprocessingandmarketingofmilkandotherproducts. Creating higher milk handling and processing facilities, value addition and marketing network needs to be given greater thrust in the cooperativesectorfortappinghigheramountsofmarketablesurplus. Development of community pasture lands, wastelands and forest lands through watershed development, silvipasture and fodder development shouldbeaccordedprioritybyinvolvingvariousstakeholders. The scale of operation of the dairies should be enhanced to reduce the cost of processing. This can be done by concentrating dairy development around the dairies, setting up efficient system of milk collectionwithbulkmilkcoolers,andbetterpricing. Efforts can be made to eradicate important diseases. Such coordinated efforts can help in producing clean milk at low cost which will motivate farmerstosharethecostofhealthcare.

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Financialinstitutionsshouldcloselyworkwiththefarmersanddairiesto ensure availability of finance for procurement of milking animals, feed andotherinputs. The State has potential to further enhance productivity through improved germplasm of sheep, (Bharat Merino, Marwari, Avikalin) for enhanced mutton and wool yield, cattle (Frieswal) and Murrah Buffalo for 5 per cent increase in milk production and camel (Bikaneri, Kachchi) forimproveddraftabilityandmilkyields. 23.Sikkim Sikkim has high demand for livestock products. Animal husbandry plays a prominent role in the State economy. Development of animal husbandry anddairysectorsinSikkimhastobeviewedinrelationtodifficultterrainof the state, low livestock population, limited land availability for crop cultivation,dependencyonexternalinputsforlivestockrearing,etc. The contribution of livestock sector to the state gross domestic product is about6percent.Astheavailabilityoflandforagricultureisjust13percent in Sikkim, livestock sector holds immense potential for diversification and makehighercontributiontostateseconomy. Recommendations Small holder dairy production systems hold promise in the state. Efforts needtobedirectedtowardspromotingthesesystems. Thereissubstantialscopefordevelopingpiggerysectorinthestate.Pig production through formation of SHGs, introduction of exotic breeds of Hampshire and Yorkshire, developing market linkages needs to be promoted. The current arrangement of procurement of high quality semen straws from other states should continue and the state need not embark on

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establishing semen production station till the number of AI increase substantially. Promoting fodder tree cultivation and focus on fodder tree seed productionneedtobemade. Considering the difficulty in operation of milk routes in difficult terrains and rainy season for collection of milk, setting up of more numbers of BulkMilkCoolers/chillingunitsshouldbeaccordedpriority. Dairy plants have to necessarily explore the possibility of processing of reconstituted milk along with milk procured from the societies for runningtheplanttofullcapacityandmakesomeprofit. Yak production systems need to be given greater emphasis. Providing value addition of yak milk (churpi, cheese) and hair (carpet, brooming brush)holdsconsiderablepromisewhichneedstobeharnessed. 24.TamilNadu LivestockplaysamajorroleintheruraleconomyofTamilNadu.Duringthe year200708,theGrossvalueofoutputoflivestockintheTamilNadustate was Rs.11652 crores. The contribution of Livestock sector to Tamil Nadu state GDP is 3 per cent and to the Agriculture and Allied activities it is 28 percent. The estimated milk production was 56.74 lakh tonnes while egg production was 8394 million units. The per capita availability of milk per day was 235gm and that of eggs was 123 per annum. The state contributed 5.3 per centoftotalmilkproduction,15.7percentoftotaleggproductionand15.5 percentoftotalmeatproductioninIndia.Thevalueofleatherandleather productsexportedfromTamilNaduwasRs.5373croresaccountingfor38.4 percentofallIndiaexports. ThepotentialforthegrowthofAnimalHusbandryandDairySectorinTamil Nadu is quite impressive, i.e. the Dairy sector grew from 2.87 percent of

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annual compounded growth to 5 to 6 percent. The poultry and meat sectors showed phenomenal growth rate of more than 10 percent per annum. In 200607, egg production in Tamil Nadu increased by 31.13 per cent over the previous year. The State is poised to achieve an overall growthof6percentinAnimalHusbandrysectorduring11thPlanperiod. Recommendations There is ample scope for furthering the growth in dairy sector and this potentialhastobeharnessedeffectivelythroughaholisticapproach. Commercial poultry production has developed impressively in some of the regions in the state. Further growth has to come from new generationtechnologiesforachievinghigherFCR,reducedmortalityand disease control. Strengthening of processing facilities and providing valueadditionforhigherreturnsshouldbetargeted. With the progress achieved in human resource development, the state has the potential to act as the nerve centre in the country for HR developmentandtraining.Thisareaneedstobedeveloped. Frozen semen production from progeny tested bulls has to be increased to cover more number of breedable population from the present level of50.76percentto7075percent. Target should be set for distribution of fodder slips and fodder seeds to each district, taluk, panchayat union and revenue village to augment fodderproduction. Straw block making units should be established at the rate of one per districtwherestrawresourcesareplenty. Animal Disease diagnostic facilities should be provided to each district (32)fromthecurrentfacilitiesof20units. Logisticsupportandinfrastructurefacilitiesshouldbeprovidedinallthe veterinary clinician centres, veterinary hospitals, veterinary dispensaries

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and sub centres for delivery of quality veterinary service to livestock farmers. Uninterrupted cold chain should be maintained at vaccine storage centresinalldistrictsandveterinaryinstitutions. Sheep and goat breeding cooperative societies should be established / rejuvenatedforproductionoffeederlamb/kidsformeatproduction. Piggery development programmes could be taken up under the proposedschemeofDAHDFbytheunemployedruralyouth. Establishment of district abattoir or rural slaughterhouse for small ruminantsandpoultrytofacilitatehygienicmeatproduction. 25.Tripura The State with a population of 35 lakhs is divided into four districts with over 60 per cent area under forests with three sides of the state boundary spread over 456 km sharing with Bangladesh. Contribution of agriculture and allied sectors to the GDP of the State is 24 per cent, in which contributionoflivestockis5.4percent.MilkisanimportantdietofTripura, particularly for sweets. However, the per capita availability of milk is only 73.41 gm per day as against the national availability of 246 gm. The per capita meat availability is 5.39 kg per year as against national availability of 5kg.Availabilityofeggsis39peryearagainstthenationalaverageof42. Total milk production in the State in the year 200708 was 91,312 tonnes, which is expected to increase to 1.25 lakh tons in 201112. Meat and egg production is also likely to increase at 912 per cent annually, while the expected egg production of 18.12 crores in 200910 is expected to grow at 2025 per cent annually. Thus there is good scope for tapping the potential oflivestocksectorforprovidingsustainablelivelihoodtoruralcommunities.

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Recommendations Small holder dairy production systems hold promise in the state especially in nontribal areas. Efforts need to be directed towards promotingthesesystems. In the tribal areas in the state there is substantial scope for developing piggery sector. Pig production through formation of SHGs, introduction of exotic breeds of Hampshire and Yorkshire, developing market linkagesneedtobepromoted. Organisationofgoatkeepersforsustainablegoathusbandrywithdirect linkage with the market, preferably by establishing modern slaughter housesunderPublicPrivatePartnershipmaybepromoted. Promoting fodder tree cultivation and focus on fodder tree seed productionneedtobemade. Production of cattle feed through Dairy Federation or under public private partnership, and streamlining the procurement of feed ingredientsatcompetitivepriceisneeded. Promotion of private paravets for intensifying cattle breeding, minor veterinarycareandorganizinggoatdevelopmentactivities. There is scope for multiplication of superior germplasm on State Farms forexpandinggoatery,piggeryandduckery. The dairy plant of the Tripura Dairy which was established in 1982, needs modernization. The economics of marketing reconstituted milk visvis cost of milk production need to be studied, and suitable strategy should be developed to meet the demand for milk in urban areas,whilesafeguardingtheinterestofdairyfarmers. TheStatecouldenhanceproductivityofgoatandpoultrywithimproved germ plasm of backyard poultry (Venaraja, Grampriya) for 100 per cent

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increase in egg production over indigenous birds and Black Bengal goat forimprovedmeatproduction. 26.UttarPradesh Uttar Pradesh is one of the largest states in the country with a large livestock population representing 10 per cent of cattle, 23 per cent buffaloes, 10 per cent goats and 17% pig population in the country. The state produced 19.43 million tonnes of milk during 200809, occupying the first position in the country. The state has an ambitious plan for enhancing milk production to 29.5 million tonnes by 201112. The state is third in meat production and during 200809 the meat production was to the tune of 0.23 million tonnes and the targeted production, is 0.26 million tonnes by201112.WhilethepresentrateofgrowthofAnimalHusbandrysectoris 4.6 per cent, the state is focusing to achieve an annual growth rate of 10 percentbyendof11thPlan. Recommendations The state has the potential for promoting major livestock production systems. However, a regionally differentiated approach for promoting region specific livestock production systems will ensure uniform and higher growth rates. The state is advised for according priority for planningandimplementationofsuchastrategy. The dairy sector holds considerable promise for achieving higher growthratesovertheyears.Howevertoachievethis,certainkeyissues like strengthening of dairy cooperative network, increasing the share of marketable surplus milk in the organized sector, enhancing processing facilities and other related aspects need to be addressed with greater focus. The dairy cooperative sector at present handles just 4 percent of the marketable surplus which is indicative of the weak institutional structure.

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Even though Uttar Pradesh is the largest milk producing state in the country, the average productivity both in cattle and buffalo is lower than that of Punjab. The future priority needs to be oriented towards productivityenhancement. Buffalo production systems in Western Uttar Pradesh need further focus and a large share of marketable surplus has to be brought under organised sector. Efforts need to be made for promoting hygienic milk productionforcreatingbettermarketopportunities. Bundelkhand region with an average milk production of 21.66 lakh kg per day contributes hardly 5 percent of the total milk production in the state. The state has to take necessary initiatives for promoting small holderdairyproductionsystemsinthisregionthroughestablishmentof innovative institutional mechanism like producer companies / cooperatives, well developed market linkages and adequate collection andprocessingfacilities. Only 13 per cent of the total milk is currently being processed which needs to be increased substantially by creating adequate processing facilitiesandpromotingvalueaddition. Small ruminant production can provide the much needed livelihood opportunitiesforlandless/assetlessandresourcepoorfarmersinregion like Bundelkhand. Promotion of SHGs, UGs and CIGs for promoting this sector in an effective manner is needed. Similarly, pig production can alsobepromotedincertainregionsofthestate. The state has considerable potential for developing the meat sector. Buffalo meat processing facilities should be further strengthened and untapped potential for small ruminant mutton production through appropriatePPPmodelsneedtobebeneficiallyharnessed. A comprehensive action plan needs to be developed and implemented for addressing the problem of Annapratha in Bundelkhand region which is not only affecting the dairy development but also the kharif cropproductionintheregion.

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An effective linkage with IGFRI, Jhansi, and other SAUs needs to be developedinfodderdevelopmentsector. 27.Uttarakhand

Animal Husbandry activities contribute significantly to income and employment generation in rural areas. The level of milk production in the state was 12.20 lakh tonnes during 200708. The per capita availability of milk is 353 gm/day as against the recommended level of 240 gm/day. Similarly,thepercapitaavailabilityofeggsandmeatwas20perannumand 820 gm per annum, respectively. Recently, the State Government has launched Dudhganga programme for increasing the production and processing of milk in the state through SHG model. Thus, the state has a goodpotentialforlivestockdevelopment. Recommendations Development of sheep sector for production of fine quality wool offers considerable scope. Efforts need to be made for developing this sector inacomprehensiveandfocusedmanner. Smallholderdairyproductionsystemsholdpromiseinthestate.Efforts need to be directed towards promoting these systems. Currently, only 12.4 per cent of the breedable animals are covered through AI. Hence, thereisa needto strengthenthe breedingservicesinthe statethrough paravets or NGOs for providing effective AI service at farmers doorstep. Goat farming can be promoted in the state especially among women entrepreneursbyprovidingqualitybreedingbucks. Livestock extension activities should be strengthened through higher budgetallocation.

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Release of funds sanctioned under RKVY for setting up of Japanese QuailUnitandexpansionofanimalbreedingfarm,Kalsi. Strengthening of coordination between Livestock Development Board and GBPU Agriculture & Tech., Pantnagar, for effective breeding programme. Milk Federation is running in loss due to under utilization of capacity anditneedstobestrengthened.

Thereisagreatpotentialtoenhanceproductivityofrabbitforfinewool productionusingimprovedgermplasm(GermanAngora). 28.WestBengal ThecurrentgrowthinAnimalhusbandryandDairysectorsinWestBengalis 3 per cent. There is ample potential for enhancing the growth rate to 56 percentduring12thPlan.However,thestatehastogearupforthisandhas to address a host of issues in a holistic manner and provide required impetusforachievingthesetgoals. Development of Animal Husbandry and Dairy sectors in West Bengal has been essentially a case of ample opportunities which have not been fully exploited in a systematic manner. Contribution from these sectors is to the extentof5percenttoStateDomesticProduct(SDP)andnearly20percent of agricultural production. Piggery and goat development holds considerablepotentialwhichhasnotbeenfullyexploited. Recommendations West Bengal has the potential of achieving a growth of around 5 per cent in animal husbandry and dairy sectors during the remaining period of 11th Plan and in the 12th Plan period. The state has to essentially capitaliseonresourcesavailableforachievingthistarget.

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A welldefined and scientifically sound livestock breeding policy especially for cattle and buffalo need to be developed. The policy so developed should be a long term policy and should not be subjected to frequent changes. The state may like to consider setting up of a task groupcomprisingofexpertsinlivestockbreedingbothfromoutsideand within the state for drawing out a comprehensive livestock breeding policy. Development of goat sector requires greater focus and needs to be promotedinalargescaleinidentifiedagroecoregionsofthestate.This sectorholdsconsiderablepromiseforprovidingmuchneededlivelihood support for landless, small and marginal farmers especially from the weaker and backward sections of the community. The BAIF models operating in Bankura and Purulia in goat sector could be replicated in otherareas/regionsalso. Piggery sector also holds promise for growth and should be tapped for benefiting a large section of economically and socially backward population. Setting up of beacon processing units and creating market linkageswouldhelpindevelopmentofthissectoroncommerciallines. Innovative procurement models need to be developed and implemented for increased tapping of marketable surplus milk by the dairy cooperative sector. The joint venture models (metro dairy) developed in the state can be considered for replication if such models areviableandhelpinthegrowthofdairysector. For sustaining the viability of milk cooperative unions it is essential that many of the unions have to initiate steps for enhancing the financial turnover.Thelossmakingunionsmusttakenecessaryaction forcoming outofthered. The State has the potential to enhance productivity of cattle, goats and poultry with various technological interventions developed by the ICAR institutes/VeterinaryUniversity.