Report No. 785-IN FILE COPYIndiaLivestock Sector ReviewJune 13, 1975

South Asia Projects Department

Not for Public Use

Document of the International Bank for Reconstruction and DevelopmentInternational Development Association

This report was prepared for official use onl'y by the Bank Group. It may notbe published, quoted or cited without Bank Group authorization. The Bank Group doesnot accept responsibility for the accuracy or completeness of the report.

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INDIA

LIVESTOCK SECTOR REVIEW

TABLE OF CONTENTS

Page No.

SUMIMARY ......................................... i-i

I. INTRODUCTION .......................... ..........

II. THE AGRICULTURAL BACKGROUND ...................... 1

II. LIVESTOCK PRODUCTION ............................. 3

Stock Numbers and Production .............. 3The Cattle of India ........................ 4The Buffalo of India ....................... 4Milk Production ................. 5.....Draft Animals . ...... ................. 5Small Ruminants, Pig and Poultry Production .6The Feed Supply ............ ............... 7The Feed Industry ........................ 8

IV. MARKETING AND PRICES ............................ 8

Mllk ... .............. 8

Live Animals . .... ........................ 9

Foreign Trade in Livestock Products .. ....... 11

V. SUPPORTING TECHNICAL SERVICES ............... o .... 11

Veterinary Services ........... ....... 11

Artificial Insemination .......... . 12Livestock Extension ............. .. .......... 12Livestock Research ...... ......... .. ........ 13

Education and In-Service Training . .......... 14Dairy Cooperatives ..... ........... ........... 14IDC, NDDB and State Dairy Corporations ...... 15

VI. LIVESTOCK DEVELOPMENT PROGRAMS .............. .... o 16

The Five Year Plans . .... o... . ...... .. ....... 16

Bilateral and Multilateral Support ........ .. 19

Page No.

VIi. TILE POTENTIAL OF IMPROVEMENT ..... ................ 19

The Basic Proposition ........... .. .......... 20Specifics of the Potential ......... ......... 22The Importance of Flexibility ............... 23A Balanced Approach ............ .. ........... 23

INDIA

LIVESTOCK SECTOR REVIEW

SUMMARY

i. The traditional function of cattle on the small farms of India isthe provision of draft power for the primary agricultural objective of sub-sistence crop production, and for transport. Milk production from cattleis, at present, largely a byproduct of the breeding of draft animals. Underthe low input - low output livestock and cropping system in common use, al-most all male calves born are required to maintain the national herd of draftanimals, and young male cattle are given preference over females in the useof limited feed supplies. In regions with access to markets and where ade-quate roughage from cereal cropping is available, buffalo and specializeddairy cattle breeds are kept primarily for milk production and, contraryto the position with draft cattle, female calves are the selectively reared.

ii. The major problems of the livestock industry are reflected in aninsufficiency of draft power for land cultivation, and inadequate productionand distribution of milk, the most acceptable and important source of ani-mal protein in the national diet. India's first five year plans sought toimprove draft capacity by expanding State breeding farms and the distribu-tion of bulls. With increasing acceptance of mechanization in the norerecent plans, the primary emphasis on draft cattle improvement has given wayto a concentration on increasing milk production, particularly by the useof cross breeding with exotic dairy bulls and the organization of farmersinto AMUL 1/ type cooperatives to supply the health, breeding, extension,feed supply and market services essential to cattle improvement.

iii. The likely success of the technological aspects of this recentpolicy change hinges on two factors; the acceptance by small farmers of AIusing exotic dairy sires, and a major increase in legume fodder production.In the eyes of the small farmer, cross breeding at present represents agamble: not only must he ensure the adequate replacement of his draftanimals, he must also either grow or purchase the incremental feed requiredby the higher yielding crossbred heifers he expects Al to produce for him.Effective demonstration at the village level of the financial and produc-tion advantages of the new technology is therefore a key element in thesuccess of the five year plan proposals.

iv. In many villages, conventional cooperatives of various types havenot been successful as they have traditionally served the interests of thefewer, larger and more influential farmers. The clear cut success of theAMUL Cooperative in Gujarat State, the accepted model for future dairy co-operatives in India, does, however, lead to optimism regarding the dairy

1/ Kaira District Cooperative Milk Producers Union Ltd.

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cooperatives now being promoted. The experience of AMUL is truly impres-sive, particularly as the majority of the milk producing animals in thiscooperative are owned by small and marginal farmers.

v. In AMUL the technology for increased milk supply rests on buf-falo, and not cross-bred cattle. In this context it should be appreciated,that, where roughage is readily available, buffalo offer a number of ad-vantages to the small farmer. They appear to withstand a diet of poor fod-der better than cattle of comparable milk yield, and because of their lesserimportance as draft animals, farmers are less reluctant to consider the useof AI and superior dairy sires on buffalo cows. The high fat content oftheir milk also favours ghee production. Buffalo do, however, also presentdisadvantages; they are heavier and require more fodder for maintenancepurposes, they have a longer intercalving period, and they require a higherinitial capital outlay. On balance it appears likely that buffalo willmaintain their role in areas where coarse roughages are relatively plentiful,and that cross-bred dairy cattle will dominate where leguminous fodder pro-duction and fresh milk marketing are feasible.

vi. In a country as large and diverse as India it is important toemphasize that there is no single operational strategy which suits allrural strata and all farming conditions equally well. Programs which areflexible in regard to technology, institutions and marketing, and which aredesigned for specific groups under specific circumstances need to be promotedif livestock development is to provide a significant mechanism for ameliora-ting the poverty of the small farmers of India.

vii. Although cattle and buffalo dominate the livestock sector in India,large increases in poultry, fine wool and mutton production as well as draft-power, are practical objectives. As with dairying, production improvementsin these sectors depend on community efforts, particularly in relation tothe use of communal land and water points, and in modifying a rural structurethat inhibits the provision of institutional credit, market and extensionservices to small farmers.

viii. The potential of the livestock sector in India resides in animmense population of animals presently subsisting at maintenance feedinglevels and whose productivity could be greatly increased by even smallimprovements in feed availability. Such an improvement could be broughtabout by:

(1) The promotion of an export trade in bovine meat. Thisstep would favour a price increase for cattle and buffalo,a greater offtake and increases in body weight, draftcapacity and productivity;

(2) The enlargement of simple research, demonstration andextension facilities in rangeland and pasture improvement,in leguminous fodder production and in mixed crop-livestock farming systems;

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(3) The promotion of semi-intensive poultry rearing in deeplitter systems using mixed feeds containing less than25% grain;

(4) The initiation of a stratification of the sheep and goatindustries whereby young stock are removed from rangeareas at an early age and fattened under more intensivefeeding conditions;

(5) The encouragement of the formation of producer cooperativesfor dairying based on the AMUL concept, particularly wheresmall areas of leguminous fodder crop can be grown for eachproductive animal.

ix. Quantification of the likely rate of progress in livestockproduction is beset by many unknowns and progress will lack uniformityand be slower than hoped for. Nevertheless many lessons have been learnedin recent years and successful production programs are under way. Inthese circumstances the goals of the livestock sector of the current fiveyear plan represent objectives which are not impossible to attain.

INDIA

LIVESTOCK SECTOR REVIEW

I. INTRODUCTION

1.01 India has about 17% of the world's cattle and 50% of the world'sbuffaloes. Yet these animals make a small monetary contribution to thenation's economy. In 1972-73 the direct share of livestock was about 18%of the value of the output of the agricultural sector, which contributedabout 45% of net national product. Agricultural commodities make up about35% of the annual exports and of this only 5% were livestock products,mainly hides and skins. The annual value of livestock imports, mainly dairyproducts, fine wool and tallow, now approximates US$80 million.

1.02 Draft cattle are the main source of power for the nation's agri-culture, an insufficiency of which constrains crop yields and the expansionand intensification of land cultivation. The imbalance between availablefodder, stock numbers and draft power is the most critical issue in thelivestock sector, while a decline in the availability of milk and thecontinuous degradation caused by overgrazing of communal land and rangepasture are major causes of concern.

1.03 Livestock development receives relatively high priority in thepresent Five Year Plan and is looked to by GOI as one means of attaininga greater degree of social justice for the small farmer. Dairy developmentin particular is being encouraged, in part with World Bank assistance. Morerecently, difficulties arising from much higher energy costs have highlightedthe importance of attaining greater efficiency in the productivity of draftcattle. In these circumstances it is important to attempt an overall reviewof the livestock sector in the Indian economy, with the particular objectiveof assessing the livestock potential of the country, especially in relationto the situation of the smaller farmer.

1.04 This paper represents a first attempt at this assessment. It isbased on a desk study of the Indian Livestock Sector made by the FAO/IBRDCooperative Program at World Bank request, together with the observationsand information collected by Bank Staff. The particular emphasis adoptedfocuses principally on two of the many aspects of the livestock sector,namely dairy production and draft cattle. These specific aspects of theindustry are considered the most important in relation to both externalpayment perspectives and to the strategy of overall agricultural develop-ment.

II. THE AGRICULTURAL BACKGROUND

2.01 The land area of India covers 3.27 million square kilometers andcontains about 580 million people, 240 million cattle and buffalo, 100

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millien sheep and goats in addition to smaller numbers of other livestocksuch as poultry, pigs, camels, donkeys, mules and horses. The bulk of thislivestock population is engaged in a perennial struggle to meet its sub-sistence food requirements, for the cultivable land area is almost fullyutilized and agricultural productivity and population pressure are pre-cariously balanced in an equilibrium that modern technology is only barelymaintaining.

2.02 Some 80% of the Indian people live in rural areas and about 70%of the total labor force of about 190 million are employed in agriculture.Small-scale farming predominates; the average size of farm holdings is lessthan 2.5 ha (1971 Census). Only 4% of the farmers have holdings larger than10 ha, 11.3% farm from 4 to 10 ha, 15% farm from 2 to 4 ha, and nearly 70%farm less than 2 ha of land. Many of the smaller farms contribute littleto the commercial market; rather they are principally concerned with thesubsistence production of the basic food crops of rice, wheat, sorghum andmillet.

2.03 The total land area cultivated each year approximates 164 millionha of which about 25 million ha are multiple cropped. Land use and types offarming differ widely among regions because of differences in climate, topog-raphy and soils. Most land cultivation, particularly on smaller farms iscarried out by oxen.

2.04 The gross irrigated area has increased by about 10 million ha inthe last decade and is now believed to be about 40 million ha of which about7 million ha are double cropped. Irrigated land accounts for about 22% ofthe cultivated area. The water resources of India are such that a potential82 million ha could be irrigated from surface and ground water sources. Ofthe present usage of irrigation water about 34% is derived from wells. Oxenare an important source of power for drawing well water for irrigation pur-poses, one pair of bullocks being generally capable of lifting sufficientwater to irrigate about 0.5 ha. Although the number of diesel and electricpumps in India increased from about 100,000 in 1965 to 2.7 million in 1971/72,periodic power shortages, limited rural electrification and sharply increasedfuel prices have caused a setback to the mechanization of water pumping, andto a renewed interest in the use of bullocks for drawing well water.

2.05. The growth of agricultural production in India between 1961 and1971 averaged about 3% per year, but most of this increase was offset bya population growth of 2.2% per year over the same period. To bolsterperformance of the agricultural sector GOI has, since 1966, adopted apolicy of concentrating development efforts in priority areas: highyielding crop varieties, development of irrigation resources, increaseduse of fertilizer, pesticide and improved seed and more recently, improveddairy cattle production. The improvements in productivity brought about bythe use of new agricultural technologies in India are substantial and over-all production in the agricultural sector increased almost twice as rapidly

during the last decade as it did during the previous ten years, but ineqtial-ities in the distribution of benefits in the rural sector, as well as a slowrate of progress in relation to population growth, are causing increasingconcern to GOI. New National Guidelines for a land ceiling program, andspecial rural programs such as the Drought Prone Area and Intensive VillageCattle production projects, directed to the poorer sections of the community,are specific GOI responses to present shortcomings in respect to the distri-bution of benefits of improved technology.

III. LIVESTOCK PRODUCTION

Stock Numbers and Production

3.01 Although the financial contribution of livestock to the economyis relatively small, farm animals play a key role in the agricultural economy.They are the major source of farm power, rural transport, manure and cookingfuel, as well as frequently providing the onlv source of cash income onsubsistence farms, and of insurance of family purchasing power in the eventof crop failure. The likely structure of the present livestock populationmay be summarized as follows: (1972 Census)

Total Adult Adult Young Likely Rate of_Iale Female Stock Annual Increase

- ------------------- millions--------------------

Cattle 179 75 56 48 0.7%Buffalo 58 9 29 20 1.2%Sheep 46 6 27 13 0.6%Goats 70 6 39 24 1.9%Camels, donkeys

mules, horses 3 n.a.Pigs 5 n.a.Poultry 120 2.3%

3.02 The contribution of meat from India's large bovine population tothe protein diet is small. Because of low average incomes, of the sentimenttowards cattle from the predominantly Hindu population, and of bans (or se-vere restrictions) on their slaughter in most States, very little beef isconsumed. Most bovine meat eaten comes from buffaloes because there arefewer restrictions on their slaughter. About 600,000 are slaughtered annu-ally (equivalent to about 120,000 tons of meat or 0.2 kg per capita). Mostof this is consumed locally although some is now being exported to the Mid-dle East and some to the US for pet food. With a view to ensuring betterutilisation of livestock by-products, the Government of India have formulatedprograms for setting up modern slaughter houses in different parts of thecountry under their five year plans.

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3.03 Milk and milk products are by far the most important sources ofanimal protein in India and are acceptable to practically all segments ofthe population. The productivity of milk animals is, however, particularlylow and daily per capita availability is only about 114 grams compared with730 grams for the US. The availability of eggs averages 5 per capita peryear and that of meat in all forms about 2.3 kg.

The Cattle of India

3.04 The indigenous cattle of India are zebus; many of heterogeneousorigin and nondescript type. The specialized and improved breeds, of whichthere are 26, are classified into the 3 main categories of dairy, draft andgeneral utility. The major draft breeds include the Amritmahal, Bachaur,Bargur, Dangji, Hallikar, Kangayam, Kenkatha, Kherigarh, Khillari, Malvi,Nagore, Namari, Ponwar and Siri. The major dairy breeds are Deoni, Gir,Red Sindhi and Sahiwal while the dual purpose breeds are the Hariana,Kankrej, Mewati, Ongole, Rathi and Tharparkar.

3.05 The performance characteristics of average village cattle reflectthe nutritional stress they are subject to, especially a deficiency ofprotein in the dry season. Age at first calving is about four years andcalving intervals approximate 2 years. The growth of young stock is par-ticularly slow. The average weight of mature oxen is estimated at about300 kg, and 220 kg for cows. Mortality rates between birth and one yearof age are reputed to be of the order of 30%, a consequence of the se-lective rearing of male cattle calves;mortality of older stock is about 5%.Lactation yields approximate 500 litres with one lactation per cow of about200 days each 2 years.

3.06 The body size and performance of the specialized indigenous breedsof cattle (probably 25% of the total cattle population) are appreciablysuperior to those of average village cattle. Milk yields as high as 4000kg per lactation have been recorded on research stations while body weightof the specialized draft breeds may exceed 600 kg. As with nondescriptcattle the breeding, growth and lactional performance of the specializedbreeds is impaired by nutritional constraints, but the owners of such cattletend to provide better overall management and feeding, thereby improvingperformance.

3.07 Cross breeding with European cattle was initiated some 70 yearsago, principally with the Jersey and Friesian breeds and mainly for pro-ducing cross bred animals for specialized milk production. The superiorityof the cross bred for this purpose, under adequate conditions of feedingand management, is now well documented. During the period 1961-72 approxi-mately 2,600 head of exotic cattle were imported.

The Buffalo of India

3.08 The buffalo of India have almost twice the liveweight of averagecattle and a correspondingly greater work capacity and food requirement.They are more suited to the wet lowland areas and are reputed to be better

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able to subsist on poor quality fodder. Seven major breeds of buffalo arerecognized in India (the Bhadawari, Jaffarabadi, Mahsana, Murrah, Nagpuri,Nili, and Surti) but, as with cattle, a large percentage are of nondescripttype. Their use in India emphasizes milk production rather than draft (theratio of adult males to females in the buffalo population is 1:3, in cattleit is 1.3:1, Para 3.01) and female calves are selectively reared. Averagemilk yields per lactation are in the 1500 kg range with top yields beingabout 4000 kg of milk containing 5% to 8% butterfat. Breeding performanceis similar to cattle with slightly higher rates of mortality being observedin buffalo calves than in cattle calves.

Milk Production

3.09 Some 60% of the national milk production of 23 million tons isbelieved to originate as a byproduct of the production of draft cattle whosefeed supply is almost entirely cereal straw and other crop byproducts. Theresidual 40% comes from landless farmers and city milk producers who usuallykeep their animals, often of specialized dairy breeds of cattle or buffalotied near their houses or shops and who purchase all feed and fodder used.There is about 1 dairy cow or buffalo to every 10 persons in urban areaswith city milk producers commonly owning 10-20 cows. Increasingly, StateGovernments are attempting to shift these urban dairy units to rural areas,the Aarey Milk Colony of Bombay (containing 15000 buffalo and one thousandcrossbred cows) being an early pioneer in this field.

3.10 Traditionally, there has been a degree of specialization betweenthe buffalo and cattle, in the sense that most buffaloes are primarily keptfor milk production and most cattle for provision of draft power. In termsof milk yield, the buffalo is superior to most of the Indian cattle breeds.Its milk also has a high fat content commanding a price premium becauseits fats are used to make ghee (a cooking oil). For draft purposes thebuffalo finds favor only in the paddy areas and where roughages are plenti-ful as the maintenance feed requirements of buffalo are substantially higherthan for cattle. With the exception of the milk breeds of northwest Indiafemale cattle are kept primarily for reproduction of draft animals and thesmall amount of milk produced is fed to calves, particularly the males, andconsumed within the household (see para. 3.21).

Draft Animals

3.11 Draft males,, both cattle and buffalo, are castrated when almostmature. As better grown young bulls are selectively castrated for draftpurposes some degree of negative genetic selection for size is usually pres-ent, particularly as mating is largely indiscriminate. Young cattle andbuffalo calves are suckled by their mothers and are required to induce milk"letdown" in the cow for hand milking purposes.

3.12 Draft animals perform about 90% of all seedbed preparation work(there are about 100,000 50 H.P. tractors in use) and haul almost all ma-terials to fields and local markets. The total number of draft animals inIndia is about 80 million, slightly more than the number of rural households.Draft animals are invariably used in pairs in a traditional shoulder yoke

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harness. Land preparation with a simple peg plough commences once sufficientrain has fallen to enable easy soil cultivation. Each pair of bullocks is usedfor 5 to 6 hours daily. The draft pull of bullocks approximates 0.35 H.P.and the area that can be ploughed with a bullock pair in a day is about 0.10ha. About 125 million ha are cropped at least once each year using 40 mil-lion pair of oxen, roughly 3 ha per pair and requiring 30 days of ploughingand a further 20 days for 3 harrowings. In a strictly rnonsoonal climate inwhich traditional crop varieties are photosensitive and decrease in yieldwith late planting, the constraint that limited draft power provides to fulluse of seasonal rainfall is formidable.

Small Ruminant, Pig and Poultry Production

3.13 Sheep and goats typically occur in mixed flocks of 20-50 owned bylandless families. About 70% are in the Himalayan region, 20% in the north-west and 10% in the southern region. Many are migratory and pooled flockstravel long distances mainly between alpine mountain summer pasture andwinter lowland forest grazing. Lambing rates approximate 60% and lambingoccurs at the onset of the dry season. Average greasy wool yield is 0.8to 1 Kg per head per year. The sheep of the southern region produce medul-lated hair rather than wool. Mobility and high rates of survival underadverse conditions are the most important traits of all Indian sheep breeds.Because of seasonality and marginality of feed supply, systematic improvementfor mutton production has not taken place, although differences in finalweight exist between various breeds. Recently, some public programs toimprove fine wool production have been taken up, particularly in Rajasthanand Haryana, involving crossbreeding to exotic breeds and the organizationof wool markets.

3.14 The goats of India are categorized into about 19 specialized milkand hair types, although the bulk of the goats, as with sheep, are of non-descript mutton type. They typically exhibit high prolificacy and show aconsiderable variation in mature liveweight. They are normally associatedwith dry, hot and badly eroded areas of rangeland, the proportion of goatsto sheep in an area reflecting the degree of degeneration of the pastoralresource. Some breeds have good hair and milk production, but the bulkis for meat production. Exotic breeds have been imported for milk andmohair improvements through cross-breeding programs.

3.15' The traditional base for poultry production is the rural villagewhere farmers raise small flocks of indigenous chickens to supplement farmincome. These birds scavenge for feed and receive household scraps. Pro-duction is about 40 small eggs per hen per year. In the peri-urban areascommercial poultry production using exotic breeds has expanded considerablyin recent years and now accounts for about 5% of total poultry production.Commercial farms raise imported stock and produce 180 eggs per hen per yearusing moderate to high energy rations prepared in modern feed mills. Cross-bred chickens adequately vaccinated against Newcastle Disease are now beingintroduced in deep litter systems at the village level. When reared underconfined conditions the fertilizer value of the manure of these chickens iscapable of raising average grain yields sufficiently to provide the 25%

grain component of their concentrate diet, the residual 75% being largelymill by-products such as bran supplemented with a protein concentrate.

The Feed Supply

3.16 The single most important constraint to an increased size andproductivity of the livestock population is the inadequacy of forage andpasture supplies. Almost all feed for livestock in India is the byproductof agricultural cropping, and to a lesser degree the grazing available fromvillage communal land, waste area vegetation and forest reserves.

3.17 A rough breakdown of the availability of national feed andfodder supplies indicates cereal straw and natural grazing are the two feedsources of overwhelming importance to the Indian Livestock industry andthat cattle and buffalo account for about 90% of national livestock feedrequirements.

3.18 The annual feed requirement of a mature working bullock or in-digenous village type cow is the equivalent of approximately 2.5 tons ofstraw and 5 tons of green fodder, while a cow yielding some 1500-2000 kg ofmilk requires an additional ton of concentrate mix or its equivalent ingood quality green feed. In terms of land areas, each ha of crop producesabout 1-2 tons of straw and each ha of grazing land produces about 8 tonsof green fodder. A 4 ha dryland farm with dry season stubble grazing andaccess to common grazing might reasonably expect to provide a sufficientquantity of feed for 2 oxen, a low yielding cow and a calf. With a totalbovine population of about 240 million, and 164 million ha of cropped land,the pressure on the quantities of feed available in India for livestockis obvious. Cereal straw has a cash value of Rs 300 - 400 per ton, fresh cutberseem or lucerne Rs 100/ton and concentrate mixtures cost about Rs 1000/ton.

3.19 The grazing available to livestock, be it on public land, onprivate land abandoned to cropping because of repeated crop failure anderosion, or on village common lands, is invariably of poor quality par-ticularly in the dry season. The main grass species found vary withclimate, soil and altitude and intensity of grazing. Heteropogon andAristida species are common but are poor producers. To date the littleattention that has been given to pasture development has centered largelyon grazing land protection, but as overgrazing for so long has depleted themore palatable species, reseeding techniques are also likely to be re-quired. There are several grasses and legumes which show promise for im-proving much grazing land -- particularly Cenchrus and Stylosanthes species.Intensified development efforts to improve the productivity of grazing landsare of high priority.

3.20 In the absence of adequate supplementation by protein rich feeds,the heavy dependence of livestock production in India on straw and stubbleimposes a qualitative, as distinct from a quantitative, constraint on animalproductivity, and particularly on milk production; a relatively modest sup-plementation of the basic straw, stubble and rough grazing diet can have a

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marked effect on milk yields and farm profitability. The energy requirementof the low yielding (500 litre) village cow, taking into account the needsof ancillarily young replacement stock, is of the order of 9000 m. caloriesper year, that of a crossbred dairy cow capable of producing 2000 litersof milk (plus replacement stock) is only 25 percent greater. The highyielding crossbred requires, however, the incremental protein and mineralsfound in about 6 tons of berseem or lucerne, or in a ton of 15% proteinconcentrate. Where it is practical to provide this supplement, net incomeper cow can be greatly increased, an observation which explains the greatinterest in dairy production in those areas where adequate support servicesto dairying exist and where supplemental feed can be grown or purchased.

3.21 Large differences in feed availability exist between regionsand states, and movements of stock occur from surplus to deficit, andrural to urban areas. Movement of migratory stock is also based onregional and seasonal differences in feed availability and market outlets.The type of animal found in a particular region also reflects the overallavailability of feed, the specialized breeds of cattle and of buffalogenerally occurring in areas of greater fodder availability. Thus thePunjab, a productive wheat area of medium population density with largerthan average farms, has a high proportion of buffalo to cattle. By con-trast West Bengal, with a higher rain fall, a rice based agriculture, andgreater population density has a greater proportion of cattle.

The Feed Industry

3.22 Virtually all cereal grains produced are used for human food butmilling and processing by-products (mainly bran), cracked and split grain,as well as some reject maize and barley are available as feeds for livestock.In addition, some oilseed cake is also used for this purpose. As the grainsand by-product feeds are not sufficiently well balanced in nutrient contentto permit their most efficient use when fed singly, they are better fedas components of compounded and balanced concentrate mixtures. The Indianfarmer presently feeds a relatively high proportion of single feeds, par-ticularly rice and wheat bran and considerable scope exists for increasingthe efficiency of feed utilization. The total installed capacity of allthe compound feed factories in India, both public and private, is about 8.5million tons annually. Only about 50% of this capacity is utilised however.This is mainly due to the high price of basic feed ingredients caused byfluctuations in production and availability of food.

IV. MARKETING AND PRICES

(a) Milk

4.01 In rural areas lacking a fresh milk market, surplus milk is com-monly converted into ghee worth about Rs 15 kg at the farmgate. Thus thefarmer realizes a minimum price equivalent to about Rs 0.60 kg for cowmilk and Rs 1.15 for buffaloes milk. The residual boiled curd is used forhome consumption. A large variety of milk sweets, using the fat, protein

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and sugar fractions of milk in various combinations, are also produced.These sweets result in high utilization values of milk, often exceedingRs 3 per litre of milk.

4.02 Specialist milk producers in and around urban areas traditionallysell fresh milk twice daily to middlemen who supply fixed groups of cus-tomers. Often milk is diluted with water which results in price differen-tials even among the customers of the same middleman. Retail prices varyconsiderably with season, being highest during the hot part of the yearfrom March/April to September. Typical retails prices of slightly adul-terated milk would be:

April-September November-MarchRs Rs

Cows' milk per litre 1.70-2.00 1.30-1.60Buffaloes' milk per litre 2.20-2.50 1.80-2.00

Producer prices are usually Rs 0.2 - 0.4 less, Rs 0.10-0.15 going to themiddleman, and a further Rs 0.10-0.20 for transport costs.

4.03 Many modern dairy plants, often initiated by Government andhopefully anticipating an increase in production, are now being constructed.They emphasize the provision of high quality but low priced milk for theurban masses. 1/ This, however, results in conflicting interests. Tomeet this welfare objective, the selling price of distributed milk is setsubstantially (about one-third) below that charged by the traditionaltrade. These dairies have generally attempted to procure milk in areasbeyond the traditional fluid milk supply regions, and purchase prices havebeen fixed at low levels, reflecting the expectations that by going fartherafield they can develop a production response to a new marketing outlet atlower prices than prevailing in the vicinity of cities. Experience hasshown, however, that a low price policy provides little incentive for thefarmer to sell milk or to increase production. Milk reconstituted fromimported gift milk products has supplemented the supply available fromGovernment dairies and has also discouraged the growth of local production.Recently there has been a change towards a more rational and higher incen-tive price-policy in some regions which has had a substantial effect onmilk supply for these particular regions.

(b) Live Animals

4.04 Cattle are marketed through a system of cattle fairs and weekly"shavdies" or "country markets." These are occasions for buying and selling

1/ Daily wage rates of unskilled labor approximate Rs 4 and two thirdsof the population has a per capita income of less than Rs 20/month.

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stock for both draught and milk purposes. It is also at these markets thatslaughter agents procure most of the animals presently moving into "recog-nized" slaughter.

4.05 Because of deeply rooted convictions and because of a broadeconomic concern for the maintenance of milk production and agriculturalpower resources, widespread sentiment exists for the restriction or elimina-tion of cattle slaughter in India. Many farmers, however, appear in-creasingly pragmatic about the disposal of surplus stock. Official sta-tistics indicate that "recognized" slaughter has always been quite smalland has declined in recent years. In the 1960's the matter arose as anational political issue, and while Government of India took a firm andunyielding stand against any national action to allow cattle slaughter,the issue subsided by a decision that the matter was one of State ratherthan national jurisidiction. 1/ Individual States have acted differentlyto impose controls on slaughter. Generally, the restricted slaughter princi-ple has been recognized; but, based on a 1951 Supreme Court Decision thatindividuals cannot be deprived of the right to their accustomed means oflivelihood, laws were established that butchers and traders in slaughtercattle may continue to operate. Slaughter quotas are established for themajor slaughterhouses by the directors of Animal Husbandry Departments,taking into account the demand for meat and for the preservation of "useful"animals. "Useful," by definition, means any animal suitable for draught,milk production or breeding. In consequence, each animal officiallyslaughtered must be certified as "useless" by a veterinarian.

4.06 There are substantial movements of cattle over long distances fromsurplus to deficit areas. Recognized migration routes for cattle lead fromthe north of India south and south-west through Maharashtra and KarnatakaStates. Cattle procured in the north are moved by dealers and traded alongthe routes. The number of animals diverted to slaughter depends essentiallyon the demand for slaughter purposes which is a result of local consumptionhabits, local price controls on meat, local slaughtering fees, etc. and manyanimals used for draught are less fitted to that purpose than the cattle atabattoirs. The availability for slaughter is often a matter of price, notof "usefulness." There is also a continuous flow of good quality milk ani-mals to milk producers in large cities and a large proportion of these cowsare slaughtered at the end of their lactations rather than being rebred.

4.07 Draught oxen are usually sold in pairs at an average price of aboutRs 1,500 per pair. The value of dairy cows and buffalo varies with theirmilk yield, usual values are Rs 150 per litre of milk yielded in 24 hours.Cull cows are sold for about Rs 50, i.e. the value of the hide. Owners sell

1/ Chapter 3, Section 4, Article 48 of the Indian Constitution assertsthat the States should take steps for preserving and improving thebreeds, and prohibiting slaughter of cows and calves and other milkand draught cattle.

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buffaloes for slaughter at about Rs 1.00 per kg liveweight in villagemarkets. The retail prices of buffalo beef is about Rs 3.00/kg, that ofcattle beef Rs 2.5/kg.

4.08 Goats and sheep can be slaughtered in registered abattoirs; whichare always managed by municipalities. The slaughtering is carried out bystaff of the abattoir for a fee paid by the retailer to the municipalityof about Rs 0.50 per sheep or goat. Farmgate prices for sheep vary betweenRs 2.00/kg liveweight for culled ewes and Rs 4.00/kg liveweight for maleweaners. Their price in village markets goes up to about Rs 5.00/kg live-weight. Retail prices of mutton in the large cities vary between Rs 8.00and 10.00/kg. Nearly all wool is marketed through middlemen; the woolgrading and marketing centres which have been established in some Stateshave not been able to obtain a significant market share due to administrativeinflexibility. Producers obtain about Rs 5.00/kg of coarse wool and up toRs 15.00/kg of fine wool.

4.09 Most poultry is sold in live form at the farmgate or during thevillage fairs. Live poultry are then marketed by middlemen/traders at thecities' wholesale markets by type, age and sex. Poultry prices have re-mained stable in the last year and in the main centres; a chicken with acarcass weight of about 0.5 kg is retailed for about Rs 7.50. Eggs reachthe urban centres in the same way as poultry; average retail price is aboutRs 5.50 a dozen. Commercial peri-urban production accounts for about 5%of total poultry production.

Foreign Trade in Livestock Products

4.10 Meat exports in 1974 were valued at about US$3.5 million, an in-crease of about 35% since 1969. Wool exports are limited by GOI in order toencourage local manufacturing; coarse wool exports declined from US$19.8 toUS$11.2 million in 1974, while fine wool imports increased to US$27 million.Hides, skin and leather exports represent 90% of the value of exports in thelivestock sector and were valued at US$240 million in 1974. Imports of live-stock products comprise mainly tallow (US$15.0 million in 1974) fine wool,and milk products. The value of milk product imports in 1974 is estimatedat US$33.3 million, 90% of which represented food aid at negligible cost.

V. SUPPORTING TECHNICAL SERVICES

Veterinary Services

5.01 A large number of cattle diseases are endemic to India. Importantamong these are foot and mouth disease, rinderpest, theileriasis, anaplasmo-sis, piroplasmosis, brucellosis, anthrax and black quarter. Disease controlinvolves the Central Government, Governments of the States and Union Terri-tories, the Indian Council of Agricultural Research (ICAR), the Indian Veter-inary Research Institute (IVRI) and the various Veterinary Colleges through-out the country. In the Central Government a Livestock Health Section under

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the direction of a Joint Commissioner in the Animal Husbandry Division ofthe Department of Agriculture has responsibility for: (a) epidemiologicalstudies to determine the incidence of mortality and morbidity caused by theimportant diseases in the country, (b) coordination, liaison and guidancein the operation of a centrally sponsored scheme for the eradication ofrinderpest, (c) establishment of animal quarantine and certification services,and (d) strengthening of the 15 Biological Production Centers in the country.Veterinary aid for carrying out the necessary prophylactic and curative di-sease control measures is made available to livestock owners by the StateGovernments through a network of about 9,500 (1973/74 estimates) veterinaryhospitals, dispensaries and mobile units. These services are supported bydiagnostic laboratories at district, regional and state levels. The IVRIat Izatnagar is the primary center for the production of veterinary bio-logicals. It is also a major institution for training and research inveterinary science and animal health. A number of research projects financedby the ICAR are carried out at the Institute. All of the 21 Veterinary Col-leges in India provide training in veterinary science and many of these offeropportunities for post-graduate studies and research.

Artificial Insemination

5.02 Artificial Insemination services are widely available throughoutperi-urban India. Most inseminations are carried out through the 62 Inten-sive Cattle Development Projects and the 536 Key Village Blocks. Theseprograms cover a breeding cow and buffalo population of about 12 millionand provide about 1.4 million inseminations a year. Most inseminationsinvolve liquid semen. Data on conception rates are limited but appear torange from about 20% to 70%, reflecting considerable variability in man-agement and technique and indicating great scope for improvement, especiallywith respect to timing of inseminations. The conception rate in buffaloesin the Kaira District Milk Producers Cooperative Union, Gujarat State, issaid to be 58%. Al programs have been particularly progressive in the Statesof Karnataka, Andhra Pradesh, Kerala, Tamil Nadu, Uttar Pradesh and WestBengal, and are gaining momentum in Bihar, Maharashtra, Orissa and MadhyaPradesh.

Livestock Extension

5.03 Agricultural extension in India, including livestock extension iscarried out through the Community Development Program which is a programof aided self-help planned and implemented by the villagers with Governmenttechnical guidance and financial assistance. The program is implementedin blocks units of over 100 villages. Each block has an average area of 250square miles and a population of about 80,000. Extension is the responsi-bility of the State governments with overall coordination by the CentralMinistry of Agriculture. A block development officer and eight extensionofficers specializing in various fields, including animal husbandry, operateat the block level. Each block is divided into groups of about 10 villages,for which a village level worker acts as a multi-purpose extension agent.The extension workers at the block and village levels disseminate knowledge

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of practical importance to village farmers and they transmit village prob-lems back to the various research organizations for study and solution. Atpresent there are some 4,500 block development officers, 55,000 villagelevel workers, and 6,000 animal husbandry extension officers engaged incommunity development work. While considerable progress is being made insome areas of rural development, extension workers in animal husbandry havenot been generally effective in bringing about major improvements in live-stock production. In the Intensive Cattle Development project areas whichare linked with the dairy plants and the areas covered by Operation Flood,the dairy extension work is carried out by the Animal Husbandry and DairyDevelopment department staff. Periodical in-service training programs areorganized to keep staff up to date with improved technology.

Livestock Research

5.04 Coordination of Livestock Research is the responsibility of theIndian Council for Agricultural Research (ICAR). Research into variousaspects of livestock production is carried out by a number of major insti-tutions, particularly the Indian Veterinary Research Institute (IVRI), theNational Dairy Institute centered on Karnal. the Indian Agricultural Re-search Institute, the Allahabad Agricultural Institute and the IndianGrassland and Fodder Research Institute.

5.05 Considerable emphasis in animal research in India has been placedon animal breeding. Early work in this field emphasized basic studies withthe Indian and imported dairy breeds and a number of cattle breeding farmswere established to provide improved bulls for distribution to farmers.After preliminary studies indicated the potentialities of crossing theindigenous cattle with exotic dairy bulls, the major research effort hasbeen devoted to crossbreeding as a method of producing high yielding dairycattle suitable for India's conditions. To accelerate this process theAll-India Dairy Cattle Coordinated Breeding Project was initiated in 1972.The object of the All India Co-ordinated Research Project on Cattle isto produce a "dairy type" animal by cross-breeding, utilizing 3 exoticbreeds, namely Holstien Friesian, Jersey and Brown-Swiss. The local cattleare used as base for the cross-breeding programme. The production andbreeding efficiency of different levels of cross-breeding are being evaluatedand a new "dairy type" animal having a minimum yield of 3,000 kg of milk in300 days is being developed. The centres of this project are located atIndian Veterinary Research Institute, Izatnagar, Haryana Agricultural Univer-sity, Hyderabad, Mahatma Phule Krishi Vidyapeeth, Rahuri and the CattleBreeding Research Station, Harringhatta. There are several other centresalso where cross-breeding for development of Indian cattle is being carriedout. The results obtained to date have been dramatic. Compared with theirindigenous dams, and subject to reasonable levels of feeding and management,the Fl crosses mature more quickly, produce their first calf at an earlierage, yield double or triple the amount of milk, and are more efficient utili-zers of feed of reasonable quality. Breeding programs to establish and main-tain the appropriate proportions of exotic blood in subsequent generations

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are currently underway. Recently the N.D.R.I. announced the development ofa so-called new strain of dairy cattle, the Karan Swiss, which combinesinheritance from Brown Swiss bulls and Sahiwal and Red Sindhi cows. Effortsto improve productivity in buffaloes are also being made through the All-IndiaBuffalo Coordinated Research Project as well as by Kaira Cooperative DairyUnion.

5.06 With the increased use of high producing crossbred dairy animals,fodder research is now receiving more attention. The Grassland and FodderResearch Institute at Jhansi, and the Central Arid Zone Research Instituteat Jodhpur are the main centers for most of this research. Work is con-centrated on production systems for irrigated conditions utilizing peren-nial grasses such as the Pennisetum hybrids, and the multiple croppingof annual forages such as maize, sorghum, oats and berseem. The grassesare grown alone or in combination with temperate zone leguminous forages.Under such conditions the total annual yield of fresh material is high (100-200 tons per ha). Little work has been done to develop a system of fodderproduction under rain-fed conditions or where supplemental water is minimal.Detailed studies to determine the comparative economic advantage of growingleguminous forage as an alternative to cash crops, or in rotation with suchcrops, have not been carried ouit, but the operational research programs thatare being taken up by ICAR will be production oriented taking into accountthe economic implications of the program. Other areas in which research isurgently needed include the persistency of Alfalfa on black cotton soils,the optional use of high quality forages as supplements to cereal straw andthe potential of Stylosanthes species for improving communal grazing lands.

5.07 Work on nutrition research has been carried out at a number ofresearch centres in the country. The work inter alia includes determinationof the chemical composition of different feeds, their nutritive value, work-ing out of maintenance and production requirements of Indian cattle, researchon large numbers of subsidiary feeds including agricultural by-products andindustrial wages. Other important items of research have been studies onefficiency of feed conversion in relation to milk production and egg andmeat production in poultry. In addition, research on trace elements has beenin progress and several nutritional and deficiency diseases have been inves-tigated. A number of items of agricultural by-products and industrial wasteshave been incorporated in the cattle, poultry and other livestock rations toreplace grains and cereals. The Indian Grassland and Fodder Research Instituteand the various other Central and State research units have also been engagedon research on fodder production and utilization. The nutritive value oflarge number of fodders have been investigated and their role in enhancingmilk production have been investigated.

Education and In-Service Training

5.08 India has 19 agricultural universities, 72 agricultural colleges(including those functioning at the university campuses), and 21 veterinarycolleges. In addition a post-graduate school is operated by the Indian

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Agricultural Research Institute. The NDRI at Karnal provides both under-graduate and postgraduate training in dairying. The Institute's regionalstation at BanRalore provides postgraduate training but has no undergraduateprogram. Both institutions offer the two-year Indian Dairy Diploma courseas well as specialized in-service training courses. Additional facilitiesare being planned to provide training for a much larger number of farmers.A working group in Agricultural Administration and Training has worked outthe requirements of technical personnel in different fields includingAnimal husbandry and dairying, and more recently a working group has definedthe requirements for the fifth five year plan. There is virtually no teachingor traininR on animal husbandry as part of the farming system; the mainemphasis now being on livestock nutrition and on production technology.

Drooeratives

5.09 The successful Kaira District Cooperative Milk Producers Union Ltd.(AMUL), with its headquarters at Anand in Gujarat State, provides a develop-ment model for dairy activities that appears well adapted to India'scircumstances. The core of AMUL's success is the organization of manythousands of small farmers into hundreds of cooperative milk producers'societies and the federation of these societies into a Union of Societies.A typical member owns one buffalo cow and tills one to two hectares. Theunion of cooperatives owns and operates its own milk and feed processing.collection and distribution facilities and provides all members with a fullrange of technical services. AMUL now embraces about 225,000 families in785 village cooperatives, and processes about 150 million kg of milk an-nually. The Union is governed by a farmer-elected board and operated by amarket-oriented management group of hired professionals. Responsible forsetting milk prices, it never refuses to buy milk in any quantity from mem-bers, thus assuring the farmer of a year-round outlet for his milk at fairprices. AMUL has constantly upgraded its services and now provides a pack-age of services, including routine veterinary coverage, AI, training facili-ties, concentrate feed and fodder seed. Buffalo sire selection for AIpurposes based on computer analysis of dam and daughter milk records hasbeen introduced. Following the success of the Kaira Union, five other unionshave been formed in Gujarat and these were recentlv amalgamated into a Feder-ation of Unions. The success of the Gujarat experience, based on buffaloes,has encouraged GOI and a number of State Governments to foster the establish-ment of similar programs with cross bred cattle in other parts of the country.The AMIL model provides the basis of organization of the dairy developmentprojects now being supported by World Bank financing. Other forms of coopera-tive dairy development and of State Government support for dairy developmenthave been initiated, but none to date match the success of the AMUL approachin providing attractive financial and social incentives encouraging dairyproduction among small farmers.

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TDJj NDDB and State Dairy Corporations

5.10 The Indian Dairy Corporation (!DC) is the organization responsiblefor promoting, financing and monitoring GOI supported dairy projects andfor handling centrally all imports of dairy products. It was established in1970 to serve as the commercial arm of GOI with respect to dairy development.It is financed in part by GOI grants and in part by the funds generated fromthe sale of reconstituted milk made from imported dairy products. The Na-tional Dairy Development Board (NDDB) was created in 1965 by GOI as the maintechnical agent for dairy development. It is financed mostly by funds ob-tained from dairy consultancy activities. Both organizations, the head-quarters of which are located in Gujarat State, derive from the AMUL experi-ence and have a close inter-relationship.

5.11 NDDB has developed a particularly competent and well trained staff,with expertise in milk collection, marketing and processing. It assists inmost of India's dairy development planning and helps many States in theexecution of dairy projects. NDDB offers a full consultancy service whichincludes siting, planning, construction and equipping of processing plantsas well as the training of plant personnel. It also trains "spearhead"teams to help organize village cooperatives of the AMUL type and form theseinto viable unions.

5.12 In some States, Dairy Development Corporations (Karnataka, Rajas-than, Madyha Pradesh) have now been established to implement dairy develop-ment projects using cross bred cows, and based on the establishment ofvillage milk producers' cooperatives and their incorporation into self-governing dairy Unions.

VI. LIVESTOCK DEVELOPMENT PROGRAMS

The Five Year Plans

6.01 During the first three plans (1954-1969) GOI expended Rs 22.1 mil-lion for all agricultural programs. Of this amount about 8% was spent onanimal production activities with considerable emphasis being placed onthe need to improve draft cattle. Although modest in terms of productionincreases, the developments achieved in the animal husbandry field overthis period were important in providing a basis for future GOI and Statedevelopment policies. The main achievements were:

(a) expansion of state breeding farms, particularly for theproduction of improved bulls for *.raft cattle improvement;

(b) establishment of about 500 Key Village Schemes and about60 Intensive Cattle Development Projects incorporatingbreeding and feeding programs aimed at raising milk pro-duction at the village level;

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(c) creation of the National Dairy Development Board in 1956;

(d) organization of milk supply to the cities of Bombay andCalcutta (this was the forerunner of Operation Flood, para6.03);

(e) construction of 37 liquid milk plants; and

(f) increased capacity of refrigerated rail transit for milk.

6.02 Under the Fourth Plan, which terminated in mid-1974, the fundsallocated for dairy development were significantly increased. By the endof the plan period expenditures on animal husbandry amounted to about Rs 780million and on milk processing and distribution about Rs 820 million. Inaddition to the expansion of on-going programs begun under previous plans,important new programs were commenced to:

(a) encourage crossbreeding of native cows with high producingexotic bulls using imported frozen semen; and

(b) establish a foot and mouth vaccine production center inBangalore, Karnataka State.

6.03 In the milk processing and distribution programs of the FourthPlan most of the effort was concentrated on Operation Flood. This programaims at improving milk processing facilities and increasing milk suppliesto India's four largest cities (New Delhi, Bombay, Calcutta and Madras).Under the program WFP is providing 126,000 tons of skim milk powder and42,000 tons of butter oil which is recombined into liquid milk at theprocessing plants in these cities. The profits from the sale of this milkis used to finance dairy development programs within Operation Flood.Operation Flood is managed by the Indian Dairy Corporation (IDC).

6.04 While the achievements of past efforts are significant the reali-zations of the first Four Plans have fallen short of projected objectives.Many of the dairy plants erected under the plans are operating at less thanhalf of their through-put capacity as a result of shortfalls in supply.This shortfall is symptomatic of a more serious problem, a growth rate ofonly about 2% per year in milk production since 1951, whereby daily percapita availability of milk and milk products declined from 130 grams in1951 to 114 grams in 1970. Government planners have realized that thistrend cannot continue Without serious consequences, since milk is the mostimportant source of animal protein for much of the Indian population. Itis now generally recognized that the village farmer has had little econo-mic incentive to supply milk to the predominantly government-owned dairieswhich often are inefficiently managed and tend to set consumer prices toolow relative to production costs. Furthermore, village milk collection isgenerally poorly organized and is often controlled by middlemen who may alsobe larger farmers who tend to reduce small producer margins. This situationhas caused Central and State Governments to reconsider their policies andhas resulted in greater interest in setting up public sector cooperatives

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based on the experience of the successful Kaira District Cooperative MilkProducers Union Ltd. (more commonly known as AMUL).

6.05 The draft Fifth Five Year Plan document emphasizes a coor-dinated and massive outlay for animal husbandry and dairying involving apublic sector expenditure of Rs 52.2 billion. It aims almost exclusivelyat the small and marginal farmers, and for cattle, poultry, sheep and pig-gery development under cooperative arrangements. In case of dairying, thebasic thrust will be on programs that will integrate the industry from theproduction level to the consumer. The choice of technology rests essentiallyon a massive cattle cross-breeding program with its supporting programs ofartificial insemination, fodder development, animal health, milk marketingand processing, education, training, research and institutional credit.Equally important to this production objective is the distributive orequity objective whereby all the programs are to be aimed and implementedthrough the small and marginal farmers and landless laborers, in generalterms - the rural poor. The choice of institution is the producer'scooperative based on the AMUL model suitably adjusted to local conditions.The planned target is to increase milk production by 5.4 million tons atthe end of the plan period (nearly three times the achievements of theFourth Plan).

6.06 Operation Flood will be continued in about the 50 districts whichconstitute essentially the milk-shed areas of the four metropolitan citydairies. A significant feature of India's Fifth Five Year Plan is thedevelopment of a National Milk Grid, the foundations of which have beendeveloped during Phase I of Operation Flood. During Phase II a coordinatedsystem of milk supply will be developed which will link together not onlythe largest centers of population but also six of the important smallercities in the country. Each program will be established along commerciallines with the ultimate aim of producer ownership of the processing. facili-ties through cooperative unions patterned after the AMUL model.

6.07 Other supporting development programs include feed and fodderprograms and disease control. The aim is to increase green fodder produc-tion by emphasising fodder extension programs as well as the production anddistribution of seeds of the most productive forage species. More emphasisis also to be given to increasing the supply of concentrate feeds in aneffort to achieve the high level of milk production expected from cross-breeding programs. In this connection the efficiency and output of existingfeed plants is to be improved and new plants established where required.The new mills are to be owned and managed by the proposed cooperative dairyunions.

6.08 The promotion of crossbreeding with fine wool exotic sheep, greateremphasis on selection for high milk strains of buffalo, increased availa-bility of day old chicks of improved egg and meat strains and a major in-crease in the overall research effort in livestock and fodder productionare other components which complement the emphasis in the fifth plan onsmallholder dairy development.

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Bilateral and MultilateralSuipport

6.09 Although most funds for livestock development under the FifthPlan are expected to come from local sources substantial external assistanceto dairy, sheep, poultry and fodder development in India continues to beprovided by bilateral and international agencies. Examples of bilateraldairy projects are the Indo-Danish Cattle Development Project in Karnataka,the Indo-Swiss project in Kerala, the Indo-German project in Himachal Pradeshand extensive New Zealand support in training dairy engineers and helpingdairy plant construction. Improved dairy stock have been provided throughthe cooperation of the Australian Government and through Heifer Project, Inc.,from the United States. FAO/UNDP.have been active in poultry development, infodder production and cattle breeding while Australia, the USSR and PAO havesupported sheep and wool improvement activities. Important assistance hasalso come from UNICEF. Significant contributions in animal husbandry educationand research has been made by USAID, especially through the cooperation ofseveral U.S. universities. A bilateral contributor which deserves specialmention is the Danish Government. The Indo-Danish Cattle Development Proj-ect (IDP) at Hessarghatta, Karnataka State, was conceived in 1961 and becameoperational in 1964. The original purpose of the project was to establisha mixed dairy and crop production farm to provide Indian farmers and govern-ment technicians with training in modern dairy production methods. Thefirst agreement between GOI and the Danish Government expired in 1970 andwas followed by a second which stipulated that the project would continuethrough November 1975. The new agreement provided for strengthening theexisting main center at Hessarghatta and establishing three sub-centers(each with an area of about 50 ha) at Munirabad, Kudile and Dharwar, Karna-taka State. Up to mid-1971 the Danish contribution to IDP amounted to Rs 9.5million. Denmark is also assisting GOI in establishing foot and mouth vac-cine production centers in Bangalore and Poona, and cattle developmentcenters in Maharashtra and Meghalaya States, five frozen semen banks and adairy training institute.

6.10 The World Food Program (WFP) support of Operation Flood is alsoparticularly noteworthy. Over a 5 year period WFP will be supplying 126,000tons of skim milk powder and 42,000 tons of butter oil for recombinationinto liquid milk at processing plants in New Delhi, Bombay, Calcutta andMadras. Profits from the sale of this milk are used for financing develop-ments in milk processing facilities and in increasing milk supplies andproduction in rural areas adjacent to these four largest cities of India.Resettlement of city milk producers in rural areas is a major objective.The operation is managed by IDC. It is currently two years behind schedule.

6.11 World Bank Group assistance to livestock development in Indiahas grown rapidly in the last 12 months. Three specific dairy developmentprojects (Karnataka, Rajasthan and Madhya Pradesh) are being financed (totalcost of the three projects is US$143 million), the Drought Prone Area Pro-gram supported by the Bank Group has an important livestock component, andan extensive series of Command Area irrigation projects catering to mixedlivestock-agricultural enterprizes are now being prepared and financed.

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VII. THE POTENTIAL OF IMPROVEMENT

The Basic Proposition

7.01 There are several factors arguing for a brighter future for live-stock production in India. The first is that average livestock yields areso low that they leave enormous scope for improvement; the second is thatprograms for improved technology involving genetic change, feed supplementa-tion and market organization hold promise of distinctly higher yields; thethird is the empirical observation that some Indian farmers have displayeda strong response to technological and market innovations. This said, itmust be stressed that while there is potential for increased production,there are many serious constraints of a physical and institutional characterwhich continue to hold back both the agricultural and livestock potential ofthe country.

7.02 Increasing milk production, particularly amongst the rural poor,is the main objective in the strategy of livestock development proposed bythe current Five Year Plan. The choice of technology proposed rests essen-tially on a massive cattle cross-breeding program with all its associatedactivities of artificial insemination, provision of concentrate feed, fodderdevelopment, animal health, milk marketing and processing, education, train-ing, research and institutional credit. At present the basic resources re-quired to achieve the production and equity objectives are limited. Thereare relatively few dairy animals with the genetic potential for high milkproduction, feed supplies are critically short, trained and experiencedpersonnel are below requirements, problem-oriented research informationis lacking and the extension service is largely ineffective. Furthermore,marketing is often poorly organized and many public processing plants sub-sidize urban milk prices at the expense of the producers.

7.03 A key factor influencing the success of the dairy productionobjectives lies in the extent of acceptance of crossbreeding to exoticbulls by village farmers and the concomitant need to improve the quantityand quality of feed fed to such animals. In this context it is importantto keep in mind that the primary function of local cattle is the provisionof draft power and that acceptance of crossbreeding to exotic bulls willdepend in large degree on the draft capacity of the crossbred oxen pro-duced. Evidence on this matter is presently unclear to many farmers anda careful review of this problem together with widespread demonstration ofthe draft capacity of cross breds is urgently required. The number ofcalves born to each village cow in its lifetime of 10-12 years is 4 to 5and the working life of a bullock lies between the age of 4 years to 8 to10 years. Thus almost all males born of indigenous cows are required fordraft purposes. Where cross-bred cows are maintained with adequate feeding,significantly higher reproductive rates are encountered; because more calvesare then born by each cow, it is feasible to breed for female replacementsby mating to a cross-bred dairy sire, as well as for draft bullocks bymating to draft-type bulls. The problem for the small farmer is under-standing that crossbreeding for milk production does not mean he can nolonger breed for draft bullocks.

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7.04 The second factor which is likely to hinder rapid progress is thecritical feed situation. The major hope in this field lies in expandingleguminous fodder production, particularly berseem and lucerne. An irri-gated area of one-tenth of a hectare is required to provide sufficient greenfodder supplement for each crossbred cow; there is therefore a small degreeof competition between milk and crop production, even though farm incomeper unit area of land is usually higher when milk production from improvedcattle or buffalo is a key factor in the farm management plan (see para7.07). Further offsetting this competition between grain and fodder cropsfor land and water is the higher subsequent grain yield farmers usuallyexperience when a legume fodder is used irT their cropping rotation. Criti-cal local data on these yield differences are not yet readily available andfurther local research and demonstration of the overall yield and profita-bility of alternative farming patterns is urgently required.

7.05 The institutional constraints that lie in the way of achieving theincome distribution or equity objective are equally formidable. Broadlyspeaking these lie in the division of the country's agricultural economyinto two sectors; the developing sector where the bulk of the land is inthe hands of the relatively few who are well provided with resources andwho produce the main production surplus; and the nondeveloping sector, whichincludes the majority of farmers, tenants, share croppers and labourers whohave negligible resources and a negligible market surplus. For the 65percent of the 70 million rural families in India at subsistence or below,the use of an agricultural technology which requires cash inputs is difficultto visualize. Offsetting these circumstances, however, is the tremendouslyimpressive achievements amongst underprivileged small farmers of the KairaDairy Cooperative Union, achievements which fittingly support the theme ofthe last International Dairy Congress (Delhi 1974) "Dairying as an Instrumentof Social Change". It is the particular experience of India that dairyingcan uniquely fulfill the function of stimulating effective community effortwhich encourages support for a much wider development of producer controlleddairy cooperatives of the AMUL type, cooperatives whose function and resultis measurable as much in social change as it is in increased dairy production(see para. 5.09). Difficulties, slowness, and disappointments are inherentin creating the new administrative, organizational and institutional arrange-ments necessary to ensure effective functioning of the village dairy cooper-atives in an environment lacking the community spirit and characterized bythe unequal hierachal environment of rural India. Nonetheless, there arenow several examples in Gujarat State of successful dairy development andthere is reason to be optimistic about the potential for their expansion.

7.06 Development of draft cattle capacity is constrained, as with dairy-ing, principally by inadequate feed resources and by the relative poor marketprice that all types of cattle and buffalo command. These two factors areclearly interrelated; when cereal grain has a higher price per unit weightthan cattle it is not surprizing that little deliberate effort is made togrow cattle fodder. To the extent that a changing attitude to cattle slaugh-ter allows, the encouragement of an export trade in bovine meat will stimu-late demand for heavy weight surplus stock and encourage both the breeding

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and feedinR of heavier animals suited to draft production. Improved dairyproduction would also be expected to lead to improved draft capacity throughthe provision of better calf rearing, disease control and improved fodderproduction.

7.07 In the present circumstances of a precarious balance between thesize of the livestock population and overall fodder availability, almostall feed consumed is used for maintenance purposes, and justification forthe proposition that India has a large livestock production potential re-sides in the impact that relatively marginal increases in food intake peranimal can have on stock productivity. Changes in the productivity peranimal could be achieved by modest reductions in stock numbers, by increasingthe quantity and quality of fodder grown, both on arable land and on communalgrazing areas or by both.

Specifics of the Potential

7.08 Quantification of the potentials for yield improvement in a countryas vast and diverse as India requires a very large degree of over simplica-tion; an oversimplification which is, however, inevitable if any feel for thelivestock production potential of the country is to be obtained.

7.09 Consider the production alternatives available to a farmer withland receiving 500-600 mm of rain during the summer monsoon. He can farmthe property in the traditional manner growing only summer crops and usingnegligible inputs; he can undertake improved dryland farming practices in-volving inputs of better seed, fertilizer, pesticides and water conserva-tion; or he can construct a shallow well yielding about 6,000 meters3

of water in the dry season and intensify his cropping pattern using limitedirrigation.

7.10 A study of the variations possible in the multitude of farm bud-gets which arise in analyzing these alternatives highlight the importantpoint that under the conditions proposed of limited irrigation availability,farm income is maximized by balancing crop and dairy production at the pointwhere the basic maintenance requirements of the cattle are met by crop by-products, with irrigation water being used to grow summer crops and suffi-cient berseem or lucerne to provide the incremental diet required for pro-duction. In these circumstances about 400 1 of milk per ha can be producedwith a negligible reduction in potential crop yields. The unimproved milkyield per ha from a traditional farm is estimated at about 40 liters. Thus,where limited irrigation is practical, a tenfold increase in milk yieldper unit area of land appears possible. Where improved dryland farmingonly is possible, improved milk yields are dependent upon the purchase ofconcentrate feed mixes to complement the basic straw available. In thissituation milk yields of 200 1/ha, requiring the use of 100 Kg of concen-trate per 200 1 of milk produced, appear the probable levels of profitableproduction.

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7.11 The conclusions drawn from such studies imply that substantialincreases in dairy production as a byproduct of agriculture are readilyachievable but require either a substantial input of a concentrate feed,a product in short supply, or the development of about 0.1 ha of irrigatedlucerne or berseem for each cow milked. In either case the merit of aconcentration of development effort on dairying is the comparatively simpletechnology involved and the compatability of dairying with the socio-economicobjectives of forming strong village cooperatives in the rural environmentof India. It should be clearly understood, however, that attempts to justi-fy dairy development on the basis of the contribution it can make to theproductivity and income of small farmers oversimplifies a difficult problem.Smaller farmers without access to institutional credit or to adequate work-ing capital do find it difficult to acquire better quality stock, either bypurchase or breeding, and the few who do have them find it more difficultto exploit their higher production potential. A risk of lowered draftvalue -- real or imagined -- in the male progeny also inhibits the smallerfarmer from participating in cross-breeding with exotic bulls.

The Importance of Flexibility

7.12 Realization of the particular difficulties of the small farmer hasled some observers to press for the use of the buffalo as the milk animalfor India, in the belief that this animal is more readily attainable by smallfarmers, and that it is more manageable and more productive on poor qualityfeed. The evidence available suggests that each of these propositions isquestionable. The pragmatic approach desirable is to encourage milk produc-tion and marketing via the AMUL model, be it milk from crossbred cattle orbuffalo, and to ensure that cooperative development proceeds with an orga-nizational structure which is compatible with the production requirementsof the small farmers, and which ensures that importance is placed amongproducer members on efficient management and training.

7.13 The two main points which emerge from an analysis of the successesand failures to stimulate livestock production in India are those that anya priori'analysis might hold to be self-evident. Firstly, there is no singleoperational strategy which suits all rural strata and all geographic condi-tions equally well; flexibility in technology, in support services and ininstitutional structure is essential in designing production objectives andprojects for specific groups. Secondly, any meaningful statement of a pro-duction objective for a specific purpose requires a realistic identificationof the potential, the technology to be used and the input requirements, withfull account being taken of the social, political and economic obstaclesthat constrain the farmers' response.

A Balanced Approach

7.14 In this review emphasis has been placed on dairy production anddraft capacity because of their overwhelming importance in India's livestock

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development strategy and scenario. This emphasis, however, is certainly notmeant to minimize the importance of other livestock production activities,nor is it meant to overlook the critical role other livestock play in pro-viding a livelihood to many small, landless and migratory producers.

7.15 Large increases in poultry production, particularly from using lowgrain density rations in deep litter enclosures, in fine wool production andin the meat available from sheep, goats and bovines are all worthy and attain-able objectives. The most difficult task in attaining these production goalsis the necessity for community effort amongst farmers, be it in operating ajust and equitable village dairy cooperative or in agreeing on a non-exploit-ive grazing pattern for communal lands and water points. The institutionalstructure of rural India, and the credit, market and extension problems thisstructure engenders for small farmers, exacerbate the difficulties even fur-ther. Progress will inevitably be slow. Nevertheless, there is reason tobe optimistic that the lessons learned with such difficulty over recentyears will lead to a more rapid acceleration of production benefits.