The dairy sector will soon get a comprehensive programme to boost milk production, while implementation of the Pradhan Mantri Matsya Sampada Yojana (PMMSY) will be stepped up to benefit the fisheries sector, Finance Minister Nirmala Sitharaman announced on Thursday.
Despite being the world’s largest milk producer, India lags in the productivity of its milch animals, Sitharaman said. “The programme will be built on the success of existing schemes such Rashtriya Gokul Mission, National Livestock Mission, and Infrastructure Development Funds for dairy processing and animal husbandry,” she said. The minister said efforts are already on to curb the spread of foot and mouth disease in milch animals.
India’s milk production rose to a record 230.58 million tonne (MT) in 2022-23 on year, allaying fears of stagnation because of lumpy skin diseases in cattle last year. Despite India being the largest milk producer since 1998, the commodity has been the second-biggest driver of retail inflation after cereals such as rice and wheat, in the last couple of years.
Sitharaman announced in the interim Budget that PMMSY will be stepped up to enhance aquaculture productivity from the existing 3 to 5 tonne per hectare and double exports of fisheries products to Rs 1 trillion, which would generate 5.5 million job opportunities in the near future. She also proposed setting up five integrated aquaparks.
PMMSY was launched in FY21 for a period of five years, with an investment of Rs 20,050 crore across states. Investments worth Rs 4,005 crore have been approved under the scheme since its launch.
The scheme focuses on quality fish production, species diversification, promotion of export-oriented species, branding, standards and certification. It also covers creation of post-harvest infrastructure with emphasis on cold chain and development of modern fishing harbours and fish landing centres.
According to an official note, with record fish production of 17.54 MT in 2022-23, India is the third-largest fish-producing country, accounting for 8% of global output. The fisheries sector contributes about 1.09% to the country’s gross value added (GVA) and over 6.7% to the agricultural GVA. The sector employs around 30 million people.
According to Anand Ramanathan, partner, Deloitte India Thursday’s announcements will result in employment opportunities for the rural economy. Boosting dairy productivity and supporting sea food exports are key areas needing focus, he said.
Meanwhile, the Cabinet on Thursday approved extension of the Animal Husbandry Infrastructure Development Fund (AHIDF) with an outlay of Rs 29,610 crore for three years till FY26. The scheme incentivises investment in sectors including dairy processing and product diversification, meat processing, animal feed and veterinary vaccine and drug production facilities.
The scheme provides 3% interest subvention for eight years, including two years’ moratorium for loans up to 90% from scheduled banks, National Cooperative Development Corporation, Nabard and NDDB.
According to an official, processing capacity of 14.1 million litres of milk per day, 7.92 MT of feed and 0.9 MT of meat has been created so far under the AHIDF. “Continuation of the infrastructure development fund and associated sops would facilitate processing capacity enhancement and strengthening of milk procurement infrastructure,” Sheetal Sharad, vice- president, Icra, said.
