India's dairy industry is often perceived as a simple trade, but behind it lies a complex structure involving many crucial aspects. India's dairy industry is the backbone of the rural economy. Millions of farmers, most of whom are small and marginal, depend on this industry. Dairy provides them a regular source of income with stability.

However, maintaining this stability in today's times is not easy. Farmers need a fair price for their milk, so that they not only sustain their families but also gain a respectable place in society. Moreover, they want their business to be as respected and prosperous as other modern industries so that the next generation is also motivated to join the dairy sector.

On the other hand, consumer expectations are also extremely important. They want healthy, fresh, and tasty milk and dairy products at an affordable price. Consumers expect that quality dairy products are available near their homes. It is essential to meet the health and nutritional needs of consumers, and for this, the dairy industry must provide products of the highest quality

For policymakers, the biggest challenge is to ensure food security for 1.42 billion people, create employment opportunities, and control inflation. Unfortunately, in India, a farmer's income is often seen as a contributor to inflation. When a company's profits increase, it is considered a sign of progress, but when a farmer's income rises, it is labelled as inflation. This is a very ironic situation, and tackling it requires a strong policy approach.

Despite the conflicting expectations of farmers, consumers, and policymakers, India's dairy industry is continually progressing. Dairy companies, whether cooperatives, private enterprises, or multinational corporations, face several challenges. They not only need to keep their business profitable but also invest in expanding their operations.

India's food industry is one of the largest food markets in the world, with an annual growth rate of 10-12%. Its total value is approximately $700 billion (Rs. 60 lakh crore), and in the coming years, it is expected to grow even faster. As far as the dairy industry is concerned, it's current worth is about Rs. 12 lakh crore, and in the next 10 years, it is expected to reach Rs. 25 lakh crore. This will be a significant achievement not only for farmers and industrialists but also for the country's economy. However, as times change, the industry is facing some new challenges that need urgent attention.

India's dairy industry is renowned for its efficient supply chain. The process of collecting milk from small farmers, processing it, and delivering it to consumers' doorsteps early in the morning is a unique model. This process is so effective that approximately 70-80% of the price paid by the consumer goes directly to the farmer. This is one of the key reasons why India ranks number one in milk production, globally.

It was an ideal scenario where, on one hand, farmers were receiving stable and fair prices for their milk, while on the other, consumers were assured access to highquality milk and dairy products at affordable prices. This balanced dynamic was a key driver behind the consistent increase in both the production and consumption of milk and milk products, contributing significantly to India's ongoing growth in milk production.

However, in recent years, there has been a decline in this efficient value chain. The returns that farmers used to receive have been decreasing. For example, in the past six months, the price of cow's milk paid to farmers has ranged from Rs. 26 to Rs. 33 per litre, while the selling price of toned milk has been Rs. 54 to Rs. 56 per litre. This means that now approximately 50-70% of the sales value is reaching the farmers, which is a serious warning sign.

Production costs are steadily rising due to escalating feed prices and input costs. Over the past three years, milk prices have increased by about 22%, which has affected consumer sentiment. If our efficiency continues to decline, it will impact not only production but also consumption. Without maintaining this efficiency, farmers will be discouraged from increasing production, and the consumer market's stability will be at risk. India's unique supply chain has been a key factor in the industry's success; without it, the sector will struggle to compete globally, and farmers may hesitate to invest further in this business.

In future, some of the important steps may be required to keep this industry stable:

• Maintaining an Efficient Supply Chain: It is essential to maintain the efficiency of the value chain, reducing the distance between the farmer and the consumer.
• Controlling Production Costs: Controlling the rising costs of production is necessary so that farmers can invest in their business and increase production.
• Long-Term Investment: There is a need for long-term investment in the dairy industry, focusing on infrastructure and branding. Investment under schemes like Operation Flood should be encouraged.
• Policy Support: The government needs to take policy measures to support farmers and the dairy industry, promoting investment and growth in this sector.

India's dairy industry is at a pivotal moment. By preserving the efficiency of our current model and proactively addressing emerging challenges, this sector can not only maintain its global leadership but also grow even stronger. Achieving this will require the collective effort of all stakeholders, working together to navigate the complexities and seize the opportunities that lie ahead.

The dairy industry in India is both intricate and vital, providing a livelihood for millions of farmers while meeting the nation's health and nutritional needs. As it navigates various expectations and challenges, the industry's future remains bright with potential. However, realizing this potential demands a well-coordinated, long-term strategy where every stakeholder plays a key role.

To truly empower the dairy sector, collaboration is essential. Only through unified efforts can we achieve the vision of a prosperous, healthy, and wellnourished India.

The National Conference on "Dairying - A Tool for Livelihood, Health, and Nutrition," held during August 17-18, 2024 in Nagpur, was a significant event organized by the Indian Dairy Association (West Zone) and Maharashtra Animal and Fishery Science University (MAFSU). It brought together industry leaders, policymakers, and experts to discuss the critical role of dairy in India's economy and well-being.

Shri Nitin Gadkari, Hon'ble Union Minister of Road Transport & Highways, inaugurated the event, emphasizing the need for affordable technologies and efficient supply chains to reduce milk production costs. He also presented the Best Dairy Plant and Best Woman Dairy Farmer Awards of IDA West Zone, recognizing excellence in the sector.

Key discussions at the conference highlighted successful initiatives in milk production, emphasizing the importance of dairy in health, nutrition, and spirituality. The sessions also explored Green Dairy practices and the significant role the industry plays in women empowerment. The conference fostered knowledge sharing and outlined a strategic direction for the future of the dairy industry, with a focus on sustainability, technology adoption, and empowering rural communities, ensuring continued growth and prosperity in the sector.