Analysing Socio-Economic Impact of the NDP-I the National Dairy Plan of India
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AN A LYSING S OCIO-ECONOMIC ANALYSING SOCIO-ECONOMIC IMPACT OF THE NDP-I THE NATIONAL DAIRY PLAN OF INDIA I MP A CT OF TH E N D P - I Report February 20200202 2020 Analysing Socio-Economic Impact of the NDP-I: The National Dairy Plan of India b 1 Analysing Socio-Economic Impact of the NDP-I: The National Dairy Plan of India ANALYSING SOCIO-ECONOMIC IMPACT OF THE NDP-I THE NATIONAL DAIRY PLAN OF INDIA Impact Evaluation of the Maharashtra CAIM Programme The Convergence of Agricultural Interventions in Maharashtra FStudyebruary sponsored 2020 by Project Monitoring Unit of CAIM, Amravati and The International Fund for Agricultural Development December 2019 NATIONAL COUNCIL OF APPLIED ECONOMIC RESEARCH NCAER India Centre, 11 Indraprastha Estate, New Delhi 110 002, India www.ncaer.org NCAER QUALITY RELEVANCE IMPACT b 1 I Analysing Socio-Economic Impact of the NDP-I: The National Dairy Plan of India NCAER is grateful to the National Dairy Development Board, Anand, for financial support for this research. ©National Council of Applied Economic Research, 2020 All rights reserved. The material in this publication is copyrighted. NCAER encourages the dissemination of its work and will normally grant permission to reproduce portions of the work promptly. For permission to reprint any part of this work, please send a request with complete information to the publisher below. Published by Professor Anil K. Sharma Secretary and Operations Director The National Council of Applied Economic Research NCAER India Centre 11, Indraprastha Estate, New Delhi–110 002 Tel: +91-11-2345 2657, 6120 2698 Email: [email protected] www.ncaer.org Publications Coordinator Jagbir Singh Punia The findings, interpretations, and conclusions expressed are those of the authors and do not necessarily reflect the views of the Governing Body or Management of NCAER. 2 3 Analysing Socio-Economic Impact of the NDP-I: The National Dairy Plan of India FOREWORD As shown by the 2011 Census, India has around advisory services for their 2.87 million milch animals 640,000 villages in which around 69 percent of in 33,320 villages as of March 2019. These measures India’s population lives. Some 70 million of our rural significantly promoted dairy activities undertaken by households are engaged in milk production, a large poor cattle farmers by enhancing both their awareness proportion of them landless, marginal, and small levels and participation in the programme. farmers. Indeed, a key feature of India’s dairy sector is the predominance of small producers. In 2017, the The NCAER study found that of the recent average herd size on a dairy farm was 191 in the US, prominent changes introduced by NDDB, the use of 355 in Oceania, 148 in the UK, 160 in Denmark, and ‘breeding values’ of young, high genetic-merit bulls just 2 in India. has facilitated the use of more reliable criteria at the semen stations set up for boosting the fertility of milch To augment the milk productivity and incomes cattle. This is a change from the prevalent criterion of these poor farmers, the Government of India of the quantum of mother’s milk for the selection implemented the National Dairy Programme (NDP) of bulls. The implementation of the Information in 2012-13 as a Central Sector Scheme. This was Network for Animal Productivity and Health under done with World Bank support and through the NDP-I has intensified interest among the States in aegis of the National Dairy Development Board more rigorous identification of their dairy bovines, (NDDB). The scheme is a multi-state initiative to an essential step for achieving genetic improvement. improve animal productivity, strengthen and expand the infrastructure for milk procurement in villages, The NCAER study reports a noticeable and and enhance processing and marketing capacities, sustainable enhancement of the living conditions of all backed by appropriate policy and regulatory households and villages post implementation of NDP-I, measures. NDDB’s active involvement and support, with a large number of households benefiting from as a part of the NDP, is widely believed to have enabled the programme. One of the most significant outcomes smallholders to make a significant contribution to the of NDP-I was a rise in gender empowerment. There spectacular growth of India’s dairy sector. India today were tangible, long-term benefits for women, shown is the world’s largest producer of milk. in their greater mobility, recognition, participation in social enterprises, and asset ownership. The NCAER NCAER was requested by NDDB in 2019 to team also assessed the UN’s Sustainable Development conduct a socio-economic survey (SES) to assess the Goals and their convergence with NDP-I, which was beneficiary impact of NDP, and an economic and most prominent in relation to women’s empowerment. financial analysis (EFA) to ascertain the economic and financial rate of returns during the NDP investment The findings of this NCAER study have been horizon. The NCAER team has carried out an extensive presented to NDDB and World Bank staff and to other primary level enumeration of the beneficiaries in both stakeholders. I join the NCAER team in expressing programme and the non-programme (or control) our appreciation for the insights, guidance, and villages to compare indicators of project performance contributions from NDDB officers while doing this and to assess the success of the NDP in the target areas. study. The SES, conducted during the September–October I would like to thank the NCAER team led by Dr 2019, highlighted the impact of dairy activities on the Saurabh Bandyopadhyay and Dr Laxmi Joshi and livelihoods and incomes of smallholders and on the including Mr Devender Pratap, Mr Prabir Kumar level of women’s participation. The NCAER survey Chaudhuri, Dr Tarujyoti Buragohain, Ms Gargi Pal, found that the Village-based Milk Procurement Mr Mohit Pandey, and Mr K. S. Urs, for carrying out System (VBMPS), one of the major components of this important study. I am grateful to Dr Shashanka the National Dairy Plan Phase-I (NDP-I), designed to Bhide, NCAER’s Research Director, for ensuring promote the transparency of operations and enhance quality control and providing overall supervision. the quality of milk, was largely successful in achieving its targets. The VBMPS helped build and strengthen I hope this NCAER report detailing the findings of capacity in 52,461 villages, covered 22,005 new villages, our assessment of NDP-I will be a useful guide for the and enrolled 1.68 million additional milk producers. dairy industry and for planning future government programmes to help accelerate rural development and One of the key findings of the NCAER study is ensure the welfare of poor farmers across the country. that balanced feeding plays a major role in unlocking the genetic potential of dairy animals. The provision of balanced ration advisory services, delivered to farmers’ doorsteps through local resource persons, continued to expand its reach under NDP-I: some 2.14 New Delhi Dr Shekhar Shah million milk producers had received balanced ration February 17, 2020 Director General, NCAER 2 3 Analysing Socio-Economic Impact of the NDP-I: The National Dairy Plan of India 4 5 Analysing Socio-Economic Impact of the NDP-I: The National Dairy Plan of India ACKNOWLEDGEMENTS This study is the outcome of the primary survey conducted across 14 major states in India. The insights developed through discussions held with NDDB officials at various stages in particularly for economic and financial analysis based on in-house (both published and unpublished) data provided by different divisions at NDDB is greatly acknowledged. NCAER places on record its deep sense of appreciation for the cooperation extended by the following NDDB officials: Mr G Chokkalingam, Mr Subir Mitra, Mr Jignesh G Shah, Mr G G Shah, and Mr Darsh K Worah of the Sectoral Analysis and Studies Division; Dr K R Trivedi, Mr R O Gupta, Mr G Kishore, Dr Sujit Saha, Mr N G Nayee, and Mr Santosh K Sharma of the Animal Breeding Division; Mr V Sridhar, Dr Rajesh Sharma, Dr Mayank Tandon, and Dr Bhupendra T Phondba of the Animal Nutrition Division; Mr Rajesh Gupta, Dr Jayakrishna, and Mr Denzil J Dias of the Cooperative Services Division; Mr V K Ladhani, Mr Arvind Kumar, and Mr Rajesh Singh of the Coordination and Monitoring Cell. NCAER is also thankful to all the EIA officials and the Networking Agencies, who supported the field team during the course of the primary survey. At the end, NCAER study team gratefully acknowledges guidance and support received from Dr Shekhar Shah, Director General of NCAER, Dr Anil Kumar Sharma, Secretary and Operations Director of NCAER, Professor Rajesh Chadha (former SRC, NCAER) and Professor Pratap Singh Birthal ICAR National Professor, National Institute of Agricultural Economics and Policy Research, Delhi. The Study Team also thanks Dr Palash Baruah for his support at the initial stage of this Report. STUDY TEAM PROJECT LEADERS Dr Saurabh Bandyopadhyay and Dr Laxmi Joshi DOMAIN EXPERT AND SENIOR ADVISOR Dr Shashanka Bhide CHIEF STATISTICIAN AND SENIOR ADVISOR Dr Gurucharan Manna ECONOMIC AND FINANCIAL ANALYSIS Mr Devender Pratap and Mr Prabir Kumar Chaudhuri EDITOR Ms Anupma Mehta TEAM MEMBERS Dr Tarujyoti Buragohain, Mr K.S Urs, Ms Gargi Pal Mr Mohit Pandey, Mr S.K. Mondal, and Mr L. Sreekanth SECRETARIAL ASSISTANCE Ms Shikha 4 5 Analysing Socio-Economic Impact of the NDP-I: The National Dairy Plan of India 6 7 Analysing Socio-Economic Impact of the NDP-I: The National Dairy Plan of India CONTENT Foreword 3 Acknowledgements 5 Study Team 5 List of Abbreviations 17 Executive Summary 19 Summary of Major Findings of the NCAER Study 22 Impact Assessment of the NDP-I Villages 22 Impact on Production, Availability and Consumption of Milk 23 Impact on Women’s Empowerment 24 Impact on Income and Remunerative Engagement 24 Supplementary Impact 24 Economic and Financial Analysis 25 NDP-I and the Sustainable Development Goals (SDGs) 25 Conclusion 26 CHAPTER 1 : CONTEXT, BACKGROUND AND METHODOLOGY 27 1.1.