India Fears Losing Milk Self-Sufficiency

NEW DELHI - Sep 17/08 - SNS -- The Indian government is worried demand for milk and related products will outstrip the country's production within the next few years.

In briefing notes on the sector, the agriculture department said "demand for value added milk products, such as cheese, dahi (Indian yoghurt) and probiotic drinks is increasing at a double digit rate.

"At present, India seems to be self-sufficient in meeting is requirement for milk and milk products. However, given that demand is growing faster than supply, there could be serious issues with respect to self-sufficiency in the near future."

The government said any increase in milk production is dependent on the farmgate price received by the producer. Farmgate prices have increased by more than 50% in the last three years. Focused efforts would be required on two front: increasing farm size (currently the average number of animals per producer is three to four), and increasing productivity of milk producing animals.

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