Milk: India's top commodity

Which is the number one commodity India produces? It's not wheat or rice. Milk is India's top commodity with an output touching 100 million tonnes valued at Rs 2,27,340 crore (Rs 2,273.4 billion).

Even though India is the largest producer of milk in the world, the diary industry is not considered as 'glamorous' and viewed as a 'subsidiary activity' by the policy makers, says a book, 'Dairy India' authored by Sharad Gupta.

"Besides being a source of liquidity and insurance against crop failure, milk is the only crop where the farmer realises 60-70 per cent of consumers' price -- against 20 per cent or so in fruits and vegetables," the book says.

The book, released by Charusheela Sohoni, Secretary, Animal Husbandry Department, says that it is striking that there is no commodity Futures in milk powder or ghee even as their production is estimated at Rs 4,680 crore (Rs 46.8 billion) and Rs 770 crore (Rs 7.7 billion), besides cheese valued at Rs 975 crore (Rs 9.75 billion).

Of the total milk production, 77 per cent is being sold as liquid milk with balance 23

per cent converted into products.

However, organised industry handles only 18 per cent of milk, with 36 per cent being handled by private vendors or unorganised players and 46 per cent is retained in rural areas. Within 18 per cent organised sector share, private and cooperative/government dairies handle equal around 8.5 million tonnes each.

Replete with up-to-date statistics, the book projects that by 2011, dairy industry will grow double to Rs 5,20,780 crore (Rs 5207.8 billion) with liquid milk share of Rs 1,59,600 crore (Rs 1,596 billion), ghee of Rs 42,680 crore (Rs 426.8 billion), khoa/paneer/chhana of Rs 9,100 crore (Rs 91 billion), powder of Rs 2,250 crore and cheese of Rs 25,050 crore (Rs 250.5 billion).

The present edition of 'Dairy India' is the sixth, starting with the first one launched and conceived by late P R Gupta in 1983.