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Livestock Farming

Dairy Farming in India

Dairying is an important source of subsidiary income to small farmers and agricultural labourers. In addition to milk, the manure from animals provides a good source of organic matter for improving soil fertility and crop yields. The gobar gas from the dung is used as fuel for domestic purposes as also for running engines for drawing water from well. Dairy also provides employment throughout the year.

Scope for Dairy Farming:
India is endowed with the largest livestock population in the world. India accounts for about 57.3% of the world’s buffalo population and 14.7% of the cattle population.

The value of output of milk is Rs. 3,05,484 crore in 2011-12. The total milk production in the country is 127.9 million tonnes per annum at the end of the Eleventh Plan (2011-12) and the demand is expected to be 180 million tonnes by 2020. To achieve this demand annual growth rate in milk production has to be increased from the present 2.5 % to 5%.

Financial Support from Banks for Dairy Farming:
The items of finance would include capital asset items such as purchase of milch animals, construction of sheds, purchase of equipment etc. The feeding cost during the initial period of one/two months is capitalised and given as term loan.

Cost towards land development, fencing, digging of well, commissioning of diesel engine/pump set, electricity connections, essential servants' quarters, godown, transport vehicle, milk processing facilities etc. can be considered for loan.

Economics of Dairy Farming:
Cost for Starting Dairy Farming with 10 buffaloes,

Cost of animals500000
Transportation cost 10000
Construction of calf shed24000
Construction of animal shed60000
Cost of Chaff cutter and equipment60000
Total cost654000

Some important issues of the Dairy industry are,
- Breeding of animals
- Feed and fodder development
- Dairy cattle health
- Production and marketing of milk