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Agriculture  

 

Emerging Crisis in Punjab Agriculture

 

III. Diversification through Dairying

As green fodder is the main input for commercial dairy, its expansion, through the increase in area under green fodder, results in diversification of crop pattern. Though per capita production of milk in Punjab is well above the level required for a healthy diet, the availability in most other states and for the country as a whole is quite low. There is a gap of about 39 per cent between per capita milk production and the minimum level (250 grams) of milk recommended by the Indian Council of Medical Research. Similarly, despite higher dependence of Indian population on vegetarian diet, per capita milk availability between India and the rest of the world has a gap of 53 per cent. These figures underline the need and scope for substantial increase in milk production in the country.

In addition to the need to fill existing gap, future demand for milk would also increase due to population growth and rise in per capita income, as the income elasticity of demand for milk is positive and close to one (1.15 for rural and 0.99 for urban population) [Radhakrishna and Ravi 1992].

Punjab state enjoys the advantages like sufficient availability of green fodder and an efficient system of rural transport and road network to promote commercial dairy. The scope for large scale expansion of dairying is also evident from the fact that to bridge 1 per cent gap between availability and minimum milk requirement in the country about 4 per cent increase in milk output in Punjab would be needed, and India has about 40 per cent gap between the availability and minimum requirement of milk. Therefore, both the demand as well as supply side factors seem quite favourable for expanding dairy industry in Punjab.

Expansion in dairy activity, besides resulting in diversification of crop pattern due to shift in area in favour of fodder crops, would be beneficial in improving soil health through increased availability of organic manure. An exercise was done, using the sample information, to study what would be the impact of expansion of dairying activity on the crop pattern (Table 4). Green fodder requirement of an average dairy unit2 consisting of 3.21 in-milk, 3.51 dry and 1.01 heifers was met from an area of 1.48 acres in kharif and 0.97 acres in rabi season. Assuming no change in productivity, breed mix and age composition of dairy animals, raising milk production by say ‘X’ per cent would entail same ‘X’ per cent increase in the number of dairy animals (dry and in-milk animals and heifers). This way, 10 per cent increase in milk production would result in expansion of area under fodder from present level of 21.23 per cent to 23 per cent in kharif and from 13.94 per cent to 15.16 per cent in rabi season. Since area under the other crops is already too small, the shift in favour of fodder crops would come from wheat and paddy crops. Our estimates reveal that meeting 1 per cent of the milk deficit in the country from Punjab would reduce share of paddy and wheat in net cultivated area by 1.09 and 0.60 per cent, respectively.

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