Journal of Global Resources
Biannual International Peer-Reviewed Journal
ISSN: 2395-3160 (Print)/2455-2445 (Online)

January 2021
Volume 07 (01)
Crossref DOI 10.46587

DOI: 10.46587/JGR.2021.v07i01.002

02
PROSPECTS OF DAIRY FARMING AND ALLIED ENTREPRENEURSHIP:A BLESSING FOR POOR IN RURAL INDIA
Nizamuddin Khan1, Ashish Kumar Parashari 2 and Mohd. Sadiq Salman3
1

Professor Department of Geography, Aligarh Muslim University, Aligarh, India.
Email: nizamuddin_khan@rediffmail.com
2
Research Assistant, Department of Geography, Aligarh Muslim University, Aligarh, India
Email: amu.ashish@gmail.com
3
Guest Faculty, Department of Geography, Jamia Millia Islamia, New Delhi, India
Corresponding author Email: msadiqsalman@gmail.com
Abstract: India is the largest producer of milk globally employing 18 million people. Milk
Production and marketing is still traditional and 60 percent of milk is transacted throughunorganized sectors. The study aims to understand pattern of marketing of milk and its
derived products, estimate the employment generated and exploring and assessing thepotential of dairy development in the country. The study is based upon primary datacollected from sampled villages of an underprivileged district of the Uttar Pradesh, thelargest milk producer state of the country. A steep rise in dairy farming since last decade isfound due to increase demand and improved remunerations and marketing opportunities.
The allied activities are providing entrepreneurial opportunities to farmers, labourers andwomen on large scale. This gives enhanced household income promoting self-reliance andbetter economic conditions. This model of dairy farming can be applied in whole country toensure better livelihoods for poor in India.
Key words: Dairy Farming, Employment, Livelihood, Livestock, Sustainable Development
Introduction
Dairy farming is one of the important agricultural systems of world. Most of developed
countries of Europe, Australia, North America, South America and some from Asia
practiced dairy farming as commercial business on very extensive scale. Most of extensive
grassland especially in temperate regime rears cow for milk and beef separately. They aredesignated as milch and beef cattle. One third of geographical area and 1/4th of world’s
population; mainly, small and marginal farmers have been endorsed for livestock
husbandry and production of dairy and its derived products (Rangnekar D.V. 2006; Ramaet.al.2005; Taneja V.K. 2008 & Khan N. & Parashari A.K. 2019). There are 125.34 million(2019) heads of dairy animals, including cows and buffalo in India. A large number ofworkers are associated directly with some processing activities as production of dry milk
powder, paneer, cheese, butter, sweets, tea stalls, transportation and distribution.
Dairy farming has been practiced in India as an auxiliary activity to cropping systemin the form of subsistence nature at a large scale. Some big companies managed by either
private or cooperative societies, though in less number operate exclusive dairy farming
system. Of the total milk production in India, about 48 percent milk is either consumed at
the producer level or sold to non-producers in the rural area. The balance 52 percent of themilk is marketable surplus available for sale to consumers in urban areas. Out ofmarketable surplus it is estimated that about 40 percent of the milk sold is handled by the10organized sector (i.e. 20 percent each by Cooperative & Private Dairies) and the remaining
60 percent by the unorganized sector. 80 percent production, processing and distribution
are performed by individual farmers in much unorganized way which includes door to doordelivery, small market channel i.e. farmers- village traders and consumer (National Action
Plan for Dairy Development-Vision 2022, 2018). About 16.6 million farmers have beenbrought under the ambit of about 1, 85,903 village level Dairy Cooperatite Societies (DCS)
up to March 2018. (National Dairy Development Board, 2019) Despite the slump in world
market and better procurement prices by dairy cooperatives along with decrease inprocurement volume by major private players led to increase in milk collection by the dairy
cooperatives by about 11 percent. The dairy cooperatives have procured daily average ofmilk about 475.6 lakh kg per day during 2017-18. Traditional contract dairy farming, inwhich the big players like sweet makers, milk traders in urban areas and milk processing
units mortgage the farmers in different villages and provide them capital for purchasing
animals and the price of milk is fixed, usually lower than open market price, at the time of
final agreement of contact. India is the largest producer of milk since 1998 and production
reached from 75.40 million tonnes in 1998to 187 million tonnes in 2019. The country has
also improved per capita availability of milk from 210 grams / day in 1998-99 to 394
gram/day in 2018-19. It shared 26 percent to agriculture GDP of the country and employ
millions of marginal and small farmers in different ways. It is a largest crop in term of money
value which is more than total revenue earned from combined wheat and rice productionin the country. Milk and milk products contributed more than 20.60 percent of the combined
output of paddy, wheat and pulses in 2017(Parida, Y & Yadav D. 2020) Dairying has
become an important secondary source of income for millions of rural families and has
assumed the most important role in providing employment and income generating
opportunities particularly for marginal and women farmers (Ramphal O. 2016; Khan, N2018). Most of the milk is produced by animals reared by small, marginal farmers andlandless labours. Twenty-five percent of Indian farmers, mainly marginal with less than half
hectares of land are involved in dairy farming in the country recently. The farmers areattached with cooperative societies for sale of their saleable milk. 16.60 million Farmers
have been brought under registration of 185903 dairy cooperative society (DCS). As on
31.03.2018, the total number of women in dairy cooperatives across the country was 4.9
million including 32,092 women DCS which is 29.5 percent of total farmers (Animal
Husbandry Statistics 2019)
The dairy development in term of milk production witnessed regional variation in
response to geographical size, population, nature and stages of agricultural development
and degree of demand for livestock derived products i.e. milk and meat as well as
government policies and incentives to the farmers. The states like Uttar Pradesh (30.50
million tonnes), Rajasthan (23.63 million tonnes), Madhya Pradesh (15.91 million tonnes),
Andhra Pradesh (15.04 million tonnes), Gujarat (14.49 million) and Punjab (12,60 million
tonnes) are 5 top most milk producing states in India during 2018-19 financial year. The
urban surrounding or peri urban has rather higher concentration for milk production ascompared to interior village location, on account of a bumper demand for liquid milk anddairy derived products in fast growing urbanization and urban population (Khan N. & Iqubal
M.A. 2008; Khan N. et al. 2012). Localization of dairy processing units of large scale in thisareas are also another acting player of occurrence of hot spot of dairy farming andproduction in urban area. Such urban oriented concentration of dairy production witnesseda historical fact that the first dairy or cattle colony was established in Allahabad during preindependence period for milk supply to army (Agriculture Skill Council of India 2016). Dairy
processing plants were established in urban centres like Calcutta, Madras (Chennai),
Mumbai rather than in milk shed or milk producing rural areas even after independence
which discouraged rural dairy system development. This trend of development of urban
oriented dairy farming has been observed to deviate towards far villages due to increasing
urban land price, pollution issues (Khan N. and Salman M.S. 2014). Fodder crisis anddevelopment of fast urban rural transport linkage and fast and refrigerated transport means
11enabled the milk producers to sell their milk surplus in town and cities. Scaling up of this
sector of livestock farming from subsistence to commercial and industrial nature resulted
in socio economic and political dynamics in dairy farming structure in the country. Private
capital investment in dairy sector from national and multinational companies tends toincrease in the country but again nearby metropolitan cities like Delhi, Bengaluru, Mumbai,
Chandigarh and Calcutta. Being a potential sector for generation of employment especiallyin rural areas as well as to enhance the farmers’ income in addition to earned from cropping
system, government of India looked it one of important innovative tool for doubling thefarmers’ income and remove the poverty from rural areas (Singh R.S. & Shukla N. S 2017;
Khan, N. et.al 2014; Khan N. & Iqbal M.A. 2009).
The growth and development of dairy in India took place in a sequential efforts of thegovernment in both during pre and post-independence period. History of dairy development
in India can be divided into two distinct phases: pre- and post-Operation Flood. The
Defence Department under the British rule had established military dairy farms to ensure
the supply of milk and butter to the colonial army. The first of these farms was set up in
Allahabad in 1913, followed by Bangalore, Ooty and Karnal. These farms were wellmaintained and used improved milch animals. The onset of the Second World War gave
momentum to private dairies with some modernized processing facilities. In the metros of
the then Bombay, Calcutta, Madras and Delhi, and some large towns, processed milk, tablebutter and ice-cream were available, though on a limited scale (Kurein V. 2000; Mathur
B.N. 2000; Kumar S.S. et.al. 2012).
The dairy farming sector drawn the special attention of the planners since theindependence and it achieved success and amelioration and breakthrough during different
plan periods adopted by country. Operation flood I, II & III had been important dairy
development strategies, run with international collaboration aided by World Bank. The
Cooperative movement/ societies after establishment of National Dairy Development Board(NDDB) in 1965, under the effort of Dr. Berghese Kurien, the father of White Revolution,
played a pivotal role in development of white revolution through linking rural dairy farmers
with dairy processing units situated in urban areas. Therefore, in 1970 the government
established a public-sector company, the Indian Dairy Corporation (IDC). The IDC wasgiven responsibility for receiving the project's donated commodities, testing their quality,
their storage and transfer to user dairies as well as receiving the dairies' payments. Thus
the financial and promotional aspects were the responsibility of the IDC while the entire
technical support for OFP was provided by NDDB. A large number of innovative schemes
were introduced time to time by respective central and state governments for successive
improvement in this sector of economy. Government of India is making efforts forstrengthening infrastructure for production of quality milk, procurement, processing andmarketing of milk and milk products through different Dairy Development Schemes. Someof them are as National Programme for Dairy Development (NPDD); National Dairy Plan
(Phase-I); Dairy Entrepreneurship Development Scheme(DEDS); Support to Dairy
Cooperatives and Dairy Processing and Infrastructure Development Fund (DIDF), National
plan for Dairy Development, Vision 2022, are very much optimistic for dairy development
and improvement of socioeconomic and health condition of dairy farmers. Ministry ofAgriculture and Farmers’ Welfare, Govt. of India, targeted to enhance the milk production
to 300 million tonnes, marketable surplus to 180 million tonnes and milk bovine number to
116 million head during 2023-24 (Vision 2022-National Action Plan for Dairy Development
2018). The new agricultural trade policy enacted in June 2020, which tends to remove
movement restriction and policy hindrance of old PMMC Act and enable farmers to sell
their product anywhere in the country openly and private traders will be playing a crucialrole in transaction of their marketable surplus at per-harvest price agreement throughcontract system. It will be also an encouraging effort to develop dairy farming in remoterural areas, generally, neglected in this sector due to inaccessibility to markets. Moreover,the country would emerge a top most country in dairy production and trade in future. Indian12

dairy market is expected to reach a value of Rs.18, 599 billion by 2023 exhibiting a CGAR
of 12percent during 2018-23 (Bhatnagar J. 2018). The latest proposal of Govt. of India to
encourage and promote private capital investment in establishing dairy and meat
processing units ae well as feed grain production units in rural areas with a view to promote
livestock husbandry and dairy farming in remote rural areas, would be an encouraging effort
to multiply the incomes of the farmers in the country (Tekam D. et al. 2019).
Dairy farming has the potential of generation and development of sub sector or off
dairy economic activities to add income to rural population and elevate their financial status.
Meat industry, both at traditional and modernized, has been also developed in the country
which slaughters male buffalo as well as retired / dry milk buffalo. It is one of the importantsources of foreign exchange for national development through export to more than 50
countries of Asia and Africa continents. Establishment of new processing units for dairy
products; packaging, preservation, cold chain logistics & storage, fodder production farms,
supply of feed in the form of concentrates and grain, credit and insurance and distribution
and marketing are promising allied opportunities for investment and employment
generation in the areas of dairy farming concentration (Bhanwala K.H. 2020)
Regional variation in dairy farming development is another feature in the country. Uttar
Pradesh is the leading state not only in population and area but milk production andlivestock number. She produced 30.50 million tonnes milk in 2019-20 due to having several
advantages over the other states of the country due to having largest number female bovine
including cows and buffalo (18percent), and largest number of vegetarian population who
require dairy products for meeting their nutrition demand. As on 2017-18, U.P dairy industry
is equipped with 6835 milk cooperative societies, 520 Bulk milk cooler units with capacityof 912000 litres (Uttar Pradesh Investor’s Summit 2018). The dairy development in the stateis also the function of degree of technological and innovative application, increasing
intensity of cropping system and the degree of integration of livestock rearing with cropping
system. Inter district and spatial variation in dairy farming performance and intensity as wellas level of commercialization have been not uncommon features in the state. Western Uttar
Pradesh, most of the districts, are highly developed in this sector of agriculture economy.
Approximately 2/3rd of farmers and even land less people are following dairy farming
system, usually at small scale, in the form of livestock cropping integrated farming system
which resulted in re utilization of cropping and livestock wastes for their effective andsustainable development reducing the production cost and enhancement of output revenue
for the produce generated from this system (Khan N. 2018; Khan N. & Parashari A.K. 2019).
Contrary to it, eastern Uttar Pradesh (PURVANCHAL) especially Trans-Ghaghra region
could not keep pace with national plan for dairy development during various five year plans,though first dairy colony was developed in Allahabad even during British India.
Before the adoption of green revolution and mechanization of agriculture during
1980’s, the region was practicing traditional cropping livestock farming system in whichcattle (Oxen) were used for ploughing the land, transportation and thrashing the crops.
Subsistence dairy system was also attached with most of the farmers. But themodernization, commercialization and mechanization of agriculture, though late ascompared to Western Uttar Pradesh, resulted in two negative effects; leaving livestock
rearing and release of agricultural labours, both household and hired. While in western U.P.
dairy farming grew up after mechanization of agriculture and household labours especiallyfrom small and marginal operational holding absorbed in and crop residues in the form of
dry fodder became valuable unlike eastern U.P. where fodder (locally known as bhusa)
blown away in air through combined harvesters. The increasing demand of milk internallyas well as externally could be met through development dairy farming in the villages of thearea. Before the designing the strategy for dairying system in backward region, there isneed to assess and evaluate the existing inherent potential of the area for development
such economically promising agro based enterprise. Size of land holding, availability of13

labours, social structure of the farmers, existence of demand for liquid milk and derived
products, vertical and horizontal market integration with processing units and direct milk
consumers and distribution of cooperative societies as well as political support as
subsidies, credit facilities and economic and social protection are valuable factors could beunderstood well. The literature available on the study of dairy development in India since
the independence have been very much associated with macro or meso regions dealing
with generalization of different policies, technological diffusion, national marketing andperformance of big enterprises centres in urban environment. The exploration andassessment of potential of dairy development in remote and backward areas remained
almost neglected.
Objectives of Study
The present study was undertaken to understand the socioeconomic profile of dairy
farmers, pattern of milk marketing and its derived products, assessing the existing patternof dairy allied activities and employment generated through dairy farming and allied sectors.
Further, assessments of entrepreneurial potential of dairy development and its allied
activities in the study area was also undertaken.
Study Area
The study area selected is a micro level region, Balrampur district from eastern Uttar
Pradesh (figure I). It is located in trans Ghaghra region along Nepal border in the north andGonda district in South. East and west side is demarcated by Siddhartha Nagar andShrawasti district. Its boundary consists of Shivalik Range of Himalayas and thegeographical boundary in the south is formed by River Kuwano. The extreme of Latitude
and longitude are 27°30' north and 82°11' east. The geographical area of the district is3,349sq.km. The head quarter of district administration is at Balrampur town. From theadministrative point of view, the district is divided into three tehsils namely Balrampur,
Tulsipur and Utraula, and 9 development blocks. The district has 667 Gram Subhas and1012 Revenue Villages along with 9 forest villages. There are 4 urban units in the district;two of them have the status of Municipal Board and two having the status of Town
Panchayat.
The average rainfall of the district is 1150 mm. The climate of this district is helpful
for the health. The winter season from November to February is followed by the hot seasonfrom March to June and Monsoon season is from July to October. The wind blows mostly
from east to west and west to east. The mostly rainfall nearly 90 percent becomes between
middle of June to middle of October. The study area is primarily agricultural based region,
cultivating chiefly Paddy, wheat, sugarcane, oil seeds, pulses and vegetables. The total
gross cropped area and net sown area are360858 hectares and 216000 hectares
respectively. Livestock including cattle, buffalo, goat and sheep are reared along withcropping system. More than 90 percent farmers are either marginal or small.
Data Collection and Research Methodology
The present research work is based on both primary and secondary sources of data.
Secondary data were collected from published data banks of Ministry of Livestock, Dairying
and Fisheries, Govt. Of India, U.P. Department of agriculture and Animal Husbandry,
Department of Dairy Development, District Statistical Report, Balrampur, and from some
reports, research papers on the study of Dairy Farming and Its Development. Primarysource of data is the main component of the research. Being study area at micro level, data
regarding dairy development and its allied activities were rarely available, Generation ofdata is the crucial challenge and constraints for researchers to achieve the above
objectives. For this purpose, nine villages, one from each block, have chosen on the basisof population size. The villages selected for field survey were having population between
3000 to 6000 persons (Fig.I). One hundred households were selected from each village on
the basis of randomly stratified sampling. Thus, total 900 households were selected from14

different landholding categories. The head of the household was interviewed on different
issues of dairy farming and data was collected with the help of a well framed questionnaire.
Figure 01: Location of Balrampur District in Uttar Pradesh, India (2019)

Dairy Farming in Balrampur District:
The livestock husbandry is not well developed in the study area. The total number oflivestock, according to 2019 census is 226303 heads buffalo, 197746 cattle and 270790
goats. These important species reared by farmers as mainly household economic activity
along with cropping system, described as mixed farming. It shows a regional variation fromblock to block depending upon geographical and socioeconomic profile of the area. The
southern blocks of Rehra bazar and Gedas buzurg exhibited lower number as comparedto Tulsipur, Gesadi and Pachpadwa blocks characterised with largest livestock number(table 01).

#
1
2
3
4
5
6
7
8
9

Table 01: Livestock Number in Balrampur District 2019
BlocksCattleBuffalo
Goat
Harnaya Satgharva
28138
29100
28727
Balrampur
29190
30468
29802
Tulsipur
16983
23638
30385
Gainsadi
24510
28521
35179
Pachpadwa
24746
28720
35392
Shri Dutt Ganj
18293
21405
27075
Uttaraula
20642
22132
27869
Gendas Buzurg
11092
16015
16008
Rehra Bazaar
21787
24624
28658
197746226303270790Total(28.46)(32.56)( 33.98)

Total
85965
89460
71006
88210
88858
66773
70643
43115
75069
694839(100.00)

Source: Calculated from the 20th Livestock Census 2019 & 2012.

Species and gender wise analysis of bovines indicates the domination of buffalo
over cows as dairy animals during 2019. They are accounted for 59. 40 percent and 43.48
percent out of total bovine livestock in the area respectively (table II). The comparative15

analysis of these species indicates that cow’s number declined from 108845 heads to76522 heads during 2012 to 2019 while she buffalo increased from 74334 to 99444 heads
during same period. Mechanization of farming activities resulted in decline of male bovine
as their utility reached to at minimum level. Ban on slaughtering of cattle and absence ofmeat factories in the area, which usually demand male buffalo as raw materials, areimportant causative factors of decline in their number. Most of them sold to outside tradersand not kept by farmers for longer period to avoid extra burden of rearing cost on
unproductive animals. Dairy Farming or milch livestock husbandry is the most important
form of sub group of Indian agriculture. Dairying at subsistence and household level has
been salient feature in the study area since antiquity. Commercial but still at household
level and in traditional form, dairy farming started recently. The distribution of bovine milk
livestock exhibited regional variation (Table 2). The terai region, a geographical area along
Siwalik series, with ample pasture land and fallow land during rabi crop (OctoberDecember) season led to rearing of cows especially in larger number as compared toupland areas of southern part of Rehra, Gedas Buzurg, and utraula blocks of Utraula Tehsil.
Cows are well reared where pasture lands are available. Their feeding through standing
stall is rather less preferred. Cow rearing is practiced by all ethnic groups for milk purpose.
Table 02: Temporal Change in Milk Producing Livestock (Bovines) in Balrampur
District (2012- 2019)
Cows
BlocksHarnaya
Satgharva
Balrampur
TulsipurGainsadi
Pachpadwa
Shri Dutt Ganj
Uttaraula
GendasBuzurgRehra Bazaar
District

Buffalo (She)Total Bovines

2012

2019

Change
(%)

2012

2019

Change
(%)

2012

2019

Change
(%)

15660

10241

-34.69

9666

12254

29.57

25276

22495

-11.0

16687
9718
13292
14528
9712
10931

11239
7029
9078
9045
7712
8036

-32.65-27.67-31.70-37.74-20.59-26.48

10424
5901
9427
9295
7229
7477

14257
8219
12264
12779
9966
9884

36.77
39.28
30.09
34.25
37.86
32.19

27111
15619
22719
23823
16941
18408

25496
15248
21342
21824
17678
17920

-0.06
-0.02
-0.06
-0.08
0.04
-0.03

6229

4723

-24.18

6094

8236

35.15

12323

12959

0.05

12088
108845(59.42)9419
76522(43.48)-22.088821
74334(40.58)

11615
99444
(59.42)

31.67

20909

21034

0.005

33.78

183179175966-0.04-29.70Source: Calculated from the livestock Census 2019

Buffalo share in dairy animal was less in the past but gradually increasing on
account of commercialization and scaling up of dairy industry. Urban fringe areas
witnessing high concentration of buffalo. Unlike cow, buffalo husbandry is rather moreconvenient in hot and rainy weather condition. Hundred percent feeding could be done
through standing stalls. Productivity of milk per head is also high and price per kg is also
higher than cow milk. Besides, unproductive, dry milch and male buffalo could be also soldin the market for meat purpose which adds a lucrative income to farmers unlike cattle saleis prohibited for meat purpose. Buffalo number is also higher in terai region as dairy farmingat commercial scale is newly developing. Operational size of holding is bigger and thefarmers have potential for dairy development on account of free availability of fodder, feed
grains from their crops. The southern region showed slow development due to scarcity oflabours in rural areas. Farmers of all categories follow mechanized agriculture and wasted
dry fodder produced from residues of crops after harvesting after using combined
harvesters on hire. Rural –urban migration is dominant and livestock husbandry is almost
discouraged even by poor or land less farmers. Moreover, the dairy farming started due toincreasing unemployment and government incentive for generation of livelihoods in rural
areas with a view to enhance farmers ‘income. Moreover, the dairy buffalo is, at present,
higher in number in all blocks of the study area.
16

Table 02 highlights the trends of change in dairy bovine number during last livestock
Census period (2012 to 2019). Role of cows, though encouraged and political slogan, hasbeen found to be declining. All blocks with exception of Shri Dutt Ganj and Gedas Buzurg,
showed negative trends. It declined from 108845 heads to 103648 at a rate of 4.27 percent
during same period. The major reason for this trend is extra burden of rearing expenditureon dry milch cows, male babies (Bachhara) and problem of disposable of unproductive andundesired cattle on account of prohibition of their sale in open markets by state and thecentral Government. Muslims are leaving the rearing of cows in the area due to increasing
fear of tortures and undeclared punishment by police and miscreants in the name cow
slaughter and smuggling. Buffalo have been replacing them and their number strides withpositive trends exhibiting change from 74334 to 143354 heads during last six years withtune of 92.85 percent.
The livestock pressure with reference to grass cropped area and population is also
one of important players of reflection of socio economic profile and state of livestock
husbandry and dairy farming of an area. The study area witnessed 11.27 people served by
one dairy animal and 1.22 hectare of land for one dairy animal during 2019. Spatial variation
exists in both cases among the blocks (Table 03). The northern blocks in terai belt isreflecting rather more future prospect for dairy development as population and area perhead is high as compared to southern region.
Table 03: Population- livestock and cropping Area – livestock Index (Ratio) in
Balrampur District: 2019#

Block Name

Population

Harnaya268465
Satgharva
2
Balrampur
3113893Tulsipur
265435
4
Gainsadi
247865
5
Pachpadwa
218553
6
Shri Dutt Ganj
164663
7
Uttaraula
1486208
Gendas Buzurg
139672
9Rehra Bazaar
217742District
1982404
Source: District Statistical Report, 2019.
1

Total Bovine
MilchLivestock

P/L
Index*

CroppedArea(Hect.)

C/L
Index*

22495

11.93

32638

1.45

25496
15248
21342
21824
17678
17920
12959
21034
175966

12.21
17.40
11.61
10.01
9.31
8.29
10.77
10.35
11.27

34981
31117
35084
26451
14615
12492
12882
15977
216237

1.37
2.04
1.64
1,21
0.82
0.67
0.99
0.75
1.22

* P/L Index = population per head bovine livestock, C/L Index = cropped area per head bovine livestock

Milk Production in Balrampur District
Uttar Pradesh is the largest milk producer with 30.50 million tonnes in India. The stateachieved this status due to highest number of milch animals as well as high intensity anddevelopment of dairy farming in western Uttar Pradesh where 2/3rd of farmers are engaged
in this activity following livestock cropping integrated farming system (Khan N. 2018). The
study area Balrampur district lies in the Eastern part of the state and necessarily dairying
activities could not well developed. Adoption of Green Revolution, though late during
eighties of 20th century, the mechanization and modernization of cropping system, led torelease of agricultural labours, both household and hired, from agriculture. It resulted inmass rural urban migration of labours especially from land less and marginal farmer’sgroups to distant states like Maharashtra, Gujarat and Delhi. Livestock husbandry badly
affected on account of induction of mechanical agricultural operation especially by tractors
which were once performed by male cattle and buffalo. So the rearing of milch animals
associated with draft animals has been neglected in the area in general and some milch
animals like cows and buffalo reared by some special castes like Yadav, Ghosi, and17Muslims etc. for traditional marketing purpose to cater needs in the same villages of theirresidence.
Recently the study area has been moving ahead towards dairy farming
development like other part of the country and state. The demand for milk, locally as well
as regional and national level, is continuously increasing in response to increasing trend of
urbanization, improvement in disposable income and purchasing power on account of rising
agriculture income from cash crops and flow of money from outside to migrant families andincreasing health consciousness through high nutrition intake. Study revealed that milk
production recorded a steady and continuous positive trend during last decade It improved
from 107.13 thousand tonnes to 245.79 thousand tonnes during 2009-10 to 2019-20 at rateof 12 percent annually (Table 04). Regional variation could be also seen which is attributed
to variation in milch livestock number and size of holdings. Teri region, the northern part ofthe district has high rate of milk production as compared to south region. The increasing
number of buffalo replacing cows is another factor for increasing trend of milk production,
usually former have higher yield per head than latter. Government dairy development
schemes like Integrated Dairy Development Project (IDDP) Vision 2022-National Action for
Dairy Development, entrepreneur Development scheme, Technical Input Facility to Milk
Producers to Enhance Milk Production and strengthening reorganization and expansion ofMilk Union/ Societies have been introduced time to time have now started to show better
results in the region.
Table 04: Decadal Trend of Milk Production in Balrampur District (2009-2019)
Unit: 1000 tonnes

Years
2009-10
2010-11
2011-12
2012-132013-142014-152915-16
2016-172017-18
2018-192019-20

Production
107.13111.69139.33145.04150.10155.76183.94200.56220.58235.89245.79Change
4.56
27.43
5.71
5.06
5.66
28.24
16.62
20.02
15.30
9.90

Growth (% )
4.25
24.55
4.09
3.48
3.77
18.13
9,03
9.98
6.93
4.19

Source: Department of Animal Husbandry and Dairying, Lucknow, Uttar Pradesh.

Socio-economic Profile of Dairy Farmers
The field survey of the sampled villages has revealed that dairy farming is one of the mostimportant activities in the villages of India. Thus, people have livestock for their personal orcommercial purposes. The table V shows that 35.67 percent of total 900 households. Thus,
321 households were found to be dairy farmers which varied from 29 in Chandpur to 45 in
Trilokpur. The table VI gives the details of the landholding and caste structure of the dairy
farmers. Dairy farming in study area is a caste oriented activity. The specific Yadav caste(OBC) is known for rearing cows and buffalo for commercial milk production. Higher castes
like Brahmins and Muslims also keep dairy livestock but for domestic consumption. The
field survey and personal observation indicate social transformation and other castes also
involve in dairy farming recently due to increasing commercialization of agriculture. Dairy
farmers are socially structured into three categories as General / high castes (privileged
group), Other Backward Castes (underprivileged group) and Scheduled castes/ Tribes(deprived caste). Study reveals that75.08 percent of dairy farmers in the sampled villages
are from few castes i.e. Varma, Yadav, Nai, Dhunia, Kumhars from Other Backward Castes(OBC’s). Scheduled castes rarely keep dairy animals and their participation is insignificant(0.62 percent) in the study area. High castes like Thakur, Brahmins, Pathan, Sheikh,18

Sayyed, Kayastha are also involved in dairy farming in the area. They participate andcontribute up to 24.30 percent of total dairy farmers.
Table 05: Proportion (%) of Dairy Farmers in Sampled Households (2019)#

Not engaged
in Dairy
Farming
61
59
55
64
67
71
73
67
62
579

SampledVillages

Block Name

1
2
3
4
5
6
7
8
9

Harnaya Satgharva
Balrampur
TulsipurGesari
Pachperwa
Shri Dutt Ganj
Uttaraula
Gainndas Buzurg
Rehra Bazaar
Total district
Source: Field Survey, 2019

SirsiaDeorawan
Tirlokpur
TharauliParsa Bizuwa
Chandapur
Golahipur
Pipra Bankat
Datauli

Dairy
Farmers
39
41
45
36
33
29
27
33
38
321

Share Dairy
Farmers to Total
Farmers (%)
39
41
45
36
33
29
27
33
38
35.67

Table 06: Landholding and Caste Structure of Dairy Farmers (2019)Landholding Status (N=321)
Village

SirsiaDeorawan
Tirlokpur
TharauliParsa
BizuwaChandapur
Golahipur
Pipra
BankatDatauli
Total

Caste Structure(N=321)

Landless

Marginal
Farmers(> 1
Hect.)

Small
Farmer
(1-4Hect.)

Big
Farmer< 4
Hect.)High Caste(Privileged
group)

Other
BackwardClass(underprivile-ged groups)

Low Caste(deprived
groups)

3
2
6
2

14
21
21
15

14
9
13
12

8
9
5
7

8
12
9
7

31
28
36
29

0
1
0
0

0

13

11

9

5

27

1

2
2

7
2

14
19

6
4

9
11

20
16

0
0

3

15

8

7

7

26

0

1

22

9

6

10

28

0

21
(6.54)

130(40.50)109(33.96)61(19.00)78(24.30)241(75.08)02(0.62)

Source: Field Survey, 2019

Economic stratification, based on distribution of size of holdings, played pivotal
role in development of dairy farmer’s structure in the area. Landless, Marginal and small
farmers with less than 4 hectares of land, are accounted for 81 percent of total dairy
farmers. Big farmers (more than 4 hectares of land) shared only to 19 percent of dairy
farmers, though generally they hold more than 50 percent of land of their village. Size ofstock of dairy animals is very small, ranging 1-3 animals among poor farmers as comparedto rich and high caste dairy farmers with 10-20 heads. The income per unit animal frommilk sale is higher for marginal and small farmers due to low cost of production on accountof using household labour and self-farm produced fodder and feed grains in the rearing
operation. While the latter have to use hired labours for most of the dairy farming operation.
Non farmers or landless people also follow the dairy farming, based on hired labours andpurchased fodder. It is a form of exclusive dairy farming. Size of stock or number of animals
kept by them is rather high more than five, sometimes reaches to hundred. They trade off
the extra cost of production with increasing size of stock. Some private companies are also
investing now in this sector.

19

Distribution and Marketing of Milk
The share of milk utilized at domestic level was found to be 30.33 percent of total
production. Thus, the remaining marketable surplus milk (69.67 percent) is transacted
through various channels. Milk production is dominated by marginal and small farmers in
the area thus 92.73 percent of marketable surplus is distributed through unorganizedsector i.e. producer sellers, village trader, local assembly centres, milk processing units assweet makers, paneer and curd processors etc. (table VII) .Organized sectors likecooperative societies, private or public dairy processing enterprises catch up only 7.27
percent of marketable surplus against to developed districts especially Western Uttar
Pradesh, Punjab, Haryana and Gujarat where dairy cooperative societies have been verymuch active in assembling, marketing and manufacturing of dairy products. Dairy farmers
irrespective of their assets, status, sale volume and socio-economic status generally preferto sell their surplus through cooperatives and government agencies even they offer lower
price compared to local traders (Kumar A. et. al. 2018; Chaturvedi B.K. 2013; Singh
R.B.et.al 2018).
Table 07: Marketing of Milk (%) through Various Agencies in Balrampur 2019
Sampled Villages

Direct Sale

Sirisa53.33
Dewaran
51.61
Tirlokpur
48.28
Tharoli
47.83
Parsa Bizuewa
45.00
Chandapur
44.44
Golahipur
52.63
Pipra Bankat
47.83
Datauli
44.44
Total
48.64
Source: Field Survey, 2019-20

Milk Man
16.67
16.13
20.69
21.74
20.00
11.11
21.05
13.04
18.52
17.73

Local
processing
Units
30.00
25.81
20.69
26.09
30.00
33.33
21.05
21.74
29.63
26.36

Dairy
Cooperatives
0.00
6.45
10.34
4.35
5.00
11.11
5.26
17.39
7.41
7.27

Table 07 reveals that dairy farmers with small surplus less than 10 kg prefer to sell
their surplus milk directly to rural consumers, receiving rather high price as compared tosell to organized sector. 48.64 percent is transacted in this way of direct marketing. Second
preference of choice is controlled by tea stalls, halwais or sweet makers or small dairy
processors. They are following traditional contract farming through offer of capital forpurchasing animals and getting milk at lower price. This channel absorbs 26.60 percent ofmarketed surplus. Village traders’ role is not satisfactory, dealing only with transaction of
17 .73 percent of total milk transaction. Corporation or government and cooperative
societies are little preferred by dairy farmers in study area due to unawareness about thebenefit of these institutions on account of weak extension service regarding national andstate dairy development schemes. Castes, income, stock size, volume of saleable milk,
education, gender as well government attractive policies play very important role in varying
preference of farmers to sell their milk marketed surplus (Kumar A. et.al. 2018).
The milk derived products i.e. ice cream, paneer, curd, butter, ghee, khowa andsweets are almost locally processed and distributed through small channels within theregion. No processing units of national or state level are established either in private or
public sector. Producer- consumer, producer-village trader- processing units-consumers,
producer- cooperative society- consumer and producer are important milk and its derived
product marketing channels prevailed in Balampur district.

20

Assessment of Dairy Allied Activities and Employment
Dairy farming is one of the important sub system of agriculture economy in the country. It
includes various operations i.e. rearing, feeding, washing, cleaning, milking, assembling,
distribution, transportation and processing and marketing. Farmers use both household aswell as hired labours for performing these operations. Mostly feeding, cleaning, collectionof fodder, as well as grazing have been controlled by female members from poor and low
socio economic group of farmers. These activities help in economic benefits and long term
sustainability of the people employed resulting into their socioeconomic development (KhanN. et al. 2013) Different operations are continuously done for eight hours but in few hoursof day. Number of employment is calculated on the basis of eight hours for one person.
The estimation of employment from dairy activities and allied activities is made separately
and finally combined to assess total employment generation from dairy farming and allied
activities in Balrampur district. Table 08 indicates the number of employment from dairy
allied activities i.e. marketing, fodder selling, sweet, paneer, cheese and guard making,dung cake making and dairy product processing as well as meat processing and selling.
The study reveals that in the sampled villages 297 people are getting employment in allied
activities of dairy farming. These employed people are generally those of dairy farmer
households who are doing supplementary and complimentary activities to support dairy
farming in the study area.
Table 08: Pattern of Dairy Derived Allied Activities and Employment in Sampled
Villages (2019)
Sampled village

Marketing

Fodderseller

Sweet
Makers/Curd,paneer etc.
02
03
03
04
0
02
01
02
02

Sirisa06
03
Dewaran08
06
Tirlokpur
09
07
Tharoli
1008
Parsa Bizuwa
07
05
Chandapur
05
05
Golahipur
1007
Pipra Bankat
06
04
Datauli
06
05
Total Sampled
67
50
19
Villages
Sampled Villages
7.44
5.56
2.11
(Average )Source: Estimated on the basis of field survey, 2019-20.

Assembler(Milk)

Dung
cake

Meat
seller

Total

0
0
02
02
03
0
01
01
02

10
15
17
20
12
15
20
10
10

0
0
02
0
03
0
02
01
03

21
32
40
44
30
27
41
34
28

11

129

11

297

1.22

14.33

1.22

33.00

The above discussion reveals that 35.67 of rural households are engaged in dairy
farming. Thus, in the sampled villages it was observed dairy farming is an employment
avenue to different allied activities for the rural population. The assessment of employment
in this sector on the same scale can be calculated for all the villages in a particular block,thereby total employment in dairy farming and allied activities can be easily assessed in
the district. This has been estimated in table 09. Which reveals that the district has
employed 31803 persons in dairy allied economic activities during 2019. Regional variation
is observed from one block to another on account of differences in population size,
socioeconomic profile, ethnic composition and size of land holdings of farmers. It ranges
between 1904 persons in Gedas Buzurg and 6028 persons in Gaisadi block. The northern
blocks of Balrampur, Gainsadi, Pachperwa, Tulsipur and Balrampur exhibited higher
number of employed persons in dairy allied activities as shown in same table. The southern
region, especially Utraula, Gedas Buzurg and Rehra Bazar block shows rather lesser
number of employment in aforesaid activities.

21

Moreover, dairy farming exclusively, appears to employ approximately 1, 43,756
persons in the district, on an average of two persons from each dairy farmer’s household.
Highest number of dairy farming generated employed persons is 33714 in Pachpedwa
block while the Gedas Buzurg witnessed least number of 3614 persons (Table 09).
Northern blocks further represent higher rate of employment through dairy farming as
compared to southern one as shown in same table. Total employment generated by dairy
farming and its allied activities is about 8 percent of total population (2011). Study revealed
that this sector of agricultural economy plays an important role in dealing with rural
unemployment resulted in after mechanization of cropping system and reducing of size ofholding successively year after in the country in general and particular in the study area.
Table 09: Estimated Employment through Dairy Farming and Its Allied Activities
BlocksHarnayaSatdharwa
Balrampur
TulsipurGainsadi
Pachpedwa
Shri Dutt Ganj
Utraula

Total
Farmers
Households

Dairy
Farmers
Households

Persons
Employed in
Dairy
Farming

Persons
Employed in
Dairy Allied
Activities

Total
Persons
Employed

33837

11277

22554

2709

25268

36684
12226
30556
4288
24449
7721
15442
4240
30476
11611
27927
6028
29968
11238
33714
3990
17598
3852
4000
2158
20465
6139
12278
3808
Gedas Buzurg
9810
3614
3614
1904
Rehra Bazar
22932
7643
15286
2688
Total District
22645871878
14375631803
Source: Calculated on basis of estimates obtained from field survey (table 08), 2019

34844
19682
33955
33704
6158
16086
5508
17974
193179Dairy Farming and Potential Entrepreneurial prospects in future
Dairy farming is expected to have tremendous opportunities for development of farmers,labourers and women and in total rural transformation (Khan N. 2018; Khan N. et.al 2014;
The Hindu 2019) in the country. Quantification of opportunities and potentials is a herculeantask. Data on different issues are not available. Field survey through the interview of
respondents is the only solution of the present problems. The perception or thinking of 900
sampled households from 9 villages of 9 development blocks of district Balrampur has beenused for assessment of different opportunities of dairy farming development in future.
Scaling up and industrialization of dairy farming has been taking place after liberalizationof agricultural trade. Small stock size of milch livestock per dairy farmer’s household is notprofitable due to high cost of production. Contrary to this big size of stock appears rather
more profitable as the production cost is spread over larger number of livestock rearing andoutput return becomes rather more.
The perception of respondents shown in table X indicates that dairy farming has ahuge potential for scaling up to 10 livestock and even more. Further, the allied activities will
also see an expansion in near future because of a mass perception that sector has apotential for entrepreneurial growth. The dynamics of dairy farming, in the discussed area,
inevitably will generate and ameliorate different related opportunities / entrepreneurships
like milk assembly centres, animal feed, concentrate and fodder selling units, dairy
processing units’ establishment, refrigerator transport facilitators, Fodder crop producers
and dung cake/ wood and Verna compost bio fertilizers processors and bio gas units’
enhancement (Hussain K.2019; Financial Express 2020; The Hindu 2019). Milk assemblingunits will score larger number to collect the milk surplus, with a tune of 25 to 50 percent
change till the end of next decade as answered by 85 percent of respondents. Animal feed
and fodder sellers would be also risen up by 50 percent as expected by 85 percent
respondents. The waste of crop residues, which is blown out and burnt after harvest, would
22

be procured and sold to livestock rearers in and out of villages. The income of farmers is
expected to enhance after selling their by-products of crops. Similarly, the demand forgreen fodder crops is expected to increase from especially land less and marginal dairy
farmers, poor in land for these crops. Private and public capital investment is required toestablish dairy processing units’ in backward areas of dairy farming like Balrampur of Uttar
Pradesh. 80 percent of respondents are optimistic for establishment of such unit for
manufacturing of ice cream, paneer, cheese, frozen packed milk and dry milk powder. The
value addition process of dung, produced in huge quantum at rate at least 5 kg. Per animal/day, is another income enhancement opportunity for dairy farmers. Dung cake and dungwoods are now produced and sold in the area at rate of 5 INR per kg and consumed fordomestic fuels. Bio fertilizer from Verna compost process is one of high remunerative dairy
by-products also reflects high expectation to the farmers to improve their income fromanimal husbandry especially dairy farming. Most of the respondents positively viewed foropportunity of development bio gas production in rural area and expect to increase by morethan 50 percent rate in future. This opportunity indirectly will reduce extra expenditure paid
for electricity and fire fuels or LPG for cooking purpose.
Table 10: Perception of Future of Dairy Development in Balrampur District (2019)
Future Growth Possibility
Not
Yes
Not
Known

Entrepreneurial Potential
Up to25-50%>50%
25%

Scaling Up of Dairy
Farm

73.12

77.12

Up to 10 Livestock

79.12

10 to 20 Livestock
Increase in Assemblingunits
Animal feed selling
outlets
Dairy processing units
Fodder crop
production
Refrigerated Transport
network
Bio gas Plant Units
Dung Cake/ wood
Processing/ Vernacularbio fertilizer formation

85.12

6.34

8.54

75.02

12.44

65.77

Opportunities

Dairy
Farming

AlliedActivities
andEntrepreneurship

18.44

12.65

10.23

8.52

4.36

75.28

13.29

11.43

12.54

60.12

25.12

14.76

24.29

9.94

30.15

59.15

10.7

80.19

14.85

4.96

15.55

79.28

5.17

75.78

9.98

14.24

24.95

71

4.05

79.12

11.02

9.86

77.99

11.25

10.76

77.29

4.11

18.6

19.58

69.28

11.14

79.11

5.12

15.77

9.85

14.52

75.63

17.34

8.44
3.54

87.12

Source: Field Survey, 2019-20

Conclusion
The dairy farmers on an average in the area consume 30.33 percent of total milk production
at their household level. The marketable surplus of milk is marketed usually in traditionalways, largely through unorganized sector. Thus, 92.73 percent of marketable surplus isdistributed through unorganized sector i.e. producer sellers, village trader, local assembly
centres, milk processing units as sweet makers, paneer and curd processors etc.
Organised sector including cooperative societies, private processing units shares only 7.27
percent of marketable surplus. Direct marketing in which producers sell their surplus
directly to consumers is the most remunerative and accounts for 48.64 percent of total
marketed milk. Traditional contract dairy farming is also prevailed in which marketablesurplus is sold to contractors like sweet makers, local traders etc. who provide capital forpurchasing animals in advance and pay less price as compared to open price in the market.
There are numerous allied activities related to dairy farming in area under study. They
include marketing, fodder selling, sweet, paneer, cheese and guard making, dung cakemaking and dairy product processing as well as meat processing and selling. The district
has employed 31803 persons in dairy allied economic activities during 2019. Moreover,dairy farming exclusively, appears to employ approximately 1, 43,756 persons in the23

district, on an average of two persons from each dairy farmer’s household. Thus theestimated employment generated, combined dairy farming and its allied activities is 193179
persons in 2019, sharing 8 percent of district total population. It is one of the most importantsource of development of employment and income and best tool for poverty alleviation anddoubling of farmer’s income as well as to achieve self-reliance in rural areas as advocatedpresent Government of India during post COVID 19. Dairy farming is expected to havetremendous opportunities for development of farmers, labourers and women and in totalrural transformation. Scaling up of farm size , opening of animal fodder and feed grain
selling out lets , private capital investment in dairy product processing industries,
development of refrigerated transport service to dairy farmers, Packaging, establishmentof bio gas plants, preparation dung cake and bio fertilizer are new opportunities for
employment generation, income enhancement of farmers , improvement in economic
viability Indian farming and farmers and socio economic rural transformation as well as
achieving rural self-reliance in the country in future.
Acknowledgement: Authors are very much obliged and thankful to IMPRESS, scheme,
ICSSR, New Delhi. for providing fund under research scheme entitled Assessment ofPotential of Dairy Farming and Its Allied Activities for Socio economic Development ofFarmers in Devi Patan Region, Uttar Pradesh.
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