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Dairy Sector a “Shock Absorber” for Rural Livelihoods: National Bank for Agriculture and Rural Development Chief

At a memorial lecture held at the ICAR–National Dairy Research Institute (NDRI), the Chairman of NABARD highlighted the critical role of India’s dairy sector in protecting rural livelihoods, especially during economic or climate-related shocks.

The Dr. KK Iya Memorial Oration was organised at the Dr. D. Sundaresan Auditorium as part of the academic celebrations leading up to NDRI’s 22nd convocation.

Dairy Sector a “Shock Absorber” for Rural Livelihoods: National Bank for Agriculture and Rural Development Chief

Tribute to a Pioneer of Indian Dairying

The event paid tribute to Dr. K. K. Iya, a former director of NDRI (1957–1965), who played a key role in India’s dairy development. He also served as:

  • Dairy Development Adviser to the Government of India
  • Deputy Director General at Indian Council of Agricultural Research
  • Expert with the Food and Agriculture Organization

The ceremony was presided over by Dr. Dheer Singh.

India: The World’s Largest Milk Producer

Delivering the lecture, Dr. Shaji Krishnan V stated that India has become the largest milk producer in the world.

Key figures he shared:

  • 248 million tonnes of milk production annually
  • About 25% of global milk output
  • 69% growth in milk production between 2014–2025
  • Average annual growth rate of 5.7%

Milk availability has also increased dramatically:

  • 485 grams per person per day today
  • Compared with 124 grams per day in 1950–51

Role of the White Revolution

Dr. Krishnan credited the transformation of India’s dairy sector to Operation Flood (1970–1996), led by the National Dairy Development Board under Dr. Verghese Kurien, known as the Father of India’s White Revolution.

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The cooperative dairy network created during this period now includes:

  • 22 milk federations
  • 240 district milk unions
  • Around 1.5 lakh village cooperative societies
  • Presence in 2.3 lakh villages

These cooperatives collectively involve about 18 million dairy farmer members.

Women play a major role in this system:

  • 35% of cooperative members are women
  • About 48,000 village dairy societies are led by women

Dairy’s Contribution to India’s Economy

Dr. Krishnan emphasized that dairy is central to rural livelihoods in India.

Key contributions include:

  • Around 5% contribution to national GDP
  • Employment for more than 8 crore people
  • Sector growth of about 6% annually

Because dairy provides daily cash flow to farmers, it acts as a financial safety net when crop income becomes uncertain.

Climate Change and the Future of Dairy

He also warned that agriculture and livestock systems face increasing risks due to:

  • Rising temperatures
  • Erratic monsoons
  • Droughts
  • Floods

Strengthening dairy systems, improving livestock management, and building climate-resilient supply chains will be essential to protect smallholder farmers from these risks.

insight:
Unlike seasonal crops, dairy provides regular daily income, which is why economists often describe it as a “shock absorber” for rural households during economic or climate crises.

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Disclaimer
I do my best to share reliable and well-researched insights but occasional errors or omissions may slip through. Please view all content as informational.

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