Production, processing and marketing infrastructure

If India has to emerge as an exporting country, it is imperative t h a t   w e   s h o u l d   develop proper production, processing and marketing infrastructure, which is capable of meeting international quality requirements.   A comprehensive s t r a t e g y   f or producing quality and safe dairy products should be formulated with suitable legal backup.

Women play an important role in dairy farming

Women involvement in dairy farm

Women play an important role in dairy farming sector. They gave fodder to livestock, milking the animal, take off different dairy products from milk, take care of livestock at home, do weaving, cleaning shelter, converting in livestock management and related deceases. So women must be paid their share in livestock income. Hence there is an urgent need to commercialize their activity and give training to the women for rearing of livestock women in rural livestock can never be ignored. More than 8 working hours in the day are spent by women covering all the dairy farming practices. Dairy farming as an entrepreneurial venture owing to its high adaptability in wide range of agro-climate condition, thriving better on coarse fodder than cattle, producing higher fat SNF-milk, leaner and lower cholesterol and carrying high resistance against decease has big achievement. Cattle rearing cover more than 50% of the working hour of women in comparison to 10% of the working time of their counterpart the man.

India needs a correct fiscal plan

The Central government's budgetary fiscal deficit has surged nearly twice to 2.70-lakh crore during the first five months of the current financial year (April-August 2011-12 from Rs.1.50-lakh crore in the corresponding period last year. In the earlier times, government borrowings were treated as part of receipts. In the budget for 1984-85, total receipts were estimated at Rs.40,501 crore, including market loans of Rs.4,100 crore, and total expenditure at Rs.42,536 crore with an uncovered deficit of Rs.2,035 crore (Rs.1,762 crore after taking into account the effect of new taxation proposals). But numerous problems still remain in arriving at the correct figure of fiscal deficit and drawing up a credible fiscal plan. This has assumed special importance now when we are grappling with inflation, slower economic growth and volatility in the world economy. Excessive government borrowings put the Reserve Bank of India in a difficult position with no option but to raise interest rates frequently to control money supply and inflation without slowing growth. If any fiscal stimulus is envisaged the details of tax concessions and specific expenditure schemes in the stimulus package have to be highlighted along with expected outcomes. The actual outcomes of the last fiscal stimulus package done, including the loan waiver of Rs,70,000 crore, should be indicated.

RBI another hike in interest rate hurt demand and pull down growth-corporate India

Members of Corporate India have told the Reserve Bankd of India (RBI) that another increase in interest rate would hurt demand and pull down growth. They also urged the monetary authority to intervene in the currency market as a depreciation rupee could stoke inflation till now RBI has raised rates 12 times since march 2010. Even as interest high rates and commodity prices squeezed profit margins of companies, imports became expensive, with the rupee declining 10% against the dollar since August. While many felt that RBI should have sold dollar heavily to arrest the fall, the central bank preferred a wait and watch policy with the US currency gaining amid safe haven buying by institutions across markets. " Interest rate hikes are working in reversal at this point of time and adding to the inflationary pressure. Credit availability for businesses as well as consumers drying up; this may push the economy into recession.

India's forex reserves dropped

Foreign Reserve Exchange

India's foreign exchange (forex) reserves dropped by $1.22 billion at $311.48 billion for the week ended Sep 30, registering a sharp decline for the second straight week largely due to revaluation of non-dollar assets, official data showed. The country's foreign exchange reserves kitty has shrunk by $9.30 billion in the last four weeks after wselling to an all-time high of $320.78 billion for the week ended Sep 2. Foreign currency assets, the biggest component of the forex reserves kitty fell by $1.23 billion to $275.69 billion during the week under review, according to the weekly statistical supplement of the Reserve Bank of India (RBI), the country's central bank.

Sensex down by 333 points

The BSE benchmark sensex was down by 333 points in early trade on Monday on all-round selling pressure from operators and investors as asian shares slumped amid rising fears of a Greek sovereign default and worries over China's financial health. The BSE benchmark sensex resumed lower at 16.255.97 points and dropped further to 16,088.98 before quoting at 16,121.21 1015 hours, a net loss of 332.55 points, or 2.02%, from last weekend's close. The stock market is likely to move in a narrow range this festive week, ahead of second quarter earnings' report card from India Inc. Participation is likely to remain los, and the market is closed on thusday due to Dussehra. Government's sudden borrowing programme has not gone down well with the market participants. To meet its expendititure in the second half of the fiscal, the Centre had decided to borrow an additional Rs.52,800 crore from the market, over and above the Rs.4.17 lakh crore estimated earlier. The Bombay Stock Exchange benchmark sensex continued to trade lower by over 270 points at the pre-close session today on sustained selling by funds and retail investors due to weak global cues. Stock markets worldwide were hit by news that Greece would not be able to contain deficit despite 30,000 job cuts.

Rupees fell by 59 paisa to Rs.49.55 per US dollar

In line with weakness in the equity market, the Indian rupee fell by 59 paise to Rs.49.55 per US dollar in early trade today amid persistent dollar demand from banks and importers in view of dollar firmness in overseas markets. The rupee had ended 2 paise lower at Rs.49.45/46 against US dollar in the previous session due to strong dollar demand from importers amid weak stock markets.

Greece crisis

Oil rose to near $78 a barrel on Wednesday in Asia amid hopes that Europe will contain the debt crisis that has engulfed greece and threatens to destabilize other countries that use the Euro. but sentiment recovered on Tuesday following reports that Europe was talking steps to bolster its banking sector, which is thought to be heavily exposed to Greek debt and could face crushing losses if the country defaults. Wall Street ended higher after a day of wild gains and losses. The Dow gained 1.4 per cent, while the Standard and Poor's 500 rose 2.2 per cent and the Nasdaq composite rose 3 percent. Investor concerns about Greece were heightened when the debt-strapped country said over the weekend it will miss its lower budget deficit targets even after severe cost-cutting. Despite the shortcoming, Europe pledged to loan Greece money to help pay its upcoming bills, but that failed to reassure stock and commodity markets. European markets tumbled on Monday after Greece said it wouldn't be able to reduce its budget deficits as much as it had agreed to as part of a deal to receive more emergency loans.

Asian Stock Market extended a sell - off

Asian stock markets extended a sell-off on Tuesday, following a dismal session on Wall Street that was sparked by the revelation that debt-strapped Greece would not be able to reach a target for reducing its budget deficit. Asian markets tumbled sharply in early trading on Monday, hurt by data suggesting debt-strapped Greece attempts at austerity were not yileding results and a weakening economic picture in Europe. Japan's Nikkei 225 fell 2.3 per cent to 8,503.88, with a government survey showing an improvement in business confidence among Japanese manufacturers doing little to nudge markets back to life.

Inflation and interest rate keeps market fluctuate

Inflation

Apart from concerns over a slowdown of the US economy and the euro zone debt crisis, high domestic inflation and fears of an interest rate hike will keep the stock market volatile this week, say experts. Headline inflation stood at 9.44 per cent in June, while weekly food inflation shot up to 9.9 per cent at the end of July, sparking fears of a further round of interest rate hikes to tame prices.

Problems in dairy farming

Dairying is a centuries-old tradition for millions of rural households; domesticated animals have been an integral part of the farming system from time immemorial. It provides supplementary income to some 70 million farmers in over 500,000 remote villages the farmers earn an average 27.3 percent of their income from dairying, with as high as 53 percent for landless and as low as 19 percent for large farmers. Annual milk production in India have more than tripled in the last three decades, rising from 21 million tones in 1968 to 80 million metric tones in 2001. Despite this impressive growth in milk production in the last three decades, productivity of dairy animals remains very low. Currently more than 80 percent of the milk produced in the country is marketed by unorganized sector is likely to dissuade small dairy farmers from expanding production, which is absolutely necessary to keep up with the strong demand growth.

NBFC stocks rally as RBI unveils new banking norms

RBI on Tuesday disallowed credit enhancements in transactions where banks buy loans from NBFCs (Non-Banking Financial Company). The regulator has proposed that banks follow the pass-through certificate (PTC) route instead. Currently, most priority sector portfolio sales by NBFCs to banks are done through the credit enhancement route. "For NBFCs, if the buyouts happen through PTCs rather than assignments, capital requirements will rise Shares of non-banking finance companies (NBFCs) such as Bajaj Financer, Reliance Capital, M&M Financial Services and Srei Infrastructure Finance Ltd posted gains for the second day after the Reserve Bank of India (RBI) released draft guidelines for licensing of new banks in the private sector. The RBI has proposed new regulations for non-banking finance firms (NBFCs), mostly centered on minimizing the regulatory arbitrage opportunities available to NBFCs as compared to banks. One of the major changes proposed by the RBI is to bring the capital adequacy requirements and asset classification and provisioning norms for NBFCs in line with the banks.

Suggestions to improve the growth of dairy farming in india

1. Cooperative banks and other national banks should come forward to extend liberal credit facilities to the farmers particularly small and marginal farmers for the development of dairy enterprise.
2. Establishing a veterinary service center to improve the efficiency of the artificial insemination scheme, veterinary services must be provided to the farmer door on all bases at a reasonable cost.
3. The changing cropping pattern should aim to produce sufficient green and dry fodder to livestock population in the village and encourage the farmer to take up fodder cultivation on a commercial basis.   

RBI reports show the imparting a downward bias

The Annual Report for 2010-11, a statutory publication of the Reserve Bank of India's central board, covers two broad areas — assessment of macro economy in 2010-11 as well as prospects for 2011-12 and working and operations of the RBI and its financial accounts. The economy returned to a high growth path in 2010-11. However, there were significant challenges: investment slowed, fiscal consolidation was achieved through one-off and cyclical factors and inflation remained sticky on the back of new pressures. In response, the RBI has raised the policy rates by 475 basis points (on a cumulative basis) since March, 2010. The central bank's medium-term target for inflation has been 3 per cent. After growing slightly above its recent trend in 2010-11, the economy can be expected to decelerate this year. But quite significantly, the growth rate will still be around 8 per cent. However, there is a possibility of global problems getting magnified and imparting a ‘downward bias' to India's growth rate. Indian equities may have shrugged off the latest increase in policy rates, but the outlook for the markets remains cautious amid concerns over stubborn inflation and the Reserve Bank of India's continued hawkishness

Some important facts about Dairy Farming

The study reveals that married males are deeply involved in dairy farming. Majority of dairy farmers completed the primary level of education and many are illiterate. Majority of Hindu peoples are involved in dairy farming and they are belongs to backward community. Many dairy farmers in India living in thatched houses with poor quality of life and low standard of living. The occupational status of the dairy farmers are non-agricultural labour and majority of farmers work landless or marginal farmers. The study reveals that majority of dairy farmers were doing milk extraction with the help of labours only. Many dairy farmers were selling their milk to middle man only and remaining sold to co-operative or directly. The dairy farmers were consumes less than 1 litre  milk per day. The middle man exploit the dairy farmers by giving only Rs.17 per litre and this milk is sold on Rs20 per litre by middle man. This is the major draw back in Indian dairy farmers.

Milk Production and Marketing

India hold the largest ruminant livestock population, live animals milk and milk products sales were the major sources of income for dairy farmers. The milk traders have made more profit then milk procedures. Milk procedures face many problems such as lack of knowledge in dairy production and management system, in adequate input supply and services financial weakness and cost of feed. Market problems are critical issues raised by dairy farmer capacity development and training is a key factor to enhance to skill of farmers and pastoralists in dairy production, processing and marketing. High factorial count mainly reflect poor hygiene and long time lag between milk and sales of milk. The bulking of milk from many areas and production system cause health risk if the milk is not pasteurized or adequately boiled. Future efforts will focused on improving milk quality by informal market agent (small traders, small retail outlets) by training and extension on appropriate handling containers.

Main problems faced by Dairying Farmers

Although there is a remarkable improvement of dairy enterprises in recent years, the dairy farmers faced some problems in developing their dairy enterprise. The major constraint hindering the development of dairy sector is:

Shortage of feed: 

          Shortage of green fodder and feed concentrate is the root cause of poor performance of dairy sector in general as the genetic milk production potential of crossbred cow could not be exploited fully in absence of proper nutrition.

Pitfalls

• Quality dairy animals are in short supply. Artificial insemination service for breeding better cattle has limited coverage, barely reaching an estimated 10% of bovines.
• Inability to feed cattle adequately throughout the year.
• Animal health cover is getting increasingly neglected. In many states, over 70-80% of the veterinary budget is used up for staff salaries and transportation, with little left to buy medicines and other supplies.
• Limited investment in setting up or expansion of milk procurement network. The rapid expansion in milk processing capacities has not kept pace with production and procurement.

Positive Aspects

• Dairying is crucial in providing employment and supplementary income to the bulk of rural families in rural India. The main beneficiaries are women, who contribute over 70% of labour in cattle rearing.
• Crop residues and by products fed to the cattle form the basis of grain saving dairying appropriate to mixed farming system.

• The buffalo is India's milking machine, accounting for more than half of the country's milk production: It is not able for its efficiency as a converter of coarse feeds into

The Reserve Bank of India(RBI) raised the key policy rate by 25 basis points

The Reserve Bank of India (RBI) is likely to maintain its hawkish stand and further increase key policy rate up to January 2012 to tame inflationary pressures, say experts. The Reserve rate increase by RBI may have some impact on economic growth.