RBI working Paper on Livestock product Inflation

We understand that the dairy fraternity often doesn’t have the time to dive into lengthy reports amid their busy schedules, which is why we’ve prepared this feature to bring you the key insights concisely. This week, the Reserve Bank of India published a Working Paper titled “Livestock and Poultry Inflation in India: A Study of Milk, Poultry Meat, and Eggs” as part of its Working Paper Series. Co-authored by Shyma Jose, Manish Kumar Prasad, Sabarni Chowdhury, Binod B. Bhoi, Vimal Kishore, Himani Shekhar, and Ashok Gulati, the paper presents a comprehensive analysis of the price dynamics in India’s livestock and poultry sectors.

By adopting a balance sheet approach, it captures the supply-demand interactions and examines the value chain across these industries. In this feature, we focus on the findings relevant to the dairy sector, breaking them down for your convenience.

We shall be creating detailed news feature on the same :

Top seven news from the last week are as follows :

Key Policy Suggestions for Milk Industry Improvement:

• Improve Value Chain Efficiency:

o Establish more Bulk Milk Chilling (BMC) centers to boost procurement.

o Upgrade or build new dairy plants and small processing units in the cooperative sector.

o Strengthen milk flow through insulated rail containers and milk dispensing machines.

• Rationalize Trade Policy: o Adjust tariffs on SMP (60%) and butter (40%) to reduce price pressure. o Allow NDDB and cooperatives to import SMP and milk fat for buffer stocks.

o Place SMP and butter under Open General License (OGL) for controlled imports.

o Allow cattle/buffalo germplasm imports for crossbreeding to increase productivity.

• Increase Fodder Productivity & Create Feed Bank:

o Build feed banks by procuring/storing feed to control inflation.

o Utilize barren lands for low-water grasses to address fodder shortages.

o Invest in genetically modified forage seeds to boost fodder productivity.

• Integrated Animal Health Plan:

o Promote artificial insemination for crossbreeds to increase yield.

o Encourage private sector in setting up modern testing facilities.

o Establish rapid-response medical boards for disease outbreaks.

• Technology Integration:

o Develop insulated rail containers for milk transport.

o Build infrastructure to store processed products like SMP and butter to align prices with international markets.

 

These steps can significantly enhance the operational efficiency and stability of India’s dairy sector. Do not forget to press the bell icon to receive regular notifications. To get daily updates on dairy news from the dairy sector go to www.dairynews7x7.com and press subscription button. best regards Kuldeep Sharma Chief editor Dairy news 7X7 channel dairynews7x7@gmail.com

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Do not forget to press the bell icon to receive regular notifications. To get daily updates on dairy news from the dairy sector go to www.dairynews7x7.com and press subscription button.