India’s dairy sector has achieved globally significant milestones, far outpacing the small ruminant (goat and sheep) and poultry sectors in scale, organisation, and economic impact. India is the world’s largest milk producer, contributing over 24.76 per cent of global milk output. As the world’s largest milk producer, India contributes over 24.76 per cent of global milk output. Milk production soared from 146.31 million tonnes in 2014-15 to 239.30 million tonnes in 2023-24, driven by structured interventions and the celebrated cooperative model.
The Indian dairy industry is valued at Rs 18,975 billion (2024) projected to triple 2033. It is the single largest agricultural commodity, contributing five per cent to the national economy and directly employing over 8 crore (80 million) farmers. India’s latest livestock census put the bovine population at 303.8 million — the largest globally — including 192.5 million cattle and 109.9 million buffalos. The milch animal population has reached 125.75 million. Notably, the livestock sector’s Compound Annual Growth Rate of about 7.9 per cent (2014-15 to 2020-21), outpaces the broader agriculture sector.
The success of ‘Operation Flood’ and the ‘Anand Model’ led to a vast network of over 19,000 dairy cooperative societies, adding 18.17 lakh (1.817 million) new farmer members and creating 27.93 lakh (2.793 million) litres/day of milk processing capacity. The National Dairy Development Board (NDDB) ensured farmer-centric procurement, processing, and marketing, transforming rural livelihoods.
Government schemes like the National Programme for Dairy Development and the Dairy Processing and Infrastructure Development Fund have modernised processing, cold chains, and quality assurance. Per capita milk availability rose to 459 grams/day in 2022-23, well above the world average of 322 grams/day.
Goats are often called the “poor man’s cow” and are a vital source of supplementary income for millions of resource-poor farmers and landless providing a financial buffer during droughts and crop failures.
With over 148 million goats—16 per cent of the world’s total—India leads globally in the goat population. The country is third in sheep population with 74.26 million sheep (4.03 per cent of the world’s sheep).
Between 2012 and 2019, goat and sheep populations grew by 10.1 per cent and 14.1per cent respectively. The poultry population now stands at a staggering 851.81 million, up 16.8 per cent from the previous census, reflecting the rapid expansion of commercial poultry farming.
Goats and sheep contribute Rs 31,449 crore annually to India’s economy through milk, meat, and export. Their low input, low investment nature makes them especially important for the poorest households and for women’s economic empowerment. Small ruminants thrive in arid, semi-arid, and rain-fed regions where crop and dairy farming are less viable.
India is the world’s largest goat milk producer, with output rising from 3.71 million tonnes in 2003 to 7.59 million tonnes in 2023, now accounting for 3.3 per cent of the nation’s total milk production.
Sheep milk, though niche, is gaining attention for its nutritional value and demand for value-added products like cheese and yogurt. Goat meat production doubled from about 0.54 to 1.1-1.2 million tonnes, while sheep meat increased from 0.28 to 0.43 million tonnes over the same period.
India has pursued a multi-pronged strategy to strengthen small ruminant development, focusing on breed improvement, entrepreneurship, health management, and market linkages. The National Livestock Mission (NLM), launched in 2014 and revised in 2021, has been central—supporting over 2,696 sheep and goat projects with nearly Rs 1,992 crore allocated, resulting in notable population growth and job creation.
Yet, challenges persist: only 35 per cent of marginal farmers have accessed NLM subsidies due to complex eligibility criteria. A persistent 35 per cent fodder deficit and market fragmentation further limit productivity and scaling.
While the dairy sector is a model of growth, organisation, and rural transformation, the small ruminant and poultry sectors—though crucial for marginal and landless farmers—remain less organised and under-supported.
Expanding cooperative models and investing in processing and marketing infrastructure, whether through cooperatives or Farmer Producer Organisations (FPOs), could help replicate dairy’s success in these sectors.
Contrasts: Livestock vs. Small Ruminants |
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| Aspect | Livestock (Eschewed toward Dairy) | Small Ruminants - Goats and Sheep |
| Organization | Highly organized, strong cooperatives, robust FPOs | Mostly unorganized, fragmented value chains (barring a few in poultry) |
| Production Growth | World’s largest, 5.6per cent CAGR, 239.3 MT (2023-24) | Goats/sheep: 10–14per cent pop. growth, lower output |
| Economic Impact | 5.7 per cent of GDP, ₹ 18,975 billion (2024) | lower GDP share -.57 per cent, but crucial for marginal farmers |
| Infrastructure | Advanced processing, cold chains, quality assurance | Limited processing, cold storage, market access |
| Employment | 8 crore+ farmers, women’s empowerment | Key for landless, women, but less formal support |
| Nutrition | 459g/day per capita, above global average | Important for protein, but lower per capita availability |
| Government Support | Strong, sustained, large-scale schemes | Recent focus, but lower investment, slower scaling |
NGO-led models, such as PRADAN’s cooperatives in Madhya Pradesh and AKRSP’s micro-enterprises in Bihar and Madhya Pradesh, have shown that community-based, women-centric strategies can achieve up to 75 per cent income growth and dramatically reduce livestock mortality. The Goat Trust’s PashuMart and PashuBazar, and the Black Bengal Goat Cluster, connect smallholders to urban markets, enabling collective bargaining and better prices for meat and milk. BAIF and Heifer-led interventions have created a replicable model for sustainable, women-centric goat rearing in India, combining breed improvement, animal health, capacity building, and market integration to enhance rural livelihoods and empower marginalised communities.
Key interventions with potential for scale include:
• Scientific feeding and nutrition: Balanced diets, silage and hay bailing units and mineral supplementation increase weight gain, reproductive performance, and milk yield.
• Breed selection and housing: Indigenous breeds adapted to local conditions and better housing reduce disease and mortality.
• Health and disease management: Regular vaccination, deworming, ectoparasite control, and ethno-veterinary practices lower mortality and improve herd health.
• Value chain integration: Supporting direct market access and value-added products boosts profitability.
• Community-based models: Cooperatives and women-centric models foster knowledge sharing, collective bargaining, and access to finance and technology.
• Sustainable practices: Silvipastoral systems, agroforestry systems, alternate eco-friendly feed (crop residues, shrubs, legumes) and climate-resilient models enhance productivity and sustainability.
To unlock the full potential of small ruminants, India needs robust policy and extension support, simplified subsidy access, investment in infrastructure, and climate-resilient, sustainable practices. Forming a specialised agency—modelled on the NDDB—for goat and sheep could help replicate dairy’s cooperative success, transforming these sectors into organised, high-impact value chains. Such an entity could lead:
• Research & development for sustainable practices
• Indigenous breed improvement
• Localised, region-specific models and market linkages
• Strengthening FPOs and cooperatives
• Infrastructure development for processing, cold chains, and fodder banks
India’s livestock future is not just about big hooves, but also about small hooves and beaks—each vital for rural livelihoods, nutrition, and inclusive growth.
Abhay Kumar Singh is a development professional
Views expressed are the author’s own and don’t necessarily reflect those of Down To Earth