Credit expenditure on agriculture and allied sector (Rise

Credit AvailabilityCredit access for the livestock sector is relatively low and is more skewed towards dairy animals. Other livestock systems are not given due importance. Livestock sector accounts for only 12 percent of the total public expenditure on agriculture and allied sector (Rise of Livestock, 2017), though it contributes one-fourth to total agricultural GDP. Large number of Microfinance institutions have come up, and many small finance banks have been started to cater the need of small borrowers and the agricultural sector also can pave the way for credit access to the livestock sector as well.Marketing ProblemsMarkets for livestock products is still dominated by unorganized sector and is very much fragmented. About 80 percent of the milk produced is handled by the unorganized sector with remaining 20 percent shared by cooperative and private sectors. Meat industry, particularly, the fresh meat is almost catered by the unorganized sector in India. Frozen and export oriented units are only organized. Though marketing of poultry has become highly organized with the entry of organized players under contract farming. Being highly perishable, livestock products need utmost care and require processing and preservation immediately after animal slaughtering.Livestock sector performance in different states of IndiaLivestock sector is witnessing uneven growth across the states in India. States like Punjab, Haryana, Gujarat and Tamil Nadu are considered as “Leading” livestock producing states. These states witness more commercialized livestock activity and in relatively larger scale. The animal productivity is also higher in these states. Tamil Nadu has adopted highest number of crossbred cows among the states which has resulted in higher milk production in the state. The other category of states are “lagging” livestock producing states, where livestock activity continues to be subsistence driven and livelihood-based. These are often characterized by low levels of animal productivity and low contribution to overall agricultural output.The country has achieved a substantial increase in milk production and per capita milk productivity. The current milk production stands at 163.7 million tonnes (2016-17) and the per capita milk availability has reached 352 g/day. Figure 3: Year wise Milk Production and per capita availability Figure 4: State-wise Milk Production and Per Capita Availability of Milk (2016-17)Meat is another major contributor of the livestock sector after milk. The total meat production in India reached 7.3 MT in 2016-17 recording an increase of 1.7 percent over last year. Uttar Pradesh with 1.3 MT production of meat is leading in meat production. The heat map in Figure 5 shows the states with meat production in 2016-17. The darker shade means more production as the case of Uttar Pradesh with 1.3 MT. Figure 5: State Wise Meat Production (2016-17)Poultry dominates the meat production in India backed by large number of organized players. It contributes 47 percent to total meat production followed by buffalo (20 percent). Buffalo meat has great export importance.  The species wise contribution towards total meat production can be seen from Figure 6 below.


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