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Accounting For The Diversity in Dairy Farming: Discussion
Accounting For The Diversity in Dairy Farming: Discussion
Accounting for the Diversity reports, but the article exposes the vul-
nerabilities of the sector.
B
“Economics of Dairy Farming in ias in regional coverage, “silence” clearly in the methodology of our article
India” by M Dinesh Kumar and on some valuation issues within (Ghosh et al 2017) that our estimation
a farming system approach, incon- takes into account only the paid outcosts
O P Singh (EPW, 14 October 2017),
sistency with macro-tendencies, and negl- incurred on purchased inputs, while the
provided an analytical and ect of nutrition value were some of the costs of all farm-grown inputs, including
conceptual critique for a special flaws pointed out by the discussion article, those appearing as by-products of the
article co-authored by the current “Economics of Dairy Farming in India” farm, are excluded. Unpaid family labour,
(EPW, 14 October 2017), in the earlier too, is not included in the cost. The ap-
author, “Do Producers Gain from
special article, “Do Producers Gain from proach presumes zero opportunity cost
Selling Milk? An Economic Selling Milk? An Economic Assessment of such inputs, which is not improbable in
Assessment of Dairy Farming in of Dairy Farming in Contemporary India” land-scarce regions (Kumar and Singh
Contemporary India” (EPW, 24 (EPW, 24 June 2017) co-authored by the 2017). In the case of Bihar, for example,
author. Limitations and abstractions, our study found that green fodder (millets,
June 2017). The author reiterates
inevitable in any research, have been grass and jai) are often grown on flood-
some of the issues implicit in the transparently laid out in the special prone lands that would otherwise remain
special article in order to article. All figures reported were “esti- fallow. The rent paid for fodder land
stimulate further questions on mates” and further research, surely, if leased-in is, however, accounted for
can offer improvements. Moreover, the (Ghosh et al 2017). Moreover, neither
these issues.
broad objective of the article was to pointed out in our article nor addressed in
capture some contemporary scenarios the discussion article is the issue of esti-
of the dairy sector based on sample mating the economic cost to society for
surveys, rather than making any general subsidised inputs, such as medicines, arti-
statement about the economic benefit ficial insemination, and animal nutrients,
of the dairy sector in the country. And which are provided by public agencies.
the regional coverages and sample sizes In fact, our cost estimates of these inputs
have been clearly documented in the in the study do not fully reflect the eco-
article for readers to make their own nomic cost to society.
inferences. This treatment of cost is admittedly
Although sample and sub-sample aver- conservative and is open to adjustments.
ages can help in summarising the key If in real life some of these inputs are not
indicators, these hardly dissemble the actually free to the producer or society,
heterogeneities within the sample. With this kind of valuation would generate
the methodology used in the article, it is underestimation of cost. Dairy farming
patent that northern India performed would then be less profitable or more
better economically as compared to the loss-making than is suggested in the
eastern states, but there are wide diver- article. Economic implications of dairy-
gences even within the northern region ing would be found to be even worse if
as there are between the eastern states. the method follows an extremely fastidi-
Delhi, for instance, stands out as most ous method of imputing market prices
profitable in dairy, but the benefits come for evaluating all inputs. Admittedly,
at a high ecological cost of maintaining some of the returns in the output side
villages and livestock within the con- have also been lost sight of, but they
fines of a congested city. Such cases are merely incidentals. External outcomes
are likely to abound in other cities too. other than those mentioned in the article
Nilabja Ghosh ([email protected]) is with the Success stories on dairy are much more (cow dung and urine) are also pointed out.
Institute of Economic Growth, New Delhi.
commonly documented in research-based No commercial household processing for
56 MAY 4, 2019 vol lIV no 18 EPW Economic & Political Weekly
DISCUSSION
sale is reported by our respondents. While common in all the survey regions. Despite that at least some sections of dairy farmers
the discussants have not spelt out their all its regulations, even Delhi is no ex- still linger at the margin of profit and
expectations, a more rigorous approach ception. The study finds higher returns loss, and are still driven by subsistence
factoring in the non-market costs would in Delhi where nearly all inputs are pur- needs rather than commercial gains.
certainly generate lower returns than chased, but, in the other study regions, This is a matter of concern especially in
those reported for the specific study and the farming system remains a major a transforming economy. As the pressure
thereby reinforce the conclusion. source of feed, though marketing channels on land resources mounts and markets
The revenue clearly does not include are different, and prices and returns get integrated and formalised, like other
any imputed value of the milk retained are lower. industries, dairying will have to be rooted
for household consumption. In its search in its comparative advantage. Further,
for an explanation as to why farmers Self-reporting of Cattle Breed dairy as an economic activity is not
maintain animals despite the low mar- Information about the breed of the animals merely associated with human welfare,
ket returns, this (subsistence) motive is is usually obtained from the farmers but also with ethical animal-rearing
speculated as the best possible reason who were in turn informed or misin- practices. Stray quest for feed is not a
for producing milk. The potential cost of formed about this by the animal sellers. desirable model of animal husbandry.
procuring the same milk from the market In Bihar, some of our respondent farm- Open meadow lands for grazing are a
(mentioned in the paragraphs preceding ers expressed doubt about the credibility basic entitlement both for animal welfare
the concluding section) outweighs the of the animal sellers’ information, when as well as sustainability of animal hus-
financial loss, suggesting that consump- their animals failed to catch up with bandry practices. Alternatively, govern-
tion is cheaper via production than it is their yield expectations, notwithstand- ments must explore policy tools, includ-
through market. Not undermining the ing that inadequate nutrition could also ing viable livelihood generation to in-
nutritional significance of dairy farming make hybrids less productive than antici- crease the purchasing power of the poor
for the producers’ family, the article as- pated. The rising regional trends in milk to meet their nutritional security. The
sesses dairy from a commercial perspec- production set against these findings are discussants (Kumar and Singh 2017) have
tive and exposes the weakness of market. intriguing. Other emerging models of critiqued the article for the “lack of
commercial production not covered in familiarity with livestock farming” on a
Land and Dairy Intensification the household survey may arguably be a subjective ground. While specialisation
According to the critics, in western states factor, but the rationale behind the trends is important in social science, consulta-
like Gujarat, high input costs accompany certainly deserves more exploration and tion with varied interest groups and
high revenue in intensive dairying even leaves room for research. disciplines is equally vital. Too much
with irrigated fodder cultivation, while in dependence on familiarity can constrict
semi-intensive dairy in northern India, In Conclusion the vision of the study.
inputs are gathered from the farms. On Field interactions of authors and the
the other hand, in eastern India where current debate further affirm the diver- References
dairy is traditional, the discussants expect sity of dairy economics. Various models Ghosh, Nilabja (2010): “Economic Empowerment of
both revenue and cost to be low, animals of dairy farming are gaining visibility, Farm Women through Viable Entrepreneurial
Trades,” consolidated report of coordinated
to graze in the wild and family labour but, combined with the existing reality, studies from Agro-Economic Research Centres
and biomass to be abundant. Growth of differentiated choices can be made at (AERC), submitted to Ministry of Agriculture,
Government of India.
dairy is associated with developments in the policy level. The current state of eco- Ghosh Nilabja, Amarnath Tripathi, M Rajeshwor
marketing, price rises and other demand- nomic reforms calls for a focus on the and Roopal Singh (2017): “Do Producers Gain
side factors, and with lower need for areas of weaknesses, a review of dairy from Selling Milk? An Economic Assessment
of Dairy Farming in Contemporary India,”
land and water on the supply side. The as a policy for poverty alleviation rather Economic & Political Weekly, Vol 52, Nos 25–26,
discussion concedes that smallholding than business, and a rethinking on the pp 88–96.
Kumar, M Dinesh and O P Singh (2017): “Economics
sizes hinder intensive dairy, though cereal- National Dairy Development Board’s of Dairy Farming in India,” Economic & Political
based cropping patterns help to supply strategies in this light. The study finds Weekly, Vol 52, No 41, pp 77–79.
feed. Positive results in the west and the
north are reported by several studies,
including a study by this author (Ghosh Permission for Reproduction of
2010). The survey in the eastern study Articles Published in EPW
regions did not succeed in finding No article published in EPW or part thereof should be reproduced in any form without
enough “wild” common land available prior permission of the author(s).
for grazing to produce productive and
A soft/hard copy of the author(s)’s approval should be sent to EPW.
healthy herd of animals at a low cost.
Animals do graze within human habita- In cases where the email address of the author has not been published along with the
tion and markets in search of food and articles, EPW can be contacted for help.
food wastes, but this observation is
Economic & Political Weekly EPW MAY 4, 2019 vol lIV no 18 57