Dairy News
FMD Outbreak Cripples State Dairy Sector
Saturday, 25/01/14
The outbreak of foot-and-mouth disease (FMD) in five states in south India is expected to lower the growth projections by 0.5 per cent in the country, which otherwise expects an economic growth of 5 per cent on the back of expansion in the agriculture sector.
According to agri-economists in Kerala Veterinary and Animal Sciences University, in the preliminary assumption, it is estimated that the country will incur a total direct loss of `950 crores only on account of direct impact of the FMD in five south Indian states. This will lower the growth rate by 0.3 per cent to 0.45 per cent in the total GDP of the country, where livestock contributes to around 25 per cent of the output of the agricultural sector. In Kerala, it’s as if the dairy industry is hit by a double whammy of sorts. On one hand, the domestic meat market has plummeted to its nadir and the price of other dairy products are fast declining.
While on the other, the FMD has claimed around 5,000 heads of cattle until the first week of January, resulting in a loss to the tune of around `120 crore. Dr T P Sethumadhavan of KVASU, told ‘Express’ that for every 1 per cent growth in agriculture GDP of the country, around 3.5 per cent growth in the livestock sector is required. “Hence, the spread of epidemic, which has already reduced the milk production by 25 per cent in South India, will definitely reduce the agriculture GDP of the country, where the contribution of livestock sector to the total GDP during 2012-13 was about 0.7 per cent,” he said.
“In the projected 5 per cent GDP, around 1.7 per cent growth is expected from the agriculture sector, for which at least 6-7 per cent growth in livestock sector is required. But since there is a production loss of 30-35 per cent in livestock sector this year owing to FMD outbreak, the livestock sector is expected to see a contraction of 3 per cent in GDP in South India, which contributes a 40 per cent of the total growth of the live sector in India,” said Sethumadhavan.
According to B Sunil, associate professor, KVASU, since the disease outbreaks among livestock are a major risk for the farming sector, the economic consequences of FMD will also be experienced by other areas of industry, including service sector, employment, export, tourism, and health care. “The fear associated with perceived contamination of food supply has already reduced consumer confidence, causing sudden and drastic cuts in consumption of meat and affecting other sectors as well,” he said.
The National Agricultural Policy (NAP 2000) emphasises livestock as an important driver for achieving the targeted 4 per cent growth in the agricultural sector by 2020. For achieving this, growth of Indian dairy industry should be in tune with the rapid transformation that is taking place in the world economies under WTO regime, he said.