NEW DELHI: It’s a sector that’s been beefing up the economy handsomely through the downturn.. There’s been an over 100% price increase in 2008-09 compared to the value of meat three years prior.
Exports from predominantly "vegetarian" India, in tandem with expensive cattlefeed and poor producer price for milk , have doubled in just four years to (projected) Rs 5000 crore+ in 2008-09. Infact, current "meaty" government policies that have made meat (poultry and meat) exports highly lucrative, and may have sparked off a silent "pink" revolution.
Poultry exports will double to over Rs eight billion by the coming fiscal. Buffalo meat exports meanwhile, went up 45% between April 2008-January 2009 compared to the previous year period. "Abnormal rise in the cost of feed and maintenance has made it highly uneconomical for many farmers to keep a dry buffalo. So, when a buffalo becomes dry, she is sent to the slaughter house.
This has become the common trend in all peri-urban areas, especially in the milksheds where an animal in milk provides subsistence to farmers," a New Delhi-based dairy sector official said.
Meat export incentives by the Centre in 2008-09 was an estimated Rs 484 crores., APEDA says the per kg realisation of meat increased from Rs 57/kg in 05-06 to Rs 115/kg in 08-09, suggesting an incremental price hike of 57% in 08-09 over 07-08. Normally, a buffalo weighs around 500 kgs and meat realisation is around 275 kgs per animal. The export of meat in 08-09 translated to 19,45,040 animals, according to industry sources.
Also, in tandem, export of raw cattlefeed exports has shot up by 101% between 2006 and 2009, heightening pressure on milch cattle. On an averge, a 10lt/day milch animal requires 675 kgs. of crude protein/year. Yet, cattlefeed ingredients sufficient to feed 3300826 animals were exported, translating inot 990,24,78,000 litres of milk annually or 10% of India’s total milk production.
Thanks to more lucrative exports, the price of cattlefeed ingredients shot up an average 90% between 2006 and 2009.. Dairy sector sources maintain that in part, the pro-active meat export policies of the government in the last few years have, infact, discouraged high milk production in the top producer region of northern India, weakening India’s position as the world’s largest milk producer.
Unfortunately, the Indian Dairy Association (IDA) maintains, this process means that high producer animals are increasingly heading to slaughterhouses, resulting in "a negative drain on our genetic resources.""The export of meat is getting an unusually large incentive both under the VKGUY (Vishesh Krishi Aur Gram Udyog Yojana) and the DEPB (duty entitlement pass book). Such large and indiscriminate exports would not be conducive to the growth of the livestock sector," an IDA official told ET.
The Centre, though, is keen on India’s "Pink Revolution.". ." We have the raw material, we should acquire the technology urgently to tap into the highly profitable global meat markets of West Asia and South East Asia. We are ideally situated between the two," a MFPI official said.
In addition to nil IT and excise tax, the MFPI has urged states to fully exempt perishable foods from taxes and cap taxes on non perishables at 4%. There are no restrictions on the export of poultry and poultry products, and the government already provides some transport subsidy. Plus, 100% FDI is permitted in the sector.
A comprehensive scheme for modernization of abattoirs countrywide to address quality standards, contamination and check wastage and incentives to encourage R&D for improved packaging and product and process development are other boosters..
However, while the White Revolution saw India achieve 15% of the share of global market for milk and its products, meat exports account only for an estimated 2% of the global market despite India’s large livestock population. Ironically, the BJP’s views on animal slaughter forced the Planning Commission in 2002 to back off on proposals to boost the sector.
Accordingly, it did not accept the recommendations of its own working group on the subject for the 10th Plan on removing the ban on beef exports, increasing meat exports and improving the leather sector.
Source : The Economic Times