T.Vijaya Nirmala

TVM/ 12- 04

Livestock in Indian economy• Animal Husbandry & Fisheries sectors play an

important role in the national economy & socio-economic development of rural households.

• It contributes about 3.37% to the GDP and 24 % to the Agricultural GDP (2010-11)

• supplementing family incomes and generating gainful employment in the rural sector,

• providing cheap nutritional food to millions of people.• Over last two decades, livestock sector has grown

at an annual rate of 5.6 %, which is higher than the growth of agricultural sector 3.3 %.

• Considered as one of the potential sector for export earnings

• Makes significant contributions towards conservation of environment.

• Livestock sector supplements income from crop production and other sources and absorbs income shocks due to crop failure.

• Provide essential foods of animal origin like milk meat & egg

• Animal byproducts such as hides, bones, blood, guts etc & organic manure valued at around Rs.21,019 crore.

• Bullocks : - Ploughing, transportation of goods & passengers and

drawing water from Persian wheels. - DAP of bullocks (60 million) & buffalos (7 million) as well

as equines (1 million) & camels (1million)make available 50,000 million units of energy / yr worth Rs.10,000 crores

• Biogas : is produced from cattle dung process called digestion.

- One cubic meter biogas - one biogas lamp of luminosity equivalent to 60 watt electric lighting for 6-7 hrs.

- one h.p engine working for 2 hrs roughly equivalent to 0.6 lt of diesel.

- save 3.5 kg of wood / 1.6 kg of coal / 4.7 kw of electricity

• Sheep farming : - Provides employment opportunities to large section of

population, particularly weaker sections of community in hilly, drought prone & desert areas.

- Sheep droppings improve fertility of soil & penning of sheep in harvested fields brings in additional income to the flock owners.

- Wool & mutton provide livelihood to large number of people.

• Goat : - Contributes 16 % of total meat & 4 % to total milk

produced in country. - By export of goat skins, casings & hair, valuable foreign

exchange is earned. - Manure produced from droppings enriches the soil.

• Poultry farming : - Possible in varied agro climatic environment as the fowl

possesses marked physiological adaptability. - It also remunerative following its small space requirement,

low capital investment, with good returns from outlay & well distributed turnover throughout the year.

- constitutes 14 % of total meat & almost 95 % of eggs are available from poultry farming.

- chicken dropping used as fuel for heating of boilers & cleaner than coal fired generation (low in S, Cl & heavy metals)

• Pig : - Pork constitutes 10 % of total meat production in country. - Processed pork products provide increasing employment

opportunities

Employment Generation

  Female labour employment as percent of total  employment by sector

Sector description

1983 1993-94 1999-2000

Crop production 37.6 37.5 37.0

Livestock production

64.9 70.8 70.6

Plantation 33.8 32.0 39.9

Forestry and logging

29.0 35.9 51.9

Fishing 17.8 15.7 11.9

Agricultural services

24.9 43.9 38.9

Non-farm 24.8 23.1 21.6

Total  37.3 36.0 35.0

Women constitute 71 % of labour force in livestock where as in crop farming they constitute only 33 % (2003 )source: Results on Employment and Unemployment Situation in India (various issues), NSSO, Ministry of Statistics and Program Implementation, Government of India.

• Provides large self employment opportunities and about 6.7% of work force in rural areas is engaged in this sector.

• According to NSSO latest quinquennial survey ( July 2009-June 2010) :

Total number of workers engaged in farming of animals and fishing were 14.9 million in rural area

16.5 million in rural and urban areas

• Dairy industry – employs 8.47 million people on yearly basis

_ mainly in fields of production & processing of dairy products.

• Leather industry – direct & indirect employment is 2 million

Flaying, curing & carcass recovery – 8,00,000 Tanning & finishing _ 1,25,000 Leather goods & garments _ 1,50,000 2 lakh cottage sector units – 1-4 persons 3000 small scale units _ 5-20 persons 500 medium scale mechanized units _ 20-50 persons 150 large scale units _ 50 & more

Important economic activity help to alleviate poverty

In India food consumption diversified in favour of non food grain items like milk, meat, egg & fish

Livestock products benefit poor by alleviating protein & micronutrient deficiencies

Spectacular growth of livestock products attributed to initiatives taken by Government

Demand is rising for these products in response to rising incomes in urban & rural areas

Rural poverty al leviation

Rural Poverty is largely concentrated among the landless and the marginal households comprising about 70 % of rural population.

The challenges for redressing poverty in rural areas - related with expansion of economic opportunities, empowerment of poor to take advantage of new opportunities and an effective safety net to reduce vulnerability and protect poorer of the poor (Kozel and Parker 2003).

Poverty is primarily caused by low level of assets holding coupled with low and uncertain returns.

Land and livestock - major assets of rural households for livelihood support in general and small and marginal households in particular.

As distribution of land holdings in rural India is highly skewed towards medium and large framers, rearing of livestock particularly small ruminants, pigs and poultry are considered to be the potential options for poor households to earn their livelihood on sustainable basis.

Distribution of livestock holdings in India 1991-92Category Landless,

<0.002haMarginal,

0.002-1.0 haSmall,

1.0-2.0 haMedium,2.0-4.0 ha

Large,>4.0 ha

All

%households

21.8 48.3 14.2 9.7 6.o 100.0

Distribution of livestock, %

Bovine 2.5 43.8 23.3 17.7 12.7 100.0

Ovine 5.1 46.2 19.3 15 14.4 100.0

Poultry 6.4 54.9 19 14.4 5.3 100.0

Pigs 7.7 49.9 20.4 13.9 8.1 100.0Size of livestock holdings, no/100 households

Bovine 23 180 324 361 418 198Ovine 20 81 115 131 203 85Poultry 49 190 223 247 147 166Pigs 2 4 6 6 5 4Source: NSS Report No. 408, Livestock and Agricultural Implements in Household Operational Holdings 1991-92, Ministry of Statistics and Program Implementation, GOI.

Distribution of livestock holdings in India 2002-03

Category Landless,<0.002ha

Marginal, 0.002-1.0 ha

Small,1.0-2.0 ha

Medium,2.0-4.0 ha

Large,>4.0 ha

All

%households

31.9 47.1 11.2 6.2 3.4 100.0

Distribution of livestock, %

Bovine 0.6 51.3 21.2 15.0 11.9 100.0

Ovine 2.1 61.5 15.7 9.6 11.0 100.0

Poultry 4.4 62.7 17.4 6.8 8.6 100.0

Pigs 3.2 76.2 12.0 5.5 3.0 100.0Size of livestock holdings, no/100 households

Bovine 3 169 293 374 535 156Ovine 4 84 90 99 203 64Poultry 17 164 191 136 306 123Pigs 0.3 5.3 3.5 2.9 2.9 3.3Source: NSS Report No. 408, Livestock and Agricultural Implements in Household Operational Holdings 2002-03, Ministry of Statistics and Program Implementation, GOI.

state 1983 1987-88 1993-94 1999-2000

Andhra Pradesh 26.5 20.9 15.9 11.1

Assam 42.6 39.4 45.0 40.0

Bihar 64.4 52.6 58.2 44.3

Gujarat 29.8 28.7 22.2 13.2

Haryana 20.6 16.2 28.0 8.3

Karnataka 36.3 32.8 29.9 17.4

Kerala 39.0 27.1 25.8 9.4

Madhya Pradesh 48.9 41.9 40.6 37.1

Maharashtra 45.2 40.8 37.9 23.7

Orissa 67.5 57.6 49.7 48.0

Punjab 13.2 12.6 12.0 6.4

Rajasthan 33.5 33.2 26.5 13.7

Tamil Nadu 54.0 45.8 32.5 20.6

Uttar Pradesh 46.5 41.1 42.3 31.2

West Bengal 63.1 48.3 40.8 31.9

All India 45.6 39.1 37.3 27.1

Rural poverty across major States in India

 Poverty and Livestock Output across major states, 1999-2000

Source: The data on value of assets were taken from NSS Report No. 500, Household Assets and Liabilities in India 2002, National Sample Survey Organization, Ministry of Statistics and Program Implementation, Government of India 

Lorenz curve for distribution of land and livestock assets by household classes 2002-03

Log-linear estimates for poverty and livestock sector

Explanatory variables Regression coefficient t-value

Constant 25.945 4.41*

Per capita GSDP, Rs/annum

-1.253 -2.93*

Share of livestock output in agricultural output, %

-1.351 -3.46*

Share of AgGSDP in GSDP, %

-0.788 -1.69

Landless Households, % -0.455 -2.04**

Marginal Households, % -0.768 -1.46

Log-likelihood function -14.669

* Significant at 1 percent level** Significant at 5 percent level

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