A Brief Overview of MSME

The Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 was passed by the Indian Government to support the development of micro, small, and medium-scale enterprises (MSMEs). The objective of this act is to promote entrepreneurship, create employment opportunities, and encourage the growth and development of these enterprises.

MSMEs are classified based on their investment in plant and machinery or equipment, as well as their annual turnover. The following table shows the classification of MSMEs according to the MSMED Act, 2006.

Classification of MSMEs

| Enterprise | Investment in plant and machinery | Annual Turnover |
|————|———————————-|—————–|
| Micro | Up to Rs. 25 lakhs | Up to Rs. 5 crores |
| Small | Up to Rs. 5 crores | Up to Rs. 75 crores |
| Medium | Up to Rs. 10 crores | Up to Rs. 250 crores |

What is Dairy Farming?

Dairy farming is a type of agriculture that involves raising cattle for milk production. Dairy farming is an essential part of the Indian economy, and it is the primary source of livelihood for millions of people in the rural parts of the country. The dairy sector in India is the largest in the world, with an annual output of more than 160 million metric tons of milk.

Dairy farming in India is predominantly carried out by small and marginal farmers. These farmers own one or two cows or buffaloes and sell the milk produced to local dairy cooperatives or private dairy companies. Dairy farming has contributed significantly to the rural economy, providing employment opportunities for people in the dairy sector.

Dairy farming is classified as an agricultural activity, and it is not considered as an MSME. The MSMED Act, 2006, does not cover agricultural activities such as farming, horticulture, and pisciculture. Dairy farming does not involve any manufacturing or processing activity, and as such, it does not qualify as an MSME.

However, the dairy sector in India comprises various other activities that are covered under the MSMED Act, 2006. These activities include milk processing, milk products manufacturing, and animal feed manufacturing, among others. These activities involve manufacturing and processing, and they constitute an essential part of the dairy sector in India.

Activities Covered Under MSME in Dairy Sector

• Milk processing
• Milk products manufacturing
• Animal feed manufacturing
• Dairy equipment manufacturing
• Cold chain infrastructure

The Importance of Dairy Farming

Dairy farming plays a significant role in the Indian economy, and it has contributed to the growth of the agriculture sector in the country. The dairy sector provides employment opportunities for millions of people in the rural parts of India, and it has helped in alleviating poverty in these areas.

Dairy farming has also contributed to the nutritional security of the country by providing a reliable source of milk and milk products. The dairy sector has helped in meeting the protein and nutrient requirements of the population, particularly in the rural areas where access to other sources of protein is limited.

Challenges Faced by the Dairy Sector

Despite the significant contribution of the dairy sector to the Indian economy, it faces several challenges. One of the most significant challenges faced by the sector is the low productivity of animals. The average milk yield per animal in India is much lower than the global average, which affects the profitability of dairy farming.

Another challenge faced by the sector is the lack of access to modern technology and equipment. Indian farmers still use traditional methods of farming and lack access to modern equipment and technology, which affects the quality and quantity of milk produced.

Other challenges faced by the sector include:

• Inadequate veterinary services
• Poor quality of feed and fodder
• Lack of cold storage and transportation facilities
• Inefficient distribution system

Conclusion

In conclusion, dairy farming is an essential part of the Indian economy, and it has contributed significantly to the growth of the agriculture sector in the country. While dairy farming is not considered an MSME, other activities related to the dairy sector, such as milk processing, milk product manufacturing, and animal feed manufacturing, are covered under the MSMED Act, 2006.

The dairy sector in India faces several challenges, including low productivity of animals, lack of access to modern technology and equipment, inadequate veterinary services, and inefficient distribution systems. Addressing these challenges is crucial to the growth and development of the dairy sector in India.