Page 43 - BANKING FINANCE JUNE 2016
P. 43
ARTICLE
FINANCING DAIRY
SECTOR -
UNEXPLORED
LENDING
OPPORTUNITIES
I ndian agricultural system is predominantly a mixed with the country's increasing demand for milk and milk
crop-livestock farming system, with the livestock seg- products , the sector has been growing rapidly . Dairy Farm-
ment supplementing farm incomes .Agriculture along ing has been considered as one of the activities aimed at
with animal husbandry has been and will continue alleviating the poverty and unemployment especially in the
to be the lifeline of Indian economy. India is the larg- rural areas in the rain-fed and drought-prone regions.
est and one of the most economical milk producers in the
world, contributing over 18 % in the world's milk produc- In India, about three-fourth of the population live in rural
tion. areas . Dairying is an important source of subsidiary income
to small/marginal farmers and agricultural labourers. In ad-
In India , the dairy sector plays an important role in the dition to milk, the manure from animals provides a good
country's socio-economic development and constitutes an source of organic matter for improving soil fertility and crop
important segment of the rural economy. Dairy sector yields. The biogas from fermentation of organic matter is
provides livelihood to millions of homes in villages , ensur- used as fuel for domestic purposes and also for running en-
ing supply of quality milk and milk products to people in gines for drawing water from well.
both urban and rural areas. With a view in keeping pace
The surplus fodder and agricultural by-products are largely
About the author utilized for feeding the animals. Almost all draught power
for farm operations and transportation is supplied by bul-
M. Ramamoorthy locks. Since agriculture is mostly seasonal, there is a possi-
BE( Mechanical), CAIIB, MBA (Banking bility of finding employment throughout the year for many
Finance ), F.I.V persons through dairy farming.
Senior Manager (Faculty- Credit Discipline )
Union Bank of India Staff College Thus, dairy also provides employment throughout the year.
Bangalore
BANKING FINANCE | JUNE | 2016 | 43
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