Agricultural value chain in India
value chain in India is characterized by large number of small and marginal
farmers who are being exploited by the middleman, particularly in term of the
prices they receive for the agricultural produce. Figure
explains the typical agricultural value chain found in India. Farmers sell the
produce to the traders in most of the cases. They are also engaged in selling
to the processors as in case of contract farming being practiced by many
agricultural companies (integrators) in the country. Big retailers are also
sourcing the agricultural produce from the farmers directly by linking with
them to reduce and eliminate the intermediaries thus in turn making the chain
Figure 9: Agricultural Value
Chain in India
Livestock Value Chain
term Livestock is used to refer the domesticated animals raised for food or
other utilities. Humans keep livestock for various purposes like meat, milk and
other dairy products, wool, leather, non-human labour etc. The term livestock includes dairy animals as well as goat,
sheep, pig, horses, donkey and camel.
owns 2.29 percent of the land area of the world, but is maintaining about 10.71
percent of the world livestock population.
Livestock farming is one of the major sources of income in rural areas.
About 70 million rural households are engaged in dairy farming. The resource-poor small and marginal farmers and landless
labourers own majority of the livestock resources in our country.
One of the most glaring example of successful livestock value
chain is the three-tier Amul cooperative value chain in the dairy sector
which enabled small and marginal farmers in Gujarat, to realize better prices
and gain control over the value chain. The producer’s share in consumer’s rupee
in Amul’s model is more than 80 percent (Kulkarni, 2011). This is much higher
as compared to any other value chain of agricultural produce or even of milk
globally. The whole value chain operates in three tier structure comprising of
dairy federation at the state level, milk union at the district level and dairy
cooperative society at the village level. Milk producers get services in the
form of veterinary services, compound feed, fodder seed as well as training
related to dairy production system.
Amul Value Chain
district has one dairy processing plant under district milk union. In 2014-15,
the state dairies procured 136.33 lakh litres of milk through the village
Table 11: Milk Procurement by
Dairy Cooperatives (2014-15)
No. of Cooperative Dairies
Installed Capacity Per Day (Lakh Litre)
Milk Procured Per Day (Lakh Litre)