Untapped advantage

Livestock are one of the main pillars of the rural economy and, as a dependable source of income, livestock farming is rightly called 'bank on hooves.' The meat industry is a fast-growing sector in India with a substantial contribution to the economy. As the green revolution in the last century, the livestock revolution in this century is globally seen as the next food revolution. Economists believe that the livestock revolution will usher in an economic transformation, with the rise in meat consumption and concomitant growth in opportunities for small farmers in developing economies, for whom livestock substantially provides more net income than crops. Fortunately, India is well-equipped to seize the opportunity. According to FAO (UN), livestock constitutes around 40 per cent of the global value of agricultural output, and about 1.3 billion people depend on it for livelihood and food security. The importance of the meat industry cannot be underestimated, as it not only provides meat as nutritious food, but also many by-products, including leather for tanneries. It encourages sustainable livestock development as a means of livelihood security for millions of people, especially from weaker sections in India. Besides, around 40 million people are employed in the meat industry directly or indirectly. But sadly, this promising sector has been highly unorganized and a victim of neglect.

Despite having the world's largest population of livestock (about 515 million), India produces only 6.3 million tonnes annually, which is just three per cent of meat in the world; the potential for growth in the meat industry and consequent economic gains are yet to be fully realised. Nevertheless, India is the fastest-growing market for processed meat and poultry today in the world with a CGAR of 22 per cent, followed by Vietnam at 15.5 per cent, China at 13.9 per cent and Brazil at 10.9 per cent. In 2020-21, beef worth around USD 43.17 billion was exported in comparison to USD 3.2 billion in 2012-13. But in international trade, live animal export from India is only 17 per cent, which hints at the tremendous opportunity for commercial breeding.

While the poultry sector dominates meat production, with 50 per cent contribution at the worth of Rs 80,000 crore (2015-16), the rest are far behind: buffalo (20 per cent), goat (13.53 per cent), sheep (8.36 per cent), pig (4.98 per cent) and cattle (4.02 per cent). But in comparison to Buffalo meat — 80 per cent of which is exported, amounting to Rs 25,168 crore — not even three per cent of poultry is exported because only two per cent of it is processed despite high global demand. Immense possibility of growth is evident in the meat of poultry, goat, sheep and pork if only we ensure adequate processing facilities, infrastructure and credit. For instance, there are only five egg powder plants in the country despite growing export demand for different categories of egg powder — whole egg, yolk and albumen.

The scope for domestic demand is enormous, as the per capita consumption of meat in India is only around 5.6 Kg, as compared to the world average of 33.2 Kg, despite 70 per cent of the population being non-vegetarian. In broiler meat, it is hardly 3.5Kg annually, compared to 45 Kg in Brazil, 43 Kg in the United States, 34 Kg in South Africa. Research proves that proteins of animal origin which form 33 per cent of global consumption, are more digested and nutritionally superior to those of plant origin. According to the UN, around 195 million Indians are undernourished. In the Global Hunger Index (GHI) 2021, out of 116 countries, India has slipped to 101st position from its earlier position of 94th in 2020 and is even behind Pakistan, Bangladesh and Nepal. Inadequate intake of meat is primarily because the prices of meat of goat, poultry, sheep, are at least three to four times higher compared to pulses or vegetables and the middle-income households cannot afford these regularly; the low-income groups and weaker sections settle for pork or buffalo meat as they both are cheaper. With a population of around 1.3 billion, a rise in domestic consumption can boost meat production, paving way for exponential growth not only in the meat industry but also in food processing and other ancillary industries.

Development of the meat sector is crucial to address not only economic but also social concerns; firstly, to seize the export opportunities to the fullest levels, secondly, to support the agricultural economy by guaranteeing sustainable income to the farmers engaged in livestock rearing, thirdly, to engineer inclusive growth by focussing on the marginalised sections that subsist on cattle rearing and meat production and, finally, to counter malnutrition by providing meat at an affordable price to people as a source of protein-rich nutritious food, even if it takes to revolutionise the PDS.

Fiscal incentives by the government — such as permission for 100 per cent FDI, concessional custom duties on import of equipment, IT exemptions for cold chain or warehouse and new food processing and packaging units — will of course encourage investment. But more important is to address real constraints such as lack of scientific approach to breeding and rearing, poor harvest management, inadequate infrastructure, unorganised production and insufficient vertical integration. Initiatives must incorporate both supply and demand concerns. Localised distribution of goats, pigs or backyard poultry through Rural Development schemes cannot create a 'livestock revolution'. A cooperative movement akin to that in sugarcane, dairy, or fish farming can make a big difference, for it will help vertical integration in terms of bulk production, processing, storage, transport, packaging and distribution. Moreover, it will directly result in the economic empowerment of weaker sections and occupational castes who depend on livestock rearing and meat production. The meat sector has potential for contract farming as well, through private players and FDI, which can facilitate the creation of infrastructure for meat processing. Even slaughterhouses and local meat markets need to be upgraded and regularised. The meat industry is largely concentrated in four states namely, UP, Andhra Pradesh, West Bengal and Maharashtra, though the livestock is by and large equally distributed across the country. Expansion on a pan-Indian scale is essential to ensure equitable development of the livestock and meat industry.

An increase in supply through modernised mass production makes the markets competitive and the products affordable to all consumers which, in turn, boosts demand. The boom in the meat market in India is evidently impending. Firstly, there is a trend towards consumption of animal-based food products as a result of growing urbanisation, sustained incomes, change in lifestyles, improvement in storage technology and marketing. Secondly, India is a favourable destination for FDI in the meat industry, currently negligible though, because it's a fast-growing economy, as second-largest consumer market globally, world-class ports, skilled manpower and, investor-friendly policies. The unique advantage is, Indian meat contains the lowest fat (4 per cent as opposed to 14 per cent of other countries) and is free from agents that promote diseases which makes it much sought after internationally.

With due regard to socio-cultural values and animal rights activists, large-scale industrialised meat production needs to be encouraged in the interest of the health and wealth of millions of Indians. It is relevant to mention here that the National Institute of Nutrition has recommended 180 eggs and 11 kg of meat per capita consumption. The NITI Aayog initially proposed subsidies on protein-rich food, including egg, fish, chicken and meat, through PDS, but due to opposition by PETA and FIAPO, it withdrew the same. Speciesism or human-supremacism are prejudiced accusations against meat consumption since no war is declared against animals. A similar sentiment is absent against the production and sale of chemicals to kill rats, mosquitos, flies, pests or cockroaches. Human life cannot be equated with that of animals. Nevertheless, the prohibition of cruelty or unnecessary killing is always an uncompromisable principle.

The writer is a former Addl. Chief Secretary of Chhattisgarh. Views expressed are personal