On October 6, the government held a meeting to assess the fodder situation in the country, in which states informed the Centre that prices of dry fodder are significantly higher than last year. (Express file photo by Amit Chakravarty)As fodder prices continue to rise, there seems to be no respite for households whose livelihood is dependent on livestock rearing. The annual rate of fodder inflation based on the All-India Wholesale Price Index (WPI) has soared to 27.31 per cent in October 2022, the highest since July 2013 when the figure was 27.29 per cent.
The WPI data released by the Office of the Economic Adviser, Ministry of Commerce & Industry, shows that the index value for fodder increased to 227 in October 2022, registering an increase of 27.31 per cent over the same month last year (178.3).
The WPI-based fodder inflation was 8.85 per cent in October last year. However, it increased sharply in 2022 and reached 25.54 per cent in August and 25.23 per cent in September.
While the overall WPI inflation has seen a downward trend in recent months and it has come down to 8.39 per cent in October 2022 — the lowest in 19 months — fodder inflation has been rising. The WPI fodder inflation has been rising since December 2021, hovering over 20 per cent during the last six months, May-October, 2022.
Impact of rising prices
Rising fodder prices have a direct impact on households whose livelihood is dependent on cattle rearing. Indirectly, it also affects urban households, as milk companies and cooperatives raise prices of milk to compensate the livestock owners. Controlling fodder prices is necessary for ensuring food and nutritional security.
In the WPI (2011-12), fodder has a weight of 0.5314 and is counted in the ‘Other Non-Food Articles’ category. It is one of the 697 items for which wholesale price data is collected. Fodder price rise has a direct impact on milk prices.
Last month, The Indian Express reported that fodder inflation reached a nine-year high (25.54 per cent) in August 2022. It highlighted that rural households in the country are facing hardships due to high prices of dry fodder. It also highlighted that the government’s plans to create 100 fodder FPOs (Farmers Producers Organisations) remained on paper.
On October 6, the government held a meeting to assess the fodder situation in the country, in which states informed the Centre that prices of dry fodder are significantly higher than last year. The meeting, chaired by secretary (animal husbandry) Rajesh Kumar Singh, was attended by senior central officials and representatives of at least 14 states, including Uttar Pradesh, Rajasthan, Gujarat, Punjab, Haryana, Madhya Pradesh and West Bengal.
It was in this backdrop that the government cleared a proposal to form 100 fodder-centric FPOs earlier this month. This was two years after the Ministry of Fisheries, Animal Husbandry and Dairying proposed the formation and promotion of fodder-centric FPOs to address the fodder deficit in the country. With this move, the government has designated the National Dairy Development Board (NDDB) as the implementing agency, setting a target of 100 such FPOs in 2022-23.
In its order on November 4, the Union Ministry of Agriculture and Farmers Welfare said: “The competent authority in the Department of Agriculture & Farmers Welfare has approved to designate NDDB as implementing agency under the scheme of formation and promotion of 10,000 Farmer Producer Organisations (FPOs) to form and promote FPOs, primarily fodder centric, and animal husbandry activities as a secondary activity (fodder plus model)… NDDB has been assigned to form 100 FPOs during 2022-23 within the contours of the scheme guidelines.”