With the growth of the population in urban areas, consumers had to depend on milk vendors who keep cattle, due to which several cattle sheds developed in different cities creating environmental problems. With the main objective to maximise profit, the milk vendors started increasing the lactation period of high yielding cattle creating development of sterility problems in them, which reduced the number of calving. The unproductive cattle were then sold to slaughter houses and this practice systematically reduced the country of its genetically superior breeds.
With the initiation of India’s first Five-Year Plan, modernization of the dairy industry helps to complete the goal to provide hygienic milk to the country’s growing population. To stimulate milk production, the government implemented Development Projects among other programs.
State governments tried out different strategies to develop dairy industry, setting up cattle colonies in urban areas and organizing milk schemes. Milk processing plants were built in cities but not in the cowsheds where milk was produced. This urban orientation to milk production led to the establishment of cattle colonies in big cities. These projects had extreme difficulties in procuring rural milk and running milk schemes in cities economically. No one tried to concentrate on creating an organised sector for procurement of milk, left to contractors and middlemen. The perishable nature of milk and relative scarcity gave the milk vendors a considerable advantage.All these factors combined left Indian dairying in a most unsatisfactory low-level equilibrium.
The introduction of modern technology, both at the farmer level and in the processing of milk and milk products is important to provide the stability to encourage farmers to invest in increased milk production. The most important, is the cooperative structure itself. By giving farmers command over the resources they create, ensured that they receive the maximum return from each rupee spent by consumers on milk and milk products, and this has provided the incentive on which the growth of the dairy industry has been based.
The National Dairy Research Institute, Karnal was established at Bangalore in 1923 as Imperial Institute of Animal Husbandry and Dairying. In 1936 it was renamed as Imperial Dairy Institute. After the independence of India, in 1947 it was renamed to its current name. In 1955 the institute’s headquarters moved to Karnal. The status of deemed to be university was conferred to the institute in 1989.