Milk Supply Functions at Factor and Product Prices in India

The results revealed that the supply of milk through Crossbred cows is sensitive to the price change in area covered under the umbrella of cooperatives. The milk yield of Crossbred cows being higher and the potentiality of increasing the milk through cross-breeding, feeding and management being high, the liquid milk supply could be increased substantially with proper pricing policy of Crossbred cow milk. Further, since the price of milk of Crossbred cow was lower compared to Murrah buffaloes (superior breed of buffalo), this breed of cattle showed higher sensitivity to unit increase in the price of milk and it was particularly true in the case of area covered by cooperatives. The study, therefore, suggest that the price of milk should be increased at an appropriate level so as to tap the additional milk supply and thus bridging the gap of shortage of milk in the area covered in the study.