IDEAS home Printed from
   My bibliography  Save this article

Formal Milk Processing Sector in Assam: Lessons to be Learnt from Institutional Failure


  • Sirohi, Smita
  • Kumar, Anjani
  • Staal, Steven J.


Assam initiated organised development of milk processing way back in the mid 1960s. The total installed capacity of pasteurisation and chilling plants in the State is 159 thousand and 28.5 thousand litres per day, respectively. The current scenario of the formal milk processing segment in the state is however, grim. The created infrastructure is either largely defunct or grossly under-utilized. The functional plants are operating at very low level of their installed capacity, have limited product profile, high returns of marketed milk, substantial handling and curdling losses, low productivity of capital and labour and huge operational losses. The poor performance of the plants has been attributed to the establishment of milk processing units without an appropriate assessment of output demand and input supply and ascertainment of economic viability of the plants. In addition, the supporting institutional and infrastructural mechanism has not been put in place and a systematic business and management plan to run the system has not been formulated. Drawing lessons from the institutional failure, the study has suggested some possible interventions and policy initiatives for strengthening the dairy processing activities in the state of Assam.

Suggested Citation

  • Sirohi, Smita & Kumar, Anjani & Staal, Steven J., 2009. "Formal Milk Processing Sector in Assam: Lessons to be Learnt from Institutional Failure," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 22(2).
  • Handle: RePEc:ags:aerrae:57407

    Download full text from publisher

    File URL:
    Download Restriction: no


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Kumar, Anjani & Staal, Steven J. & Baltenweck, Isabelle & Lapar, Lucy L., 2010. "Traditional Milk Market in Assam: Potential for Income and Employment Generation," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 65(4).

    More about this item


    Agricultural and Food Policy;


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aerrae:57407. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.