IDEAS home Printed from
   My bibliography  Save this article

Understanding Value Addition in Indian Dairy Sector: Some Perspectives


  • Singh, Shiv Raj
  • Datta, K.K.


Indian dairy sector has shown tremendous growth in terms of milk production, from 17 million tonnes (1950-51) to 112 million tonnes (2009-10). This transition from deficiency to sufficiency has been achieved by a series of policy interventions by the government. It has been found that in the first phase of ‘Operation Flood’, growth rate of value-added products was 0.93 per cent per annum, but in the third phase, it became 9.10 per cent per annum. Milk processing in India is around 35 per cent, of which the organized dairy industry accounts for only 13 per cent of the milk produced, the remaining 22 per cent is processed in the unorganized sector. To explore the diversity and market exploration for enhancing the value in milk, the study has identified the untapped demand of different dairy and dairy products in ethnically diversified rural urban groups. The paper has highlighted certain dairy development policies to encourage growth of the dairy sector. While value addition in milk is unavoidable if one has to enhance sector profitability, the same does not seem feasible unless the organized sector improves its penetration. Because, it is the involvement of the organized sector that will drive the growth by resorting to value addition in basic product and harnessing the consumer market. The mechanics of the organized sector penetration could be agency-specific as also area-specific.

Suggested Citation

  • Singh, Shiv Raj & Datta, K.K., 2010. "Understanding Value Addition in Indian Dairy Sector: Some Perspectives," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 23(2010).
  • Handle: RePEc:ags:aerrae:96924

    Download full text from publisher

    File URL:
    Download Restriction: no

    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:96924. 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.