Economic Analysis of Milk Markets in Rural India

The size class-I, size class-II and size class-III category of dairy farmers get profit over cost B recording Rs.4.10, Rs.4.05 and Rs.4.00 per litre respectively. However the return per litre of milk over actual cost (cost C ) is highest in the size class-I categories of dairy farm owners recording Rs.2.85 as profit followed by size class-II with Rs.2.80 per litre) and size class-III with Rs.2.70 per litre) .Increase in price will not alone able to increase production, the factors like feeding, infrastructural facilities and timely market support may be crucial for raising the level of production The return per liter of milk over variable costs are highest in size class-I (Rs.6.75 per liter) followed by size class-II (Rs.6.70 per liter) and size class-III (Rs.6.55 per lite The production curve can be shifted upwards with improved production and market management practices. It is also important to reduce proportion of none descripts milch animals which drain the resources without contributing to production satisfactorily. Acknowledgement : I am thankful to international society of Agricultural Economics which encouraged me to write such paper.