Studies on the effectiveness of milk vendorship in Uttar Pradesh: A principal component analysis approach

Abstract

This study was conducted to analyze the effectiveness of milk vendorship in Uttar Pradesh by using multistage random sampling across the Eastern, Central, Western and Bundelkhand economic regions. Data were collected from the selected120 milk vendors of the towns vendors who had been in the dairy venture for at least five years i.e. 2015-16 to 2020-21 through structured interview schedule. The collected data focused on major effectiveness indicators such as income generation, operational efficiency, infrastructure facilities, and competitiveness. Employing Principal Component Analysis (PCA), objective weights were given to these indicators, and a holistic effectiveness index was developed. The findings showed that the major dimensions influencing vendorship effectiveness were competitiveness (19.697), followed by income generation (15.473), operational efficiency (12.462), and infrastructure facilities (10.201). The findings indicated that only 30.80 percent of vendors were highly effective, 32.5 per cent were medium, and 36.7 per cent were low. Vendors with medium and high-effectiveness level benefited relatively more due to reduced cost family labour and integration of technologies. Strengthening vendor capacities through government initiatives, need-based training, and mechanization assistance could optimize vendorship, ensuring the distribution of high-quality milk, increased income, and resistance to market fluctuations, ultimately leading to a sustainable dairy economy.