How profitable is dairying in tribal Chhattisgarh?

Abstract

The study estimated the costs, returns and determinants of milk production in tribal region of Chhattisgarh using household level data from 300 farmers of two tribal districts namely Koriya and Surguja. Study found that dairy animals, particularly indigenous animals were maintained poorly, largely feeding on poor quality common property resources. Cost of milk production was estimated to be highest in buffalo (Rupees 29.12/litre) and lowest in crossbred cow (Rupees 20.97/litre). The rearing of local cows and buffalo for milk production as business was not profitable due to low productivity. However, higher opportunity costs of rearing these animals (Rupees 14.51/litre in buffalo and Rupees 18.58/litre in local cow) may generate significant employment opportunity and additional income among the tribal farmers. The crossbred animals are economically viable at least in the short-run. But if the productivity of these animals does not increase it is likely that in the times to come, the returns will not be even sufficient to cover the rising feed and fodder costs. Positive and significant coefficients of concentrates and green fodder with respect of milk production indicate high priority to be given on these aspects by various ways like availability of seed on improved fodder, creating awareness on balance feeding, institutional arrangement for improving quality of common property resources etc.