An Economic Analysis of Factors influencing Milk Production and supply response of Milk to change in price at the Producer’s level

A study in Ranga Reddy district, Andhra Pradesh

Abstract

Over the last few decades, milk production in India has 1 undergone a sea change from the rock bottom level of about 17 million tones in 1950-51 to more than 50 million tones in 1989-90 and 66. l million tones in 1995-96. It has been estimated that the milk production would reach at the level of 100 million tones by 2001 1 . The credit for such achievement is attributable to the effo1ts of the planners and policy makers who conceived of the National Dairy Development Board to replicate the experience of success of Kaira Milk Co-operative Society, popularly known as AMUL. on the one hand and the Indian farmers, who showed tremendous interests in cattle improvement through crossbred programme on the other. In rnral India, despite sustained efforts of cattle improvement, low yielding non-descriptive cows and buffaloes outnumber the crossbreeds. Though vast majority of the farmers rear such non-descriptive and low yielding milch cows on sentimental grounds without any economic content fairly large number of farmers depend upon dairy units to supplement household income. Livestock is not only viewed from the angle of source of milk but also viewed from the angle of cheap source of manure and transport for farming and a source of employment for the households in the rural area