Hatsun Agro Product Ltd had commissioned Crisil, India’s largest independent research house, to conduct a market study regarding milk procurement by private dairy companies in India. The study was initiated based on the request from R Rajasekaran, secretary, Tamil Nadu Dairies Association, for details about milk procurement in India by private players. Hatsun sponsored the study.
R G Chandramogan, chairman, Hatsun Agro Product Ltd, stated, “The report is extensive and gives a good picture of the contribution made by private sector in the dairy industry starting from 1992 when the dairy industry was opened up for private sector. The private sector used their own risk capital without any subsidies or loss write-off by state governments and contributed to the dairy sector development. The report also highlights how the market mechanism in procurement works for cooperatives and private dairies”.
Highlights
- Private players have a strong foothold in 8 of the top 12 milk-producing states in India
- Top 12 states account for 88% of India’s milk production as of 2019-20
- Two-third of the total milk is handled by private dairies in Tamil Nadu
Milk Procurement Scenario 2020-21 (LKPD – Lakh KG PER DAY)
|
State
|
Private
Dairies
|
Cooperatives
|
|
Maharashtra
|
123-127
LKPD
|
36-38
LKPD
|
|
Uttar
Pradesh
|
121-125
LKPD
|
5-7
LKPD
|
|
Tamil
Nadu
|
75-79
LKPD
|
36-38
LKPD
|
|
Andhra
Pradesh
|
35-37
LKPD
|
14-16
LKPD
|
|
Punjab
|
30-32
LKPD
|
17-19
LKPD
|
|
Madhya
Pradesh
|
30-32
LKPD
|
9-11
LKPD
|
|
Haryana
|
27-29
LKPD
|
4-6
LKPD
|
|
Telangana
|
12-14
LKPD
|
5-7
LKPD
|
|
Rajasthan
|
27-29
LKPD
|
28-30
LKPD
|
|
Karnataka
|
12-14
LKPD
|
80-84
LKPD
|
|
Gujarat
|
12-14
LKPD
|
225-227
LKPD
|
|
Bihar
|
7-9
LKPD
|
18-20
LKPD
|
|
Other
States
|
33-35
LKPD
|
47-49
LKPD
|
|
All
India
|
557-562
LKPD
|
535-540
LKPD
|
Annexure: Crisil Research Report on Milk Procurement by Private Dairies in India