Economic Analysis of Traditional Milk Supply Chain in Ranchi District of Jharkhand

Abstract

The present study was purposively conducted in Ranchi district of Jharkhand. It was an attempt to work out the cost and returns of milk production, the marketed surplus and to examine the factors affecting it and finally to study the different marketing channels in the state and to examine which one was most efficient channel in the study area. The study covered 120 households along with 7 milk vendors, 3 creameries/halwaies and 2 contractors in the study area. Then these households were post stratified into small, medium and large categories based on herd size. The study revealed that the net returns per litre of milk from buffalo was positive for all category and highest for medium category. Similarly, the net returns from cross bred was positive for all and highest in the case of large category households. But net returns from local cow was negative except for large category wherein the return was positive and very insignificant. Of the total production of milk 88.19 percent of milk was marketed through different channels. About 90.75 percent milk was marketed through unorganized sector and only 9.25 percent through organized sector. Also the per cent marketed surplus of milk to the total production was highest in large category households. This marketed surplus of milk was found to have significant relation with price, production per unit herd size, family size and land holding. It was further observed that in the study area mainly four channels were operating in the traditional market and in that Channel-II was most efficient channel in which creameries/halwaies were involved in the marketing of milk. Thus the results show the dominance of traditional marketing channels in the area.