Economics of milk production and cost elasticity analysis in Sirsa district of Haryana

Abstract

Haryana was purposively chosen for the study, in which Sirsa district which falls in the western zone was selected. A predetermined sample of 140 milk producers of the dairy co-operative societies was drawn randomly from all eight societies and was post stratified into three categories on the basis of total SAU's in each household. To estimate cost and returns of milk production budgeting technique was used and it was concluded from the analysis that rearing of crossbred was most profitable one as compared to buffalo and local cows. The return per litre was found highest for crossbred cows since the productivity was more as compared to buffalo and local cows. By analysis of cost elasticity it was found that cost and yield had negative relation, since economies of scale was found and increase in yield leads to decrease in cost. It was found that in case of medium farmers the decrease in cost was the highest.