Economics of milk production in organized and unorganized sector in Cuttack district of Odisha- a comparative analysis

Abstract

An endeavour has been made to investigate the economics of milk production by different categories of milk producer groups in Cuttack district Odisha during year 2015. Primary data was collected from 120 farmers of Niali, Kantapada, Mahanga, Salipur Block of Cuttack district by two stage random sampling method. It was found that the total cost and net return of milk yield per day per cow for organized and unorganized sector was Rs.169.736, Rs.156.728 and Rs.166.787, Rs.144.959 respectively. The total milk produced per day per cow in organized and unorganized sector was 11.643 litres and 10.736 litres respectively which were much higher than the break-even level of output i.e. 1.286 litres and 1.037 litres respectively. Green fodders and concentrate had positive and significant association with total production of milk in all market structure with total explained variation was R 2 as 71.1 percent. In organized sector green fodder and dry fodder were used optimally but concentrate and labour were over utilised. In unorganized sector, green and dry fodders were over utilised, whereas concentrate and labour were underutilized. Major constraints faced by farmers in dairying were lack of medical facilities, inadequate feed, input and input services at higher price, inadequate subsidy. It was concluded that dairying business was profitable in the study area because of it’s high production but care should be taken for best possible use of inputs like dry fodder, green fodder, concentrate and labour particularly in unorganized sector and provision of good medical facilities, inputs with subsidy by government to the dairy farmers for enhanced recital.