Role of Milk Market Infrastructure for Sustainable Dairy Development

Abstract

Poor market infrastructure leads to inefficient use of resources and inequitable welfare distribution hampering sustainable development. Increased productivity along with investments in market infrastructure is critical for dairy development. The main objective of the study was to develop a composite milk market infrastructure index (MMII) for 21 states of India. The indices were computed using 10 selected indicators, followed by classification into 3 categories viz., high, moderate and low for policy prescription. The findings indicated that Gujarat had the highest MMII (0.7156) and due to the highest number of dairy cooperative societies (2 per 1000 tonnes of milk production). On the contrary, Chhattisgarh had the lowest MMII (0.1194) due to lack of facilities in procurement, transportation, and communication apart from competitive markets. Surprisingly; Haryana, one of the major contributors to milk production in the country, was placed under low MMII (0.2445) due to an unorganized market structure, less procurement and limited access to extension activities. The analysis indicated that six states had high MMII, seven under moderate and the rest eight low MMII. In order to meet the growing demand, milk production should be increased followed by establishing well-organized and well-equipped markets that link production and consumption. To facilitate, the Government should implement necessary policy actions in order to strengthen the market infrastructure and disposal pattern of milk so as to ensure “zero hunger, improved nutrition and food security” for addressing the Sustainable Development Goals (SDGs).