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Report On Comparative Study Into Sales & Distribution Of Amul Dairy & Parag Dairy

Introduction To The Indian Dairy Industry

The world’s biggest dairy-producing country is growing fast and looking to become an export powerhouse despite major quality problems…

A Note to our Readers: the following information on India’s dairy sector is reproduced from India India is the world’s largest milk-producing country and is growing fast, with an eye toward becoming a major dairy exporter. This article is helpful reading for anyone interested in better understanding.

Consumer Habits and Practices

Milk has been an integral part of Indian food for centuries. The per capita availability of milk in India has grown from 172 gm per person per day in 1972 to 182 gm in 1992 and 203 gm in 1998-99. This is expected to increase to 212gms for 2008. However, a large part of the population cannot afford milk. At this per capita consumption, it is below the world average of 285 gm and even less than 220 gm recommended by the Nutritional Advisory Committee of the Indian Council of Medical Research.

There are regional disparities in production and consumption also. The per capita availability in the north is 278 gm, west 174 gm, south 148 gm and in the east only 93 gm per person per day. This disparity is due to the concentration of milk production in some pockets and the high cost of transportation. Also, the output of milk in cereal growing areas is much higher than elsewhere which can be attributed to the abundant availability of fodder, crop residues, etc which have a high food value for milky animals.

Market Size And Growth

The market size for milk (sold in loose/ packaged form) is estimated to be 36mn MT valued at Rs470bn. The market is currently growing at around 4% pa in volume terms. The milk surplus states in India are Uttar Pradesh, Punjab, Haryana, Rajasthan, Gujarat, Maharashtra, Andhra Pradesh, Karnataka and Tamil Nadu. The manufacturing of milk products is concentrated in these milk surplus States. The top 6 states viz. Uttar Pradesh, Punjab, Madhya Pradesh, Rajasthan, Tamil Nadu and Gujarat together account for 58% of national production.

Milk production grew by a mere 1% pa between 1947 and 1970. Since the early ’70s, under Operation Flood, production growth increased significantly averaging over 5% pa. About 75% of milk is consumed at the household level which is not a part of the commercial dairy industry. Loose milk has a larger market in India as it is perceived to be fresh by most consumers. In reality, however, it poses a higher risk of adulteration and contamination.


Title – Research Project Report On Comparative Study Into Sales & Distribution Of Amul Dairy & Parag Dairy

Author – N/A

College – Mahamaya Technical University 

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