EXECUTIVE SUMMARY

I. Title: Detailed understanding of milk supply chain in unorganised sector – East Zone.
II. Organization: ​Prompt Equipments Pvt. Ltd.
III. Reporting Officer: Sudhindra Tatti
IV. Faculty Guide: Prof. Paresh J Bhatt
V. Participant’s Name: Debasish mahalik
❖ Objectives:
To understand the flow of milk in supply chain in unorganised sector.To understand the distance and time
taken for each stakeholder in the chain.To understand the economics of the supply chain for the major
stakeholders.To analyze the scope of equipment & technology intervention in supply chain to improve
efficiency.( The study is limited to Cuttack & Bhubaneswar in Odisha, Kolkata in Westbengal and Patna
in Bihar.)
❖ Methodology:
Structured and unstructured interviews with different stakeholders; farmers,middlemen, vendors and
customers to have a proper understanding of supply chain. To cover a sample size of 230, snowball
sampling has been done. Time-motion study has been taken place for each stakeholders in order to know
the flow of milk. The economics of the supplychain at each stakeholder has been analysed. Also to
understand each stakeholder`s willingness towards equipment and technological interventions correlation
& regression analysis has been done.
❖ Sources of data:
Primary data was collected from milk producers, middleman, vendors and the set of different bulk
customers like tea shop owners, hotel owners, sweet shop owners etc. Data from NDDB and State Animal
Husbandry sites were used to understand milk sector in mentioned locations.
❖ Major Findings:
The Cuttack & Bhubaneswar market has farmer as its most important player with an average heard size of
19 and average production of 94.41ltr per day. Only 70% of those milk goes direct to the
customers.Though 23 % goes through middlemen, but their presence is minimal. 8% of the milk gores
through vendors who follow the new trend of Milk ATM. The presence of Asia`s largest rasogola market
is creating a huge demand of unorganised milk sector. The time taken by milk from farmer to customer
varries from 2 hr to 4 hr. The use of equipment is 11.47% in case of farmers but 55% in case of
middleman. The factors found to be highly correlated to their willingness of using technology are years of
experience and per day milk production. Unlike Odisha, Kolkata unorganised milk market gives
middlemen, higher importance. Beacuse almost 90% of the milk flows through them. The average milk
handeled per day is 2390ltrs. The irony is non of them go for BMCs. The farmers stay as a community in
diffretent places having average herd size of 63 and 218ltr milk production per day. The herd size and
years of experience showed positive correlation with willingness to use technology for farmers. Whereas
the years of experience showed negative correlation with middleman.The Patna market`s heart is its
vendor community. More than 500 vendors in patna with average per day milk handling of 700-800ltrs
sell milk without and with value addition. The patna matket is a 12 hr market. Due to goshsala reforms the
milk production centers had shifted to otside Patna. Hence the farmers residing outside patna have
average herd size of 92 and average per day production of 182ltrs. Nearly 79% of milk flows through
vendor. A high case of adulteration found here unlike other market. The average price per ltr milk came to
around rs.45-55 whereas in Kolkata its 35-50 and in Cuttack & Bhubaneswar its 35-45. For vendors of
Patna the average milk handling per day showed positive correlation with willingness to use technological
solution, whereas years of experience was negatively correlated.
❖ Conclusion and Recommendations:
In all the cases the farmers in community or goshalas need awareness about different equipments. Then to
reduce their cost they can use milking machine. Beacuse they were facing problem in animal record
keeping, the AH App can be suggested. Beacuse in Kolkata, the middleman and in Patna, the vendors are
working as a community, penetrating the market will be easier with proper awareness. The middlemen
and vendors are getting awre about the food standars and food laws. Hence the demand of quality
analyser equipment is also increasing in these markets.