A.

INTRODUCTION:

Dairy industries in India is traditional a long way from dependence to self-reliance.

It is the single largest contributor to the Indian GDP(34.59%) and involves more than 8 million
small farming households. Livestock contributes 26.40% of agriculture income which is 36.88%
of national income of India(Dairy year book 2009-10).dairy farming play a prominent role in
rural livestock production, it contributes 90 million tones of milk. The social impact of
developing the dairy industry has thus been profound. With the opening up of the Indian
market to an influx of foreign goods, much concern has been expressed over the state of the
Indian dairy industry.

The dairy sector in the India has shown remarkable development in the past decade
and India has now become one of the largest producers of the milk and value added milk
products in the world. The dairy sector has developed through co-operatives in many parts of
the state (e.g. And Karimnagar co-operative dairy,) and vital avenue for employment and
income generation in rural as well as in semi urban areas.

PRESENT SCENARIO: Production and marketing of milk

Among the agriculture dependent farmers, 2/3 rd to 3/4th of the farmers wholly or
partly depending on livestock farming. The average annual growth of the dairy industry is about
5.6%. The per-capita availability of milk is about 214 Gms. Per day as against the recommended
of 250 gms. Milk is one of the most important items of common vegetarian diet of Indian
people. With rapid industrialization, economic growth and potentially economic string domestic
consumers of milk and milk products, there is a very strong potential for future growth of this
dairy industry. Eg. At present Hyderabad requires 18 lakhs liters per day but in and around
Hyderabad the supply is only 8 lakhs liters. Every day from cittoor and other districts the inflow
is 4 lakhs litters and from Karnataka 5 liters is coming to Hyderabad.

About 56% of milk is available as marketable surplus for urban areas. Most of the
milk is converted to local milk products (khoa, pannier, butter, ghee etc.). The share of private
organization sector is about 15 to 18% and Govt. and co-operative sector is about 12 to 15%.
There is still very large portion of milk market in the hands of unorganized sector which has
adverse effect on the farm-gate price of the milk. In Govt. and co-operative sectors, 80% of milk
is marketed as liquid ilk and only 20% as milk products. But in private sectors, only 30% is
marketed as liquid milk and 70% as milk products with value addition. The dairy products with
high demand are flavored milk with different fat content.