Lok Sabha Question No. 1277 (UNSTARRED), answered on 2021-07-27
Subject: Production Cost of Milk
Ministry: FISHERIES, ANIMAL HUSBANDRY AND DAIRYING
Asked by: Shriniwas Dadasaheb Patil

GOVERNMENT OF INDIA MINISTRY OF FISHERIES, ANIMAL HUSBANDRY AND DAIRYING DEPARTMENT OF ANIMAL HUSBANDRY AND DAIRYING LOK SABHA UNSTARRED QUESTION No. 1277 TO BE ANSWERED ON 27 TH  JULY 2021

## PRODUCTION COST OF MILK

## 1277.   SHRI SHRINIWAS PATIL:

## Will the Minister of Fisheries, Animal Husbandry and Dairying

## मत्स्यपाऱन , पशुपाऱन और डेयरी मंत्री

be pleased to state:

- (a) whether the Government has conducted any study to ascertain the average production cost of milk per liter in the country for individual farmers;
- (b) if  so,  the  details  of  findings  of  such  study  and  any  conclusions  drawn  from  the  study  regarding profitability of farmers engaged in milk production then; and
- (c) whether the Government is planning to introduce any Minimum Support Price or Fair remunerative price for milk?

## ANSWER

## THE MINISTER OF FISHERIES, ANIMAL HUSBANDRY AND DAIRYING (SHRI PARSHOTTAM RUPALA)

- (a) Yes Sir.  Agro-Economic Research (AER) Division, Department of Agriculture and Cooperation  and Directorate  of  Economics  and  Statistics  (DES)  has  conducted  a  study  'Assessment  of  the  Status  of Dairying & Potential to Improve Socio-Economic Status of the Milk Producers & Convergence of all Central & State Schemes at District level in India' through one of the AER center, AERC VV Nagar, Gujarat for the agriculture years 2015-16 and 2016-17 in nine States  viz. Assam, Bihar, Chhattisgarh, Jharkhand, Odisha, Uttar Pradesh, west Bengal, Gujarat and Rajasthan.
- (b) The study has come out with the findings on the 'Cost of production of milk and net returns realised' by the  sample  households  belonging  to  Dairy  Cooperative  Societies  (DCS)  and  Non-Dairy  Cooperative Society (NDCS). The findings mention that the net returns realized by the DCS households were higher than NDCS household for all groups and in all species. Further, there are huge variations across the State in terms of expenditure incurred on various items/ inputs of milk production.. The statement of the cost of cow and buffalo milk production  & net return for Dairy Cooperative Society DCS  and  NCDS are at Annexure-I & II respectively.
- (c) The price of milk and milk products are not regulated by the Government of India.

*********

Cost of Cow and Buffalo Milk Production and Net Returns- DCS households

|    |                                                               | Assam   | Assam   | Chhattisgarh   | Chhattisgarh   | Chhattisgarh   | Odhisa   | Odhisa   | Odhisa   | West Bangal   | West Bangal   | Gujarat   | Gujarat   | Gujarat   | Rajasthan   | Rajasthan   | Rajasthan   |
|----|---------------------------------------------------------------|---------|---------|----------------|----------------|----------------|----------|----------|----------|---------------|---------------|-----------|-----------|-----------|-------------|-------------|-------------|
|    |                                                               | LC      | CB      | LC             | CB             | B              | LC       | CB       | B        | LC            | CB            | LC        | CB        | B         | LC          | CB          | B           |
|    | Cost                                                          |         |         |                |                |                |          |          |          |               |               |           |           |           |             |             |             |
| 1  | Total feed & fodder (Rs./Animal/Day)                          | 35.3    | 84.0    | 6.2            | 10.4 11.5      | 53.4           |          | 103.6    | 123.4    | 66.4          | 67.1          | 115.6     | 118.1     | 127.9     | 130.2       | 128.6       | 134.2       |
| 2  | Total Labour (Rs./Day)                                        | 11.0    | 59.7    | 6.2 4.6        | 7.1            |                | 63.3     | 73.0     | 101.3    | 97.8          | 92.9          | 74.3      | 74.3      | 74.3      | 70.5        | 70.5        | 70.5        |
| 3  | Veterinary Cost (Rs./Animal/Day)                              | 1.0     | 2.1     | 0.4            | 2.9            | 2.2            | 1.7      | 2.1      | 1.2      | 3.1           | 3.3           | 1.5       | 2.0       | 1.4       | 5.5         | 8.8         | 6.9         |
| 4  | Transportation Cost                                           | 0.0     | 0.0     | 0.3            | 0.3            | 0.5            | 0.0      | 0.0      | 0.0      | 0.0           | 0.0           | 0.0       | 0.0       | 0.0       | 0.0         | 0.0         | 0.0         |
| A  | (Rs./Animal/Day ) [Sum of 1 to 4]                             | 47.3    | 145. 8  | 13.1           | 18.8           | 21.3           | 118.4    | 178.7    | 225.9    | 167.4         | 163.2         | 190.4     | 196.4     | 203.9     | 206.3       | 207.9       | 211.6       |
|    | Returns                                                       |         |         |                |                |                |          |          |          |               |               |           |           |           |             |             |             |
| 1  | Returns from Milk Production (Production*Avg Price)           | 51.0    | 195.4   | 29.3           | 58.4           | 60.7           | 132.0    | 209.7    | 251.1    | 64.2          | 137.4         | 208.0     | 218.2     | 218.2     | 221.9       | 229.1       | 230.1       |
| 2  | Income from Dung (Rs./Animal/Day)                             | 2.9     | 3.3     | 0.7            | 0.4            | 0.9            | 0.0      | 0.0      | 0.0      | 36.2          | 44.2          | 10.8      | 11.5      | 10.9      | 4.0         | 4.3         | 6.0         |
| B  | Total Income (Rs./Animal/Day ) [Sum of 1 to 2]                | 54.0    | 198.6   | 30.0           | 58.8           | 61.6           | 132.0    | 209.7    | 251.1    | 100.4         | 181.6         | 218.8     | 229.7     | 229.1     | 225.9       | 233.4       | 236.1       |
|    | Net Return/Profit (RS./Animal/Day ) [Difference between A &B] | 6.7     | 52.8    | 16.9           | 40.0           | 40.3           | 13.6     | 31.0     | 25.2     | -67.0         | 18.4          | 28.4      | 33.3      | 25.2      | 19.6        | 25.4        | 24.5        |

LC-Local Cow; CB-Cross Breed; B-Buffalo

Annexure-I

Cost of Cow and Buffalo Milk Production and Net Returns- NDCS households

|    |                                                              | Assam       | Assam   | Chhattisgarh   | Chhattisgarh   | Chhattisgarh   | Odhisa   | Odhisa      | Odhisa   | West Bangal   | West Bangal   | Gujarat   | Gujarat     | Rajasthan   | Rajasthan   | Rajasthan   |
|----|--------------------------------------------------------------|-------------|---------|----------------|----------------|----------------|----------|-------------|----------|---------------|---------------|-----------|-------------|-------------|-------------|-------------|
|    |                                                              | LC          | CB      | LC             | CB             | B              | LC       | CB          | B        | LC            | CB            | LC        | CB B        | LC          | CB          | B           |
|    | Cost                                                         |             |         |                |                |                |          |             |          |               |               |           |             |             |             |             |
| 1  | Total feed & fodder (Rs./Animal/Day)                         | 36.5 85.0   | 6.7     | 11.9           | 12.3           | 53.8           |          | 127.8 167.9 | 69.9     | 65.0          | 104.6         | 111.2     | 111.1       | 115.3       | 118.9       | 122.1       |
| 2  | Total Labour (Rs./Day)                                       | 10.7 46.7   | 5.8     | 7.2            | 8.1            | 60.5           | 81.3     | 100.3       |          | 103.7 101.4   | 68.3          | 68.3      | 64.9        | 52.9        | 52.9        | 52.9        |
| 3  | Veterinary Cost (Rs./Animal/Day)                             | 1.1 1.7     | 1.2     | 2.3            | 2.2            | 1.2            | 2.0      | 1.1         |          | 2.8 3.0       | 1.9           |           | 3.3 3.9     | 5.3         | 8.1         | 7.0         |
| 4  | Transportation Cost                                          | 0.0 0.0     | 1.0     | 2.0            | 2.4            | 0.0            | 0.0      | 0.0         | 0.0      | 0.0           | 0.0           | 0.0       | 0.0         | 0.0 0.0     |             | 0.0         |
| A  | (Rs./Animal/Day) [Sum of 1 to 4]                             | 48.3 133.4  | 14.7    | 24.2           | 25.0           | 115.5          | 211.1    | 269.3       |          | 176.4         | 169.4         | 176.4     | 186.3 183.9 | 173.5       | 179.9       | 181.9       |
|    | Returns                                                      |             |         |                |                |                |          |             |          |               |               |           |             |             |             |             |
| 1  | Returns from Milk Production (Production*Avg Price)          | 49.7 150. 9 | 30.5    | 93.7           | 95.0           | 129.8          | 235.4    | 299.4       | 66.7     | 121.4         | 181.8         | 191.1     | 190.2       | 186.4       | 198.4       | 202.0       |
| 2  | Income from Dung (Rs./Animal/Day)                            | 2.6 2.8     | 2.4     | 2.5            | 3.5            | 0.0            | 0.0      | 0.0         | 37.6     | 43.7          | 10.8          | 10.3      | 8.7         | 4.0         | 4.3         | 6.0         |
| B  | Total Income (Rs./Animal/Day) [Sum of 1 to 2]                | 52.3 153. 7 | 32.9    | 96.2           | 98.5           | 129.8          | 235.4    | 299.4       | 104.3    | 165.1         | 192.6         | 201.4     | 198.9       | 190.4       | 202.7       | 208.0       |
|    | Net Return/Profit (RS./Animal/Day) [Difference between A &B] | 4.0 20.4    | 18.2    | 72.0           | 73.5           | 14.3           | 24.3     | 30.1        | -72.1    | -4.3          | 16.2          | 15.1      | 15.0        | 16.9        | 22.8        | 26.1        |

Note: Per animal per day cost of milk production were observed.

LC-Local Cow; CB-Cross Breed; B-Buffalo

## Annexure-II