~Private players have a strong foothold in 8 of the top 12 milk producing states~

Mumbai: Hatsun Agro Product Ltd had commissioned CRISIL, India’s largest Independent research house to conduct a market study regarding milk procurement by private dairy companies in India. The study was initiated based on the request from Mr. R Rajasekaran, Secretary, Tamil Nadu Dairies Association for details about milk procurement in India by Private players. Hatsun Agro Product Ltd had sponsored this all India study by CRISIL.

According to RG Chandramogan, Chairman, Hatsun Agro Product Ltd “The report is extensive and gives a good picture of the contribution made by private sector in the dairy industry starting from 1992 when the dairy industry was opened up for private sector. The private sector used their own risk capital without any subsidies or loss write-off by state governments and contributed to the dairy sector development. The report also highlights how the market mechanism in procurement works for cooperatives and private dairies”.

Key Highlights:

• Private Players have a strong foothold in 8 of the top 12 milk-producing states in India
• Top 12 states account for 88% of India’s milk production as of 2019-20
• Two third of the total milk is handled by private dairies in Tamil Nadu

Milk Procurement Scenario 2020-21 (LKPD – Lakh KG PER DAY)

State	Private Dairies	Cooperatives
Maharashtra	123-127 LKPD	36-38 LKPD
Uttar Pradesh	121-125 LKPD	5-7 LKPD
Tamil Nadu	75-79 LKPD	36-38 LKPD
Andhra Pradesh	35-37 LKPD	14-16 LKPD
Punjab	30-32 LKPD	17-19 LKPD
Madhya Pradesh	30-32 LKPD	9-11 LKPD
Haryana	27-29 LKPD	4-6 LKPD
Telangana	12-14 LKPD	5-7 LKPD
Rajasthan	27-29 LKPD	28-30 LKPD
Karnataka	12-14 LKPD	80-84 LKPD
Gujarat	12-14 LKPD	225-227 LKPD
Bihar	7-9 LKPD	18-20 LKPD
Other States	33-35 LKPD	47-49 LKPD
All India	557-562 LKPD	535-540 LKPD

Annexure: CRISIL Research Report on Milk Procurement by Private Dairies in India