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CRISIL Research Data on Milk Procurement by Dairy Companies in India

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

Mumbai, 6th October 2021: 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


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