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 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
