According to the study, private players have a strong foothold in eight of the top 12 milk-producing states in India

Chennai-based Hatsun Agro Product has recently 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 R Rajasekaran, Secretary, Tamil Nadu Dairies Association for details about milk procurement in India by private players. Hatsun Agro Product has sponsored this all India study by CRISIL.

RG Chandramogan, Chairman, Hatsun Agro Product, “The report is extensive and gives a good picture of the contribution made by the private sector in the dairy industry starting from 1992 when the dairy industry was opened up for the private sector. The private sector used their 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.”

According to the study, private players have a strong foothold in eight of the top 12 milk-producing states in India. The top 12 states account for 88 per cent of India’s milk production as of 2019-20 and two-third of the total milk is handled by private dairies in Tamil Nadu.