Milk market structure in Cuttack district of Odisha: Orgnanized vs. unorganized sector

Abstract

A comparative study was done to estimate the marketed surplus and factors affecting it, price spread, marketing efficiencies and constraints of milk marketing in organized and unorganized sector in Cuttack district of Odisha. A random sampling method was employed for data collection from 120 farmers (82-organized and 38-unorganized sector). Average production, consumption, marketed surplus were 49.45, 4.96, 44.49 litres in organized and 46.97, 5.21, 41.76 litres per day per household in unorganized sector respectively. Marketing efficiencies for channels I, II, III, IV, V were 20.77, 14.45, 10.38, 7.84 and 11.38 respectively which implied that channel I was most efficient. Milk production and price of milk had positive and significant impact on marketed surplus; however family size had negative impact and significant in both market structures. Low price and irregular payments were major milk marketing problems in the study area. Hence, it was suggested that for getting marketing benefit, remunerative price with regular payment to the farmers is needed.