Exploring Markets for Liquid Milk in India

In urban areas, the demand for milk is mainly fulfilled through purchase. The proportion of consumers purchasing milk in rural India is 65% whereas one third of them depend on milk produced at home. The per capita consumption of milk is markedly higher in families who own dairy animals. Since fewer families own dairy animals in Southern and Eastern regions, they stand out in terms of potential for liquid milk market. Thus the rural areas of Andhra Pradesh, Bihar, Kerala, Karnataka, Maharashtra, Punjab, Tamil Nadu and West Bengal reveal big scope for liquid milk marketing.
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Diversity in Food Basket Grows with Rising Income

Factual evidence from the NSS survey shows that in the food basket, the inclination towards high valued and protein-rich items like milk & milk products, egg, fish & meat, fruits and processed food increases with the rise in total consumer expenditure. With the increase in income, change in lifestyle, urbanisation, improved affordability and accessibility, the consumption habits in Indian population have been undergoing radical changes. The agro processing sector needs to take note of this movement for supply adjustment.
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