A survey on the economies of milk production in five selected areas of Mysore, Kerala and Tamil Nadu has revealed that about 70% of the cow and buffalo population in these areas is now descript with a low milk yield of about 300 kg per lactation. Adopting the suggestion of the National Commission on Agriculture, a synthesis of the maintenance cost of an animal at viable level under existing conditions has been attempted by the survey and it has been recommended that the base price of milk should be Rs. 1.30 paise in urban areas and Rs. 1.09 paise per litre in rural areas.
It has been suggested that the Government in co-operation with Co-operative Milk Union should enter the distribution field and suitable arrangements should be made to handle at least 50% of the public needs. Releasing the findings of the survey undertaken at the behest of the National Commission on Agriculture, Dr. B. Natarajan, Chairman, Institute of Techno-Economic Studies, said the survey studied the economics of milk production in different breeds and stable sizes of cattle and among different income groups of milch cattle owners; and to suggest the sizes, breed and other conditions necessary for the settling up of viable units for milk production
