Economics and constraints of milk production in Chandrapur district of Maharashtra

Introduction

Livestock farming is a vital pillar of India's rural and agricultural economy, offering income, employment, and financial security to millions of households, particularly small and marginal farmers, landless labourers, and women. Unlike seasonal crop farming, it provides a steady, yearround income source, with dairy farming standing out as a key contributor-directly employing over eight crore farmers nationwide. The sector's economic weight is substantial, contributing roughly 31% of Agricultural GVA and about 5.5% of national GVA, acting as a stabilizing force during economic fluctuations. Historically, pre-independence dairy farming in India was informal and low-yielding, hampered by poor breeding, weak veterinary support, and disorganized marketing, with annual milk production standing at just 17 million tonnes at independence. Post-independence reforms-especially the 1970 White Revolution led by Verghese Kurien and the cooperative model pioneered by Amul-transformed India into the world's largest milk producer. By 2024-25, production had surged to 247.87 million tonnes, with per capita availability rising from 124 to nearly 485 grams per day. Globally, India leads milk production with a 25% share, followed by the USA, Pakistan, China, and Brazil. Within India, Uttar Pradesh and Rajasthan dominate state-level output, together contributing over 30% of national production. Maharashtra, too, plays a significant dairy role, with production rising from 101.52 lakh tonnes (2015-16) to 166.26 lakh tonnes (2024-25). Within the state, Chandrapur district exemplifies a mixed farming system integrating crop and livestock production, with both cattle and buffalo rearing contributing to household income. However, farmers here face challenges including high feed costs, inadequate veterinary services, and price fluctuations-making comparative profitability analysis between cow and buffalo milk production essential for understanding the sector's economic dynamics at the local level. Objective 1. To estimate the maintenance cost and returns of Cow and Buffalo milk production 2. To identify the constraints faced by milk producer

Methodology

For the present study, Chandrapur district of Vidarbha region of Maharashtra was selected purposively. Chandrapur district consists of fifteen tahsils, of which two tahsils were selected for the study. From each selected tahsil, two villages were selected, resulting in a total of four villages for the present study. A sample of 120 milk producers was selected randomly from the selected villages of the two tahsils of Chandrapur district. The sample comprised 60 buffalo milk producers and 60 cow milk producers. From each village, 15 buffalo and 15 cow milk producers were selected. The primary data were collected by survey method through welldefined pre-tested schedule by personal interview of the selected milk producers. The data pertained to the calendar year -2025

Analytical tools and technique Cost concept

Total fixed cost: Depreciation (cattle shed, equipment's) + Interest on fixed cost (@ 10%). No. 1 presents the annual maintenance cost of milk buffaloes and cows, expressed in rupees per animal per year. The total variable cost was ₹78190.04 for buffaloes and ₹69463.48 for cows, accounting for 85.05 and 83.69 per cent of the respective total costs. Among the variable cost components, concentrate feed constituted the largest share, followed by dry fodder and human labour in both enterprises. The fixed cost was ₹13,749.43 per buffalo and ₹13,535.03 per cow, representing 14.95 and 16.31 per cent of the total cost, respectively. Depreciation on fixed assets was ₹7,833.20 for buffaloes and ₹8,356.59 for cows, while interest on fixed capital was ₹5,916.23 and ₹5,178.44, respectively. The expenditure on medicine and vaccines was higher for cows, whereas buffaloes incurred higher costs on human labour, electricity and feed components. Overall, the annual total maintenance cost was ₹91,939.47 per buffalo and ₹82,998.51 per cow. Thus, the cost of maintaining a buffalo was higher than cow. The higher total cost of buffalo maintenance was mainly associated with greater expenditure on feed, labour and other variable inputs, indicating that buffalo production required comparatively higher annual maintenance expenditure. The average cost of milk production at total cost was ₹41.89 per litre for buffalo compared with ₹50.99 per litre for cow.

The input-output ratio at total cost was 1.81 for buffalo and 1.39 for cow, while at variable cost it was 2.12 and 1.67, respectively. Thus, buffalo milk production was found to be comparatively more profitable and economically efficient than cow milk production in the study area.

Conclusion

The study found buffalo milk production to be more profitable than cow milk production. Although the annual maintenance cost was higher for buffaloes (₹87,777.81) than cows (₹79,277.26), buffaloes yielded more milk (2,050.52 litres) at a higher price (₹68.06/litre) than cows (1,645.53 litres at ₹58.24/litre), resulting in a higher net return (₹75,835.66 vs ₹31,257.15) and better input-output ratio (1.84 vs 1.40) at total cost. Accordingly, the per-litre cost of production was lower for buffaloes (₹39.99) than for cows (₹48.71), confirming buffalo rearing as the more economically efficient enterprise. However, producers of both species faced common constraints, chiefly shortage of grazing yard (95.00% for buffalo, 93.33% for cow) and labour shortage (86.67% and 80.00%, respectively), along with high prices of crossbred animals, high concentrate costs, improper waste disposal, and inadequate knowledge of balanced feeding. Addressing these constraints through better access to grazing and fodder, labour support, cost-effective feed, proper waste management, and farmer training would help improve milk production efficiency for both enterprises.

Policy Implication

1. The cost of feed and fodder accounts for the largest share of maintenance expenditure, while inadequate grazing land remains the major production constraint. Hence, fallow and barren lands should be utilized for green fodder cultivation, with emphasis on drought-tolerant and summer-resistant varieties to ensure a regular supply of fodder throughout the year. 2. Azolla, hydroponic fodder and multi-cut fodder crops should be promoted on small landholdings to meet feed requirements and reduce livestock feeding costs.

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