Dairying in India has emerged as an important sub-sector, accounting for nearly two-thirds of the total livestock contribution to GNP with an encouraging growth rate of five per cent over years. Through improved breeding, feeding and management programmes, there has been marked improvement in the country's milk production and productivity of milch animals. The dairy industry in India has taken a rapid stride during the past three decades, which were absurd earlier. India, the current leader in the dairy world ranks first in milk production with a production level of 90.7 million tonnes of milk per year. The production of milk has gone up more than five fold since independence, resulting in near doubling of per capita availability of milk. The per capita availability of milk increased from 124 grams per day in 1950-51 to 232 grams per day in 2004-05 (Economic Survey, 2005-06). The value of output of milk and its products is approximately 50000 crore rupees and that of dairy industry as a whole is about 1,05,000 crore rupees. In 2004-05 the livestock subsector accounted for about 27 per cent of the Agricultural Gross Domestic Product (AGDP), which has increased gradually from 14 per cent in 1980-81. India possesses one of the largest livestock populations in the world. In 2003, the country had 185 million cattle, 98 million buffaloes, 124 million goats, 61 million sheep, 13.5 million pigs and 489 million poultry. Fifty seven per cent of world’s buffaloes and 16 per cent of the world’s cattle are found in India. India ranks first in respect of cattle and buffalo population. Dairy development in India has been acclaimed world over as one of modern India’s most accomplished developmental programme. The states like Gujarat, Maharashtra, Uttar Pradesh, Punjab, Haryana, Rajasthan, Andhra Pradesh, Karnataka and Tamilnadu are producing surplus milk. Productivity performance of dairy industry across the country has registered an annual growth of 17.14 per cent for the country as a whole. As a result of Operation Flood,presently, more than 1.10 lakh village-level co-operative societies, functioning with about 13 million producer members, are procuring more than 200 lakh kgs of milk per day. These cooperatives form a part of the National Milk-Grid, which links the milk producers throughout India with consumers in over 700 towns and cities (Economic Survey, 2005-06). The Grid not only bridges the gaps between the seasonal and regional variation in the availability of milk, but also ensures a remunerative price to the producers and a reasonable price and quality for milk and milk products to the consumers.