ESTIMATION OF OUTPUT SUPPLY AND FACTOR DEMAND ELASTICITIES OF MILK PRODUCTION IN EASTERN REGION OF INDIA
| dc.contributor.advisor | CHANDEL, B S | |
| dc.contributor.author | KUMARI, BINITA | |
| dc.date.accessioned | 2023-11-13T11:22:48Z | |
| dc.date.available | 2023-11-13T11:22:48Z | |
| dc.date.issued | 2019 | |
| dc.description.abstract | Dairy farmers have an important role to play in determining the level of milk production in the country. In order to lure the farmers into dairy farming the suitable policies related to prices are important as they act as instrument for policy implementation. The present study was carried out in the eastern region of India with the objectives to estimate the factor demand, output supply, cost and net income elasticities of milk production as well as to determine the level of profit efficiency among the dairy farmers in the region and the factors effecting it. The states of Bihar, Jharkhand and West Bengal were chosen and one district was selected from each state. One tehsil was chosen from each district from which two villages were selected. Complete enumeration of the villages was done and three strata (small (1-3 milch animals); medium (4&5 milch animals); large (>5 milch animals) were formed using cumulative square root frequency method. Further, a sample of 300 respondents was selected according to probability proportional to size. In order to fulfil the objectives, the tools of normalised translog profit function approach, cost and net income models and stochastic profit frontier were used. The average milk productivity of crossbred cow (13.15 litres / day) was about eight times higher than that of the local cow (1.65 litres / day) and about two times higher than that of the buffalo (6.21 litres / day) which clearly indicate superiority of crossbred cow in milk productivity. The average profit per household per day from milk production was ` 332 over variable costs. Among the milch animals, the returns over total cost were ` 5.36 and ` 1.46 per litre of milk production from crossbred and buffalo, respectively. The net return per litre of milk production which was negative (` -32.72) for local cow over total cost, turned out to be positive (` 8.54) when only cash costs were taken into consideration. Overall, supply elasticity of milk with respect to own price was estimated to be 0.7154 showing positive, yet comparatively inelastic effect on milk supply. The milk supply elasticities with respect to input prices were negative and with respect to fixed factors it was positive. The milk supply elasticity was the highest negative with respect to wage rates (-0.3682). All the own price elasticities of demand were negative, thereby, revealing that all the inputs are normal goods whose demand increases as their prices fall. The own price elasticity of demand for concentrate (- 0.0006) was almost perfectly inelastic revealing that irrespective of the change in prices, required quantity of concentrate was demanded. Almost all the cross price elasticities were negative, indicating that the inputs were complements to each other. All the factor demand elasticities with respect to milk prices were positive. Overall, net income elasticity (12.3435) of milk with respect to its own price was four times higher as compared to cost elasticity (3.0709) which demonstrates that raising the milk price may be right approach towards increasing the income of the farmer. The magnitude of cost (0.2335) and net income elasticity (-2.4646) with respect to labour wages was the highest. The mean profit efficiency of the dairy farmers in the study area was 0.7215 which increased with increase in the herd size. Profit efficiencies in the area can be increased by having older, more educated and experienced farmer take decisions related to dairy activities and by increasing amount of family labour, herd size, number of crossbred cows in the herd and exposure to information and trainings and by improving infrastructure facilities like proper roads, veterinary hospitals, cooperatives etc. | |
| dc.identifier.uri | https://krishikosh.egranth.ac.in/handle/1/5810201079 | |
| dc.language.iso | English | |
| dc.pages | 148 p. | |
| dc.publisher | ICAR-NDRI, KARNAL | |
| dc.sub | Agricultural Economics | |
| dc.theme | Ph.D. | |
| dc.these.type | Ph.D | |
| dc.title | ESTIMATION OF OUTPUT SUPPLY AND FACTOR DEMAND ELASTICITIES OF MILK PRODUCTION IN EASTERN REGION OF INDIA | |
| dc.type | Thesis |