DEMAND FOR MILK AND MILK PRODUCTS IN KARNATAKA – STATISTICAL ANALYSIS

Loading...
Thumbnail Image
Date
2007-08-24
Journal Title
Journal ISSN
Volume Title
Publisher
University of Agricultural Sciences GKVK, Bangalore
Abstract
Milk and Milk Products (MMP) are one of the agricultural products, which are widely used. The Indian Dairy sector registered a spectacular growth rate of five percent per annum during the last three decades and as a result, India emerged as the world’s largest producer of milk surpassing the milk production of the USA. The per capita consumption ranges from 70 gms per day to around 250 gms per day in the State. In the present study different statistical techniques were used for estimating and projecting the demand for MMP in Karnataka using different rounds of NSSO data. The study attempts to estimate demand for MMP at disaggregated level. The study utilizes both time series as well as cross – sectional data to analyze the demand for MMP. Time series data had used to estimate growth in demand while cross sectional data was utilized to estimate demand elasticities using different functional forms which in turn used to forecast the demand. The growth rate in per capita consumption of MMP was estimated by fitting the exponential function to the time series data. The results revealed that the growth rate in per capita consumption of MMP over the years (1987 – 2003) was found to be 21.6 percent in Rural Karnataka and 21.1 percent in Urban Karnataka. Further, to estimate the demand elasticity for MMP, the log – quadratic functional form was found to be the best fit for both Rural and Urban Karnataka. The elasticity coefficient of MMP for Rural and Urban Karnataka was found to be 1.06 and 1.03 respectively. Based on the income elasticity coefficient, MMP could be grouped as luxury product. In Rural Karnataka the income class group of Rs. 615 – 775 while in Urban Karnataka the income class group of Rs. 775 – 915 could spend more on MMP.
Description
Keywords
null
Citation
Collections