Prices of milk are volatile in nature. Due to its perish ability', milk has to be sold immediately which cause variation in supply thus affecting its prices. Milk price are also prone to seasonal fluctuations, Production of milk increase in winter and consequently price decrease in the open market without benefiting consumer. In summer, price increase because of an increase in the demand of milk. The market forces play significant role in determining price (khushk and Hisbani, 2006)
Lack of quality check is most neglected aspect of the whole system. Those who handle milk right from the beginning till it reaches the final consumer are not conscious of hygiene. Very few shops have refrigeration facility; the milk is of poor quality. The containers used in transportation are unhygienic since it is a difficult to clean them. The sale and purchase of milk is done directly. But in some cases commission agents also negotiate the prices. They bargain with the seller to reduce price while negotiating with the purchaser higher rates (Khushk and Hisbani, …show more content…
loose milk consumed or sold in the cities through 'Gawallas" in unhygienic conditions and without any quality standards). Above ninety five percent of these dairy farmers are not linked to formal markets and hence not progressing in economic terms. Dairy farming practices are very old and traditional and need Through training and capacity building of farmers cold chain through milk chillers, promoting healthy pasteurized milk, develop mo< commercial dairy farms, locus on breed improvement, facilitation of credit financing dairy farmers and linking the rural area based farmer to the market mechanism.
Ali (2010) investigates the market margins of each stakeholder in supply chain and their share in consumer rupee. He also estimated demand and supply function of milk. The study showed that more share of consumer rupee went to the wholesalers, 70% of consumer were satisfied with hygienic conditions at the retail shops. In supply function the variables included sale price, average cost and experience showed significant results. In demand function the variables includes income, family size, price and quantity showed significant