Milk supply behavior in India: Data integration, estimation and implications for dairy development

We develop and estimate a model to derive the sources of growth in Indian milk production. A substantial share of this growth is attributed to technological progress associated with the cooperative system. Directed interventions in the dairy sector can account for only a fraction of this technological progress. For instance, cross-breeding only partially explains the growth in cow milk production, suggesting improvement in the quality of indigenous cows. Diffuse determinants may thus play an important role in dairy development. In this regard, the cooperative system provides a channel for the dissemination of information as well as an infrastructure base for the adoption of new technology.