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Indian Journal of Economics and Development
Year : 2019, Volume : 15, Issue : 2
First page : ( 301) Last page : ( 306)
Print ISSN : 2277-5412. Online ISSN : 2322-0430.
Article DOI : 10.5958/2322-0430.2019.00037.4

Consumption, Expenditure and Demand Analysis of Milk and Milk Products in India

Subramanian Raman1,*, Kakkagowder Chandran2, Perumal Anbukkani3, Gurusamy Parthasarathi4

1Research Associate, ICAR, Krishi Bhawan, New Delhi-110001

2Professor, Department of Agricultural Economics, TNAU, Coimbatore-641003 (Tamil Nadu)

3Scientist, Division of Agricultural Economics, ICAR-IARI, New Delhi-110012

4Teaching Assistant (Agricultural Economics), Institute of Agriculture, Kumulur-621712 (Tamil Nadu)

*Correspondence author's email: raameconomics04@gmail.com

JEL Codes D11, D12, E21, P36.

Online published on 4 July, 2019.


The study analysed consumption pattern of milk and milk products among rural and urban households in India. The elasticities of demand were estimated with the use of unit quantity and value price of milk and milk product. The results revealed that quantity consumption and expenditure share of milk in form liquid were found to be more in both rural and urban regions. QUAIDS was employed to estimate income price, cross and elasticities of demand. The result revealed that income elasticity was found to be positive for liquid milk, curs and ghee that is, normal goods and negative for baby food, milk powder and butter that is, inferior goods. In the case of own price elasticity, compensated and uncompensated price elasticities for liquid milk, powder milk and curd were highly elastic in nature. In case of cross-price elasticity, substitutability was found between milk powder and baby food; curd and baby food; ghee and curd; butter and baby food and curd in India. Likewise, complementarities were observed between curd and ghee. The results also observed that increasing the quantity of milk consumption by increasing the purchasing power of households in India.



Income, milk and milk products, price and cross elasticities, QUAIDS.


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