Small dairy farmers are facing crisis even though India’s milk production increased by 27 per cent to 155 million tonnes in 2015-16 from 121 million tonnes in 2011-12. According to a study by Food Sovereignty Alliance (FSA), large dairy companies dominate the dairy sector.
To keep prices low and retain their margins, dairy processors reduce the procurement prices and volumes of milk from small farmers and producers, which is pushing them into debt and out of the production business.