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The dairy Sector in India is formed of around 60 million cattle and 40 million buffaloes, reared by about 70 million farmers. These animals produce about 80 million tonnes of milk every year making India the number one producer of milk in the world. Even then per capita availability of milk at present is only around 290 g/day.Also demand for milk further increases with rapid growth of human population and standard of living necessitating urgent measures for increasing milk production in the country. the dairy farming is the primary occupation of a good proportion of farmers in India. the dairying also forms major subsidiary occupation of those with other primary occupations especially agriculture.The dairying and crop production are mutually integrated since both are interdependent and benefited each other. The importance of this is further increased upon realizations that more than 50 percent of farmers involved in dairying are marginal and landless farmers and agricultural laborers.

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Dr. Narendhra Kumar Illuru obtained M.A.,Ph.D (Economics) in Sri Venkateswara University, TIRUPATI, (AP) India. Dr. SUNEETHA KONDETI was obtained M.A.,Ph.D (Economics) in Sri Venkateswara University, TIRUPATI, (AP) India. Both are working as Faculty Members in the Department of Econometrics, Sri Venkateswara University, Tirupati, Andhra Pradesh, India.

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