This document discusses prospects for value addition in milk at the producers' level in India. It notes that the traditional dairy sector processes over half of India's milk into products like paneer, dahi, ghee and khoa, providing 100-200% value addition. However, lack of quality standards and technologies results in lower returns for farmers. Small-scale processing of traditional products like paneer, khoa, kulfi and flavored dahi could be improved through training farmers in hygiene, standardized protocols, and use of basic equipment like churners, kettles and freezers. This would allow farmers to capture more value from milk and improve their livelihoods.

1. Prospects of Value Addition in Milk at Producers’ Level
Dairy Technology Division, NDRI, Karnal-132 001
Indian Dairying Traditional Dairy Products: Soul of Indian Dairy
 Indian dairying is predominantly small holders as Sector
small & marginal farmer own about 60% of milch  Traditional dairy processing sector maximizes
animals and produce 70% of milk household milk use
 Almost 55% of milk is produced is consumed by the  TDP sector process 54 MT milk that valued at Rs.
produces house hold 50,000 crore and it is three times bigger than liquid
 Of the remaining 2/3rd is sold in traditional market milk business
mainly by milk vendors  Level of value addition is almost 100-200% with
annual growth rate of 15-20%
 Only about 16-17% milk is handle by organized
 However, introduction of modernization and
sector
technological developments in the sector is the need
 Dairy co-operative only procure 7.2% of the total of the hour
milk produce in country
Prospective Traditional Dairy Products
 More that 80% of the milk is marketed in
unorganized sector Khoa: A heat desiccated product market is valued at
Rs. 6500 crore. Poor quality of khoa in absence of
Shortcomings in Traditional Milk Marketing
standardized protocol
 Lack of hygiene and safety measures Paneer: Heat-acid coagulated dairy products, quite
 Absence of cold chain often leads to malpractices high in demand among urban consumers
 Problems in weights & measures Dahi: Round the year consumption and growing trend
 Middlemen played exploitative role for packaged dahi. Short set cultures could be used to
minimize space and time of processing
 Less return to dairy farmers
Kulfi: Kulfi & frozen desserts can be made at small
 Lesser emphasis on value addition at producer’s level
scale by using batch freezer
Traditional Milk Processing Manufacturing process is simple and small scale
processing equipment like kettle & paneer press are
 Boiling Milk at Household Level
available
 Dahi & lassi Making
 Churning dahi into Butter & Chhach Small Scale Processing Equipments
 Surplus Butter converted to Ghee  Cream separators & butter churner
 Small Scale Khoa & Chhana Making  Scrapper assisted desiccation for Khoa manufacture
 Paneer making at home  Double jacketted gas or electrical heated kettles for
heating of milk during paneer manufacture
Imports Points for Value Addition at Producer's
Level  Paneer press or hoops
 Insulated containers for dahi or fermented milks
 Scenario of milk production, milk utilization and
practices of hygiene & safety in identified  Deep freezers with glycol for long term temperature
villages/cluster maintenance
 Identification of promising traditional products and
appropriate technological packages
 Training methods for ensuring production of quality
dairy products
 Sourcing of funds & information regarding
subsidies available in different schemes
 Establishment of linkages among stakeholders to
promote processing Cream Separator
Categories of Traditional Indian Dairy Products
Chhana Dahi Skid Moulded Milk Processing Module
Paneer Misti Dahi
Shrikhand
Heat and Acid
Coagulation
Fermentation Kulfi
Heat
Desiccation
Freezing
Chhana-based MILK
sweets
Fat Plate Heat Exchanger Khoa Making Machine Butter Churner
Concentration
Khoa-based
sweets Addition of
Cereals & Desiccation
Kheer, P
ayasam
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