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Structure, conduct and performance of selected wholesale markets of intermediate dairy products in India-Critical issues and concerns

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Mukesh Sharma and B.S.Chandel

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Abstract

Indian Journal of Economics and Development
Year : 2016, Volume : 12, Issue : 1
First page : ( 133) Last page : ( 142)
Print ISSN : 2277-5412. Online ISSN : 2322-0430.
Article DOI : 10.5958/2322-0430.2016.00015.9

Structure, Conduct and Performance of Selected Wholesale Markets of Intermediate Dairy Products in India-Critical Issues and Concerns

Sharma Mukesh, Chandel B.S.*
Dairy Economics, Statistics and Management Division, National Dairy Research Institute, Karnal-132001

*Corresponding author’s email: chandelbs@rediffmail.com

JEL Codes: D43, D440, Q130, Q110

Online published on 5 February, 2016.

Abstract
Majority of the indigenous dairy products use three major milk based ingredients namely Khoa, Channa and Paneer in their manufacturing which have been termed as intermediate dairy products. The important wholesalemarkets of intermediate dairy products are Paneer market in Rohtak, Khoa market in Delhi, and Channa marketin Kolkata. The present study determines their market structure, conduct and performance. Based on the concentration ration, the study concluded that overall structure of these markets was oligopolistic. The low profit margin and perishability were the major barriers of entry. The open auction method was practiced only inkhoa market. All products were sold unpacked and quality was determined subjectively. The market margincharged was higher and producer’s share in consumer’s rupee was lower. The study concluded that marketing efficiency can still be improved by increasing the competition and specialization of the functions.