Diversification of rural economy through milk enterprises: An empirical analysis of Bihar

The diversification of rural economy through milk enterprises in Bihar has been studied based on the primary data collected from the Bhagalpur district. The existing milk enterprises in both the sample villages have immense potential of employment generation and livelihood. Of the total production of milk in the sample areas, only 40 pr cent has been observed to be diversified to various forms of milk products. The benefit cost ratios of the sample enterprises, like OAMEs (1.23), NDMEs (1.11) and DMEs (1.10) have been found indicative of an economically feasible status. This indicates that the enterprises have remunerative returns. The study has identified constrains, like non-availability of raw materials, credit, technological infrastructure, demand, government support, etc. in desired quantum and at times of need. However, the study has observed that milk processing is very important for the generation of income, employment and livelihood in the study area, in particular, and in the state, in general. Therefore, it has suggested that government should provide a helping hand, both technically and economically.