aIndian Council of Agriculture Research, Krishi Bhawan, New Delhi-110001
bTamil Nadu Agriculture University, Coimbatore-641003, Tamil Nadu
cInstitute of Agriculture, Kumulur-621712, Tamil Nadu
dICAR-Indian Agriculture Research Institute, New Delhi-110012
Online published on 5 December, 2018.
The study has analyzed consumption pattern of milk and milk products among rural and urban households in India. It has also estimated elasticities of demand with unbalanced panel data of 234 respondents, comprising 117 rural and 117 urban. The results show that the consumption and expenditure share of liquid milk is more in both rural and urban regions. QUAIDS is employed to estimate income price, cross and elasticities of demand. The results show that income elasticity is positive for liquid milk, curd and ghee, and negative for baby food, milk powder and butter. The compensated and uncompensated price elasticities for liquid milk, powder milk and curd are high. Substitutability is observed between milk powder and baby food; curd and baby food; ghee and curd; butter and baby food & curd. Likewise, complementarities are observed between curd and ghee. The results also show increasing consumption of milk with increasing purchasing power of the households.
