Domestic milk markets in India are in crisis. A price war is raging between dairy processors, to sell milk at extremely low prices in urban areas. This has been accompanied by a steep reduction in milk procurement prices paid and a reduction in the volume of milk procured by dairy processors from producers. Small farmers, whose livelihoods depend on selling milk and who are the backbone of this market, have been hardest hit. This has also severely affected the people’s milk market, commonly referred to as the “informal” or “unorganised” milk markets. The Food Sovereignty Alliance (FSA) was alerted to the crisis by its small farmer members from Chittoor district in Andhra Pradesh and Medak district in Telangana.
Source: Food Sovereignty Alliance
Further resources on the dairy crisis:
"Small dairy farmers across India are struggling for their livelifoods", The Wire, 4 June 2016, http://thewire.in/40436/small-dairy-farmers-across-india-are-struggling-for-their-livelihoods/
"2015’s global milk crisis threatens small farmers in India", Down to Earth, 30 October 2015, http://www.downtoearth.org.in/blog/2015-s-global-milk-crisis-threatens-small-farmers-in-india-51644
"Death of Small-Farmer Dairies amidst India's Dairy Boom", EPW, 9 May 2015, http://www.epw.in/journal/2015/19/commentary/death-small-farmer-dairies-amidst-indias-dairy-boom.html#sthash.wyqGxtiU.dpuf
"The great milk robbery", GRAIN, December 2011, https://www.grain.org/article/entries/4426-the-great-milk-robbery