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Abstract
The study has addressed the issues associated with the alternative milk market chains and their implications
on dairy farmers and traders. It has been conducted in Bihar, where modern milk market chains especially
the milk co-operatives have grown significantly. The study has shown that in spite of growing presence of
modern milk supply chains, the traditional milk supply chain is still dominant. The empirical evidence does
not appear to support the perceptions of exploitative nature of the traditional milk market agents. Traditional
milk processing seems to offer good opportunities for the small and resource-poor milk producers and
traders to enhance their income. The traditional milk sector should be addressed in a constructive manner
and the policies should be evolved which would allow informal players improve their performance including
quality control and their integration with the emerging modern milk supply chains.