A study conducted across Bihar, Punjab, and Uttar Pradesh in 2024 reveals a strong correlation between safe milk practices and farm income.
New Delhi, June 2025 — A landmark study has confirmed that smallholder dairy farmers in India who follow food safety standards see significant gains in milk productivity, pricing, and overall profitability. Conducted across 341 farms in Bihar, Punjab, and Uttar Pradesh, the research presents clear evidence that investing in hygienic practices and adopting clean milk production protocols yields substantial economic returns.
Published in the Journal of Cleaner Production, the study uses a robust Food Safety Index (FSI)—developed from 71 microbiological, physical, and chemical safety practices—to quantify farmers’ compliance levels and link them to on-farm outcomes.
🔍 Key Findings
- Higher food safety compliance = higher milk price and profits: Farmers in the top tier of FSM compliance earned higher milk prices and net profits per litre, even after accounting for increased costs.
- Punjab leads in food safety: With an average FSI of 0.58, Punjab outperformed Bihar (0.48) and Uttar Pradesh (0.54) in safe milk practices.
- Farmers with better training and market access tend to perform better. Education, formal milk sales (e.g., through cooperatives), piped water, and access to AI-based breeding services were all positively associated with higher compliance.
- Dairy income share matters: A 1% increase in income from dairy led to a 2.8% higher probability of adopting FSM.
📈 Impact on Productivity, Price & Profit
Using Generalised Propensity Score (GPS) analysis, the study measured how compliance with FSM affected three key outcomes:
| Outcome | Impact of Higher Compliance |
|---|---|
| Milk Productivity | Higher compliance resulted in increased yield |
| Milk Price | Farmers fetched better prices per litre |
| Profit per Litre | Significant gains observed despite cost increases |
The study concluded that partial compliance yields limited benefits, whereas high compliance unlocks the most economic value.
🧠 Why This Matters
India accounts for 23% of global milk production, yet struggles with frequent contamination incidents—from aflatoxins to antibiotics. Unsafe practices at the farm level not only endanger public health but also hinder export ambitions.
“Investing in farm-level food isn’t just a health issue—it’s an economic opportunity,” says Dr. Anjani Kumar, one of the study’s lead authors from IFRI. “Supporting farmers with training, infrastructure, and market access can transform food safety from a compliance issue to a business strategy.”
🏛️ Policy Recommendations
The study urges:
- Incentive schemes linked to compliance, such as better procurement prices or certification rewards.
- Capacity-building programs, primarily targeting SC/ST and OBC farmers who showed lower compliance.
- Infrastructure upgrades, particularly water safety, AI services, and clean milking environments.
📚 About the Study
- Title: Compliance with food safety measures and their economic impact on smallholder dairy farmers
- Authors: Sonali Katoch, Anjani Kumar, Deepthi E. Kolady, Kriti Sharma
- Published In: Journal of Cleaner Production, Elsevier
- Region Covered: Bihar, Punjab, Uttar Pradesh
- Year of Data Collection: 2023
Conclusion: Isn’t it imperative that it’s a farm-level profitability multiplier? With the right incentives and training, India can lead the world not just in milk volume, but in milk quality.