New Delhi, July 18, 2017: India has a unique pattern of production, processing and marketing/consumption of milk, which is not comparable with any large milk producing country. About 35% of milk produced in India is processed. The organized sector (large scale dairy plants) processes about 13 million tonnes annually, while the unorganized sector (halwais and vendors) processes about 22 million tonnes per annum. Meeting the stringent quality standards of dairy chains is the biggest challenge for smallholders as their production system, at least partly, does not follow the “Clean Milk Production” practices. Strong emphasis on food safety and quality results in introduction of standards and control mechanisms — demands are put on reliability of supply, an efficient collection system with chilling equipment etc. The successful AMUL model needs to be replicated in the state for effective participation of smallholders in the dairy supply chains. For increasing the production of value added dairy products, the infrastructure will need to be further developed at the public, cooperative as well as at private sector level. The Institutes and Universities engaged in dairy education and research need to enhance their efforts to provide research support and human resources for large scale, diversified and quality production of value-added products. The traditional unorganized marketing of milk in smallholder system needs to be gradually shifted towards organized marketing for better and sustainable remuneration to the producers. Research input will also need to be provided for formulation of macro, meso and micro level policies and programmes to control cost of milk production and processing, facilitate flow of milk to the organized sector and strengthen the legitimate interests of various stakeholders in dairy sector. The main areas need to be given due attention areas follows. ? Improvement in raw milk quality. ? Increased processing efficiencies. Development in dairy sector can be boosted through… ? Production system oriented planning ? Agro-ecological region based prioritization of dairy animal breeds and optimizing productivity ? Germ plasm improvement using cutting edge breeding and reproduction technologies ? Improvement of feed and fodder availability by strategic planning ? Development of efficient and innovative methods for diagnosis of livestock diseases and early warning system ? Eliminating middle men between producers to consumers and enhancing processing and value addition ? Value addition. ? Development of functional foods that promote health and well being.