Dairy infrastructure development index: measuring regional inequalities acrossdistricts of Gujarat

Abstract

Infrastructure development is critical to sustain and attain optimum output from the rapidly growing Indian dairy sector. The existing studies indicate the need to improve the dairy infrastructure; however, the need varies across regions. This study analyses the disparity in the dairy infrastructure development of one of the highly dairy progressive State – Gujarat - using a Principal Component Approach (PCA). The results indicate that there exists nearly a 54% disparity in the dairy infrastructure facility among the districts of Gujarat. The index value varies from 0.04 for Dang to 0.66 for Banaskantha districts of Gujarat. The findings pointed towards a higher association of existence of farmer collectives and infrastructure development in the state. Development indicators to be prioritized for improving the level of dairy infrastructure in the low performing districts are also highlighted. The study suggests that the existing inequalities can be reduced by supporting and strengthening the already existing institutions like milk cooperatives and farmer producer companies or by incentivizing farmer groups to create one.