Despite the rapid expansion of organized dairy value chains in India, state-wise evidence on determinants of channel participation remains limited. Using pooled panel data from the NSSO Situation Assessment Survey (2012-13 and 2018-19), a multinomial logit model is employed to identify the determinants of farmers participation in cooperative, private processors, mixed, and informal dairy marketing channels, focusing on Andhra Pradesh and Telangana. With special emphasis on institutional factors, the estimated determinants are then compared with all-India to highlight state-wise heterogeneity in dairy marketing channel choices. The results indicate that cooperative membership increases the likelihood of participation in cooperative channels while reducing reliance on private processors and mixed channels, thereby constraining access to alternative modern dairy marketing channels. Extension services significantly raise participation in private channels, with effects of 6% nationally, 10% in Andhra Pradesh, and 31% in Telangana. Credit accessibility promotes participation in formal channels at the national level but has no effect in Andhra Pradesh or Telangana. These findings demonstrate that institutional access is a central determinant of dairy marketing channel choice and highlight the importance of strengthening extension and credit provision to support more inclusive participation of farmers into India's evolving dairy markets.
Mulla Areef (Wed,) studied this question.