Innovative Procurement Practices Increase Productivity

The farmer is an important part of the dairy industry, regardless of country. India is the largest milk-producing nation in the world, with 18% involvement of the dairy industry in the economy. Most of the world’s population depends on dairy industries for their livelihood, with about one-quarter involved in the production or purchase of milk and related products. It is essential for the Indian dairy industry to be able to fulfill growing customer demand with a satisfactory supply of milk. The procurement of milk and related products is very important in meeting this demand. Procurement is the act of gaining or obtaining goods and services. The process includes the preparation and processing of demand, along with final receipt and approval of payment. Procurement mainly depends on technology and innovations. The chapter mainly focuses on innovative practices for the procurement of milk in the Indian dairy industry. The four practices and recommendations given are very helpful in increasing the productivity of the dairy industry in India.