The two-axes pricing policy is followed normally in the dairy business centres of Tamil Nadu. Though it is scientifically rational, it ignores the input prices, technology and government policies. For sustaining the growth momentum and achieving an annual average growth of 7-8 per cent in the next five years and considering that dairying is practised as a component of mixed farming systems, it becomes imperative to take into account the interrelationship among the enterprises and general economic factors while fixing the milk price. In this study, development of a price determination model has been reported. It is based on the cost of production and takes into account price and non-price factors, viz. technology, and projected different price scenarios of... |