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Dairying is a major productive activity which provides supplementary support and stable income to the small and marginal farmers, landless labourers in Indian agriculture sector. On the primary basis of production criterion, milk is occupying the second highest position among the food commodities next only to rice. To support income from farming, dairy sector generates a regular source of family income to the farmer covering the entire year. Despite this fact, the main disadvantage is that the dairy farming in India is scattered and spread over the entire nation in micro units that too in a significantly disorganized form. In the modern times, the Indian dairy industry is undergoing positive transformation to combat the challenges. However, more attention is expected in the areas of cost and returns of milk production to make dairying a profitable activity. While exploring the ways to optimise the farmers’ incomes in this direction, the present study has been conducted in Jaipur Dugdh Utpadak Sahakari Sangh Limited, the major milk union of Rajasthan state which is among the topmost producers of milk in India.