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The Rs 6000-billion dairy industry in India has witnessed a dramatic shift in milk supply over the last few months with farmers initiating direct supply to retailers and bulk consumers to fetch better realization than supplying to organized collection centres under a corporate brand. Targeting mainly to hotel, restaurants and catering (HORECA) segments, the new system of milk supply is posing a big threat to dairy companies in terms of milk availability for short term and sustained milk supply for future projects.In fact, the new mode of milk supply started in Andhra Pradesh with dozens of farmers joining hands like Farmers Produce Organisations (FPOs) and tying up with HORECA chains in the vicinity which fetch them at least Rs 4-5 a litre more than the price paid by organized companies and bulk suppliers. With milk is gradually getting oversupplied due to sustained increase in its production, organized companies have been paying Rs 21-22 a litre for milk which farmers feel is ...