The study tries to explore the hypothesis that those cooperative as they develop backward, forward and horizontal integration are able to increase the income of their farmer members through rationalization of costs and through undertaking value addition functions. The findings of the study reveal that cooperative in milk commodity have played important role in improving the income of their members from their milk operations substantially and have also helped small landless labourers to undertake milk production as a primary occupation. It is hoped that the study will be useful to the policy makers as well as milk cooperative societies

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