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Question

The best method of payment of price to the milk producers is on the basis of :

This question was previously asked in
CUET PG 2026 Agri-Business Management Question Paper (25-Mar-2026) (Shift 2)
The correct answer is
Fat and SNF only

Milk Payment Basis: Fat and SNF

The most accurate and fair method for paying milk producers is based on the specific quality components of the milk, primarily its Fat and SNF (Solids-Not-Fat) content.

Importance of Fat and SNF

Milk pricing should reflect its actual value, which is directly tied to its composition. Paying based on Fat and SNF ensures producers are compensated for the quality they supply.

  • Fat: A key determinant of value, essential for products like butter and ghee.
  • SNF: Includes proteins, lactose, and minerals, crucial for products like cheese and milk powder, and indicates overall nutritional solids.

Limitations of Other Methods

Alternative payment methods are less effective:

  • Volume: Compensates only for quantity, not quality.
  • Lactometer reading only: Measures density related to SNF but ignores fat content.
  • Fat only: Fails to account for the value contributed by SNF.

Payment based on both Fat and SNF provides a comprehensive assessment of milk quality, leading to equitable compensation for milk producers.

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