Milk is a highly perishable commodity, which is in short supply in summer and in excess supply in winter. The market can not contract and expand according to supply, therefore, you need balancing facilities. And once you have these balancing facilities, which you enable to carry forward the winter production and capture the market, procurement falls into your laps. This was the objective and methodology of Operation Flood. (Verghese Kurien)

Milk is a highly perishable commodity, which is in short supply in summer and in excess supply in winter. The market can not contract and expand according to supply, therefore, you need balancing facilities. And once you have these balancing facilities, which you enable to carry forward the winter production and capture the market, procurement falls into your laps. This was the objective and methodology of Operation Flood.

Verghese Kurien

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balancing capture carry commodity contract excess facilities flood forward market methodology milk need objective once operation perishable procurement production short summer supply winter falls

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