95 About 40 million landless poor families get a major part of their income from milk production (World Bank 2005), with some very limited hired labor and the resource poor tribal families are not an exception. Significant amount of resources has been allocated for improvement of tribal society through dairy development programs. Katkar and Nandal (1983), Nabard (1992, 1998) and Hussain (1998) observed that the productivity and finance having a very strong positive linkages. But the small tribal families are unaware about the potential benefits and impact of milk production on the farm and family economy (Pandey 1998, Kumar 1992 and Kabir et al.1999). Further, allocating borrowed capital to different dairy activities and return to investment from milk production is another crucial decisional element to enhance farmer’s profit margins. Wani et al. (1992), Thomas et al. (1993), Gaddi and Kunnal (1996), Shah et al. (1995), and Yezdani et al. (1998) revealed the positive impact of improved graded breed, additional inputs of feed and fodder, concentrate, etc., at farm level. Therefore, it is imperative to know the Present address: 1 Senior Scientist (drmukesh@scientist.com), DWM (ICAR), Bhubaneswar 751023 India. 2 Emeritus Professor (jaiprakashdhaka@yahoo.com), NDRI, Karnal 132 001 India. 3 Senior Scientist (ms101@sify.com) ICAR Research Complex for Eastern Region, Patna 800 014. Indian Journal of Animal Sciences 82 (7): 757–761, July 2012 Milk production economics and micro financing impacts in Chhotanagpur platue of Jharkhand MUKESH KUMAR SINHA 1 , J P DHAKA 2 and M S MEENA 3 National Dairy Research Institute, Karnal, Haryana 132001 India Received: 1 July 2011; Accepted: 22 January 2012 ABSTRACT The study examined impacts of micro credit on milk production and factor productivity among tribal farmers of Chhotanagpur platue. Sample responses of 240 farmers were analysed for this study. The impact was evaluated with the benefits accrued by the beneficiaries over non-beneficiaries with respect to economic parameter of investment pattern, cost of production and income component from dairying. The study revealed that investment made on beneficiary households (` 14398.88) was almost double than non-beneficiary households (` 7506.20). The gross income from dairy enterprise on beneficiary (` 14372) was higher than that of non-beneficiary (` 10032.72). The difference in net income, and family labour income was even more pronounced than that of gross income. Marginal value productivity of operational expenses was positive (2.01) and significant, needs priority. The study observed a very positive and favourable response of micro credit to the tribal dairy farmers, needs a continued support for improved income, nutrition and sustained livelihood. Key word: Dairy, Economics, Finance, Livelihood productivity of borrowed dairy capital, so that farmer could make judicious decisions in the allocation of the scarce resources on different dairy activities and to earn more profits. Keeping in view, the study was conducted to examine impacts of micro credit on milk production and factor productivity on smallholder tribal dairy farmers. MATERIALS AND METHOD Micro-finance programs extend small loans to poor people for their varied needs and income diversifying activity. Distributing milch animals at subsidized rate and for the technical inputs is one of the popular banking activities near sub urban areas. This study was carried out in Ranchi district of Chhotanagpur platue in Jharkhand. A multistage sampling design was used to select blocks, cluster villages and sample households. Three sample units, each from respective block, covering a group of villages around the bank operational area were taken for the study during the reference year 2001–02. Further, category-wise lists (based on land holding) of beneficiaries were prepared with the help of bank officials. A sum of 120 dairy loan beneficiaries, representing different farm size was considered for detailed investigation. To serve a valid basis of comparison, a sample of 120 non-beneficiary households was also taken randomly from the locality. Personal interview method was used for data collection by