Step 1: Understanding the Concept:
This question tests statistical knowledge of milk marketing channels in India, which is divided into organized (cooperatives and private dairies) and unorganized sectors (local milkmen, direct consumption).
Step 3: Detailed Explanation:
1. India is the largest milk producer in the world. However, a significant portion of the milk produced is consumed locally in rural households or sold through the unorganized sector.
2. According to national dairy statistics, the organized sector (which includes both government/co-operative networks and private dairies) processes and has access to approximately 20% of the total milk produced in the country.
3. The remaining portion is handled by local vendors or retained at the producer level.
Step 4: Final Answer
The correct option is (B).