The purpose of in this paper is to study demand fluctuation of dairy product and the forecasting practices that have been used by Raipur Dugdh Sangh (Devbhog dairy industry) in Chhattisgarh. The objective is to detect how these industries have used forecasting method, what are the main factors that influence their choice and what are the main difficulties in the use of forecasting methods. Based on literature survey, weekly data collected over October 2011 to October 2012 from Raipur Dugdh Sangh (Devbhog dairy industry) in Chhattisgarh. Data were analyzed by statistics technique using the Microsoft excel software. The result shows that the demand of milk product fluctuated over the period of time. The factors that influence the choice of forecasting model are the type of product, time spent in forecasting and main difficulties are the availability of software.