The recent rise in the prices of fluid milk has attracted significant media attention with allegations that fluid milk processors/retailers have colluded to raise prices. The attention is justified as milk constitutes an important commodity in the consumption basket of majority of households in India. In this note we propose an empirical framework derived from a structural model which is an extension of the new empirical industrial organization (NEIO) approach and allows for a estimation of market power exertion when firms on both sides have potential market power.