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Skim milk powder used to fortify milk in order to increase total solid content in yoghurt is found to be not economical. Addition of industrial by products help to reduce the cost of production. This study on yoghurt, using tapioca starch as an additive at 2 per cent level showed better results with respect to proteolytic activity, flavour production, viability of starters and overall acceptability, indicating tapioca starch as an economic additive in yoghurt.