Sources in the department said they have already seized a sizable amount of the drug, banned under Schedule H of Drugs and Cosmetic Act, following searches conducted at the premises of certain dairy owners.
Normally, Oxytocin is administered on pregnant women to induce labour but when it is used arbitrarily, it becomes harmful.
Sources said because the cows are injected with the hormone, the milk it produces too will have its presence.
"Such milk leads to irregular hormonal growth in children which can be very harmful," they said.
The drive was conducted following reports that dairy owners were using the hormone to enhance milk production.
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