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CHAPTER - II
DAIRY DEVELOPMENT
2.1 INTRODUCTION :
This chapter is divided into four sections. Section First deals with world
dairy scenario with brief review of Dairy Development at world level. Section
second deals with dairy development India; Section third deals with dairy
development in Maharashtra. Section fourth is devoted to dairy development in
the study area that is Kolhapur and Sangli District..
2.2 IMPORTANCE OF MILK AND MILK PRODUCTS
Population has been rapidly increasing all over World. Ultimately there
seems to be rapid increase in demand for food especially of milk. Among food,
milk has got importance, as it has got nutrition value. Scientifically, in among
animal product milk contain a high nutrition value as it contains required
ingredients for human body.
The nutrition expert group of council of medical Researcher,
recommended the pattern of milk consumption as follows.
a) 300 gms of milk for preschool children per day (age group 7 to 10 years)
b) 200 gms for boys and girls per day (age group 13 to 18 years)
c) 125 gms for adult and woman per day.
However, a, b, c categories be applied for vegetarians. Requirements milk
ranges from 200 gms for children and 160 gms for adults. Thus milk has got
importance in the diet widely. So it has a very high elasticity of demand.
Recently income of a consumer has been increasing. So the demand for milk
has increased. The institutional changes as green revaluation has been also
supporting to consumption of milk and dairy development. A number of
studies had pointed out that, dairy development has been bringing the social
and economical changes in rural area.1 Consumption of milk has been rapidly
increasing both in the rural and urban areas. In the dominant consumption,
while in urban areas food dominants the consumption expenditure. However,
as income increases both in case of rural and urban areas consumption of
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livestock products increases drastically. The milk dominants the consumption
of livestock products across the income levels.2
SECTION- I
2.3. WORLD DAIRY SCENERIO
The industrialization is root cause of dairy development. Especially-
after 1850 there were drastic changes in the industrial development. Due to
industrialization and population growth and especially urbanization, demand
for milk has increased. Therefore, milk occupation assisted to a
industrialization during the 1856. The method of milk product was started.
Gustav Lavel has invented the method of separate cream from the milk.
Similarly in the Switzarland in 1888, scientist Niclos Geber and in America in
1890 Stevhan Babcock, has invented the method of separating fat from the
milk. After 1914 vehicle of chilled milk started. At the same time during the
mids of 20th century, milk product were prepared in dairies.
2.4. WORLD DAIRY SITUATION HIGHTLIGHTS :
a) A long awaited decline a world milk production, which was very modest,
however the efforts have been made by many countries to increase the
supply of milk.
b) Among European countries, New-Zealand and United States milk
production has been reducing, while in India and USSR it has been
increasing.
c) World milk production seems to be stabilized in 1987 and it should be kept
within reasonable limits in future.
d) The international market for butter and unhydrous milk, fat remained fragile
in 1987.
e) Demand for cheese and milk powder was relatively low in 1986, at
international level.
f) Special effects were made by some countries to dispose if dairy surplus in
1987.
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Recently efforts have been made by countries to increase milk production
especially by Austria, Canada and United States. These countries have taken
measures to limit their milk production. However, the policy of milk price is
more importantly for dairy development. In this context many countries have
adopted milk support prices, target prices and advance payments etc.
Especially in Asia priority has given to production, marketing and consumption
of milk and dairy products. To have a dairy development there seems to be
financial and technological assistance for milk production and milk processing.
In the light of economic development, the rate of dairy sector in
agriculture has been increasing. Especially cow milk production accounts for
90% of total world milk supply.3 At the international level market milk and
milk product especially butter, it has occupied important role. In India
globalization, privatization and liberalization has been directly affecting on
dairy development programme and also consumption of milk.
2.5. THE GLOBAL DAIRY PRODUCTION4 :
According to the International Dairy Federation (IDF) the worldwide milk
production has been, but growing bur at a slower pace than before. The
strongest growth can be seen in Asia, notably in China and India. India is
expected to continue to be the largest milk producer.
Growth is also not expected in US, because milk production has lost
attractiveness compared to other types of farming. The prices for arable crops,
notably grains and soyabeans have increased, due to a higher demand in the
world market and the increasing utilization of land and crops for bio-fules.
Milk production in the United States stood at 7,121 thousand tonnes during
August 2008, a mere 1.1% more than what was produced in August 2007.
Milk Production in Oceania is largely dependent on weather conditions
and these have been very bad in Australia due to the severe droughts in the last
few years, In Oceania, milk production that has been static’s is expected to
increase by approximately two percent only to 9,700 TMT in 2008-09
according to USDA, Foreign Agriculture Service.
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Major changes are not expected in the world dairy product basket.
World butter production has increased since two years, in 2004 and 2005 and
then declined in 2006 and this decline is expected to continue in 2008 and
export of butter and in particular butter oil, are expected to drop in 2008.
Butter production in Australia is set to increase in 2008-2009 with a forecast of
113 TMT, up around two percent on production for the previous year. U.S.
butter production totaled 53 thousand tones during July 2008,0.1% more than
was produced during July 2007. Commercial stocks of butter prices were 3.5%
higher during August 2008 than a month earlier and 8.9% higher than average
prices during August 2007.
Production of milk powders is increasing and is expected to continue so
in the future. However, this growth is mainly restricted to whole milk powder
(WMP) and semi-skimmed milk powder, while skim milk powder (SMP)
production is on the way down. Higher world demand and a gap between
domestic and world market prices and declining exports of butter is causing
production and exports of WMP in 2008 to increase from 2007 level in the EU.
This trend is expected to remain the same despite the price increase for butter.
In Australia the production of WMP for 2008-09 is forecast to increase to 128
TMT, up from the 125TMT estimated for the previous year. Exports of whole
milk powder are forecast at 113 TMT, up in the with production.
Exports of butter and butter oil recovered in 2006 and this recovery
continued in early 2007. Major exports were from EU; New Zealand gained
additional market share and this trend continued in 2008. Exports from Canada
declined in 2008 as compared to 2007. The total volume of the world trade in
cheese has accelerated and this trend is likely to continue in the year 2008.
Exports of cheese from New Zealand and Canada were in conformity with the
world trends.
The biggest exporter of the WMP in 2006 was New Zealand with an
export volume of more than 0.7 million tonnes, which is an all-time record.
EU was the second major exporter. The world trade in WMP continued to
increase in the first half of 2007, and this trend was expected to continue in the
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2nd part of year, though at a slower pace. Exports from Canada increased by 33
% from October 2007 to October 2008.
The SMP exports in 2006 by the EU were at historically low levels.
This was mainly due to abolition of export refund. India was also one of the
players, but in February 2007, all exports of SMP were banned until September
2007, because of a shortage in the home market and have been resumed since
November 2007, though the world export of SMP increased in the first half of
2007. However, the availability of the SMP will be significantly less in the
immediate future, despite the fact that consumption is declining in some
countries. Further, because the prices of other dairy products have gone up,
SMP production has lost its attractiveness against other methods of utilization
of milk. This is reflected in the exports of SMP from Canada which have
declined by almost 50% from October 2007 to October2008.
According to the USDA forecasts made in mid 2008, the exports of
cheese and SMP, for the major world supplier, were set to increase in the year
2008. Exports for whole Milk Powder were projected to remain unchanged
and to decline for butterfat. The weakness in the world demand for dairy
products since mid 2008 is expected to lower the amounts forecast for most of
these products.
Table No. 2.1
World Exports of Major Milk Products (M.Tones)
Sr. No. Product 2007 2008 forecast Change
1 SMP 1114 1134 +1.8%
2 WMP 1442 1444 +0.1%
3 Cheese 1357 1410 +3.9%
4 Butter Fat *856 752 -12.1%
Source : Dairy : World Markets and Trade, FAS, USDA *Butterfat on a butter equivalent basis.
The outlook for the trade in dairy commodities during the year 2008-09
does not appear to be very bright. A softening of demand seems to be taking
place. Export prices of SMP in Oceania have shown a declining trend and
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international prices from other world suppliers in November 2008, have
dropped. There are adequate world supplies of SMP but the export demand is
low. The international market is weak and the global financial crisis is
negatively impacting demand for dairy products.
2.6. World Total milk Production in 2009 :
The data with FAO Statistics shows the total production of milk
produced by cow, buffalo, goat sheep, camel in the year 2009 in the following
table.
Table No.2.2
World Total milk Production (10 lac kg/year)(2009)
Rank Country Production
1 India 1,10,040
2 Unites States 85,859
3 China 40,553
4 Russia 32,562
5 Pakistan 34,362
6 Germany 28,691
7 Brazil 27,716
8 France 24,218
9 New Zealand 15,217
10 United Kingdom 13,257
11 Italy 12,836
12 Turkey 12,542
13 Poland 12,467
14 Ukcrain 11,610
15 Netherlands 11,469
16 Mexico 10,931
17 Argentina 10,500
18 Australia 9388
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19 Canada 8213
20 Japan 7909
Total 6,96,554
Source: STATISTICS, Dairy: world market and trade FAS, USDA
Graph. No.2.1
World Total milk Production
0
20000
40000
60000
80000
100000
120000
Country
IndiaUnited StatesChinaRussiaPakistanGermanyBrazilFranceNew ZealandItalyTurkyPolandUkrainNetherlandMexicoArgentinaAustraliaCanadaJapanSeries20
Above table shows the milk production India which has 1st rank in the
world in the year 2009. In the year 2009 total milk production of world was
69554×106 kg/day.
SECTION- II
2.7. INDIAN DAIRY SCINARIO
Around 1500 to 2000 B.C. the Aryans were raring cattle, for tilling their
land, and consumption of milk food. Again those were Aryans who priced the
milk of a cow more than its meat, forbade its slaughter, created legends about it
and even worshiped it. Hindus even today consider cow as sacred as Gomata.
Besides, it was only the East (India/China) which domesticated buffalo as
milch animal more than half the total production of milk in India/China was
obtained from buffalo. The dairying in India has passed through several phases
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both in the pre and post independent period. A summary of these events is
listed below in brief.
2.8. PRE-INDEPENDENCE ERA5.
1886 – During this period the department of defence established dairy
farms for supply of milk to British troops stationed at Allahabad
as advised by the Board of Agriculture.
1914 – During this period as per advice by i.e. Board of Agriculture, a
preliminary study concerning composition of milk produced by
indigenous cows and buffaloes was conducted and attempts were
made to established pedigree herds of Indian breeds.
1916– During this year protection policy of milk was adopted by
tremendous potentiality of milk in India. Similarly the Board
advised the Government to appoint an Imperial Dairy Expert
Committee.
1919- This is the year when first livestock census was carried out as a
preparatory action for planned development.
1920- Mr. William Smith, the Dairy Expert, planned for enhancing milk
production on long- term basis and recommended.
i) Scientific breeding, feeding and management practices to
be followed at Military Dairy Farms.
ii) Establishment of a training Centre to meet the manpower
requirements for managing the forms on scientific lines.
1923- During this year the military farms at Bangalore, Wellington
(Ooty Hills) and Karnal were transferred to Agriculture
Department. The Farm at Karnal was developed as a cattle
Breeding farm and Bangalore farm as the Imperial institute of
Animal Husbandry. Diploma/Post Graduate Diploma in Dairying
and other short courses were stated at Bangalore.
1929- The Imperial Council of Agriculture Research (Now Indian
Council of Agriculture Research (ICAR)) was established. Shri
Pestanji Edulji Polson, established Polson Model Dairy at Anand
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with the latest available technology and went into manufacture of
sophisticated products like famous Polson Butter in 1950, He also
established a pilot plan in Patna.
1931- The Institute at Bangalore was transferred to central
Governments Department of Education, Health and renamed as
Imperial Dairy Institute.
1936- Dr. N.C. Wright, Director Dairy Research Institute, Scotland,
arrived to review the progress of Dairying in India. He made
some important observations and recommendations.
a) The milk Industry is not organized properly and hence
there is no ready and remunerative market for rurally
produced milk in India.
b) In the absence of a ready and assured market the changes
of proper impact f developmental inputs were very remote.
On the basis of conclusion and observations made following were
recommendations.
a) India had to develop its own technology and technologists
to solve the problems of Indian Dairy Industry.
b) Being a country of villages inhabited by marginal farmers
and landless labourers the dairy development should be
promoted on co-operative lines only;
1937- The First milk Union; “Lucknow Milk Producers” Co-operative
Union Limited was established followed by organization of such
Unions in other Districts and States.
1941- The Bangalore Institute again renamed as Imperial Dairy
Research Institute. Subsequently it was named as Indian Dairy
Research Institute. The training and research activities were
accelerated at the Institute and State level programmes were
encouraged.
1945- The Aarey Milk Colony was established by Bombay Government
under Greater Bombay Milk Scheme.
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1946 - The first Farmer’s integrated dairy Co-operative was established
on Kaira District at Anand Which later came to be known as
Amul. Thus, after independence, both Amul and Greater Bombay
Milk Scheme set together a faster pace of dairy development with
emphasis on developing techniques of processing and marketing
under Indian Conditions.
1947- In Bangal in1947 the Greater Calcutta milk Scheme was initiated
by Dairy Milk Colony and Greater Bombay milk Scheme6.
2.9. POST INDEPENDENCE ERA6 -
Efforts were made to lay greater emphasis on dairy development during
five year plans starting from 1951. The salient features of these plans were
summarized below.
1st FIVE YEAR PLAN OUT LAY RS. 8.00CRORES -
1) Establishment of 146 Key village blocks (Comprising 6units each) with
A.I. centers.
2) Establishment of 650 veterinary hospitals.
3) Establishment of 25 Gosadans.
4) Establishment of milk supply schemes in Bombay and Calcutta.
5) Expansion of National Dairy Research Institute.
2nd FIVE YEAR PLAN – OUT LAY RS. 21.00 CRORES -
1) Establishment of 196 key village blocks and expansion of existing 114
blocks with 670 total A.I. centers.
2) Establishment of 34 new Gosadans and 248 Goshalas.
3) Establishment of 1900 veterinary Hospitals.
4) Establishment of Delhi Milk Scheme (1960).
5) Promoting private manufactures like Glaxos, Levers, Nestles etc for
establishing milk products factories.
6) Issuing of licenses for manufacturing products like cheese, condensed
milk and infant- foods.
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3rd FIVE YEAR PLAN – OUT LAY RS. 3600 CRORES -
During the period of III rd five year plan in 1962 Government of India
constituted a working group to review of awareness about the success and
failures of the Government’s own programme. The working group
recommended to the Government to provide co-ordination, technical assistance
and guidance to the co-operative societies for their proper functioning. Also
the group has suggested the organization of state level federations of Dairy Co-
operatives and a National Level Federation to co-ordinate the works of the state
level federations.
i) Establishment of separate dairy development department in each state.
ii) Establishment of 143 Government milk supply schemes in big
townships.
iii) Expansion of key village block by increasing units to 10 in each block.
iv) Establishment of milk supply schemes in Madras.
At the end of III rd five year plan progress was made as under.
i) Dairying acquired National level recognition.
ii) Concept of planned approach was introduced at all the levels.
iii) Organized marketing was adopted by private, public and co-
operative sector.
iv) The multi-national introduced new milk products.
v) To overcome the economic barriers, tonned milk with less fat and at
comparatively cheaper price, was formulated.
vi) The concept of intensive cattle development was introduced.
vii) India started developing its own cadre of trained technical personal.
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THREE ANNUAL PLANS (1966 to 1969) –
Completion of the projects under progress was mainly emphasis during
this plans. In this period Rs. 674.7 million was approved for dairy
development consisting of Rs. 413.3 million for animal Husbandry and Rs.
261.4million for Dairying7.
4th FIVE YEAR PLAN (1969 to 1974) –
During this plan, the O.F. (Operation Flood) programme was initiated in
March 1970. This programme was aided by the World Food Programme.
Budget allotted for Dairy Development was Rs. 2330.3 million out of which
Rs. 940.6 million was spent on Animal Husbandry and Rs.1389.7 Million on
Dairy. The physical targets under this plan were setting up of 49 milk supply
schemes 11 milk product factories, and 43 rural Dairy Centers. Out of this 6
milk supply schemes to milk product factories and 32 rural Dairy Centers were
commissioned.
During this plan period many dairy units were running on losses and the
plan was not quite successful. However, milk production increased up to about
23 million, Tons/years8.
5th FIVE YEAR PLAN (1974 to 1978) –
Fifth Plan emphasized on development of animal husbandry and
dairying in order to give subsidiary occupation to small and marginal farmers
and landless labourers as well as to assist the weaker sections of the
community. Total of 11.13 % of the total plan outlay was spent on dairy
development. Rs.4375.4 millions lac liters were allotted to dairy development
out of which Rs. 3095.6 million was spent on animal husbandry and Rs. 1279.8
was spent on dairying9.
TWO ANNUAL PLANS (1978 to 1980) –
The budget allotted during these two annual plans was Rs. 2460.6
million for dairy development out of which Rs. 929.8 million was spent on
animal husbandry and Rs.1157.9 million was actually spent on dairy10.
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6th FIVE YEAR PLAN (1980 to 1985) –
Total amount of expenditure was Rs. 8519.4 million on dairy
development out of which Rs.38964 million was allotted to animal husbandry
and Rs.4623 million on dairying. During this plan the operation flood II
Programme was implemented. The annual milk production in this plan period
was 42 million tones11.
7th FIVE YEAR PLAN (1985 to 1990) –
The main stress given during this plan was on raising, milk production,
feed and fodder. The expected rate of growth of milk during this plan period
was 6.5 % and per capital consumption of milk was 149 grams /day.
Funds allotted during this plan period were Rs. 11585.5 million for
animal husbandry and Rs. 7517.9 million on dairying. Totaling 19102.4
million12.
8th FIVE YEAR PLAN (1992 to 1997) –
Total outlay of this plan was Rs. 13000 million out of which 4000.00
million for animal husbandry and Rs.9000.00million for dairy. Considerable
attention was given on increasing productivity of milch cows, efficiency of
milk co-operatives and strong the wing their management. Increase in milk
production during this plan period was up to 70 million tonnes.
9th FIVE YEAR PLAN (1997 to 2002) –
Total plan outlay of nineth plan was Rs. 19650 million and the amount
spent on dairying was Rs. 4850.00 million. The milk production of India
reached upto 84 million tones. During this plan period the per capital
availability of milk increased from 112gms to 226 gms/day in 2001-2002. The
National project on Cattle and Buffalo breeding (NPCBB) was initiated for a
period of ten years in Oct. 2000. The project invisageses genetic up gradation
of Indigenous cattle and buffalo development and conservation of important
indigenous breeds and to evolve sustainable breeding policy. Presently 26
states and one U.T.s are participating in the project13.
102
10th FIVE YEAR PLAN (2002 to 2007) –
Rs. 25000 million was allotted to animal husbandry and dairy
development in this plan. The target of milk production was set out at 108.4
M.T. with annual increase of 6%. Considerable attention was given on
withdrawal of MMPO, introduction of National project on Cattle and Buffallo
Programme, creation of data base and information network, conservation of
threatened livestock breeds, feed and fodder production enhancement and to
raise clean milk production14.
11th FIVE YEAR PLAN (2007 to 2012) –
Goals for the Eleventh five year plan for the cattle sector were,
a) To achieve and overall growth between 6% to 7% per annum for sector
as a whole with milk group achieving a growth of 5% per annum.
b) The benefit of growth should be equitable benefiting mainly the small
and marginal farmers and land less labourers and should benefit poorly
endowed areas like drought prone, arid and semi arid areas.
c) Generation of additional employment opportunity to rural people
especially the female population.
d) Cattle should provide major source of income in the selected areas.
e) The growth in the sector should result in the improvement of
environment particularly in the rural areas.
An outlay of Rs. 37770 crores for animal husbandry and dairy sector was
proposed for eleventh plan.
2.10. ESTABLISHMENT OF NATIONAL DAIRY DEVELOPMENT
BOARD:
Government of India has taken a major steps for dairy developed in
India by establishing the National Dairy Development Board(NDDB) at Anand
in 1965. The NDDB is a programme launching body and provides technical
services on a non profit basis which the implementing agencies require in the
field of dairying .
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NDDB implemented Anand pattern institutional structure (primary dairy
co-ops District co-op milk Unions- State co-op milk federation) for co-
operative dairy sector in India.
But in the same time one another structure also came in existence which
was co- operative but not like Anand Pattern (Three tire). It was known as
non- Anand pattern Co-operative; NDDB provides services and consultancy for
all Dairies such as co-op, private dairies. There were no specific strategies of
Govt. regarding dairy development. Especially Indian Dairy coporation (IDC)
concentrated on dairy development15.
2.11. INDIAN DAIRY CORPORATION :
The Indian Dairy Corporation (IDC) was set up under company’s Act,
on 13 February 1970. It is a Government of India undertaking. The immediate
need to set up IDC was to handle the commercial and financial transaction of
“India WFP Project 618” popularly known as “Operation Flood” Thus it
became mainly a financing –cum-promotional agency of the central
Government.
In Order to have better co-ordination and smooth implementation of
dairy development projects in India, the Government of India decided to have a
common Board and Chairman of both IDC and NDDB. IDC carries out its
activities through its head office at Baroda and regional office at Delhi,
Calcutta, Bombay, Madras and Bangalore. The regional offices take care of
respective regions for implantation of projects. The NDDB acts as the
Technical Consultancy to IDC on all matters related to dairy development.
The IDC merged into the National Dairy Development Board
constituted as an institution of national importance under the NDDB Act,
adopted by the parliament in September 198716.
2.12. OPERATION FLOOD PROGRAMME
Government directions were given in 1964 for setting up milk co-
operatives on Anand Pattern throughout India. In pursuance of these directives,
in 1965, the National Dairy Development Board (NDDB) was formed at
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Anand. ‘Operation Flood Programme’ was then started by NDDB in the milk
sheds of Mumbai, Delhi, Kolkatta and Channai (Madras) in 18 milk production
areas 17. This was the largest dairy development programme ever undertaken in
the world which was aimed at the following objectives.18
a) To facilitate a progressive increase in the milk and dairy product
consumption in the country and particularly in the urban areas.
b) To initiate and implement measures to raise the output of the dairy
sector by encouraging organized dairying and improving
productivity to achieve higher national consumption on the basis of
domestic production of the dairy and related sectors.
c) To modernize the dairy sector in all aspects, establish basic
infrastructure and to lay the permanent basis for future productivity
gains by effective integration of the short and medium term aspects
of the programme.
Operation Flood Phase-I (1970-1981)
Commissioned on 1st July 1970 by govt. of India based on ideas of
chairman of ANAND and honorary chairman of NDDB Dr. Verghese Kurian.
This project was planned initially for only five years but lateron extended for
another six years. NDDB and IDC extended technical and financial help
respectively to this project.
The objectives of this phase were 19
(a) To capture a commanding share of milk markets in the four
metropolitan cities.
(b) To develop 18 hinterland milk sheds in 10 states by organizing dairy
co-operatives in the ANAND pattern.
(c) To organize an efficient transportation system for collection of milk
from villages and sending it to processing units as well as for
supplying it to cities.
(d) To set up Feeder balancing dairies and storage system to convert
excess milk to milk powder and butter oil.
105
(e) To increase the yield of milch animals
(f) To train personnel to plan and operate the service efficiently.
India Dairy Corporation (IDC) was established by Government of India
for accepting 1,26,000 tonnes of Skimmed milk powder and 40,000 tonnes of
Butter oil under the World Food Programme to be used to general funds for
dairy development in India. The IDC generated Rs. 1164 million by sale of
these products. The generated funds were used for development of dairy
industry.
The operation flood phase-I ended on 31st March 1981 with an
investment of Rs. 1165.40 million and about 13,300 dairy co-operative
societies in 39 milk sheds were organized benefiting 1.75 million farmer
members.
Operation Flood Phase – II (1981-1985)
Commissioned on 2nd October 1978 with allocation of Rs. 485 crores in
the budget by Government of India. The Financial provision for this
programme was proposed through the sale of SMP and BO donated by EEC
(Worth Rs. 235 crores) a world bank loan (about 173 crores) and the remaining
by the IDC (Rs. 77 crores).
In this phase the milk shed development increased upto 136 outlets for
milk spread to 290 urban markets.
The objectives of this phase were
a) To increase per capita daily consumption
b) To develop national milk grid to link up rural milk sheds.
c) To increase milk production in the country to bridge the gap between
demand and supply of milk and milk products.
d) To create employment opportunity for 37.30 lakh farmer families in
the country.
e) The organize one crore families of rural milk producer on co-
operative lines.
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f) To enable the milk producers to rear the National Milk Herd of some
5 million crossbred cows and buffaloes.
During this phase the number of milk producing families have increased
from 1.5 million in pre-programme year i.e. 1977-78 to 10.2 million in 1984-
85. The no. of improved milch animals was increased from 0.8 million to 10.2
million during this period while the daily average milk procured by milk
producers co-operatives increased from 2.3 million litres to 18.3 million litres.
Per capita availability of milk increased from 107 gms to 144 gms.
The operation flood-II enabled the lower caste families to participate in
co-operative dairying on an equal basis with the other society members.20
Operation Flood Phase – III (1985-1996):
Operation Flood III was an extension of operation flood II.
The main objective of operation flood phase III was to established
70,000 dairy co-operative societies in the 170 milk shed area. Rs. 8962.10
million was allocated in the budget for OF-III programme by government of
India.
The generation of funds for Phase-III was through world bank loan (365
million US $) donated commodities (Rs. 222.6 crores) and NDDB from its own
resources (Rs. 207.7 crores)
Under this phase more attention was given on research and development
in animal health and nutrition21
Operation flood phase-III consolidated India’s dairy co-operative
movement. The salient features of achievements of Phase-III of operation
Flood Programme are-
- Increase in milk production to 69.1 million tones
- Per capita availability of milk gone upto 203 grams per day
- Addition to 30,000 new dairy co-operatives to the existing 42,000
organized during phase II.
- Significant increase in the number of women members and women’s
dairy co-operative societies.
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The growth of primary dairy co-operative societies, their membership
and milk procurement during operation flood programme showed fantastic
progress during operation flood programmes in all the three phases. The no. of
PDCS in India which was 1588 at the beginning of operation flood phase-I was
increased upto 13,270 at the end of phase-I, 34523 at the end of phase-II and
72,600 at the end of phase-III.
The no. of milk producer members which was 278 thousand at the
beginning of Phase-I increased to 1747 thousand, 3632 thousand and 9263
thousand at the end of phase-I, II and III respectively.
While annual milk procurement which was 189.8 thousand tones at the
beginning of phase-I increased upto 934.4 thousand tones, 2109.7 thousand
tones and 4011 thousand tones at the end of Phase-I, II and III respectively.
Thus, there is excellent increase in number of village dairy societies,
milk producer members as well as milk production and procurement during
operation flood programme. Dairy industry in India was developed during
operation flood programme22.
2.13. STATUS OF VARIOUS DAIRY DEVELOPMENT
INSTITUTIONS23
Before independence of India, in the first half of the twentieth-century,
dairying in the country was largely unorganized. Organized dairying, However
the end of the 19th century to meet the demands of the armed forces and their
hospitals, military dairy from were started –
1) To improve milk production of low producing and non descript cattle.
2) To upgrade low producing cattle in areas not suitable for crossbreeding
with exotic germ plasm and involving superior indigenous dairy/dual
purpose breeds,
3) To emprove superior indigenous breeds of dairy cattle through selection.
These causes were coupled with provisions of inputs. Dairy
development programme following were some important facts originated for
the dairy development.
108
a) Nutritional requirement:
Most of the regions in the country are affected with under nutrition and
malnutrition. A large number of people depend upon milk and its products as
the most important source of nourishment, milk is considered to be the most
single perfect food, which is essential for physical and mental well-being of
human beings. The minimum quantum of milk consumption recommended by
the Nutritional Advisor Committee of the Indian Council of Medical Research
is 210 gm/day (77 Lit./year) It was to served the 50 % milk produced was
consumed as liquid milk in 1994, 30% milk was consumed as skim milk butter
milk and 20% remaining quantity consumed in variety of milk products like
dahi, butter, ghee, as well as milk based sweets.
b) Improvement of Socio-economic Condition of Rural People :
Dairy farming occupied as a subsidiary occupation for the village
farming community with a view for improving the potentialities in gainful
employment and enerying regular supplementary income to small and marginal
farmers and landless laboures in rural areas.
The employment creation impact of 100000 liters per day of dairy
development is in excess of some 12,000 jobs. The social changes brought
about as a result of formation and functioning of dairy co-operative societies in
villages of India is tremendous. The profits of Dairy co-operative societies
amount on an average to some 8% of dairy turnover. These profits are largely
used for village improvements considering the volume of financial gains and
implemented by the village community as represented by the Dairy Co-
operative Society.
Dairy Development programmes have their impact on Agriculture also .
More milk leads to more grain, and to siginificant improvements on living
standards and social status in villages, because crop residues are an important
part of livestock feeds in India.
A study carried out by R.D.Biradar on the impact of Dairy Development
on the different groups of people residing in Udigir Taluka (Maharashtra), and
109
overall performance of all Government milk plants and its impact revealed
that-
i) Dairy development programme had produced a favorable impact
on employment creation.
ii) The income from dairy beneficiaries was higher than the income
from other occupations of non beneficiaries.
iii) The asset- improvement of beneficiaries was higher than that of
asset improvement of non beneficiaries.
iv) One hundred liter of milk produced 15 full job opportunities and
33 part time opportunities.
v) The dairy development depended upon the infrastructural
development of villages.
vi) Among the different types of breeds the performance of cross
breed cattle was found excellent from various angles.
vii) There seems to be economic impact of dairy development on the
various groups.
Thus, dairy development programmes take a vital role in the
improvement of the socio-economic condition of rural people.
c) National and State Level Dairy Development Programmes 24:
i) The National Dairy Research Institute (NDRI)
It gives the necessary theoretical and practical knowledge and guidance
to young students in order to enable them to start dairy farms on their
own.
ii) National Dairy Development Board/Indian Dairy Corporation
(NDDB/IDC)
NDDB the non profit institute provides technical service to the various
dairy projects in India. Under the control and guidance of NDDB a
National Milk Grid is functioning successfully, whereas IDC was
wholly owned by the Government of India. The main task of IDC since
its inception has been to handle the sale of dairy products provided as
110
commodity aid to India and to use the process of such sales for national
dairy development purposes.
Now the IDC merged with the NDDB constituted as an
institution of national importance under the NDDB Act adopted by the
parliament in sept.1987.
iii) National Milk Grid (NMG)
It was started in 1970 as an effective tool of milk producers in the
country by giving a wider market in dairy industry. This grid was
established in the four metropolitan cities, Delhi, Calcutta, Madras and
Bombay.
iv) National milk Heard (NMH)
For improving the Indian dairy breeds and developing he cross breed
technology, this scheme came into operation during the second phase of
operation flood. Its aim is to provide 14 million cross breed cows and
upgraded buffalos.
v) Bhartiya Agro Industries Foundation (BAIF)
It was established in 1967 at Uruli Kanchan, Pune, Maharashtra. It
major aim is to provide instruments of gainful employment to thousands
of rural poor through conversion of low productive rural liabilities into
productive and constructive assets. It has 400 integrated Rural
development center in 6 state in the country (Maharashtra, Rajasthan,
Gujarat, Karnataka, Madhya Pradesh and Uttar Pradesh)
vi) Indian veterinary Research Institute(IVRI)
It is a pioneer institute started nearly a century ago. It has been
producing and marketing animal vaccines at Izatnagar and Mukteshwar
in Uttar Pradesh. This institute conducts an all India co-ordinate project
for Epidemiological studies on F.M.D. which is operated through Nine
regional stations situated at Hissar, Mathura, Anand, Pune, Hydrabad,
Ranikhet, Patna, Calcutta and Guwahati. In Short this institute has been
constantly helping the cattle health building in the country.
111
vii) Institute of Rural management , Anand (IRMA)
NDDB has started this institution in 1979 to provide trained persons for
dairy industry.
2.14. SHARE OF AGRICULTURE AND LIVESTOCK SECTOR IN
G.D.P.
Milk business depends upon the livestock wealth in India. Most
population also related with livestock population and milk business. Following
table shows the share of agricultural and livestock sector in GDP.
Table No.2.3
SHARE OF AGRICULTURE AND LIVESTOCK SECTOR IN G.D.P.
Sr.
No. Year
GDP
Total
GDP (Agriculture) GDP
Livestock
Share
% Rs. %Share
1 2004-05 2971464 476634 16.04 119333 4.02
2 2005-06 3389621 536822 15.84 127518 3.76
3 2006-07 3952241 604672 15.30 142695 3.61
4 2007-08 4581422 716276 15.63 169596 3.70
5 2008-09 5282086 799517 15.14 188732 3.57
6 2009-10 6133230 939922 15.33 241177 3.93
Source : National Accounts Statistics – 2011 Central Statistics Organization GOI
Table No-2.3 shows that share of agriculture and livestock sector in
India at the year of 2010.
Highest share of Agriculture and livestock was in GDP during 2004-05.
While lowest share of Agriculture and live stocks in GDP was 2008-09 in the
year 2008-09.
112
Graph No.2.2
Share of Agriculture and Livestock Sector in G.D.P.
0
1000000
2000000
3000000
4000000
5000000
6000000
7000000
2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
VALUE OUTPUT FROM LIVESTOCK SECTOR
In our economy milk business (dairying) in very important. There was a
recognized value out put from livestock sector shown in following
Table No. 2.4
VALUE OUTPUT FROM LIVESTOCK SECTOR
Source : National Accounts Statistics – 2011 Central Statistics Organization GOI
Sr.
No. Item 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
1 Milk Group 123907 132812 144999 165254 185685 228809
2 Meat Group 31259 33812 39575 26283 52966 64073
3 Dung 16051 16554 18369 19666 21262 23032
113
Above table shows that the value rupees in Gross of milk group products
and meat group products and produced during the years 2004-05 to 2009-10.
In the year 2009-10, milk group and meat group was highest value of output
from livestock sector. Also the same year show highest quantity of dung
produced.
Graph No.2.3
Value Output from Livestock Sector
0
50000
100000
150000
200000
250000
2004-
05
2005-
06
2006-
07
2007-
08
2008-
09
2009-
10
Milk Group
Meat Group
Dung
2.15. MILK PRODUCTION IN INDIA
India has 1st rank in the world milk production in 2009 by the report of
FAO. By the statistical data available about with the Dept. Animal Husbandry
Dairying and Fisheries ministry of India. G.O.I we can give a table as
following.
114
Table No.2.5
MILK PRODUCTION IN INDIA
( In tonnes/day)
Sr.No. Year Quantity
1 2005-06 241
2 2006-07 246
3 2007-08 252
4 2008-09 258
5 2009-10 263
Source : Dept. of Animal Husbandry Dairying and Fisheries ministry of India. G.O.I
Above table shows that there is highest milk production in the year of
2009-10. Milk production in India has increased during 2005-2006 to 2009-10.
2.16. EXPORT POTENTIAL IN DAIRYING
India was primarily an import dependent country till early 1970s. Most
of the demand supply gaps of liquid milk requirements for urban consumers
were met by importing anhydrous milk fat/butter and dry skim milk or whole
milk powder. With the onset of the operation flood programme the scenario
dramatically changed and commercial import of dairy products came to a half
except occasional imports of very negligible quantities.
In the 20th century India started exporting surplus dairy commodities viz
skim milk powder, whole milk powder and ghee. The export of dairy
commodity was regulated by the Agricultural and Processed food Produces
Export Development Authority (APEDA).
The major constraint has been the non availability of good quality milk
to produce milk products of international standard. To develop sustainable and
dairy products export adequate thrust on quality and clean milk production are
required.
115
The milk production system in India is primarily confined to landless
labourers, small and marginal farmers. Although firm gate price is cheapest in
India, due to socio-economic and environmental conditions, it is difficult to
produce milk as per international quality standards. Production of such milk
needs mechanized milking and chilling system which calls for higher
investment. Until and unless higher price is received for production of such
milk, the system will not be viable. Therefore, there is a need to segmentise the
milk25.
SECTION-III
2.17. MAHARASHTRA DAIRY SCINARIO
HISTORY OF DAIRYING IN MAHARASHTRA26.
On 1st May, 1960, State of Maharashtra came into existence. The state
has got the vast area of about 3,07,690 sq. kilometers and gifted with the
natural costal area of about 720 kilometres from the west by Arebian Sea.
Maharashtra State has a great political, economical and historical back ground.
The state is recognized as “Maratha State” and the land of great “Raja Shivaji
Chhatrapatti” Maharashtra State has 35 Districts are divided in 6 regions.
The state has progressed immensely in Commerce, Steel, clothing and
sugar industries Mumbai is the capital city of Maharashtra. Mumbai has been
commercially important city and also known as economic capital of India.
Maharashtra State plays an important role in Indian economy. The state
is one of the most advanced states in Commerce and industrial sector Major
Occupation of the total population of the state is Agriculture.
The milk industry is mainly based on agriculture so also milk industry
supports to agriculture.
2.18.MILK INDUSTRY IN MAHARASHTRA
i. Background of Development of Milk Industry –
Industrial revolution in European countries around 1850 influenced the
milk industry to a large extent. This business which was to a domestic level
116
emerged as milk industry after industrial revolution. Revolutionary changes
occurred in this field. Because of development of preservation technique it
became possible to transport milk at a distant place. Because of
industrialization and urbanization, standard of living of the people was
increase. This increased demand for milk business became inevitable.
In 19th century there occurred many inventions in the milk industry.
Some of them are –
1856 - Development of a technique for preparing milk powder.
1878 - Gustav laval developed technique for separate fat from the milk.
1888 – Nicklos Gerber from Switerland developed method for measuring
fat content of Milk.
1895 – Pasteurization of milk technique was developed in 20th century
i.e. around 1914 use of insulated tankers started for the transport
of milk. Production of milk products and their use in human diet
increase which increase demand. For milk, sweets, Chocolate,
Cheese, butter production was increased. Thus, this business at
domestic level changed into commercial – industrial scale in the
European countries.
In India, after independence, Government efforts achieved fascination
progress in this filed. Co operative principals were applied to this field. All
present, in India, this business existing in private, co-operative as well as
Government sector.
ii. Foundation of Modern Milk Industry in Maharashtra27 –
In 1944, Bombay Regional Government started supply of milk to
society at concessional rate (that is at 50 % rate of purchase value). This was
the first milk scheme in India. The same formed the Foundation of current
Grater Bombay Milk Scheme. Jeckins Wadia committee was formed to start
milk industry at the Government level. According to recommendations of this
committee, in 1945, Bombay Government institute a separate Milk
Department. This department motivated milk production as well as
distribution.
117
iii. Establishment of Aarrey Milk Scheme –
For the migration of cows and buffalos from Bombay, convenient place
was selected at village Aarrey near Goregaon. Government occupied his place
on 5th April,1946 and constructed modern pens. In 1949 cows and buffalos
from Bombay were relocated at this place and supply of produced milk to
citizens of Bombay was started. In 1951, Aarrey Dairy was established in
order to process the milk and this process milk is supplied in good condition to
the customers.
iv.Establishment of Worly Dairy –
Because of planned efforts, milk industry prospered even in the rural
areas of the state. Milk collection has been started on co-operative basis in this
are. It was mandatory for milk producers to sale this milk in the urban region.
Hence Government decided to establish another dairy. UNICEF has funded
and assistanced to established dairy at worly sea face in Nov1961.
v. Mother dairy Kurla–
Milk production has increased in rural areas because of governments
efforts. At the same time demand for milk from Bombay residents also
increased. In order to open the Bombay market to rural milk producers, State
Government has established ‘Mother Dairy’ at Kurla in 1975.
vi. Milk Distribution System–
Government as well as private centers have been working for the
distribution of milk from Greater Bombay Milk Scheme. Milk distribution is
being done with the help of own transport system with the assistance of private
distribution systems. Because of efficient distribution network, milk
distribution is done uninterrupted even during natural calamities and man made
hindrances as of strikes. However, sufficient production and supply of milk
from rural Maharashtra, importing milk from outside Maharashtra is not at all
required. On the contrary Maharashtra can supply milk and milk product to
other states. Milk is available to customers of Mumbai at any time of the day.
118
vii. Influence of Co-operative Milk Unions –
Milk and Milk products are supplied to customers of Mumbai through
Mahananda Dairy run by Maharashtra State co-operative milk producers
federation. Milk producer’s Unions from Kolhapur, Pune and Akluj have
opened their branches and chilling centers in New Mumbai area. Similarly,
milk and products from Aarrey, Sarita, Mafco and Other private companies are
sold. But co-operative milk unions influence this system, to a greater extent.
viii. Dairy Development in Maharashtra –
The State has a total area of 308 lakh ha out which 178.76 lakh ha is not
swan area. The fodder area and grazing land area is 51.47 ha, 7.41 ha and 1.74
ha respectively (1996.97) The banking network is wide with 29 commercial
banks (5441 branches) and 8 RRB’S (51 Branches) and 30 district central co-
op banks. The target envisaged for milk production by the end of xth five year
plan was 68.60 lakh tones.
ix. Progress of Milk Business in Maharashtra –
In order to achieve rural development of Maharashtra through milk
business and to supply good quality milk at a reasonable price to the urban
customers, in 1958 Maharashtra Government established a separate milk
development department Responsibility of this department was assigned to a
senior officer of the commissioner level.
Urbanization was accelerated after independence. Living standard of
people improved ultimately demand for pure and nutrition’s milk also
increased. Awareness about importance of milk consumption developed.
Looking at the need for increased milk production as well as systematic
arrangement for sale of milk, Government concentrated on dairy developments.
In 1951, milk colony was established at Aarrey. With the assistance of
UNICEF dairy project was established in 1961 at Worli sea face. About 1960-
62, Government milk schemes were started in cities like Miraj, Kolhapur,
Dhule, Ahemdnagar, Nagapur, Aurangabad. A four point programme was
119
drafted to accelerate milk production in rural areas and supply of milk to
Government milk schemes.
1) Qualitative and quantitative rise in the milk production and processing
instruments rural areas.
2) Motivation of farmers to accept co-operative system from village level
to district level.
3) Production cost linked price to milk producer and proper price to the
customers.
4) To run package programmes as well as extension programmes in order
to motivate backward class, small farmers to accept milk profession as a
supplementary occupation and independent business by landless
labourer and unemployed people.
In addition to these efforts to increase the milk production in order to
help the milk processing and marketing chilling centers were developed at
taluka and district level. Milk produced in respective areas is collected and
processed at these centers. Government milk schemes were established to
make it possible to send excess milk to big cities after fulfilling the local needs.
Considering the seasonal variation in milk production three processing units
were formed in Government Sector and Four more were formed in the co-
operative sector with Governments assistance to prepare milk powder. This
helped excess milk produced in flush season to be used in lean season.
Because of this milk producers in Maharashtra got assured market and
guaranteed income.
Co-operative milk schemes from the state have accepted Government
milk projects as a medium for their development. Government also tried to
increase milk production in rural areas. Government has created a network of
co-operative milk schemes to assure easy availability of milk to Government
milk schemes. Milk business in co-operative sector is now well developed.
Co-operative establishments are now sharing responsibilities like processing of
milk, preparation of milk products, distribution of milk, management. Few co-
operative establishments have started selling their production in Mumbai in
120
their own. Looking at the progress done by co-operative units, Government
has assigned some responsibilities to them like,
1) To collect milk from producers of rural areas.
2) To Test and analyse the collected milk.
3) To pay the price of collected milk to producers after gradation of milk.
4) To transport the procured milk to the dairy.
5) To furnish the extension programmes for milk business development to
the milk producers.
For the fulfillment of such responsibilities loan is made available for
special purposes from National Co-operative Corporation. These special
purposes for which loan is made available by Government include – raising
chilling centers, ice factories, projects for milk and milk product processing,
purchase of milk tankers, equipments for analysis of milk, milk containers etc.
In addition to this, grant is given by to the co-operative units by
Government in the initial period of these units as follows –
Year Primary Co-operative milk
Producers Society Taluka Unions
District unions
1st Rs. 12000 Rs. 1800 Rs. 2500
2nd Rs. 800 Rs. 1200 Rs. 1500
3rd Rs. 500 Rs. 600 Rs. 1000
Primary units are also given grant for capital investments such as for the
purchase of milko tester up to Rs.15000/- or 50 % of the price, whichever is
less, similarly for purchase of milk cans.
For the development of co-operative milk business encouragement
rewards are given to co-operative units for secretary training, promptness in the
payment of bills falsless accounts arrangements for the supply of fodder,
veterinary health facilities etc.
121
2.19. Structure of Co-operative Milk Business in Maharashtra –
Government has encouraged the formation of co-operative societies of
milk producers and unions of these societies. Strategies are followed to
actively support the progress of co-operative milk business.
The structure of the co-operative milk business in Maharashtra at
present is as follows -
Maharashtra Rajya Sahakari Doodh Mahasangh Maryadit
MRSDMM) (Mahanand Dairy)
Anand Pattern Non-Anand Pattern Multistate Co-operative Dairies
State co-operative Taluka/Local Milk Milk societies working in the Milk Federation producers Unions board of Maharashtra and
Adjacent states (i.e.Mayur, and mahalaxmi doodhsangh)
District Co-operative Milk producers Unions
Primary co-operative Primary Co-op milk Primary Co-op Milk Milk producers Societies producers Societies producers Societies
First attempt to organize co-operative Dairy business in Maharashtra in
organized form based on co-operative principles was made in 1951 in few
talukas of Pune district. Fascinated by the success of this trial, Maharashtra
Government adopted co-operative principles in its Dairy Development Policy.
Formation of primary co-operative milk producers, societies in villages started
with this. In due course of time unions of these societies at taluka and district
level was started. Because of favorable natural conditions in some part of
Maharashtra this business prospered while in other parts of Maharashtra like
Vidarbh, Marathwada and Konkan because of Unfavourable natural conditions
progress was slow.
122
Dairy Co-operatives at the village level collect milk twice a day from
their members and send it to taluka or district milk unions and to Government
dairies. Taluka and District societies provide chilling facility during this
period. Few taluka and district unions have formed their own chilling centers.
Some of them have started their milk processing units also. These unions
process the milk and sale the milk products on their own. Similarly these
societies send some amount of milk to state co-operative milk federation and
Government dairies.
Unions at the taluka and district level are bearing the responsibilities of
distribution of milk, production of cattle feed, veterinary services along with
production of milk. The number of primary level societies as well as union and
the taluka and district level institutions during the period of 1991 to 2007 was
increasing.
TABLE NO. 2.6
CO-OPERATIVE MILK SOCITIES IN MAHARASHTRA
(Rs. in Lacs)
Sr.
No.
Particulars Years
1991 2001 2005 2006 2007
1 No. of Societies 14284 22466 26499 26881 30913
2 Membership (00) 13101 15182 1815861 1842038 2118343
3 Share Capital 3131 6594 2416 2451 2820
4 Of Which Govt. 8 7 N.A. 0.93 1
5 Own Funds 6614 116119 2585 2623 2885
6 Working Capital 12950 1241321 24897 25256 27782
7 Amount of milk Procured
35052 3234941 109946 111531 128260
8 Amount of milk and milk product sold
29914 3003403 64954 67081 77143
9 Societies in profit 6762 12267 12617 14432 13710
10 Societies in loss 3114 9634 12472 11941 13135
Source : Co-operative movement at a Glance 2007 NA = not available
123
Above table shows the progress of the primary dairy co-op societies in
the Maharashtra. Number of societies were increased by 8182 during 1991 to
2001 and it was increased by 4033 during 2001 to 2005 and it was increased by
4414 during 2005 to 2007 which is highly notable feature of dairy industry in
Maharashtra.
2.20. District and Taluka Milk producers Co-operative Unions in
Maharashtra
Increase in the number of district and taluka dairy co-operative unions
during the period of 1991 to 2007 is shown in the following table.
TABLE NO.2.7
District and Taluka Milk producers Co-operative Unions in Maharashtra
(Rs. in Lacs)
Sr.
No. Particulars
Years
1991 2001 2005 2006 2007
1 No. of Unions 71 65 85 87 95
2 Membership (00) 243 46835 48197 47195 51917
3 Share Capital 1166 4725 8820 9028 9931
4 Of Which Govt. 159 59 32 37 41
5 Own Funds 4272 129980 9833 10065 11072
6 Working Capital 22663 1028514 68808 70427 77471
7 Amount of milk Procured
20175 128578 138020 141268 153395
8 Amount of milk and milk product sold
35143 131110 59687 65397 71937
9 Societies in profit 36 42 45 47 51
10 Societies in loss 22 22 41 35 45
Source : Co-operative movement at a Glance 2007 NA = not available
From above table it is a evident that number of members is increased
from 24300 in 1991 to 5191700 in 2007.
124
This table shows that there is increase in the share capital, number of
unions in profit and all others aspects. However, the number of union In loss
and amount of loss is also increased year after year.
2.21. Maharashtra Rajya Sahakari Doodh Mahasangh maryadit
(MRSDMM) -Mahanand Dairy
Maharashtra Rajya Sahakari Doodh Mahasangh Maryadit (MRSDMM)
is an Apex federation of district and Taluka milk co-operative unions
established to develop dairy industry in co-operative sector in the Maharshtra
state. MRSDMM as also known as Maharashtra State Co-operative Milk
Federation(milk Fed). This was established on 9th June 1967 wide registration
number Mumbai/PRD(A)1.
Mahanand dairy is the unit run by the MRSDMM which was established
on 18th August 1983. For the purpose of milk distribution Mahanand has
established two packing depots located at Navi Mumbai and By Culla. Now
the MRSDMM is known as Mahanand.
For supplying fresh and quality milk to customers in time, Mahananda
has adopted systematic distribution network in Mumbai city.
The progress of state level Co-operative milk industry in Maharashtra is
reflected in the progress of Mahanand dairy. Mahanand has shown almost
contionous and progressive record of achievement. The progress of Mahanand
dairy with respect ot profitability, incentives and turn over is shown in the
following table.
125
TABLE NO.2.8
Progress of Mahanand (Rs. in Lacs)
Sr. No. Year Gross Profit Dividend
(incentives) Turn over
1 2000-01 1023.50 102.12 34819.27
2 2001-02 820.55 108.73 37697.65
3 2002-03 1286.70 121.93 38486.93
4 2003-04 NA NA NA
5 2004-05 1221.21 112.73 39000
6 2005-06 1600.41 121.06 38400
7 2006-07 1650.08 162.30 40600
8 2007-08 1898.82 168.83 44500.21
9 2008-09 2434.42 170.68 43900.43
10 2009-10 3062.72 173.80 43800.03
Source : Annual Reports of the Mahanand.
Above table shows the progress of Mahanand dairy during 2000 to
2010 as a result of significant improvement in productivity, cost control,
energy conservation etc. Mahanand dairy has 6 times secured National Level
Awards as instituted by National Productivity council New Delhi.
2.22. Animal Husbandry Department of Maharashtra Government 28–
Government of Maharashtra and the co-operative sector in Maharashtra
has achieved a great success and progress. Animal husbandry department of
Maharashtra has a major contribution in this. Functions and responsibilities of
this department are as follows –
I) Main Objectives –
1) To motivate farmers and milk producers in the state to use
artificial insemination technique for production of cross breeds of
cattle’s and to guide them about the modern methods of animal
Conservation.
126
2) To promote Agriculture system and to achieve financial progress
of farmers, workers and rural population with the help of various
developmental programmes.
II) Programmes Undertaken by Animal Husbandry Department :
1) To produce cross breeds of cattle’s by artificial insemination
method.
2) To produce trained worker for animal health and improvement.
3) To Make available the medicines and medicial facilities to
farmers for animal health.
4) To promote the production of improved fodder.
III) Facilities provided by the Department :
1) Availability of primary veterinary centers at village taluka and
district level.
2) Veterinary dispensaries and Clinics.
3) Mobile veterinary Clinics and teams to control cattle diseases.
4) Cattle check posts and vigilance squads.
2.23. Per Capita Availability of Milk in Maharashtra
Quality of health depends on food value taken by population. Therefore,
milk production and availability of the milk is very important following table
show that per capita availability of milk comparing with all India level during
various years.
TABLE NO.2.9
Per Capita Availability of Milk in Maharashtra ( grams/ day)
Sr. No. Years Availability
India Maharashtra
1 2005-06 241 178
2 2006-07 246 182
3 2007-08 252 184
4 2008-09 258 188
5 2009-10 263 190
Source: Department of Animal Husbandry, Dairying and Fisheries Ministry of Agriculture, GOI.
127
Above table shows heights availability of milk in the year 2009-10 was
263 gms/day. In the same year in Maharashtra there was highest per capital
availability of milk, in the year2008-09 was 188 gms /day.
2.24. Milk Production In Maharashtra
In the economy of Maharashtra the major role is played by dairy
business since last 60 years. The milk production in Maharashtra is growing up
year by year which is shows in following table
TABLE NO. 2.10
Production in India and Maharashtra (2009-10)
Sr.
No. Years
Production 000 Tones
India Maharashtra
1 2005-06 97066 6769
2 2006-07 100869 6978
3 2007-08 104844 7210
4 2008-09 108587 7455
5 2009-10 112540 7679
Source: Department of Animal Husbandry, Dairying and Fisheries
Ministry of Agriculture, GOI.
Above table shows that, there in increase in milk production in Maharashtra during 2005-06 to 2009-10.
128
SECTION -IV
2.25. Kolhapur District Brief Background29:
In the part of this chapter an attempt has been made to explain briefly
profile of Kolhapur. District.
1. Historical Background :
During the primitive stage there were six small villages in the Kolhapur
city area, which were settled at the edge of river.(Brahmapuri, Uttareshwar,
Khol-Khandoba, Rankala, Padmala, Ravaneshwar). Historically it is observed
that there was communication Kolhapur with Rome. But 2nd A.D. TO 15TH
A.D., there was decay of Kolhapur Culture. However, Chhatrapati Shivaji
conquered Panhala Fort in 1659. Letter on Great Queen Tarabai, Chhatrapati
Shahu Maharaj developed the city. At present New Palace shows the great
History of Kolhapur city.
2. Location :
The Kolhapur District has an area of 7694 Sq. Killometer, ranks 2.5% of
Maharashtra State. It is situated between 15.430 North to 17.100 North Latitude
and 7.400 East to 74.420 East Longitude.
3. Facts and Figures :
i) Total No of Taluka/ Tahasil -12
ii) Distance from Mumbai – 395 K.M. (Road Way)
iii) Population - 38,74,015(2011census)
iv) District Head Quarter – Kolhapur
v) No of Corporations – 01- Kolhapur
vi) No. of Municipality – 9
vii) Tourisam Centers – Jotiba Temple, Bhavani Mandap, Mahalaxmi
Temple, Khasbag Maidan, Gangangiri Math, Radhanagari Dam,
Dajipur Reserves Forest, Shahu Chhatrapati Museum, Pannala,
Berki fall, Bahubali Temple at Kumbhoj, Vishalgal, Rankala.
viii) No. of panchayat samitee – 13
129
ix) No of Villages – 1032
x) The Rivers – Kolhapur city is situated at the edge of Panchganga
River so the Panchganga river is major river of Kolhapur city.
There are 12 other rivers namely Tulsi, Bhogawati, Kumbhi,
Kasari, Dudhaganga, Ved-ganga, Chikotra, Hirabyakeshi,
Ghataprabha, Tilari and Warana, Krishna.
xi) Climate – The climate of Kolhapur District on the whole is
agriable and characterized by general hilly area (Western Part)
Basically December to mid January is cold season where as hot
season follows till the end of May. June to October are the
months of Mansoon.
xii) Literacy Rate - Average Literacy Rate of Kolhapur district
77.23% which comprises male literacy rate 74.88 % where as
female literacy rate is 66.38%
xiii) Agricultural Details - Major Crops – Paddu, Sugarcane, ground
nut, Jawar Wheat, Tobacco, Soya bean Etc. Annual Crrops –
Sugar Cane.
xiv) Irrigation –Major Projects – Radhanagari, Tilari, Tulasi,
Kalammawadi. Medium Projects – Amboli, Gelawade, Patagaon,
Kadavi etc.
xv) Industries - Foundry Industries, Oil, Dairy, Spinning, Lather
industry, Ornaments, MIDC and Sugar Industries.
xvi) Transport and Communication
a) Air – Nearest airport is at Belhaum.
b) Rail – Kolhapur is important, railway Station started by
Chhatrapati Shahu Maharaj.
c) Road – Kolhpur is situated on the Pune Bangalore
National Highway No.4 There are atate Transport buses
run regularly from Kolhapur to Mubai, Panaji, Miraj,
Sangalim Pune, Satara, Sawantwadi, Solapur and several
other places. The Kolhpur Municipal Transport Service
130
operates in the city. Suburbs and nearby villages. Taxis
and Reshow’s are also available round the clock.
2.26. Brief Background of Sangli30:
In this part of chapter an attempt has been made to explain briefly
profile of Sangli District.
Sangli district is located in the western part of Maharashtra. It is
surrounded by Satara, Solapur districts to the north Vijapur district to the east,
Kolhapur and Belgaum district to the south and Ratnagiri district to the west.
Sangli district is situated in the river basins of the Warana and Krishna
River. The physical settings of Sangli district shows a contrast of immense
dimensions and reveals a variety of landscape influenced by relief. Climate
and vegetation. Sangli District has typical monsoons forest in the western parts
to screth and poor grass in the eastern part.
1. Historical Background :
Sangli district was a part of Satara district, up to 1948. After
independence Sangli district formed as separate district. Its head quarter is at
Sangali. Now Sangli district constituents ten talukas. Recently it is divided
into 3 sub divisions. Walwa, Miraj and Khanapur. The great king Patwardhan
tried to develop the city and around area such as Vita, Tasgaon,
Kavathemahankal, Jat etc.
2. Location:
The Sangli district has an area of 8601.5sq. kilometers, Ranks 21 in
Maharashtra State. It is situated between 16.45 to 17.22o of North latitude and
73.42 0 of East Longitude.
3. Facts and Figures:
i) Total No of Taluka/ Tahasil -10
ii) Distance from Mumbai – 370 K.M. (Road Way)
iii) Population - 25,83,524(2001census)
iv) District Head Quarter – Sangali
v) No of Corporations – 01- Sangali-Miraj-Kupwad.
vi) No. of Municipality – 04
131
vii) Tourisam Centers – Chandali, Sagareshwar.
viii) No. of panchayat samitee – 8
ix) No of Villages – 733
x) The Rivers – The main rivers of Sangli district are Warana and Krishna.
The Krishna is one of the three largest sacred river of Southern India.
Approx 105 Kms. of river course falls inside the district. Morana,
Yerna, Manganga, Agrani, Nawni, and Bor are the small rivers of
Krishna. Warana is the largest tributary of the Krishna in the distirct.
xi) Climate – The climate of Sangali district ranges from the rainiest in the
Chandoli(Shirala) region which has an average annual all over 4000
mm. to the driest in Alpadi and Jath Tehsils were the average annual
rainfall is about 500mm. min Temp -14.00 o celcius Max. Temp – 42.0 o
celcius
xii) Literacy Rate – Literacy rate of Sangli district is 62.41% which
comprasis male literacy rate 74.88 where as female literacy rate is
49.94%.
xiii) Agriculture Details –
Major crops – Bajra, Jowar, Wheat, Rice, Gram, Sugarcane, Groundnut,
Termeric, Soya bean, Pomogrante, Grapes.Annual crop – Sugar cane.
xiv) Irrigation –
Major Project –1
Medium Project – 05
Krishna Khore – There are 1 major, 5 medium and 54 minor projects
(total 60) are in progress by Krishna valley Development corporation.
xv) Industries – Sangli district have 7032 Reg. small scale industrial units.
10 –Sugar factories and 21 – cotton industries.
xvi) Transport Communication –
a) Air Nearest airport is at Belgam.
b) Rail – Miraj is very important. Railway Junction. The district has
173.70k.m. of railway track.
132
Road- Sangli district is situated on the Eastern side of Pune-Bangalore
National Highway No.4 There are state transport buses run regularly from
Sangli to Mumbai, Miraj to Panji, Kokan, Solapur and Hydrabad side. The
Sangli Miraj Kupwad Municipal area has covered by local S.T. service.
Among suburbs and nearly villages, taxies and rickshaw are also available
round the clock.
133
References:
1. Ratnam C., “Dairy Development Demand and Supply Aspects” Chugh
Publications, Alahabad, India,1996.PP.2-3.
2. Gandhi, Vasant P., and Gyanendra Mani, “Indian Institute of
Management, Ahmadabad based on their paper in Indian Journal of
Agricultural Economics, July Sep-1995, Dairy India-1997, Box-2, Page
No-10.
3. The World Market for Dairy Products, 1987, International Dairy
Arrangement, Eighth Annual Report, General Agreement on Trade and
Tariff and Trade Geneva. Nov-1987, PP.5-7.
4. Google@search .www.com.
5. Website: India Dairy.com/Facts and Figures
6. Milk Procurement and Technical Inputs manual by NDDB.Chapter 3
P.P.13
7. ibid PP.14
8. Singh Harmeet,(2005) Dairy Farming, APH Publishing Corporation
New Delhi.P.P-,278-79
9 Sixth five year plan (1980-85), Planning Commission GOI, New Delhi.
1981 PP-127
10 Katkar B.K. (2007) “ A Study of Performance Evaluation of Dairy Co-
operative Societies in Kolhapur Doistrict” Unpublished Ph.D. thesis
. Shivaji University,Kolhapur PP.75
11 Sixth Five Year Plan opcit PP-76
12 Koli P.A.Dairy (2007) Development in India, Shruti Publication,
Jaypur. P.37
13 Ibid Page-38
14 Katkar B.K. opcit PP 76
15 From a Drop to a flood, by NDDB Anand India 1987 P-4
16 Milk Procurement Manual opcit PP 34
17 Jain M.M(1986) “.Growth Pattern of Dairy Sub Sector in Rajasthan”
Himalaya Publishing House, Bombay.
134
18 Bandopadayay M.K( 1994).”Dairy Co-operative and Rural
Development in India, Uppal Publishing House, New Delhi
PP.36-37
19 “ A report on operation flood success story: The worlds
biggest dairy development programme” , NDDB, Anand. 1976
P-3
20 Pandya Dinkar, (1984)Revolutionizing milk, operation flood:
Its sway,link (weekly) New Delhi.PP-25-26
21 Website NDDB
22 Ibid
23 Datta Gunendra N., Barukha K.K, Bora N.N., Datta J.B.
(1994) Care and Management of Dairy Cattle and Buffaloes ,
Kalyani Publisher. Ludhiyana.New DelhiPP-1-10
24 http://www.ndri.nic.in
25 Indian Dairy Man 51,4,99, P-21
26 Govt of Maharashtra Deptt. of AH, (2008)Integrated survey
scheme report on Milk- Eggs, IN Maharashtra State PP-7-9
27 Documents with the office of Dairy Development
commissioner , Worali Mumbai( unpublished)
28 Animal Husbundary Statistical Booklet 2008-09 from the
office of Commissioner , Animal Husbandary, Govt of
Maharashtra, Pune.
29 Website: District. Com
30 Website: Sangli District.com
