DAIRY COOPERATIVE DEVELOPMENTS IN INDIA -AN OVERVIEW

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1 DAIRY COOPERATIVE DEVELOPMENTS IN INDIA -AN OVERVIEW Dr. FRANK RATHANA KUMAR Associate Professor and Research Advisor, Department of Cooperation, TBML College, Porayar , Tamilnadu Mrs. M.THAMILA Ph.D, Research Scholar, Department of Cooperation, TBML College, Porayar , Tamilnadu INTRODUCTION India is one of the largest milk and milk products producing countries in the world. The country s milk production increased from around 20 million tons in 1960s to million tons in The per capita availability (281g/day in ) is almost equal to the requirement of 280g/ day. The State of Tamilnadu was placed between eighth to ninth positions in the country in overall milk production in the last 10 years. Considerable reduction in buffalo s population, less increase in productivity of crossbred animals, existence of longer dry period and relatively larger share of milk from indigenous animals in some districts could be the reasons for lesser increase in milk production during the last 10 years in the State. Maintenance of pedigree records for crossbred animals, adoption carbonizations techniques and administering smart mineral mixtures to cattle, value added health conscious dairy products are the few strategies that can be employed successfully to tackle the above issues. In procurement of milk through cooperatives, the State stood between third and fourth position in the last 10 years. Tamil Nadu stood fourth in milk sales through cooperatives. The dairy development activities have grown at a faster rate in western region than other regions. The dairy cooperative sector in the State has benefited by Government of India (GOI) schemes such as Intensive Dairy Development Programme, Strengthening Infrastructure for Quality and Clean Milk Production, Assistance to Cooperatives and National Agriculture Development Programme, in the last 10 years. Funds are also availed from the State Government. Tsunami Emergency Assistance Programme and ICDP assisted programmes were also implemented in the state. State Milk Grid The major quantity of milk is procured from farmers who rear cattle in the villages. From the milk Page 137

2 produced by small and marginal farmers, a small quantity is sold locally and the remaining quantity is collected by societies. In some areas, vendors collect milk from the farmers, sell certain quantity and supply the remaining quantity to MPCS and to others. The large farmers entrust the work to milk man. They milk the cows, collect milk and pay the cost to farmers. The milk is sold to private traders at a higher price. The pricing policy adopted by private traders is to pay Rs. 2 per litre above cooperative price and make profit. They procure only to their need and not the entire milk. OBJECTIVES OF DAIRY COOPERATIVES IN INDIA To bring the unorganized dairy sector into the fold of organized sector. To improve input activities and animal health care for increasing milk production To encourage liquid milk availability. To tap the milk potential of the State and to ensure stable growth in procurement and Marketing. To ensure quality of milk and milk products as per the statutory specification. The major, supervise and regulate the dairy activities. PERFORMANCE OF DAIRY COOPERATIVE DEVELOPMENT ACTIVITIES Performance of Dairy Cooperative Development Activities namely, Milk Procurement and Marketing through Dairy Cooperatives and Per Capita Availability and Production of Milk in India: Table 1: Milk Procurement and Marketing through Dairy Cooperatives Name of the States DCS Organised* (no.) Farmer Members* ( 000) Rural Milk Procurement( 000 Kg/Day) Liquid Milk Sale* (000 L/Day) Andhra Pradesh Assam Bihar Chattisgarh Delhi N.A N.A N.A 3050 Goa Gujarat Haryana Himachal Pradesh Jharkhand Karnataka Kerela Madhya Pradesh Maharashtra Nagaland Orissa Pondicherry Punjab Rajasthan Sikkim Tamil Nadu Tripura Uttar Pradesh West Bengal Total Source: Economic Survey , Ministry of Finance Government of India Page 138

3 Table: 1 shows the milk production in India in the year Daily cooperatives played an important role in milk production in India. Some of the states doing exceptionally will involved Maharashtra, Gujarat, Rajasthan, Karnataka and Uttar Pradesh. Tamilnadu performance is commendable. Availability of Milk Production in India The per capita availability of milk showed improvement in India, thanks to various schemes introduced by the Government and improved performance in co-operatives. Table 2: Per Capita Availability and Production of Milk in India Year Per Capita Availability of Milk (G/Day) Production of Milk (Million Tons) Source: Economic Survey , Ministry of Finance Government of India It is observed from the Table: 2 shows that per capita availability of milk (G/Day) showed upward trend i.e. from 222g and 290g between and and production of milk (million tons) increased from 80.9 to 126 during the same period. Milk-Processing Capacity Milk being a perishable commodity, it is imperative milk-processing capacity should keep pace with increase in milk production. The following tables processing capacity available in India. Table 3: Current Milk-Processing Capacity Sectors Number of Plants Capacity (106 liters/day) Cooperative Private Government Total Source: Datta and Ganguly Table 3 shows the current milk processing capacity with co-operative, private and Government in milk processing. Co-operatives and private sector played a major role. Operation Flood, launched in 1970, introduced cooperatives into the dairy sector with the objectives of increasing milk production, augmenting rural income, and providing fair prices for consumers. It was started to effectively utilize donated milk products from abroad for domestic dairy development. These surpluses were used to speed up Indian dairy development in two ways. First, the donated milk products were used to reconstitute milk and there- fore provide the major cities liquid-milk schemes with enough milk to obtain a commanding share of their markets. Secondly, the funds realized from the reconstitution and sale of donated products were used to resettle city-kept milk animals and permit their progeny to multiply; to increase organized milk production, procurement, and processing; and to stabilize the major liquid-milk schemes position in their markets. Page 139

4 Picture: 1 Milk Production Draught Power: Worldwide, animals are stills very important source of power for agriculture operations and for transportation of goods and people. It is widely used in developing countries like ours. Bullocks, buffaloes, horses, mules and camel are very widely use in our country for drought purpose and their role in saving of energy and there by the most precious foreign exchange5. It is estimated to be Rs. 45,000 crore per year. It should be emphasized that depleting evels of fossils fuels may slow down or even reverse the mechanization trends witnessed even in developed countries. DAIRY COOPERATIVES IN INDIA-AN OVERVIEW Annual milk production in India has more than tripled in the last three decades, rising from 21 million tons in 1968 to an anticipated 80 million metric tons in This rapid growth and modernization is largely credited to the contribution of dairy cooperatives under the Operation Flood (OF) Project, assisted by many multi-lateral agencies including the European Union, the World Bank, Food and Agriculture Organization (FAO), and World Food Program (WFP), despite the impressive growth in milk production in the last three decades, productivity of dairy animals remains very low and milk-marketing systems primitive. Currently, more than 80 percent of the milk produced in the country is marketed by unorganized sectors and less than 20 percent by the organized sector. The organized sector involves government and co-operatives; the unorganized sector involves private organizations. The role of dairy cooperatives in procurement of milk and providing necessary services to the dairy farmers make them distinct among the other channels of milk marketing. The dairy farmers selling the milk to the dairy cooperatives get fair prices of their product. These centres also provide financial security and give the money to the dairy farmers at certain intervals. Thus the dairy farmers get a consolidated amount from the dairy cooperatives. The major constraint with this channel is delay in payments by the dairy cooperatives. The poor households are unable to wait for longer periods to get the payments and thereby prefer to transact their marketable surplus through other channels. The important role played by dairy farming in the sustenance of landless and poor people in the village economy is quiet evident. Marketing of milk through organized sector involves government and co-operatives agencies while the unorganized sector involves the private organizations. Major part of milk is marketed through the unorganized sector and the organized sector has a very low share. The government of India has started the operation flood programme for the proper enumeration of milk & milk products (George S., 1987). Further, various programs were undertaken for the formation of dairy co-operatives. The dairy Page 140

5 co-operatives in India have three tier of structure which consists of state level federations, district milk unions and dairy co-operative societies at the village level respectively. As a result, dairy co-operative societies have been formed to meet local demand for milk & to eradicate the existing malpractices in the milk marketing. A substantial amount of money has been spent on the formation of dairy co-operatives to provide the infrastructure for dairy co-operatives. The evolution of dairy co-operatives has fuelled empowerment of rural people and promotes rural development. PROBLEMS AND PROSPECTS Dairy co-operatives should play a commendable role in future in regenerating the rural life. The need of the hour for the Cooperative sector in the era of liberalized environment is to seize every opportunity available. The Major problems faced by Cooperatives are: Inadequate support from government, Low capacity utilization of dairy plants, Non-viability due to losses, Lack of working capital, Inappropriate marketing strategy to meet competition due to lack of training and knowledge. Government should provide technical and financial support to dairy cooperatives in the areas of strengthening cooperative business, productivity enhancement, quality assurance, building dairy infrastructure and for creation of a national information network by developing various schemes such as Dairy Venture Capital Fund (DVCF)/Dairy Entrepreneurship Development Scheme (DEDS) an a large scale. Automatic Milk Collection Unit (AMCU) and Bulk Milk Cooler (BMC) at grass root level to preserve quality and reduce post-procurement losses. CONCLUSION The diary co-operatives have to play a major role in our nation s economy in the years to come. The milk prediction is set to achieve a new boom. The industry s major contribution in providing newer avenues for employment, both direct and indirect, and its role in improving the nutritional standards of our people also add to the importance that needs to be attached to this sector in the 21st century. With proper encouragement and member support, cooperative can scale new heights in the near furthur REFERENCES 1. A non Annual Report on National Institute of Animal Nutrition and Physiology, (ICAR), Bangalore (2000) 2. Annual Report, NABARD National Bank for Agriculture and Rural Development, Mumbai (1999) 3. Basic animal husbandry statics, Dept. of animal husbandry, dairying and fisheries, Govt. of India (2010) 4. Economic survey, ministry of finance, Govt. of India ( ) 5. Government Of India, 2010, Reports on Basic Animal Husbandry Statistics, Department of Animal Husbandry, Dairying and Fisheries, Ministry of Agriculture, Govt. of India. 6. Huria V.K. and Achaya K.T.(1980) Dairy Development in India: Some Critical Issues, Economical and Political Weekly, Vol. 15 No 4 5/46,November, pp: Nizamuddin Khan and Ashish Kumar (2014) Role of Dairy Co-Operatives in Socio-Economic Development of Dairy Farmers in Moradabad District: A Case Study Research Forum: International Journal of Social, Volume-2, Issue-1). 8. Rjendran K. and Mohanty S.(2004) Dairy Co-operatives and Milk Marketing in India: Constraints and Opportunities, Journal of Food Distribution Research, Vol. 35 No 2, July, pp: Page 141