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CHAPTER III

DAIRY DEVELOPMENT IN INDIA

______________________________________________________________

3.1 Introduction

India has the highest livestock population in the world with 57% of the

buffaloes and 14% of the world’s cattle population, most of which are milch

cows and milch buffaloes. India’s dairy industry is considered as one of the

most successful development programmes in the post-Independence period.

In the year 2007-08 the total milk production in the country was over

104.8 million tonnes with a per capita availability of 252 gms per day. The

industry had been recording an annual growth of 4% during the period 1993-

2005, which is almost 3 times the average growth rate of the dairy industry in

the world. Milk processing in India is around 35%, of which the organized

dairy industry account for 13% of the milk produced, while the rest of the milk

is either consumed at farm level, or sold as fresh, non pasteurized milk

through unorganized channels.

Uttar Pradesh, Punjab, Haryana, Rajasthan, Gujarat, Maharashtra,

Andhra Pradesh, Karnataka and Tamil Nadu are the milk surplus states in

India. The manufacturing of milk products is obviously high in these milk

surplus States. Exports of dairy products have been growing at the rate of

25% per annum in the terms of quantity and 28% in terms of value since

2001. Significant investment opportunities exist for the manufacturing of

value-added milk products like milk powder, packaged milk, butter, ghee,

cheese and ready-to-drink milk products.

India has emerged as the largest milk producing country in the world

with present level of annual milk production estimated as 104.8 million tonnes

(2007-08). We expect a production level of 135 million tonnes by the year

2015. India has a large livestock population base constituting 278 million

livestock including 180.5 million cattle, 82.8 million buffaloes, 4 million sheep

and 9.2 million goats. The livestock population is projected to increase to 322

million by the year 2015. The large livestock population is raised primarily on

crop residues and grazing in the common property including basement. The

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forest area, which was a major source of grazing, is no longer available to

livestock breeder’s especially landless people. As a consequence, the

available feed resources fall short of the nutritional requirement. The shortfall

is estimated as 59.9 million tonnes for the green fodder and 19.9 million

tonnes for dry fodder. This shortfall is likely to increase by 2015 to 63.5 million

tonnes of green fodder and 23.56 million tonnes of dry fodder. 1

3.2 Significance of Dairying:

“Late shri Nathuram Mirdha, Chairman of National Agricultural Prices

Commission replayed to foreign delegates when asked about culture of India

that “Agriculture and no other culture is the culture of India” The kingpin of

agriculture is the cow, which is known as “Kamdhenu”.2 The Indian agriculture

is traditional and dependent on nature. Many times farmers suffered from

excessive rain fall and many times by drought. There is totally uncertainty in

agriculture yield as well as income from them. Dairy industry is allied industry

based on agriculture. Animals reared for dairying are used for agricultural

activities as well as the dung of animals is used as manure for agriculture. It

gives employment to women and sources of income for rural area. Indian

dairy industry has played vital role in rural development and in Indian

economy. The importance of dairy industry in respect of agriculture economy,

rural employment and women empowerment is discussed as follows.

3.2.1 Economic significance

India has the largest livestock population in the world. According to the

live stock census of 2003 the country had 485 million livestock population and

489 million poultry population, being the first in cattle and buffalo population,

second in respect of goat and third in respect of sheep population in the

world. India has 57% of the world’s buffalo and 14% of the world’s cattle

population.

“Livestock sector plays a significant role in the Indian economy,

particularly for the welfare of rural population of India. Of the total household

in the rural area, about 73 percent own some form of livestock and out of

these households 3/4 account for small and marginal farmers. This sector

plays an important and vital role in providing nutritive food, rich in animal

69

protein to the general public and in supplementing family incomes and

generating gainful employment in the rural sector, particularly among the

landless, small, marginal farmers and women. Income from livestock

production accounts for significant percentage of total farm household’s

income in different states. Thus, an increase in demand for livestock products

can be a major factor in raising the income and living standards of the rural

household. With its large livestock population, India also has vast potential for

meeting the growing needs of teeming millions, particularly in respect of

livestock products such as milk, eggs, meat and wool.” 3

Generally the importance of livestock in India’s economy can be

gauged from the fact that 90 million farming families rear over 90 million milch

animals. Livestock provides a large share of draught power, with about half

the cattle population and 25 percent of the buffalo population being used to

cultivate 60 million hectare of cropland. Draught animal power is making a

significant contribution to agricultural production and thus to the rural

economy. The contribution is roughly estimated to be to the tune of Rs. Ten

Thousand Crores per year besides saving approximately six million tones of

petroleum worth Rs. 6,000 crores. Draught animal power is still relevant and

useful due to the fact that it is suitable to the needs of the farmers with small

land holding and the areas where mechanized implements cannot be brought

to use. A significant output from small and backyard dairy farming is the

production of dung, which is important organic manure. On an average, 800

million tones of manure are produced. Of this, some 300 million tones are

burnt as fuel and the balance used as manure. Even this could be improved

upon by scientific yet pragmatic planning like bio-gas production. However,

the dung cakes are the sole source of energy of the poor, for cooking and for

heating their dwellings during winter. 4

3.2.2 Role of livestock sector in agricultural economy

“In India, the livestock production and agriculture are intrinsically linked,

and dependent on each other. Livestock sector is an important sub-sector of

the agriculture of Indian economy. It acts as a supplementary and

complementary enterprise. Livestock is also important as a part of agriculture

diversification and income enhancement. Livestock plays a vital role in the

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economic development. In the arid and semi-arid regions of the country,

livestock sector is of special importance and main source of family income. In

the arid areas, the contribution of livestock to agriculture GDP is as high as 70

per cent while in semi-arid areas the contribution is over 40 per cent”. 5 The

share of agriculture and livestock sector in GDP during the year 1999-00 to

2006-07 is shown in the table no. 3.1

Table 3.1

Share of Agriculture and Livestock sector in GDP

(At current prices in Rs.Crore )

Year GDP(Total) GDP(Agriculture) GDP(Livestock sector)

LS GDP % to Agri.

GDP Rs. % Share

Rs. % Share

1999-00 1,786,525 409,660 22.93 94698 5.30 23.11

2000-01 1,925,017 408,932 21.24 104,745 5.44 25.61

2001-02 2,097,726 442,464 21.09 109,254 5.21 24.69

2002-03 2,261,415 425,521 18.82 114,872 5.08 26.99

2003-04 2,538,171 483,030 19.03 118,316 4.66 24.49

2004-05 2,877,706 501,415 17.42 136,108 4.73 27.14

2005-06 3,275,670 557,118 17.01 143,208 4.37 25.69

2006-07 3,790,063 634,519 16.74 165,407 4.36 26.05

Source: National Accounts Statistics-2008, Central Statistical Organization; GOI

The table 3.1 shows that during the year 1999-00 the share of agriculture

in total GDP was 22.93 % whereas the share of livestock was 5.30 %, which

was 19.03 % and 4.66 % during the year 2003-04 respectively. It was 16.74

% and 4.36 % in the year 2006-07 respectively. In terms of amount the share

of livestock sector in GDP during 2006-07 it was 165407 crore which was

near about double than that of 94698 crores during the year 1999-00.

It is also clear that share of agriculture G.D.P. was declined from 22.93

% to 16.74 % during the year 1999-00 to 2006-07. But the share of livestock

G.D.P to G.D.P. in agriculture was increased from 23.11% to 26.05 % during

the same period. It indicates that the agriculture sector and livestock sector

plays vital role in Indian economy and in agriculture sector dominant role was

played by livestock sector.

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3.2.3 Livestock sector and rural employment

In India, 70% of the rural households own livestock. Livestock rearing

is an important source of employment in rural India. The average holding of

livestock in India is very small, it has considerable potential for generating

additional employment through milk, meat, and wool and eggs production.

More than 30 million small producers are involved in milk production.

“According to National Sample Survey Organization, the estimate of

employment of animal husbandry sector was 11.44 million in principal status

and 11.01 million in subsidiary status. Total 22.45 million employment

generations by this sector comes to 5.50 % of the total working population of

the country.”6

3.2.4 Livestock Sector and Women Empowerment

“Women participation in livestock sector is 71% of the labour force

while it is only 33% in crop farming. About 75 million women are engaged in

the livestock sector as against 15 million men. Women play a major role in

livestock production. The activities like milking, care of young and sick

animals, grazing, cleaning and feeding the animals were mostly handling by

women. Similarly, women play a prominent role in rearing of sheep, goat and

small ruminants. Animal Husbandry increases the earning capacity of women

and ultimately leads to their economic empowerment. There is an increasing

trend towards participation of women in livestock rearing activities. Viewed

from an economic dimension, the day-to-day activities performed by women

are crucial inputs for economic returns/ benefits that a household earns

through livestock production either directly through sale of livestock and

livestock products or the use of livestock in various livelihood activities.” 7

3.3 History and Development of Dairy Co-operative in India

Before studding the history and development of dairy co-operatives in

India it is necessary to see the culture of India as well as historical

background of milk production. For this purpose the study of ancient period,

pre-independence period and after independence period is to be considered.

The study of history and progress of milk production in general and dairy co-

operative in particular is discussed in the following manner.

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3.3.1 Ancient Period

Indian culture is cow dominant culture. This is not only religion

approach but perfectly scientific approach with economic, human and social

validity. In the most ancient epics like Vedas, Upnishidas, Puranas etc. that

cow milk, butter, ghee and other products of cow milk is very useful, valuable

and important in human health, wealth, intelligence and managerial skills. At

the time of Lord Krishna cow is considered as a ‘KAMDHENU’. Because of

the milk and other milk products, family can earn sufficient income for

maintaining family. Cow was considered as money at once upon time. At that

time the person having more cows was considered as a most rich person in

the society. 8

The importance of the milk in the diet of Indian people has been traced

long back (before 2000 B.C.) in an ancient literature in India. The Vedas and

Charak Sanhita says that cows are “Mother” and the milk of cow is most

strong diet in all the liquids.9

It is agreed fact that the Aryans were the first to domesticate cattle and

use their milk as a food; this was as back as 1500 to 2000 B.C. The Aryans

started to worship the cow and still to date the same practice is being followed

by Hindus all over India.10 The cows and buffaloes were kept by Indians for

milk and the cow is called ‘Go Mata’ meaning the mother cow. The same

reverence towards her still continues to be there and will remain for centuries

to come. While analyzing the importance of cow, the Royal Commission on

Agriculture, 1928 said that the cow and the bullock carry on their back the

whole burden of Indian agriculture. 11

3.3.2 Pre-Independence Period

Even prior to 1900, a Swedish entrepreneur, Mr. Edward Kaventer ,

started modern dairy farm in Calcutta the then capital of India. Later, he also

started dairy farm at the hill stations of Darjeeling and Simla. Kaventer also

started the first modern butter factory at Aligarh (U.P.) which was taken over

by the U.P. Government. 12

The first official move for organized dairy in the country was took place

at the end of 19th centuries. Around 1889, first military dairy farm at Allahabad

and creameries at Anand (Gujrat) were established to meet the consumption

73

demands of the British army, their families, and their hospitals and for sending

butter for troops in Iraq. These military farms were also the first once to cross

Indian cows with imported bulls.13 Apart from the military farms before, 1947,

there were some 60 private dairy farms, with North Indian breeds viz. the

Sahiwal, Sindhi and Thaparkar. In early stages, they handled mostly raw milk,

but latter on a few farms had small size pasturing equipment and power

driven butter churns.14 During the pre-independence period several

committees of agricultural and livestock experts were constituted by the

Government of India for suggesting means and ways for the improvement in

livestock sector.15 The establishment of cattle breeding farms, on the

recommendations of the Royal Commission on agriculture , for cattle

development formed an important part of the earliest developmental activities

in India. 16 In 1920, Government of India appointed an Imperial Dairy Expert,

under whose control the Imperial Institute of Animal Husbandry and Dairying

was established at Bangalore in 1923. The Institute runs two years diploma

course in dairying. This institute was shifted to Karnal and renamed as

National Dairy Research Institute (NDRI Karnal), which is the leading institute

in the dairy research and training. In the pre-independence period many

important dairy development schemes and projects were undertaken which

are as follows.

Bombay Milk Scheme (1945)

Kaira District Co-operative Milk Producers Union Limited, Anand, 1946

The Talankhery Co-operative.

Federation of Milk Union in Calcutta

The Madras Co-operative Milk Supply Union Limited.

These societies and unions were worked for the development of dairy

activities and for expansion of marketing activities of dairy products. 17

3.3.3 After Independence Period

After independence in 1947 the Government of India started the

Greater Bombay Milk Scheme in order to supply milk to the growing demand

of Bombay city. At the initial stage it was totally depend on Polson dairy,

Gujrat for milk requirement. Latter on Aarey Milk colony was established in

Bombay to provide milk to the scheme. The first large scale and systematic

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co-operative dairy unit was established in 1948 at Anand (Gujrat) named as

District Co-operative Milk Producers Union Anand, which later become the

world famous as the AMUL (Anand Milk Union Ltd.). In 1950, Greater Calcutta

Milk scheme was established. The Indian dairy industry acquires substantial

growth during the five year plans.

3.4 Cattle and Dairy development programme

The Government of India implemented cattle development programme

to improve the cattle breeds in India as well as four schemes for the

development of dairy sector during 2007-08 like Intensive Dairy Development

Programme, Strengthening Infrastructure for Quality and Clean Milk

Production, Assistance to Co-operative, Dairy/Poultry Venture Capital Fund.

3.4.1 Cattle Development

There were some efforts made to improve the cattle breeds in India

such as Key Village Scheme, Intensive Cattle development Programme,

Gosadan, All India Co-ordinated Research Project on Cattle and Buffaloes,

Bovine Development Programme etc. The work done and achievement of

some of these programmes during five year plan and Operation Flood

Programme is discussed as follows.

3.4.1.1 Key Village Scheme

This scheme was commissioned in 1951.It was the main plank for

cattle development in first five year plan. The Key Village Scheme

emphasized on important aspects of cattle development like controlled

breeding, improved feeding, disease control, better management and

adoption of improved animal husbandry practices through proper extension

methods. The basic objective of the KVS was the multiplication of superior

germplasm from the established farms in selected compact areas in the

breeding tracts. The breeding policy was to develop dual purpose breed which

could provide good bullocks and fair quantity of milk. The original intension

was that Key Village centers would be established only in the breeding tracts

so that the pedigree bulls from the farms might be multiplied and the progeny

75

distributed in other area for extensive breeding to improve quality of stock

there. 18

Under this scheme during the first plan, 146 Key Village Blocks (KVB)

were started covering 10,000 breedable cows and she buffaloes in each

block. The scheme was expanded to 197 blocks and 64 urban AI centers in

the second five year plan. At the end of the Third Five Year Plan it was

realized that the programme could not make much impact on improvement.

During the fourth plan 587 KVBs were functioning. During the fifth plan period,

some of the KVBs were merged with the Intensive Cattle development Project

and Operation Flood Project, the latter for increased milk production.19

3.4.1.2 Intensive Cattle Development Projects

The ICDP was formulated during second five year plan as a part of

special development programme. The main object of the project was to

improve the bovine breeds for higher milk production. The project were

located in the breeding tracts of indigenous breeds of cattle and buffaloes and

also in the milk sheds of large dairy projects with a view to enable the dairy

unions to collect and process milk. The ICDP was one of most determined

effort on the part of GOI to increase milk production and productivity in cows

and buffaloes and the ICDP concept represented an effective method there by

a powerful tool for cattle and dairy development. 20

The programme envisaged the provision of all necessary inputs and

services. The project was expected to cover 1,00,000 breedable cows and

buffaloes achieving a breeding coverage of about 70% of the bovine

population and an increase in milk production by about 30 % in five years. 21

The ICDPs failed to make any significant impact. Dr. P. Bhattacharya, the

author of the ICDP ,observed on inspection of an ICDP; “two targets have

been fully achieved , stationing of bulls and posting of staff , but both are

awfully underutilized”.22

3.4.1.3 Bovine Development Programme

Most of the state Governments has set up their own cattle breeding

farms to develop improved herds of indigenous and crossbred. There are

some programme for progeny testing, registration of breeds and recording of

76

milk production at village level in several breeding tracts. Development of

animal sciences, research, drug and vaccination production, disease control

and training of veterinarian have been stepped up through the five year plans

all over the country.23

3.4.2 Dairy Development 24

The Indian Dairy Industry has acquired substantial growth from the

Eighth Plan onwards. India's milk output has not only placed the industry first

in the world, but also represents sustained growth in the availability of milk

and milk products. The Government implemented four schemes for the

development of dairy sector during 2007-08.

3.4.2.1 Intensive Dairy Development Programme

During Eighth Plan period Intensive Dairy Development Programme

was launched .In the Eleventh Plan the programme is continue with an outlay

of Rs. 29.99 crore for 2008-09. Under this scheme 84 projects with an outlay

of 480.05 crore have been sanctioned in 25 States and one UT in India. The

programme have been covered 206 districts and benefited about 15.07 lakh

farm families and organized about 24808 village level Dairy Co-operative

Societies till 31st March, 2008, for which Rs.330.35 crore has been released

to State Government.

3.4.2.2 Strengthening Infrastructure for Quality and Clean Milk

Production

The scheme was commissioned in Oct 2003. The main objective of

the scheme is improving the quality of raw milk produced at the village level in

the country. Under this scheme, 100 per cent grant is provided to District Co-

operative Milk Union and State Co-operative Milk Federation through the

State Governments / UTs for training of farmers on good milking practices,

detergents, stainless steel utensils, strengthening of existing laboratory

facilities whereas 75 percent financial assistance is provided for setting up of

milk chilling facilities at village level in the form of bulk milk coolers.

By the end of 31st March 2008, 130 projects at total cost of Rs. 194.93

crore have been approved. The Scheme has benefited 4,17,000 farmer

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members by imparting training and by installing 15.56 lakh litre capacity of

Bulk Milk Coolers to facilitate marketing of milk produced by them and

keeping its quality intact.

3.4.2.3 Assistance to Co-operative

The main object of the project is revitalizing the sick dairy co-operative

unions at the district level and co-operative federations at the state level. The

NDDB is the project implementing agency and central grant is released

through them.

Since inception in 1999-2000, 32 rehabilitation proposals of milk unions

in 12 states namely, Madhya Pradesh, Chhattisgarh, Karnataka, Uttar

Pradesh, Haryana, Kerala, Maharashtra, Assam, Nagaland, Punjab, West

Bengal and Tamil Nadu at a total cost of Rs. 197.37 crore with a central share

of Rs. 98.68 crore have been approved upto 31st March 2008. The scheme is

being continued during Eleventh Five Year Plan with a tentative outlay of Rs.

50 crore.

3.4.2.4 Dairy / Poultry Venture Capital Fund

The scheme was started in December, 2004 with a total outlay of Rs.

25.00 crore. The NABARD is the implementing agency and for

implementation of scheme up to 31st March, 2008, Rs. 77.99 crore has been

released to NABARD.

To bring about structural changes in the unorganized sector, the

measures like milk processing at village level, marketing of pasteurized milk in

a cost effective manner, quality up-gradation of traditional technology to

handle commercial scale using modern equipment and management skills

and to encourage new pieces of birds and low input technology for poultry

farming among rural farmers, a new scheme viz, Dairy/Poultry Venture Capital

Fund was initiated in the Tenth Five Year Plan. Under this scheme the

assistance is provided to the rural as well as urban beneficiaries, agriculture

farmers / individual entrepreneurs and groups of all sections of unorganized

as well organized sector including co-operatives and NGO from any part of

the country.

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3.5 Dairy Development During Five Year Plans

Planning is intended to “promote a rapid rise in the standard of living of

the people by efficient exploitation of the resources of the country, increasing

production and offering opportunities to all for development in the service of

the community.25 The planning in India is aimed at setting up the tempo of

economic activity in general and industrial development in particular. The

basic goal is to improve the standard of living of the people, through various

welfare and socialistic measures.26

India is one of the countries in the world best endowed with cultivable

land of 137.1 million hectares out of the total geographical area of 326.8

million hectares.27 More than 70 % of the Indian population who lives in

villages depends directly or indirectly on agriculture and allied sectors for their

livelihood. Therefore, the planners considered the agriculture and animal

husbandry sector as primary in fixing the priorities in the plan outlay for

planned economic growth. 28

3.5.1 Plan Outlay and Expenditure on Dairy Development

Systematic development of Animal Husbandry and dairying started

after the launching of the Five Year Plans. The plan allocations on Animal

Husbandry and dairying reveal the public policy of the Government. Table no.

3.2 showed the breakup of planned expenditure on Animal Husbandry and

Dairying, during five year plans in India.

The table no.3.2 shows that during first five year plan 11.22 % amount

of total plan outlay was expended on dairy development which was gone up to

14.77% during fourth five year plan. But later on it was decreased up to 5.93%

during the seventh plan period. The amount spent on animal husbandry and

dairying was increased more than 100 times during the tenth plan than that of

first plan period. Though the actual amount expended on dairy development

was increased day by day the percentage to total plan outlay was decreased

and it is harmful to dairy development.

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Table No.3.2

Plan Outlay and Expenditure on Animal Husbandry and Dairying during Five Year Plans

(Rs. In Millions)

Sr. No.

Plan Period Total Plan

Outlay

Amt. Spent on Animal Husbandry

(A)

Amt. Spent on

Dairying (B)

Total (A +B)

1 I Plan (1951-1956) 1960 141.9 78.1 220(11.22)

2 II Plan (1956-1961) 4600 385 190 575(12.5)

3 III Plan (1961-1966) 8573 547 360.5 907.5(10.59)

4 Three Annual Plans (1966-1969)

6626 413.3 261.4 674.7(10.18)

5 IV Plan (1969-1974) 15778.9 940.6 1389.7 2330.3(14.77)

6 V Plan (1974-1978) 39303.4 3095.6 1279.8 4375.4(11.13)

7 Two Annual Plans (1978-1980)

N.A. N.A. N.A. 2669.9

8 VI Plan (1980-1985) 97500 3896.4 4623 8519.4(8.74)

9 VII Plan (1985-1990) 322366 11585.5 7517.9 19102.4(5.93)

10 VIII plan (1992-1997) N.A. 4000 9000 13000

11 IX Plan (1997-2002) N.A. N.A. 4850 19650

12 X Plan (2002-07) N.A. N.A. N.A. 25000

Note: 1) N.A. indicates Not Available 2) Figures in parentheses denote percentage to total plan outlay

Source: Planning Commission Documents on Five Year Plans, Ministry of Agriculture and Co-operative, GOI.

3.5.2 First Five Year Plan (1951-1956)

In the first five year plan dairy development programme was initiated in

a relatively small way. The first plan gives exclusive attention on 1.Controlled

breeding, 2.Disease control, 3.Goshala development and 4.Key village

scheme. In this plan Rs. 220 Million were allotted dairy development out of

which 141.9 Million for Animal Husbandry and 78.1 Million for Dairying. The

programme during this plan period was related to the supply of milk to the

large cities under hygienic conditions.

In this plan period 146 Key Village Blocks were established with

Artificial Insemination Centers, 650 Veterinary Hospitals and 25 Gosadans

also took place.29 The total milk output in the country was 18 Million MT during

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this plan.30 In 1952 Aarey Milk Colony was established in Bombay and 15000

commercial buffaloes removed from inside city to Aarey Milk Colony. 31

The survey conducted in 1956, pointed out that there were 1020

organized Ghoushalas in 21 states of india which maintained 1,30,000 cattle

and 1400 breeding bulls and produced 112 Million Kgs’s of milk.32 However in

the first plan target was not achieved and plan was not quite successful.

3.5.3 Second Five Year Plan (1956-1961)

The second five year plan emphasizes on certain objectives relating to

production, marketing and consumption of milk. During this plan major

attention was given on quality control, paying remunerative price to milk

producer and a reasonable price to consumer. 33 In this plan Rs.575 Million

allotted to dairy development comprising Rs.385 Million for Animal Husbandry

and Rs.190 million for Dairying.

During this plan period regional Dairy research Stations were started at

Bombay and Calcutta, in addition to the existing one at Bangalore. Bombay

milk scheme received rail and road milk tankers from Newzealand during this

plan period for transportation of milk between Anand and Bombay. During this

plan period many states started separate dairy development departments.

The dairy development programme envisaged establishment of 66 fluid milk

handling plants and 6 milk product factories 34 and dairy factory at Anand ,

expansion of existing 114 blocks with 670 Artificial Insemination centres, 34

new Gosadans, 248 Goushalas, 1900 Veterinary Hospitals, promoting 3

private entrepreneurs (Glaxo, Levers and Nestles) for establishing milk

product factories.35

By 1959, there were 2257 Co-operative Milk Supply Societies and77

Milk Supply Unions in the country with a membership of 21113 which owned

funds of Rs.183 lakhs and sold milk and milk products worth Rs.11.32

Crores.36 By the end of the plan period, milk production increased to 20.36

Million Tonnes per year.

81

3.5.4 Third Five Year Plan (1961-1966)

In the third five year plan Rs.907.5 Million were allotted for Animal

Husbandry and Dairying out of which Rs.547 million for Animal Husbandry

and Rs.360.5 for Dairying. The actual amount spent on animal husbandry and

dairying was Rs.434 Million and Rs.336 Million respectively.

During this plan the setting up of 55 fluid milk projects for cities having

a population of 1,00,000 each, 8 rural creameries, 6 milk product factories, 2

cheese factories and 4 cattle feed factories were set up. A modern feed mill

was set up at Anand (Gujrat) with a gift from the United Kingdom. The dairy

development policy in this plan was outlined. The supply and collection of milk

was undertaken by a network of producer’s co-operatives in the villages. The

processing and distribution of milk and milk products was also organized on

co-operative line.37

In this plan period, Madras Milk Supply Scheme was taken up and 23

liquid plants and 27 pilot milk schemes were in operation and the daily

average output of milk in the organized sector was 13 lakh litres.38 During this

plan, Government of India established the National Dairy Development Board

(NDDB) at Anand (Gujrat) in 1965. It is a programme launching body and

provides technical service on a non- profit basis which the implementing

agencies require in the field of dairying.39

3.5.5 Three Annual Plans (1966-1969)

During this three annual plan period Rs.674.7 Million approved for dairy

development out of which Rs.413.3 Million for Animal Husbandry and

Rs.261.4 Million for Dairying. During this plan period the emphasis was given

to complete the projects which are work in progress.

3.5.6 Fourth Five year Plan (1969-1974)

In this plan 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 Dairying.

The physical targets under Fourth Five Year Plan envisaged setting up

of 49 milk supply schemes, 11 milk product factories and 43 rural dairy

centres. Of these, 6 milk supply schemes, 2 milk product factories and 32

rural dairy centres were commissioned. 40

82

During this plan, the Operation Flood Programme was initiated in

March, 1970, with the help of aid from the World Food Programme. It

emphasizes to increase milk output in 27 milk sheds located in the four

metropolitan cities of Bombay, Delhi, Calcutta (Kolkata) and Madras

(Chennai).41 In this plan period many dairy unites were running on losses and

the plan was not quite successful. However, the milk production was

increased up to about 23 million tons per year.

3.5.7 Fifth Five Year Plan (1974-1978)

During the fifth five year plan outlay of Rs.4375.4 Millions allocated to

dairy development of which Rs.3095.6 Million was spent on Animal

Husbandry and Rs.1279.8 was spent on Dairying, which was 11.13% of the

total plan outlay. The plan emphasizes considerably to develop animal

husbandry and dairying with a view to give the subsidiary occupation to small

and marginal farmers and landless laborers as well as to assist the weaker

sections of the community. During this plan period funds were utilized to

expand the existing capacities of dairy plants in the four cities.

In pursuance of the recommendations of the National Commission on

Agriculture (1976) for assisting the rural poor, 96 projects for rearing of cross-

bred heifers were taken up.42 It was proposed to set up 64 liquid milk plants,

111 milk product factories and 127 rural dairy centre’s and complete 36 spill-

over schemes and consolidate the existing liquid milk schemes and milk

product factories.43 During this plan milk production increased above 55 lakh

litres.

3.5.8 Two Annual Plans (1978-1980)

In this Two Annual plans budget allotted of Rs.2460.6 million for dairy

development out of which Rs.929.8 Million and 1157.9 Million actually spent

on Animal Husbandry and Dairying respectively. 44

3.5.9 Sixth Five Year plan (1980-1985) :

In the Sixth Five Year plan the total amount of expenditure was made

of Rs.8519.4 Million on dairy development out of which Rs.3896.4 Million

allotted to Animal Husbandry and Rs.4623 Million on Dairying.

83

During this plan the Operation Flood II Programme was implemented.

Taking into account the impact of this project, the level of milk production is

anticipated to reach to the level of 38 Million tones implying a growth rate of

4.8% by the end of plan period. The annual milk production in this plan period

was 42 Million Tones.45

3.5.10 Seventh Five Year Plan (1985-1990)

During this plan period funds allotted for animal Husbandry and

Dairying were Rs.19102.4 Million out of which amount spent on Animal

Husbandry was Rs.11585.5 million and on Dairying Rs.7517.9 Million.

During this plan period the expected rate of growth of milk was 6.5 %

and the per capita consumption of milk was 149 grams. In the seventh five

year plan the main stress was given on raising milk production, feed and

fodder.46

3.5.11 Eighth Five Year Plan (1992-1997)

In this plan total outlay was Rs.13000 Million out of which Rs.4000

Million for animal husbandry and Rs.9000 million allotted for dairying. This

plan gives considerable attention on increasing productivity of milch cows,

efficiency of milk co-operatives and strengthening their management.

During this plan period the milk production had increased up to 70

Million Tones.

3.5.12 Ninth Five Year Plan (1997-2002)

During this plan period milk production of India had reached up to 84

Million tones. The per capita availability of milk increased from 112 grams to

226 grams per day in 2001-02.47

The total plan outlay in Ninth Plan was Rs.19650 Million. The portion of

amount spent on Dairying was Rs.4850 million, which was much lower as

compared to eighth plan.

The National Project on Cattle and Buffalo Breeding (NPCBB) was

initiated in October, 2000 for a period of 10 years. The project envisages

genetic upgradation of indigenous cattle and buffaloes, development and

conservation of important indigenous breeds and to evolve sustainable

84

breeding policy. The project is being implemented by State Implementing

Agencies (SIA’s). Presently, 26 states and 1 UTs are participating in the

project. 48

3.5.13 Tenth Five Year Plan (2002-2007)

In this plan Rs.25000 Million was allotted to Animal Husbandry and

Dairy development. The target for milk production is set out at 108.4 MT with

annual increase of 6 %. The plan gives considerable attention on withdrawal

of MMPO, Introduction of National Project on Cattle and Buffalo Improvement

Programme, Creation of Database and Information Network, Conservation of

threatened live stock breeds, feed and fodder production enhancement and to

raise clean milk production.49

Review of Tenth Plan

Milk production in India remained stagnant during the period 1950 to

1970, when the production grew at the rate of about 1% per annum.

Thereafter, India’s milk production showed rapid growth of between 4 and 5

percent, reaching a level of 91 million tones in 2004-05. The per capita

availability of the milk increased from 112 gm per day in 1970-71 to 229 gm

per day in 2004-05. An estimated 70 million rural milch animal households

are engaged in milk production. Notwithstanding this, all the major livestock

products showed an increasing growth rate during the 10th plan.

Consequently, in the first four years of 10th five-year plan, the growth rate of

milk has been less than 3 per cent per annum.

In India, the livestock continues to be raised on crop residues and

agricultural by-products. The area under cultivated fodder production is

limited only to 4.60% of the total cultivable land. The schemes and

programmes relating to feed, fodder and pasture development in the country

are quite limited. The efforts made during the 10th five-year plan in raising the

feed and fodder resources for the livestock were not very successful. The

performance of central fodder development organization of Government of

India was evaluated by The Centre for Management Development,

Thiruvanthapuram and found to be unsatisfactory. 50

85

Export earnings from livestock products rose from Rs.1500.93 crores in

2001-02 to 2253.33 crores during 2004-05. Export of milk and milk products

also improved and accounted for 17 percent of the export of livestock

products.51

3.5.14 Eleventh Five Year Plan (2007-12)

The goals for the eleventh five year plan for the livestock sector would

be i) to achieve an overall growth between 6% to 7% per annum for the sector

as a whole with milk group achieving a growth of 5.0% per annum and meat

and poultry group achieving a growth of 10% per annum, ii) the benefit of

growth should be equitable, benefiting mainly the small and marginal farmers

and landless labourers and should benefit poorly endowed areas like draught

prone, arid and semi-arid areas iii) the sector should generate additional

employment opportunity to people in the rural areas especially to the female

population, iv) livestock should provide major source of income in the selected

areas having potential for mixed crop-livestock farming system, and v) the

growth in the sector should result in the improvement of environment specially

in the rural areas.52

Financial Outlays and Resource Mobilization

An outlay of Rs. 37770 crores for Animal Husbandry and Dairy sector

is proposed for Eleventh Plan. The estimates do not include requirement for

the management of calamities like drought, famine, flood and disaster like

earthquake and Tsunami. It is proposed that a calamity relief fund for

livestock with an outlay of Rs.10000 crores should be created. In addition, the

State Governments would be required to allocate an estimated Rs.10000

crores for animal husbandry and dairying sector. Therefore, a total

investment of Rs. 57770 crores would be required during the 11th Plan period.

Out of proposed Rs. 37770 crores a provision of Rs.13075 crores would be

required to be provided in Government of India budget and the balance

provided as credit by the financial institutions. 53

86

Eleventh Plan Outcome

Livestock and dairy sector is expected to grow at 6 to 7 per cent per

annum during the 11th five year plan. The GDP from livestock sector at the

end of 11th five year plan is expected to increase from the present level of

Rs.1,12,579 crores to Rs.1,61,104 crores at 1999-2000 prices.

The milk production is expected to grow at 5 per cent per annum, meat

and egg at 10 per cent per annum and the wool at 2 per cent per annum. The

level at end of 11th plan for these commodities is projected in the table 3.3

Table No. 3.3

Growth rate and projection of live stock products

Sl. No.

Livestock Products

Growth Rate (in percent)

Unit Projection for the

Year 2006-07 2011-12

1. Milk* 5 Million Tons 99.05 126.42

2. Meat** 10 Million Tons 6.50 10.47

3. Egg* 10 Billion nos. 49.00 78.91

4. Wool* 2 Million kg 43.33 50.04

* Source: Department of Animal Husbandry and Dairying, GoI ** Source: FAO, Food Outlook Global Market Analysis, No. 1, June 2006

3.6 Operation Flood Programme

In pursuance of government directives (1964) to set up milk co-

operatives on Anand pattern throughout the country, the National Dairy

Development Board (NDDB) was set up at Anand in 1965. The NDDB drew

up a programme known as ‘Operation Flood’ to replicate the Anand pattern in

18 areas of milk production in the milk sheds of Bombay, Delhi, Calcutta and

Madras.54 “Operation Flood, is the largest dairy development programme ever

undertaken in the world, was initiated closely on the heals of the ‘Green

Revolution’ in this country, against the backdrop of a huge surplus of milk

products in the highly developed milk producing countries in the west.” 55

87

Objectives:

The objectives of the Operation Flood Programme are as follows-56

1. To facilitate a progressively increasing the level of milk consumption

and dairy products in the country at large and the urban areas in

particular.

2. To initiate and implement measures aimed at raising the output of the

dairy sector by both encouraging organized dairying and improving

productivity so that higher national consumption can be achieved on

the basis of domestic production of the dairy and related sectors and

not imports and ,

3. To effectively integrate the short and medium term aspects of the

programme with the long run goal of modernizing the dairy sector in all

its aspects, establishing basic infrastructure and laying the permanent

basis for future productivity gains.

3.6.1 Operation Flood Phase- I (1970-1981)

The Operation Flood Programme was commissioned by the

Government of India on July 1; 1970. It is a brain-child of Dr. Verghese Kurian

(Elected chairman of ANAND and Honorary chairman of NDDB). The

technical and financial help was provided by NDDB and IDC respectively to

this project. Initially the project was announced for Five Years but it was later

extended by six years up to Mach 1981.

Objectives:

The objectives of Operation Flood Phase -I are 57

1. To capture a commanding share of milk markets in the four

metropolitan cities of Bombay, Madras, Delhi and Calcutta.

2. To develop 18 hinterland milk sheds in 10 states by organizing dairy

co-operatives on the Anand pattern.

3. To organize an efficient transportation system, to collect the milk from

the village and send it to dairies for processing and supply it to cities.

4. To set up feeder balancing dairies and storage system to convert

excess milk in to milk powder and butter oil.

5. To increase the yield of milch animals and

6. To train personnel to plan and operate the services efficiently.

88

The Government of India specially set up the Indian dairy Corporation

(IDC) for accepting the gift of 1,26,000 tonnes of Skimmed Milk Powder

(SMP)and 40,000 tonnes of Butter Oil under the world food programme to be

used to generate funds for dairy development in India. The IDC generated

total of Rs.1164 million by sale of these products. The generated funds were

to be used for increasing the processing facility of the public sector dairies in

four metropolitan cities (Bombay, Delhi, Calcutta and Madras) from 10 LLPD

to 27.50 LLPD and for increasing milk production and procurement in the

hinterland areas in ten states of Andhra Pradesh, Bihar, Haryana, Gujrat,

Maharashtra, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh, West Bengal

and Union Territory of Delhi. 58 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 with benefiting 1.75

million farmers member.

3.6.2 Operation Flood Phase- II (1981-1985)

The Operation Flood Phase-II was commissioned on Oct.2, 1978. The

Government of India allocates Rs.485 crores in the budget for Operation

Flood Phase II. This programme is proposed to be financed by the sale of

1.86 lakh tones of SMP and 0.76 lakh tones of BO (worth Rs.235 Crores)

donated by EEC and a World Bank loan of about Rs.173 crores , the balance

of Rs.77 crores by the IDC. 59 In this phase the milk shed development

increased up to 136 outlets for milk spread to 290 urban markets.

Objectives:

1. To increase per capita daily consumption of milk.

2. To develop national milk grid to link up rural milk sheds.

3. To increase milk production in the country to bridge the gap between

demand and supply of milk and milk product.

4. To create employment opportunity for 37.30 lakh farmer families in the

country.

5. To organize one crore families of rural milk producer on co-operative

lines.

6. To enable the milk producers to rear the National Milk Herd of some 5

million crossbred Cows and Buffaloes.

89

In short, the main object of the operation Flood II is to increase the

nutritional standard of the people, generating employment and augmenting

the income in rural areas through a viable subsidiary occupation. The

projected impact of Operation flood II is shown in table 3.4

Table No. 3.4

Projected Impact of Operation Flood -II

Sr. No.

Area of Impact Pre-

programme

1978-79

1979-80

1980-81

1981-82

1982-83

1983-84

1984-85

1. No. of milk producers families (in millions)

1.5 2.4 4.1 5.7 7.4 8.7 9.8 10.2

2. No. of improved milch animals (in millions)

0.8 1.4 2.6 3.9 5.6 7.3 8.9 10.2

3. Milk procured and marketed by Co-operatives (daily average in million Lts.)

2.3 3.9 6.4 8.4 10.8 13.5 16.0 18.3

4. Milk production per capita daily in India (in gms.)

107 107 108 112 118 125 135 144

Source-NDDB,OF-II

From the above table it is clear that the number of milk producing

families increased from 1.5 million in pre-programme year i.e.1977-78 to 10.2

million in 1984-85 as against the number of improved milch animals is from

0.8 million to 10.2 million respectively. The milk procured by milk producers

co-operatives is proposed to increased from 2.3 million litres per day in1977-

78 to 18.3 million litres per day in 1984-85 and per capita availability of milk

would increased from 107 gms in 1977-78 to 144 gms in 1984-85.

By the end of 1985, a self sustaining system of 43,000 village co-

operatives with 42.5 lakh milk producers were covered. Domestic milk powder

production increased from 22,000 tons in the pre-project year to 1,40,000 tons

by 1989, all of the increase coming from dairies set up under Operation Flood.

60 The united Nations Terminal Review Mission of Operation Flood (1981)

observes that the success of the OF in restructuring the dairy industry in India

is commendable and indisputable for the development of local agricultural

industries. The Operation Flood has enable the lower caste families to

90

participate in co-operative dairying on an equal basis with the other society

members.61

3.6.3 Operation Flood Phase- III (1985-1996)

Operation Flood III was an extension of OF II, because many of the

targets of OF II were not fulfilled. To establish 70,000 Dairy Co-operative

Societies in the 170 milk shed area is the main object of the implementation of

the Operation Flood Phase III. The Government of India allocates Rs.8962.10

million in the budget for OF III Programme. The funds were generated through

World Bank’s loan of US $ 365 million, Rs.222.6 crores in the form of donated

commodities and Rs.207.7 crores by NDDB from its own resources. By the

end of the Operation Flood Phase III, the milk production has increased up to

69.1 million tones and per capita availability of milk has gone up to 203 grams

per day.

Operation Flood Phase III consolidated India’s dairy co-operative

movement, adding 30,000 new dairy co-operatives to the 42,000 existing

societies organized during Phase II. Milk sheds peaked 173 in 1988-89 with

the number of women members and women’s dairy co-operative societies

increasing significantly. Under this Phase more attention is given on research

and development in animal health and animal nutrition. 62

The growth of primary dairy co-operative societies, their membership

and milk procurement during operation flood programme is presented in table

3.5. This table reveals that at the beginning of the operation flood phase I,

there were 1588 PDCS in India having 278 thousand milk producer members

procured about 190 thousand tones milk which was increased up to 13270

PDCS, 1747 thousand milk producers and 934.4 thousand tones milk

procurement at the end of the first phase. At the end of the operation flood

phase II (1984-85) there were 34523 PDCS working in the country having

3632 thousand milk producer members and milk procured about 2110

thousand tones. The figures of the PDCS, milk producer members and milk

procurement at the end of the operation flood phase III (1994-95) were 72600,

9263 thousand and 4011 thousand tones respectively.

91

Table No. 3.5

Growth of Village Milk Producers Co-operatives and Procurement under Operation Flood at a Glance ( 1970-1995)

Year No. of Co-operative Societies

Member Producers

(‘000’)

Annual Milk Procurement (‘000’ Tonnes)

Operation Flood I

1970-71

1975-76

1980-81

1588

4533

13270

278

562

1747

189.8

419.7

934.4

Operation Flood

II

1981-82

1982-83

1983-84

1984-85

18422

23498

28614

34523

2124

2620

3116

3632

1014.7

1613.3

1901.6

2109.7

Operation Flood

III

1985-86

1986-87

1987-88

1988-89

1989-90

1990-91

1991-92

1992-93

1993-94

1994-95

42692

49077

54525

58883

60825

63415

64057

65469

67247

72600

4484

5097

5666

6250

7003

7482

7945

8371

8667

9263

2876.2

2865.2

2810.5

2909.0

3582.1

3541.3

3428.0

3856.8

4054.6

4011.0

Source: Dairy India 1997 PP.184

It means that there is tremendous increase in number of village dairy

societies, milk producer members as well as milk production and procurement

during operation flood programme.

92

The salient features of the operation flood programme is given in the

table 3.6

Table No.3.6

Salient Features of Operation Flood Programme

Key Parameters Operation Flood Phases

Phase I Phase II Phase III

Date of Start July 1, 1970 October 2, 1979 April , 1985

Date of ending March 31, 1981 March 31, 1986 March 31, 1996 No. of milksheds 39 136 170

No. of DCSs set up 13300 34500 72500

No. of members(lakh) 17.5 36.3 92.63 Average milk procurement(mkgpd)

2.56 5.78 10.99

Liquid milk marketing(llpd)

27.9 50.1 100.2

Processing Capacity

Rural Dairies(llpd)

Metro Dairies(llpd)

35.9

29.0

87.8

35.0

180.9

38.8

Milk drying capacity(mtpd)

261.0 507.5 842.0

Technical Inputs

No. of AI Centres

No. of AI done/year

4900

882000

7500

1330000

16800

3940000

Cattle feed capacity(000MTPD)

1.7 3.3 4.9

States Covered Bihar, Gujarat, Haryana, Karnataka, M.P., Maharashtra, Rajasthan, U.P., West Bengal

Bihar, Gujarat, Haryana, Karnataka, M.P., Maharashtra, Rajasthan, U.P., West Bengal, A.P., Assam, Goa, H.P.,J & K., Kerala, Orissa, Sikkim, Tamil Nadu, Tripura, Andaman & Nicobar and Pondicherry

Bihar, Gujarat, Haryana, Karnataka, M.P., Maharashtra, Rajasthan, U.P., West Bengal, A.P., Assam, Goa, H.P., J & K., Kerala, Orissa, Sikkim, Tamil Nadu, Tripura, Andaman & Nicobar and Pondicherry, Nagaland

Source: Vijay Paul Sharma,2000 Note: llpd- lakh litres per day, mtpd-metric tones per day, mkgpd-million kilo gram per day

93

The salient features of the operation flood programme are presented in

the table 3.6. The above table is self explanatory, it shows that the period of

operation flood phase I, II and III and number of DCS set up, number of milk

producer members and milk procured during this period. The table also clears

the milk processing and drying capacity as well as states covered by

operation flood programme .

3.6.4 Dairy Co-operatives in India at a Glance

Dairy industry in India was developed during Operation Flood

Programme. Operation Flood achievement in the year 2008-09 was

remarkable. According to state wise progress of dairy co-operatives on key

parameters such as number of dairy co-operatives, farmer members, women

members, milk procurement and milk marketing is given in the table 3.7

Table 3.7 shows facts at a glance of Operation Flood achievement in

the year 2008-09. The above table clearly shows the state wise information

about number of dairy co-operatives, farmer members, women members, milk

procurement and milk marketing. It also shows that Maharashtra ranks first in

number of Dairy Co-operative Societies having 21,492 societies followed by

Utter Pradesh 20,473, Rajasthan 13,681 and Gujarat 13,646. In terms of milk

procurement, Gujarat procure highest milk (8,726 TKgPD) and second and

third rank obtain by Maharashtra (3,292 TKgPD) and Karnataka (3,248

TKgPD) respectively. In farmer members Gujrat ranks first, followed by

Tamilnadu, Karnataka and Maharashtra. From the above table it can be said

that Gujrat, Maharashtra, Karnataka and Tamilnadu shows better indications

of dairy development.

All India level there are 1,33,349 dairy co-operative societies having 13893

thousand farmer members and 3916 thousand women members. The ratio of

farmer (Men) and women members is 3.5:1 which indicates better position of

dairy industry.

94

Table No.3.7

Dairy Co-operatives- Progress on Key Parameters during 2008-09

State/UT No.of DCS Organize

(Cumulative)

Farmer Members

‘000’

Women Members

‘000’

Milk Procurement

(TkgPD)

Milk Marketing @(TLPD)

Andhra

Pradesh 4656 825 167 1337 1395

Assam 66 3 0 3 3

Bihar 7320 373 57 413 395

Chhattisgarh 746 30 7 20 36

Delhi 0 0 2763

Goa 177 19 3 39 75

Gujarat 13646 2839 784 8726 2931

Haryana 6668 309 73 534 332

Himachal Pradesh 739 32 11 46 19 Jammu & Kashmir ** ** ** ** ** Jharkhand 44 1 0 3 205

Karnataka 11432 2024 638 3248 2267

Kerala# 3582 745 159 758 979

Madhya Pradesh 5615 265 46 526 408 Maharashtra 21492 1761 430 3292 2892

Nagaland 46 2 0 2 4

Orissa 3111 175 74 296 274

Puducherry 101 39 18 62 88

Punjab 6711 387 53 925 656

Rajasthan 13681 678 199 1655 1191

Sikkim 272 9 1 12 12

Tamil Nadu# 9900 2203 863 2246 1986

Tripura 84 5 1 2 12

Uttar Pradesh 20473 966 264 713 455

West Bengal 2787 203 68 232 663

All- India 133349 13893 3916 25089 20041

Source: NDDB Website Note:1) ** for not reported 2) # includes conventional societies and Taluka unions formed earlier 3) @Co-operatives (state) and Metro dairies

95

3.6.5 Critical Analysis:

India’s Operation Flood has become a show piece and has been

described by many as the world’s most successful dairy development project.

A number of countries like China, Pakistan, Sri Lanka, Zimbabwe etc. have

shown an active interest in establishing their own white revolution. The

operation Flood is designated to raise milk producer’s income by organizing

them into co-operatives and eliminating middleman, to increase milk

production, creating a flood of milk and to create a self sufficient dairy industry

in India.63

However, in the recent past, some critics of the OF Programme argue

that the emphasis on foreign cow breeds has been instrumental in the

decimation of Indian breeds. Foreign breeds give higher yield but require

more feed and are not suited to Indian conditions. Critics also argue that the

focus on the dairy sector during this period came at the expense of

development; research and extension work in other areas of Indian

agriculture.64 Shanti George has criticized the Operation Flood Programme

and development of dairy through co-operatives, by leveling many charges,

among which are the introduction of high cost, high speed and discontinuous

development through imported technology; instead that of less expensive

indigenous alternatives which are better suited to local needs and

conditions.65

Another assertion which has been repeatedly made is that the dairy co-

operatives are depriving the farmer’s families of milk and gifted milk powder

which sold to village children since all the milk, their families produce, has

long since gone to town. But the milk powder received under OF is not sold in

the village, and even it is impossible to think of a farmer being foolish enough

to sell his milk and use the proceeds to buy milk powder for his children.66

Although milk production has grown at a fast pace during the last three

decades, milk yield per animal is very low as compared to other countries.

Average annual milk production per adult breedable female in milk in 1995

was 2141 kg for crossbred cow, 634 for desi cow and 1355 kg for buffalo.

Average annual milk production per animal has improved substantially both in

cow and buffaloes, but is still below the world average (2021 kg/year) and

96

other countries like USA (7002 kg), UK (5417 kg), and Canada (5348 kg). The

table 2.6 shows the comparison of milk yield.

Table No. 3.8

Statement Showing Milk Yield Comparison

Country Milk Yield (Kg/ per year)

USA 7002

UK 5417

Canada 5348

New Zealand 2976

Pakistan 1052

India 795

World (Average) 2021

Source: Export prospects for agro-based industries, World Trade Centre, Mumbai, 2004

The main reasons for the low yield are * Lack of use of scientific practices in milching. * Inadequate availability of fodder in all seasons. * Unavailability of veterinary health services. NDDB and the co-operative milk unions in India will have to evolve a

new strategy to overcome these defects.

Apart from above criticism Operation Flood Programme of NDDB in

India has been one of the world’s largest dairy development programme and

looking at its success in India through co-operatives.

While world milk production declined by 2 per cent in the last three

years, according to FAO estimates, Indian production has increased by 4 per

cent. The milk production in India accounts for more than 13% of the total

world output and 57% of total Asia's production. The top five milk producing

nations in the world are India, USA, Russia, Germany and France.67

3.7 Cattle and Buffalo population in India :

India ranks first in case of cattle and buffalo population in the world and

in respect of goat population India ranks second and in sheep third in the

world. However the majority of the cattle breed is non descript and in respect

of buffalo the river buffalo is most common type in India. The important breeds

and bovine population is given as follows.

97

3.7.1 Important breeds of Cattle and Buffaloes in India:

The majority of Indian cattle are non-descript. However, there

are a few well defined breeds distributed all over the country.

A) Cattle:

Punjab, Rajasthan, Saurashtra, Maharashtra, Tamil Nadu,

Karanataka and Andhra Pradesh are the states having best Indian cattle

breeds. In the eastern part of the country and in the coastal areas, the

animals are non-descript and poor milk yielders.

a) Milch Breeders:

Sahiwal, Gir, Red Singhi and Deoni are some of the important

breeds of milch breeders .The yield of Sahiwal breed is 2725 to 3175 kgs. of

milk in a period of 250 to 300 lactation days where as yield of Gir is 1675 kgs.

The average milk yield of Deoni is between 1135 and 1725 kgs during

lactation period.

b) Draught Animals:

In India 42 % of the cattle are coming under this group. The

Amaritmahals and Hallikar (Karanataka) are the well-known draught breeds of

India. Malvi (M.P.), Nagori (Rajasthan), Kenketha and Panwar (U.P.), Bahani

(Bihar), Bargum and Kongayam (Tamil Nadu) and Khillari (Maharashtra) are

the other important draught breeds in India.

c) General Utility Breeds:

The important breeds of general utility breeds in India are:

Harianan (Haryana and Delhi), Kankrej and Tharparker (Gujrat and

Rajasthan) and Ongole (A.P.). The average yield of this group is between

1500 and 2000 kgs of milk during lactation. The cows coming under this group

are fairly good milk yielders. 68

B) Buffaloes:

The river buffalo and swamp buffalo are the main two types of

buffalo breeds in the world. The swamp type is most common in South East

Asia. The river buffalo is most common type in India. It has derived its name

from they prefer to wallow in clean water and river. By contributing 55 percent

of total milk production in India buffalo continues to occupy the pre-dominant

position. India possesses the best river milk breeds in Asia e.g. Murrah,

98

Mehasana, Surati, Bhadawari and Jafarabadi have a high potential for milk

and fat production.69

The breed classification of Indian buffalo are; 70

Jafarabadi: It is found in the Gir forest (Gujrat) round about Jafarabad.

This breed yields between 15 and 20 Kgs of milk per day.

Mehasana: This breeds comes from Baroda (Mehasana district of

Gujrat) .They are valued for their early maturity, persistency in milk yield and

regularity in breeding. The average milk yield of this breed is 1360 to 1825

Kgs per lactation.

Murrha: This type of breed is found in Punjab, Haryana and Delhi. The

milk yield of this type of breed is in between 25 and 30 Kgs per day.

Nagpuri: Nagpuri buffaloes are found mainly in Madhya Pradesh. The

milk yield of this type of breed is 6 to 8 Kgs per day.

Nili-Ravi: This type of breed is found in West Pakistan and Ferozpore

district of Punjab. The average milk yield of this breed is 1700 Kgs per

lactation.

Surati: Surati buffaloes are found in Kaira and Baroda district of

Gujarat. The average milk yield of this breed is in between 1700 and 2000

Kgs per lactation.

3.7.2 Bovine Population in India

As per the 2003 livestock census, there were 485 million total Livestock

population comprising 185.2 million cattle, 97.9 million buffalo, 61.5 million

sheep, 124.4 million goats and remaining includes camel, mithun, pig, yak etc.

India ranks first in case of cattle and buffalo population in the world, owing 57

% of the world’s buffalo population and 16 % of the cattle population. In

respect of goat population India ranks second and in sheep third in the world.

Livestock population in India by species is given in the table 3.9

The table no.3.9 reveals that during 1992-2003, there has been a fall in

the population of cattle by 6.89% while the population of buffalo has increased

steadily from 1951. There has also been an increase in goat population .The

population of sheep, which was steady during the last four decades. The total

Livestock population has also increased steadily from the inception of five

99

year plans excluding during 1997-2003, there has been a fall in the population

of Livestock by 0.08 %

Table No. 3.9

Livestock Population in India by Species (In Million Number)

Species 1951 1956 1961 1966 1972 1977 1982 1987 1992 1997 2003

Cattle 155.3 158.7 175.6 176.2 178.3 180.0 192.5 199.7 204.6 198.9 185.2

Adult Female Cattle

54.4 47.3 51.0 51.8 53.4 54.6 59.2 62.1 64.4 64.4 64.5

Buffalo 43.4 44.9 51.2 53.0 57.4 62.0 69.8 76.0 84.2 89.9 97.9

Adult Female Buffalo

21.0 21.7 24.3 25.4 28.6 31.3 32.5 39.1 43.8 46.8 51.0

Total Bovines

198.7 203.6 226.8 229.2 235.7 242.0 262.2 275.7 288.8 288.8 283.1

Sheep 39.1 39.3 40.2 42.4 40.0 41.0 48.8 45.7 50.8 57.5 61.5

Goat 47.2 55.4 60.9 64.6 67.5 75.6 95.3 110.2 115.3 122.7 124.4

Horses and Ponies

1.5 1.5 1.3 1.1 0.9 0.9 0.9 0.8 0.8 0.8 0.8

Camels 0.6 0.8 0.9 1.0 1.1 1.1 1.1 1.0 1.0 0.9 0.6

Pigs 4.4 4.9 5.2 5.0 6.9 7.6 10.1 10.6 12.8 13.3 13.5

Mules 0.1 0.0 0.1 0.1 0.1 0.1 0.1 0.2 0.2 0.2 0.2

Donkeys 1.3 1.1 1.1 1.1 1.0 1.0 1.0 1.0 1.0 0.9 0.7

Yak NC NC 0.0 0.0 0.0 0.1 0.1 0.0 0.1 0.1 0.1

Mithun NA NA NA NA NA NA NA NA 0.2 0.2 0.3

Total Livestock

292.9 306.6 336.5 344.5 353.2 369.4 419.6 445.2 470.9 485.4 485.0

Source: Livestock Census 2003

3.7.3 Livestock Population Trend During 1997-2003:

Total bovine population during the year 1997 was 2, 88,799

thousand which was declined by 1.97 % and reaches up to 2, 83,103

thousands. The overall trend of livestock population during the period 1997 -

2003 is reflected in the table no.3.10

During 1997-2003, there has been a fall in the population of cattle by

6.89% while the population of buffalo has increased by 8.9%. The fall has

mainly been in the indigenous cattle. Within cattle, there has been a mark shift

from indigenous cattle to crossbreds. The crossbred cows have grown at a

much faster rate than the indigenous stock. The population of crossbred

cattle increased by 22.82% during the period 1997-2003 compared to a

decrease in the population of indigenous cattle by 10.23% during the same

period. There has also been an increase in goat population; the population of

100

the goat in the last livestock census (2003) was 124.4 millions. The

population of sheep, which was steady during the last four decades, has also

grown by 6.9% during the period 1997-2003 and there were 61.5 million

sheep during 2003.

Table No. 3.10

Livestock Population Trend During 1997-2003

Livestock Population (000)

Year 1997 Population (000)

Year 2003 % Increase/ Decrease

Crossbred Cattle 20099 24686 22.82

Indigenous Cattle 178782 160495 -10.23

Total Cattle 198881 185181 -6.89

Buffaloes 89918 97922 8.90

Total Bovines

Population

288799 283103 -1.97

Sheep 57494 61469 6.91

Goats 122721 124358 1.33

Source: Report on Animal Husbandry p.27

3.7.3 Distribution of Livestock Population According to Size of

Landholding

Agriculture is the culture of India. The livestock production and

agriculture are intrinsically linked, and dependent on each other in India.

Livestock sector is an important sub-sector of the agriculture of Indian

economy. According to Department of Agriculture and Co-operation Input

Survey, there were 1,57,559 thousand hectors operated area of land holdings

in India during the year 1991-92 and number of land holders are 99,062

thousands in 1991-92 . Out of total operational land holders 57.1 % holders

are below marginal, 20.3 % small, 17.7 % semi-medium, 7.3 % medium and

only 1.6 % large land holders during the year 1991-92. Distribution of livestock

population according to size of land holding is shown in the table no.3.11

101

Table No. 3.11

Distribution of Livestock Population According to Size of Landholding (All India, In Millions)

Category of Land Holdings

Marginal Below 1

Hect. (57.1)*

Small 1 to 2

Hect. (20.3)*

Semi-medium 2 to 4 Hect.

(17.7)*

Medium 4 to 10 Hect. (7.3)*

Large Above

10 Hect. (1.6)*

All Class

Cattle -M 38.2 28.3 24.2 17.4 4.7 112.8

Cattle -F 36.6 23.1 20.7 15.1 4.7 100.3

Buffalo -M 8.7 5.3 5.1 3.8 1.1 24.0

Buffalo -F 24.4 16.2 15.6 12.2 3.7 72.0

Sheep 13.8 8.7 7.1 5.6 2.5 37.7

Goat 36.2 18.8 14.2 9.3 3.8 82.3

Horses 0.42 0.3 0.21 0.10 0.04 1.10

Mules 0.10 0.06 0.02 0.01 0.004 0.19

Donkeys 0.18 0.09 0.08 0.03 0.03 0.42

Pigs 2.8 1.8 1.00 0.50 0.20 6.3

Camels 0.16 0.20 0.27 0.40 0.21 1.25

Total 161.56

(36.85)**

120.85

(27.56)**

88.48

(20.18)**

64.44

(14.70)**

20.98

(4.78)**

438.36

Source :( Dept. of Agriculture & Co-operation, Input Survey 1991-92 M/O Agriculture) *Figures in the parenthesis shows percentage of land holders ** Figures in the parenthesis shows percentage of livestock 3.7.5 Milch Bovine Population by states:

As per 2003 livestock census there were 115487 thousand total

milch bovine populations in India. There are 64,513 thousands milch cow

comprising 12302 thousand cross bred and 52211 thousand indigenous cow

followed by 50973 thousands buffalo over three years. State wise distribution

of milch bovine population is reflected in table no. 3.12.

The table no.3.12 shows that amongst states Kerala, Maharashtra,

Tamil Nadu, Punjab, Uttar Pradesh and West Bengal accounted for nearly

70% of total crossbred in the country, with Tamil Nadu having the highest

crossbred population.

102

Table No.3.12

Milch Bovine Population by Sates (2003) (In Thousands)

State/UT Crossbred

over 2 and ½ Yrs.

Indigenous over 3 Yrs.

Total Female

Buffalo over 3 Yrs.

Milch Bovine Total

Andaman & Nicobar

5 16 22 6 27

Andhra Pradesh

537 2221 2758 5847 8605

Arunachal Pradesh

5 143 148 5 153

Assam 193 2377 2570 239 2809

Bihar 645 3131 3776 2885 6661

Chandigarh 3 1 4 16 20

Chhatisgarh 79 2732 2812 330 3141

Dadra & Nagar Haveli

1 12 12 2 14

Daman & Diu 0 1 1 1 2

Dlhi 35 21 55 141 196

Goa 7 19 26 17 43

Gujarat 340 2342 2682 4232 6914

Haryana 285 356 641 2995 3636

Himachal Pradesh

359 520 879 501 1379

Jammu Kashmi 573 657 1231 584 1815 Jharkhand 76 2020 2096 422 2518

Karanataka 952 2806 3758 2360 6118

Kerala 873 173 1046 21 1067

Lakshadweep 1 1 2 0 2

Madhya Pradesh

142 6031 3173 4159 10332

Maharashtra 1443 3802 5275 3695 8970

Manipur 28 99 127 28 155

Meghalaya 17 290 308 6 313

Mizoram 5 9 14 2 16

Nagaland 128 70 198 9 207

Orissa 442 3718 4160 420 4580

Pondicherry 32 7 39 2 41

Punjab 739 143 935 3282 4217

Rajasthan 249 4653 4902 5658 10560

Sikkim 36 29 66 1 67

Tamil Nadu 2589 1528 4117 901 5018

Tripura 27 227 254 6 260

Utter Padesh 714 5473 6188 11195 17382

Uttaranchal 107 651 758 737 1494

West Bengal 551 5932 6483 271 6753

All India 12302 52211 64513 50973 115487

Source: Livestock Census 2003,GOI

103

The Maharashtra having second largest state in the country having

1473 thousand crossbred population, in respect of total milch bovine

population Maharashtra ranks fourth (8970 thousand) as against Uttar

Pradesh ranks first (17382 thousand). The population of buffalo also

increased by 8.90% during the intervening period between last two livestock

censuses. While buffaloes are now reared in almost all states, Andhra

Pradesh, Bihar, Gujarat, Haryana, Karnataka, Madhya Pradesh, Maharashtra,

Punjab, Rajasthan, Uttar Pradesh account for bulk of the buffalo population.

3.7.6 World Livestock Population:

India endowed with a significant share of the world livestock

population. The total livestock population of India was 477.15 million during

the year 1997 which is 11.49% of the world’s livestock population. In the year

2003 total livestock population was 484.66 million which 11.01% of the world.

The comparison of world livestock population to India livestock is shown in the

table no.3.13

Table No.3.13

Comparison of World Livestock Population to Indian Livestock

(Figures in Million)

Sr.No Animals 1997 2003

World India World India 1 Cattle 1309 198.88

(15.19) 1350 185.18

(13.71) 2 Buffalo 159.2 91.93

(57.74) 170.3 97.92

(57.49) 3 Sheep 1043.1 57.49

(5.51) 1038.7 61.47

(5.91) 4 Goat 679 122.72

(18.07) 771.5 124.36

(16.11) 5 Horse 57.1 0.83

(1.45) 55.1 0.75

(1.36) 6 Camel 18.0 0.91

(5.05) 19.2 0.63

(3.28) 7 Pig 830.7 13.29

(1.59) 941.5 13.52

(1.43) 8 Mule 13.2 0.22

(1.66) 12.9 0.18

(1.39) 9 Donkey 40.4 0.88

(2.17) 41.5 0.65

(1.56) Total 4149.7 477.15

(11.49) 4400.7 484.66

(11.01) Source: Livestock Census Directorate of Economics and Statistics M/O Agriculture and various Census Report

104

The table no.3.13 shows that in 1997 India’s livestock accounts more

than half of the world’s buffaloes (57.74%), 15.19% of cattle, and 5.51 %

sheep.

During the year 2003 India’s share of livestock in world’s livestock

population was Buffalo 57.49%, Cattle 13.71%, Goat 16.11% and sheep

5.91%.

It is observed from the above that the share of livestock was slightly

declined i.e. 0.48% during the period 1997 to 2003. But in terms of total

population it was increased by 7.51 million during 1997 to 2003.

3.8 Milk Production in India

Estimates of the total Milk production in the World during the

period 1985 to 2003 is shown in Table No.3.14. From this, it can be seen that,

most of the milk production in the world gets from cows. It means cows are

the main milch animal in the world. The cow milk production in 1985 was

462.2 million tonnes, which constituted 91.7% of the total milk produced in the

world, whereas the production of buffalo milk was of the order of 34.2 million

tonnes, accounting for 6.8% of the total world milk production, while during the

year 2003 it was 506.9 million tones (84.4%) and 72.7 million tones (12.1%)

respectively.

From the above table it is clear that the milk production in India

was continuously increased from 1985 to 2003. In 1985 India produces 44 MT

litre milk which was 8.7% of total milk production in world which was gone up

to 10.1% (55MT) during 1990 and again it was increased up to 12.4% (66 MT)

in the year 1995. During the year 1997 milk production of India was 72 MT

litres which contributes 13.2% of the world milk production. At the end of the

year 2003 it was gone up to the level of 87 MT litres which contributes 14.5%

of the world milk production.

105

Table No.3.14

World Estimates of Milk Production-1985 to 2003

(Million Tonnes)

Year Cow Buffalo Goat Sheep Total India to World

1985 462.2 34.2 7.6 0 504 44

(91.7) (6.8) (1.5) (0.0) (100.0) (8.7)

1986 463.5 36 7.9 0 507.4 46.1

(91.3) (7.1) (1.6) (0.0) (100.0) (9.1)

1987 460.6 38.4 8.2 0 507.2 46.7

(90.8) (7.6) (1.6) (0.0) (100.0) (9.2)

1988 466.2 39 8.5 8.6 522.3 48.4

(89.3) (7.5) (1.6) (1.6) (100.0) (9.3)

1989 470.6 40.1 9.5 8.9 529.1 51.4

(88.9) (7.6) (1.8) (1.7) (100.0) (9.7)

1990 482.4 41.4 9.9 8.2 541.9 55

(89.0) (7.7) (1.8) (1.5) (100.0) (10.1)

1991 472.8 43.9 9.8 8 534.5 58.4

(88.5) (8.2) (1.8) (1.5) (100.0) (10.9)

1992 462.8 45.8 10.2 7.9 526.7 62.6

(87.9) (8.7) (1.9) (1.5) (100.0) (11.9)

1993 463.58 46 9.9 7.7 527.18 61

(87.9) (8.7) (1.9) (1.5) (100.0) (11.6)

1994 464.38 48.3 9.9 7.9 530.48 63

(87.5) (9.1) (1.9) (1.5) (100.0) (11.9)

1995 464.4 48.3 9.9 7.9 530.5 66

(87.5) (9.1) (1.9) (1.5) (100.0) (12.4)

1996 467 53.6 10.4 8.1 539.1 69.5

(86.6) (9.9) (1.9) (1.5) (100.0) (12.9)

1997 471.8 55.9 10.6 8.4 546.7 72.0

(86.3) (10.2) (1.9) (1.5) (100.0) (13.2)

106

Note: Figures in brackets show percentage

If any one observe the trend of cow, buffalo, goat and sheep milk

production the cow milk production was 91.7% in the year 1985, which was

declined up to 86.3 % during the year 1997 and again up to 84.4% during the

year 2003 as against buffalo milk production was increased from 6.8% to

10.2 % and 12.1 during the same period. The goat and sheep milk production

was steady in between 1.5% to 2.0% during the period 1985 to 2003.Goats

and sheep appear to be very minor sources of milk production at world level.

3.8.1 World’s Top Milk Producers

Top Ten milk producing countries in terms of buffalo milk and cow milk

and aggregate i.e. total buffalo and cow milk is reflected in the table no.3.15,

Table No. 3.16 and Table No.3.17 has given below.

Table No.3.15

1998 476.9 62.9 11.6 8.2 560.8 75.2

(85.0) (11.2) (2.1) (1.5) (100.0) (13.4)

1999 483.4 65.5 11.4 8.2 569.7 78.1

(84.9) (11.5) (2.0) (1.4) (100.0) (13.7)

2000 490.6 67.6 11.6 8.0 579.1 81.0

(84.7) (11.7) (2.0) (1.4) (100.0) (14.0)

2001 495.8 68.8 11.8 8.1 585.8 82.0

(84.6) (11.7) (2.0) (1.4) (100.0) (14.0)

2002 505.7 70.5 11.8 8.0 597.4 84.0

(84.7) (11.8) (2.0) (1.3) (100.0) (14.1)

2003 506.9 72.7 12.0 8.1 600.9 87.0

(84.4) (12.1) (2.0) (1.3) (100.0) (14.5)

Source: FAO Production Year Book 1997 & FAOSTAT - Website

107

World Top Ten Buffalo Milk Producing Countries

(Figures inLakh Metric Tonnes)

Country 2006 2007 2008

India 543.82 559.13 609.00

Pakistan 197.79 203.72 209.85

China 28.50 29.00 29.50

Egypt 23.00 26.10 26.41

Nepal 9.27 9.59 9.88

Iraq 0.28 0.28 3.00

Iran (Islamic

Republic of) 2.45 2.45 2.45

Myanmar 1.98 2.21 2.21

Italy 2.21 2.35 2.17

Bangladesh 0.31 0.32 0.34

World 812.84 829.10 853.97

Source: Compiled from FAOSTAT website

The table No.3.15 shows that total buffalo milk production of the world

during 2006 was 812.84 lakh MT which was increased up to 829.10 lakh MT

(i.e. 2%) in 2007 while it was reached up to 853.97 lakh MT by increasing 3

%. It is also clear that India ranks always first during 2006, 2007 and 2008 by

producing 543.82 lakh MT, 559.13 lakh MT and 609.00 lakh MT buffalo milk

respectively. The share of buffalo milk in the world buffalo milk production is

66.90%, 67.44% and 71.31% during the year 2006, 2007 and 2008

respectively which shows increasing trend. Bangaladesh holds tenth rank in

the world by producing 0.34 lakh MT buffalo milk in the year 2008.

Table No. 3.16

108

World Top Ten Cow's Milk Producing Countries in 2008

(Figures in Lakh Metric Tonnes)

Country 2006 2007 2008

USA 824.63 841.89 861.79

India 411.48 434.81 441.00

China 322.57 355.74 358.54

Russian Federation 311.86 319.15 321.17

Germany 279.95 284.03 286.56

Brazil 261.86 269.44 277.52

France 241.948 243.74 245.16

New Zealand 151.73 156.18 152.17

UK 143.16 140.23 137.19

Poland 119.82 120.96 124.25

World 5588.27 5714.04 5784.51

Source: Compiled from FAOSTAT website

The table No. 3.16 shows that total cow milk production of the world

during 2006 was 5588.27 lakh MT which was increased up to 5714.04 lakh

MT (i.e. 2.25%) in 2007 while it was reached up to 5784.51 lakh MT by

increasing 1.23 %. It is also clear that India ranks second during 2006, 2007

and 2008 by producing 411.48 lakh MT, 434.81 lakh MT and 441.00 lakh MT

cow milk respectively. The share of cow milk in the world cow milk production

is 7.36%, 7.61% and 7.62% during the year 2006, 2007 and 2008 respectively

which also shows increasing trend. Poland ranks tenth in the world in cow

milk production.

109

TABLE 3.17

World Top TenTotal Milk Producing Countries during 2008

(Figures in Lakh Metric Tonnes)

Sr.No. Country Cow Buffalo Total % to

total

1 India 441.00 609.00 1050.00 15.82

2 USA 861.79 0 861.79 12.98

3 China 358.54 29.50 388.04 5.85

4 Pakistan 115.50 209.85 325.35 4.90

5 Russian Federation 321.17 0 321.17 4.84

6 Germany 286.56 0 286.56 4.32

7 Brazil 277.52 0 277.52 4.18

8 France 245.16 0 245.16 3.69

9 New Zealand 152.17 0 152.17 2.29

10 UK 137.19 0 137.19 2.07

Rest of World 2587.90 5.62 2593.52 39.07

World Total 5784.51 853.97 6638.47 100.00

Source: Compiled from FAOSTAT website

From the tableNo.3.17 it is clear that, India ranks first in Buffalo milk

production and second in cow milk production, where as in aggregate milk

production i.e. buffalo and cow milk India stands first in the world by producing

1050.00lakh MT milk during the year 2008.United States of America Stands

first in Cow Milk production but in aggregate it ranks second in the world.

India’s share of milk production in the world is highest i.e.15.82% followed by

USA i.e.12.98% and China 5.85% while UK ranks tenth by producing 2.07%

of the world milk during 2008.

It is observed from the above table that, maximum buffalo milk is

produced by Asian Countries i.e. India, Pakistan, Sri Lanka, Nepal etc., where

as Western Counties like America, United Kingdom, and Russia etc. are

leading in production of Cow milk. India and China included top three in both

i.e. buffalo and cow milk production.

110

3.8.2 Milk Production in India:

Table No.3.18

Production and Per Capita Availability of Milk in India 1951-52 to 2007-08

Year Production(Million

Tonnes) Per Capita

Avalability(gms/day) 1951-52 17.4 124

1961-62 20.4 124

1971-72 22.5 112

1981-82 33.0 136

1991-92 55.7 178

1992-93 58.0 182

1993-94 60.6 187

1994-95 63.8 194

1995-96 66.2 197

1996-97 69.1 202

1997-98 72.1 207

1998-99 75.4 213

1999-00 78.3 217

2000-01 80.6 220

2001-02 84.4 225

2002-03 86.2 230

2003-04 88.1 231

2004-05 92.5 233

2005-06 97.1 241

2006-07 100.9 245

2007-08 104.8 252

Source: Department of Animal Husbandry, Dairying and Fisheries, Ministry of Agriculture, GOI

The table 3.18 shows that there was steady rise in milk production and

per capita availability of milk in India. India has achieved the distinction of

becoming the largest milk producing country in the world with current level of

production at 104.8 million tons per annum (2007-08). India’s annual milk

production has more than fivefold in the last 50 years; rising 20 million tones

in 1960-61 to 104.8 million tones in 2007-08. The trend of milk production

111

shows marginal increase in the level of milk production from 17.4 to 20.4

million tones (17.24%) during 1951 and 1961 and from 20.4 to 22.5 million

tones (9.31% increases) during 1961 to 1971. But from the 1970, i.e. after

implementation of Operation Flood Programme the milk production showed

an increasing trend.

Milk production is increased from 22.5 to 33 million tones (46.66%)

from 1971-72 to 1981-82 and from 33 to 55.7 million tones (71.82 %.) during

1981-82 to 1991-92. Again it is increased from 55.7 to 84.4 MT (51.53%) from

1991-92 to 2001-02 and from 84.4 to 104.8 MT (24.17%) during 2001-02 to

2007-08.

The per capita availability of milk has also increased from 124 grams

in 1951-52 to 136 grams in 1981-82,178 grams in 1991-92, 220 grams in

2000-01 and again it is increased up to 252 grams per day in 2007-08. It

means that the per capita availability of milk is steadily increased from 124

grams/day in 1950-51 to 252 grams/day in 2007-08.However, it is still below

the world average of 285 grams per day but can favorably be compared to

nutritional requirement of 240 grams per capita per day.

This success is due to the adoption of Operation Flood Programme

introduced by NDDB through the guidance of Dr. V. Kurien.

The table 3.19 shows the species wise milk production in India. Right

from the beginning of the first five year plan, in India buffaloes have been the

most important source of milk production. The buffalo milk was 91.84 lakh

tones which steadily increased and reached to 509 lakh tones in 2003-04. On

the contrary, cow milk was 77.43 lakh tones in 1951 which was gone up to

396 lakh tones in 2003-04.The proportion of cow and buffalo milk in total milk

production in India was 45.42% and 53.87% respectively in 1951.It was

42.19% and 54.23% respectively in 2003-04. It means that the importance of

buffalo has increased with respect to milk production in India over the period

under consideration. Goat milk has been minor source of milk production. The

share of goat milk in total milk production in 1951 was 2.81% (4.79 lakh

tonnes) which was increased up to 4.95% (46.49 lakh tonnes) in 2003-04.

112

Table No.3.19

Species wise milk production in India (in lakh tonnes)

Year Cow Milk Buffalo Milk Goat Milk Total Milk

1950-51 77.43 91.84 4.79 170.46

1960-61 87.53 110.87 5.35 203.75

1973-74 70.85 134.98 5.88 211.71

1989-90 148.95 223.25 14.88 514.08

1990-91 222.40 286.75 23.81 539.38

1991-92 230.38 296.00 23.48 556.86

1992-93 242.91 308.46 25.15 579.62

1993-94 253.51 325.27 26.63 606.07

1994-95 263.30 344.38 27.42 638.05

1995-96 277.30 370.00 28.45 675.75

1996-97 288.00 384.00 29.33 701.33

1997-98 301.00 401.00 30.37 732.37

1998-99 315.00 419.00 31.29 765.29

1999-00 329.00 436.00 32.48 797.48

2000-01 344.00 453.00 33.90 830.90

2001-02 360.00 464.00 44.00 868.00

2002-03 377.00 480.00 45.14 902.14

2003-04 396.00 509.00 46.49 938.49

Source: Department of Animal Husbandry and Dairying, Ministry of Agriculture, GOI

The table No.3.20 shows that the total milk production of the India

during 1997-98 was 72128 thousand tones which was increased up to 80607

thousand tones during 2000-01, again it was gone up to the level of 97066

thousand tones during 2005-06 and at end of 2007-08 it was reached up to

104840 thousand tones. It means that there is steady growth in the milk

production during last decade. The table also shows that the major milk

producing states in the country are Uttar Pradesh, Punjab, Rajasthan,

Madhya Pradesh, Maharashtra, Gujarat and Andhra Pradesh which

accounting for about 70% of milk produced in the country. In respect of milk

production the Maharashtra having sixth largest state in the country producing

7210 thousand tones milk during 2007-08. Uttar Pradesh ranks first

producing 18861 thousand tones milk followed by Rajasthan, Punjab, Andhra

Pradesh and Gujrat producing 9536 thousand tones, 9282 thousand tones,

8925 thousand tones and 7911 thousand tones respectively

11

3

Table No. 3. 2 0

114

3.9 Institutional Support for Dairy Co-operatives:

A brief review of institutions engaged in co-operative dairy

development in India can help to understand the efforts so far made by them

and the future of the milk co-operatives in India. Following are some

institutions engaged in dairy development activities.

3.9.1 National Dairy Development Board (NDDB) :

National Dairy Development Board (NDDB) was established by the

Ministry of Food and Agriculture, Government of India in September 1965 to

replicate the Anand Pattern Dairy Co-operatives in India. Today NDDB has 6

divisional offices at Delhi, Kolkata, Chennai, Mumbai, Bangalore and Bhopal

working in 170 milk shed districts in 21 states and 3 Union Territories in India.

The major activities carried out by NDDB are as follows.71

1. Promotion of dairy science and practice and diffusion of technical

know-how.

2. Research in the field of dairying and animal husbandry.

3. To provide consultancy services to dairy.

4. To advice Central and State Govternment in all matters concerning

dairy development.

5. Promotion of quality control of milk and milk product.

6. To advice on price fixation, price policy, public relations and allied

subjects relating to daries.

NDDB was worked as technical and financial leader in implementation

of operation flood. The board strengthened the dairy co-operatives. With the

objective to raise milk procurement and increase co-operative share in

marketing of milk and milk products, the NDDB has drawn a perspective plan

2010 for co-operative milk unions.

3.9.2 National Dairy Research Institute ( NDRI) :

National Dairy Research Institute, NDRI, (Karnal) was established at

Bangalore in 1923. In 1936, it was expanded and renamed as Imperial Dairy

Institute. It was in 1955 that its Headquarters were shifted to Karnal in

Haryana, at the location formerly called Central Cattle Breeding Farm. It is the

115

premier organization that provides R&D support for dairy development

programs of the Nation. The Institute works in close liaison with various

national and international developmental agencies to assist the country in its

dairy development plans.

In 1962 and 1964, two regional stations were established in Kalyan and

Bombay to serve as the Eastern and Western regional stations of the Institute.

The Western Regional Station (WRS) at Bombay was closed down in 1984.

The Southern and the Eastern Regional Stations continue to provide region

specific R&D support for dairy development in relation to the agro-climatic

conditions that exist in those areas.

In 1970, the Institute's management was weaned away from the

Ministry of Agriculture and brought under the wings of the Indian Council of

Agricultural Research with a view to provide greater operational autonomy in

research management functions. In 1989, status of Deemed University was

conferred to the Institute for further strengthening the academic programs for

human resource development. The Institute provides high quality education in

the field of dairying which has no parallel in Asia. During the IX Plan period, a

National Research Center on Biotechnology is being commissioned at this

Institute. 72

3.9.3 National Co-operative Development Corporation (NCDC) :

The NCDC set up in March 1963 under the NCDC Act 1962. The main

object of NCDC is to promote, strengthen and develop co-operatives. NCDC

provides financial assistance to dairy co-operatives for establishing medium

and small sized milk chilling centers, processing plants and milk product

factories. It provides financial assistance to SC/ST co-operatives with priority.

NCDC worked with co-ordination of NDDB and Ministry of Agriculture in

planning and promoting co-operative dairy development. It also assists to

develop infrastructure facilities relating to district animal husbandry activities.

3.9.4 Indian Dairy Corporation (IDC):

Indian Dairy Corporation (IDC) was set up in 13th Feb. 1970 as a

Government undertaking. To co-ordinate operation flood project with NDDB is

the main responsibility of the IDC. The corporation receives milk commodities

116

such as skimmed milk powder (SMP) and butter oil (BO) from EEC and WEP

as a gift and distribute among various dairies. The IDC played vital role in

export the cattle, activities relating to operation flood programme and

establishing National Milk Grid. The main functions carried out by corporation

are as follows.

1. To promote dairy development in India.

2. To provide technical inputs to co-operative dairies and state Govt.

3. To increase the capacity of dairies in metropolitan cities.

3.9.5 National Co-operative Dairy Federation of India (NCDFI) :

The National Co-operative Dairy Federation of India (NCDFI) was set in

November 1969 in New Delhi. It is a National Apex Body of Dairy Co-

operatives. NCDFI has 27 members of state level apex institutions of co-

operative dairy federation and 22 co-operative dairy organizations. The main

objective of the NCDFI is as follows.73

1. To promote dairy industry on co-operative lines.

2. To promote activities of milk production, procurement and marketing.

3. To collect statistical data information.

4. To organize seminars, conferences and exhibitions relating to dairy co-

operatives.

5. To provide consultancy services for planning, implementation and

monitor project undertaken by members of IDC.

6. To publish newsletters, journals, bulletins etc. for dairy co-operatives.

7. To provide technical assistance to its members.

3.10 History and Development of Dairy Co-operative in Maharashtra:

3.10.1 Geographical background of Maharashtra:

The state of Maharashtra occupies a prominent place in the Indian

Union and is the third largest state of the country which is 10% of the natural

land mass. It lies between the North latitudes 15 and 22 and East latitudes 72

and 81. The state consists of 35 districts with 353 tahsils and 41095

inhabitated villages, 378 cities and town unit’s .The state has a total

geographical area of about 30.77 million hectares. Of this 16.94% area is

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under forest cover and 10.02% area is considered barren and unfit for

cultivation. The gross sown area during the year 2007-08 was 77.47 % and

average size of holding per holder in the state is 1.66 hectares. Krishna,

koyana, Godavari, Bhima , Wainganga and Wardha are the main rivers of the

state. As per 2001 census population of the state is 968.79 lakh, out of which

57.6% (558 lakh) is rural population.74

The Gross State Domestic Product (GSDP) at current prices for 2007-

08 is estimated at Rs. 5,90,995 crore and contributes about 13 per cent of the

National Income. The State has 35 districts which are divided into six revenue

division’s viz. Konkan, Pune, Nashik, Aurangabad, Amravati and Nagpur for

administrative purposes.75

Maharashtra is recognized as a land of co-operation as there are

various types of co-operative societies in the state. The great efforts were

taken by late Yashwantrao Chavan, Rajarambapu Patil, Vasantdada Patil,

Vasantrao Naik and Vitthalrao Vikhe –Patil for the development of co-

operative movement in Maharashtra. Late Vaikunthbhai Mehta and

Dhananjayrao Gadgil also made their contribution to strengthen this

movement.

3.10.2 Development of Dairy Co-operatives in Maharashtra State:

The co-operative movement in Maharashtra has played a significant

role in the social and economic development of the state, particularly in the

rural areas; initially the movement was confined to the field of agriculture

credit. Later it rapidly spread to other field’s likes agro-processing, agro-

marketing, rural industries, consumer stores etc. Dairy related co-operative

movement started in real sense taking roots in Maharashtra as early as the

late 1950s.

In 1947 the state Govt. for its urban consumers of Mumbai started a

milk scheme to supply them with at a reasonable rate. Subsequently demand

for such organized supply of milk grew in other urban centres too. To meet

this ever growing demand for milk and milk products, various policies and

programmes were launched in the state to further accelerate milk production.

The Govt. established Dairy Development department in 1958 to promote

118

dairying as a supplementary occupation and to bring incremental income to

the farmers, particularly in backward areas.

A three tier structure of dairy development based on Anand pattern of

dairy co-operative structure was adopted in the state. It includes the village

societies, the union of village societies and the state milk federation. At village

level milk producers are the members of primary dairy co-operative societies

which are federated to taluka or district level milk union. The district level

unions were federated to MRSDM Mumbai, which was established in 1967.

Operation Flood Programme was launched in the state in 1970-71. In

the beginning Operation Flood II was launched in Jalgaon and Kolhapur

district only. However under OF II 19 more districts were selected for

assistance. In August 1983 the NDDB prepared a perspective plan for Dairy

Development in the state and could workout sub project details for 10

unions.76

Animal husbandry is one of the important allied activities and has 24

per cent share in agriculture sector. The State’s share of milk, livestock and

poultry population in India is 7.7, 7.6 and 7.0 per cent respectively. During

2008-09, there were 76 milk processing plants and 114 government co-

operative milk chilling centres with per day capacity of 77.22 lakh litres and

21.41 lakh litres respectively. The average daily collection of milk by the

Government and co-operative dairies taken together (excluding Greater

Mumbai) was 38.61 lakh litres during 2007-08 and 41.30 lakh litres during

2008-09 (up to December, 2008).

3.10.2.1 Livestock Infrastructure

In order to improve the health condition of livestock, a network of 32

veterinary polyclinics, 1,517 veterinary dispensaries, 2,928 primary veterinary

aid centres, 65 mobile veterinary clinics, 27 district Artificial Insemination (AI)

centres and 172 taluka veterinary mini polyclinics have been created in the

State by the end of March, 2008. In all these 4,741 Centres, the AI facility has

been provided. Three laboratories of frozen sperms are located at Pune,

Nagpur and Aurangabad.

119

3.10.2.2 National Project for Cattle and Buffalo Breeding

The National Project for cattle and buffalo breeding is a 100 per cent

centrally sponsored programme and is implemented through Maharashtra

Livestock Development Board for strengthening of animal breeding services,

expansion and indigenous breed preservation. Under this programme,

modernization of three laboratories for Frozen Sperms, Liquefied Nitrogen

(LN2) containers at 4,741 veterinary institutes, mobile AI facility at 1,050

veterinary institutes etc. are carried out. The expenditure under this scheme

during 2008-09 (upto December, 2008), was Rs.2.72 crore.

3.10.2.3 Livestock Insurance Scheme

The scheme is centrally sponsored and implemented since 2006-07 on

pilot basis for two years in six districts viz. Ahmednagar, Pune, Kolhapur,

Satara, Sangli and Solapur through Maharashtra Livestock Development

Board. Under this scheme, central assistance for payment of 50 per cent of

premium is provided and remaining 50 per cent premium is born by cattle

owners. The Oriental Insurance Company, Nagpur was allotted the work and

during the year 2008-09 (upto December, 2008) which insured 27,939

animals and 389 claims were settled out of 2,071 claims submitted by

farmers. During November, 2008 after the approval of Government of India,

six new districts viz Nagpur, Bhandara, Gondiya, Yavatmal, Wardha & Jalana

are included in the scheme. The expenditure incurred under this scheme was

Rs.2.25 crore and Rs.0.14 crore for 2007-08 and 2008-09 (up to December,

2008) respectively. 77

3.10.3 Profile of Dairy Co-operatives in Maharashtra

Government of Maharashtra has accepted three tier structures for dairy

co-operatives. In the state Maharashtra Rajya Sahakari Dudh Mahasangh

(MRSDMM) head quartered at Mumbai is an apex body of co-operative dairy

industry. The district and taluka level milk unions are affiliated to Mahasangh

where as primary dairy co-operative societies working at village level are

affiliated to respective taluka or district milk union. During the year 2007 there

were 95 district and taluka milk unions and 30913 primary dairy co-operative

societies are working in the state.

120

The working of the Mahasangh and progress of the dairy co-operatives

in Maharashtra state is discussed as follows.

MRSDMM (Milkfed):

Maharashtra Rajya Sahakari Dudh 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 state of

Maharashtra. MRSDMM is also known as Maharashtra State Co-operative

Milk Federation i.e. Milkfed which was established on 9th June 1967 wide

registration No. Mumbai /PRD (A)1. During the year 2003-04 MRSDMM have

88 member unions comprising 25 District , 50 Taluka and 13 Multi-state

unions with more than 26375 primary milk societies and 23 lack milk producer

members which includes 25000 women members. At present there are 95

unions with 30,913 Primary Dairy Co-operative Societies and 21,18,343 milk

producer members which includes 530 women dairy co-operative societies

with more than 40,000 women members.

The authorized capital of the MRSDMM is Rs. 50 Crore and paid up

capital was Rs. 17.78 Crore on 31st march 2010. In the year 2009-10 the

turnover of the MRSDMM was Rs. 438.03 Crore.

Chart 3.1

Three tier structures for Dairy Co-operatives

I

Maharashtra Rajya Sahakari Dudh Mahasangh Maryadit

(MRSDMM) MAHANAND

I

District and Taluka Level Milk Unions

I

Primary Dairy Co-operative Societies

121

The main objectives of MRSDMM are to procure milk from the member

milk unions at remunerative price and distribute the same to the consumers at

reasonable price. MRSDMM is thus working as the vital link between the milk

producers and consumers and working for the economic development and

upliftment of the farmers in the rural areas. The main functions of the milkfed

are as follows –

Functions:

• To implement the OF Programme through its member unions in the

state.

• To provide the guidance and consultancy services to member unions in

their processing and marketing activities.

• To arrange marketing facilities for milk and milk products of its

members and for its own products.

• To bring about co-ordination between the functions of various unions

with view to avoid the duplication in the functions.

• To provide improved fodder, seeds and to run the breeding farm.

MAHANAND:

Mahanand dairy is the unit run by the MRSDMM which was established

on 18th August 1983 with a milk handling capacity of 4 LLPD. This capacity

was expanded up to 6 LLPD during the year 1997-98. The mahanand unit is

receiving milk from its 95 member unions. At present, Mahanand Dairy is

distributing 8 lack litres milk per day in Mumbai. For this purpose Mahanand

has established two packing depot located at Navi Mumbai and Byculla

having capacity of 3 LLPD and 1 LLPD respectively. Now the MRSDMM is

known as MAHANAND.

Mahanand Milk and Milk Products:

• Milk – Taking into account the requirement and choice of customers,

Mahanand has introduced various varieties of milk and milk products.

These are as follows –

122

• Mahnand Supreme – It is prepared from buffalo milk having 6.0% fat

and 9.0% SNF.

• Mahanand Annapurna – It is prepared from cow milk having 3.5 % fat

and 8.5% SNF.

• Mahanand Tej (Toned Milk) – It is prepared from cow milk having 3.0

% fat an 8.5% SNF.

• Mahanand Arogya (Double Toned Milk) –It is prepared from cow milk

having 1.5% fat and 9.0% SNF.

Milk Products:

• Shrikhand- it is available in 100,250,500 gram and 1 kg. Pack in

various varieties like Badam , Pista, Plain Elaichi, Amrakhand etc.

• Paneer – It is available in 200 gram pack size.

• Josh – Flavored milk with various tastes and flavors like Strawberry,

Pineapple, Litchi and cold coffee in 200 ml handy pouches.

• Bahaar lassi and Curd – 200 gram pouches.

• Butter – 100 and 500 gram pack size.

• Ghee – Available in half litre and 1 litre pouches and tins.

• Cheese - It is highly nutritious milk product having balance promotion

of fat, proteins and carbohydrates , available in 200 ,500 grams and 1

kg pack.

• Masala Chaas – 200 ml pack

Milk is processed, packed and stored under hygienic conditions

thereby avoiding bacterial contamination and multiplication. Milk products are

manufactured under hygienic conditions with strict quality control in the dairy

plants having ISO 9002 and HACCP certification.

Distribution Network:

For supplying fresh and quality milk to customers in time, Mahanand

has adopted systematic distribution network in Mumbai city. The distribution

network is as follows –

Ex-dairy Distributors – Mahanand have signed an agreement with 174 Ex-

dairy Distributors, which is to be renewed annually. They distribute milk in

their own vehicles to the customers in the specific area allotted to them. They

123

operate on commission basis. This is major distribution system and over 75%

of the milk is distributed through this system.

Shop Distribution – (61 Nos.) This system has been designed to ensure in

built price control and as a counter check to the Ex-dairy Distribution system.

In this case, the shop identified is owned by the party and delivery of packed

milk is undertaken by the Mahanand. The party has to sell at the prescribed

price only.

Supply to Bulk Customer – (7 Nos.) In this case Mahanand has supplied

loose milk to institutional buyers like hotel, canteen, hospitals etc. The

institutions have to pay deposit equivalent to the price of milk for one and half

months as advance and pay the bills on monthly basis.

Commission Agents – In order to increase the sale of milk Mahanand has

appointed 425 Commission Agents .In this system the agents have to operate

purely on contract basis for a specific period and specific quantity.

Cattle Feed Plants:

In order to maintain the profitability in dairying, it is necessary to control

the cost of milk production at the grass route level .Feeding of the animal

constitutes nearly 70% of the cost of milk production. Balance cattle feed is

the major component of feeding. To maintain proper proportion of nutrition

and to control cost of production, mahanand has decided to manufacture

balance cattle feed under Mahanand Brand name. For this purpose

Mahanand has started cattle feed plants at various regions such as Konkan

(Kudal), Marathawada (Latur), Ahmednagar, Solapur. At present Mahanand

has manufactured approximately 55000 MT of cattle feed.

Energy Conservation:

Mahanand have been achieved significant result in the field of

ENERGY CONSERVATION .The electricity consumption has reduced from

0.036 KWH in 1984-85 to 0.024 KWH in 2002-03 per liter of milk processed. It

is resulting into improvement of milk handling from 27 liters to 42 liters per

KWH.

In the same manner furnace oil consumption has reduced from 8.9 ml

in 1984-85 to 3.8 ml in 2009-10 per liter of milk. It is resulting into milk

processed 263 litres per litre of furnace oil which is above national norm i.e.

200 litres.

124

Non Conventional Energy:

Solar Water Heating System :

They also started to using non conventional energy like Solar Water

Heating System (25000 litre capacity) resulting into monetary saving

approximately Rs. 8 lacks per annum.

Electricity Generation From Bio Gas :

From 1-6-1999 Mahanand Dairy generated Bio Gas from the effluent

treatment plant is being used to generate electricity by using Bio Gas

generator. It generated electricity approximately 500 units per day, resulting

monetary saving approx. Rs.5 lack per annum and also helps in maintaining

healthy environment by reducing pollution. Mahanand Dairy is first dairy in the

country to use Bio Gas generator to generate the electricity.

Water Consumption:

The water consumption has been reduced from 4.44 liters In 1984-85

to 0.97 liters in 2002-03 and again reduced up to 0.45 liters in 2009-10 per

liter of milk produced, which is below national norms. The national norm for

water consumption is 0.5 liter water for one liter of milk produced. It is helped

in reducing the cost of milk handling and reducing hydrological load of Effluent

Treatment Plant thereby reducing the waste water treatment cost.

Profitability, Incentives and Turnover:

As a result of productivity improvement, optimum use of available

capacity, planned energy conservation and cost control measures the

profitability level of Mahanand Dairy has increased significantly.

Financial assistance is given to member unions for establishment of

chilling centres. Up to the year 2002-03 financial assistance of Rs .6 crore is

granted to 19 milk unions.

Mahanand also undertakes and implement promotional / subsidy

schemes such as Artificial Insemination, Electronic Milko Tester , Computer

based Electronics Testing, Weighing system, Liquid Nitrogen and Container ,

Semen Doses , Fodder seeds Supply , Chaff-Cutter ,Vaccination etc. These

are provided to milk producers, members and milk unions. These promotional

activities have encouraged milk producers / members and milk unions to

supply more milk to Mahanand Dairy .

125

The profitability, incentives and turnover of Mahanand dairy is shown

in the table 3.21

Table No. 3.21

Profitability, Incentives and Turnover of MAHANAND

(Rs. In lakhs)

Year Gross Profit Dividend

(Incentives) Turnover

2000-01 1023.50 102.12 34819.27

2001-02 820.55 108.73 37697.65

2002-03 1286.70 121.93 38486.93

2003-04 NA NA NA

2004-05 1221.21 112.73 39000

2005-06 1600.41 121.06 38400

2006-07 1650.08 162.30 40600

2007-08 1898.82 168.83 44500.21

2008-09 2434.42 170.68 43900.43

2009-10 3062.72 173.80 43800.03

Source: Annual Reports and office records of the Mahanand NA indicates Not Available

The table 3.21 Shows that the turnover of the federation was about

Rs.34819 lakh during 2000-01which was increased up to the level of

Rs.43800 lakh (125.79%) during 2009-10, Gross profit was gone up from

Rs.1023.5 lakh to Rs.3062.72 lakh (299.24%) during the period 2000-01 to

2009-10. During the same period incentives in the form of dividend allotted by

federation to share holders was increased from 102.12 lakh to 173.80 lakh

(170.19%).The Net Profit of the federation is Rs.595.65 lakh during the year

2009-10 which was increased by 16.71% of last corresponding year.

Achievement:

Mahanand has shown almost continuous and progressive record of

achievement. As a result of significant improvement in productivity, cost

control, energy conservation etc. Mahanand Dairy has secured National level

Awards (6 times) as instituted by National Productivity Council, New Delhi.

126

Special Programme for Women Development:

Mahanand is implementing special programme for predominantly,

economically and socially backward rural women. Under special programme

of Govt. of India in dairy sector Primary Dairy Co-operative Societies

exclusively owned and managed by rural women are being established in

selected villages of 19 Districts of Maharashtra. The development of the

women societies are showed in the following table.

Table No.3.22

Women Development Project:

Stage Dist. Covered No. of Societies Beneficiaries

I 8 131 9875

II 4 133 9975

III 4 133 9975

IV 3 133 9975

Total 19 530 39800

Source: Annual Reports and office records of the Mahanand

For ensuring timely payment to the milk producers, working capital is

provided in cash. Similarly, for facilitating purchase of milch animals, seed

money is provided to all societies in cash. Under this programme Milk testing

equipments, milk cans, Travis, LN2 containers, First Aid Box etc. are provided

to them. Mahanand has also organized health and nutritional diet camp,

educational tours and secretary training camps .Under this programme

training is given to 254 women secretary. At present around 530 Women

Dairy Co-operative Societies have been registered in these district covering

39800 beneficiaries procuring more than 53000 litres milk per day fetching Rs.

18 Crores per annum.

127

3.11 Progress of District / Taluka level Dairy Co-operative Unions and

PDCSs in Maharashtra:

The progress of the District and Taluka level dairy co-operative unions

during the year 1961 to 2007 is showed in the table no.3.23

Table No.3.23

District and Taluka Dairy Co-operative Unions

(Rs. In Lakhs)

Particular 1961 1971 1981 1991 2001 2005 2006 2007

No. of Unions 19 46 90 71 65 85 87 95

Membership (00) 20 96 161 243 46835 48197 47195 51917

Share Capital 1 55 391 1166 4725 8820 9028 9931

Of which Govt. N.A. 8 42 159 59 32 37 41

Owned funds 1 123 1150 4272 129980 9833 10065 11072

Outstanding Borrowings

7 121 1007 3868 22709 10018 10254 10254

Working Capital 10 345 2103 22663 1028514 68808 70427 77471

Milk procured (Value)

7 784 8541 20175 128578 138020 141268 153395

Milk & Milk Products sold (Value)

8 904 8831 35143 131110 59687 65397 71937

Union/Society in Profit

6 23 51 36 42 45 47 51

Amount of Profit 0.09 12 29 148 13019 1266 1152 1270

Union/Society in Loss

9 20 30 22 22 41 33 45

Amount of Loss 0.25 8 52 258 7642 872 1174 1292

Source: Co-operative Movement at a Glance 2007 N.A.: Not Available

The table 3.23 shows that the number of district unions is increased

fivefold during the last five decades. During the year 1961 there are 19 district

unions in the state which is gone up to 95 in the year 2007. In the year 1961

number of members was 2000 which was gone up to 46,83,500 in 2001 and

during the year 2007 it stands at 51,91,700. The share capital, number of

unions in profit and all other aspects are increased. Amount of profit declined

during 2005 and 2006 but from the year 2007 it is increasing trend due to

attention given by Mahanand. However, the number of unions in loss and

amount of loss is also increased year after year.

128

Primary Dairy Co-operative Societies in Maharashtra

The primary dairy co-operative societies are those, which are formed

by the milk producing members by collecting capital on the basis of co-

operation principles in a specific area of operation (Village) for the economic

upliftment of members. The primary dairy co-operative societies are the grass

root level organization and form the foundation of the whole superstructure of

co-operative dairying. Milk collection, testing of milk, payment to milk

producers, supply of cattle feed and veterinary services etc. are the basic

functions of the PDCS.

Table No.3.24

Primary Dairy Co-operative Societies in Maharashtra

(Rs. In Lakhs)

Particular 1961 1971 1981 1991 2001 2005 2006 2007

No. of Societies 431 2021 7819 14284 22466 26499 26881 30913

Membership (00) 155 1263 7030 13101 15182 1815861 1842038 2118343

Share Capital 9 62 288 3131 6594 2416 2451 2820

Of which Govt. N.A. 2 2 8 7 N.A. 0.93 1

Own funds 12 76 598 6614 116119 2585 2623 2885

Outstanding Borrowings

7 1 289 1827 13426 3888 3944 3944

Working Capital 26 314 1992 12950 1241321 24897 25256 27782

Milk procured (Value)

67 810 8531 35052 3234941 109946 111531 128260

Milk & Milk Products sold (Value)

69 841 9132 29914 3403403 64954 67081 77143

Societies in Profit 156 833 4091 6762 12267 12617 14432 13710

Amount of Profit 2 13 197 895 10758 1231 1702 1616

Societies in Loss 133 691 2023 3114 9634 12472 11941 13135

Amount of Loss 0.33 5 26 250 6542 473 1017 1119

Source: Co-operative Movement at a Glance 2007 N.A.: Not Available

Table no.3.24 shows the progress of the Primary Dairy Co-operative

Societies in the state. From 1971 i.e. after implementation of Operation Flood

Programme the number of PDCS’s is increased tremendously. The number of

PDCS in 1961 was 432 which were gone up to 2021 in 1971, at the end of

Operation Flood Phase I i.e. in 1981 it reaches up to 7819. During the year

129

1981-91 the number of societies gone up by 182.68 % (14284), where as it

was gone up by 157.28 % during 1991-01(22466), again it was increased by

117.95 % during 2001-05 and at present there are 30913 societies in the state

which is highly notable feature of dairy industry in Maharashtra.

Value of milk procurement was increase from Rs.67 lakh to Rs.128260

lakh during 1961 to 2007. All other aspects of the PDCS’s such as

membership, working capital ,sale of milk and milk products, number of

PDCS’s in profit and amount of profit is increased. However, profit is declined

during 2007 as well as number of societies in loss and amount of loss is also

increased. There is an urgent need of taking due care by state and central

Government.

3.12 Livestock Population in Maharashtra :

In terms of livestock population Maharashtra ranks fourth in India.

However, over last three census livestock is decreasing and the total livestock

in the state was about 3.69 crore in 2007. The density of the livestock per

sq.km was 120. The state’s share in livestock population of India was 7.6 per

cent. The information of livestock statistics is shown in Table 3.25

Table 3.25

Livestock Population in Maharashtra State During the year 1961 to 2007

(Figures in ‘000’)

Parti-cular

1961 1966 1972 1978 1982 1987 1992 1997 2003 2007

% change #

Cattle 15328 14729 14705

15218 16162 16983 17441 18071 16738 15941 -5.4

Buffalo 3087 3042 3301

3899 3972 4755 5447 6073 6084 6295 3.3

Sheep & Goat

7273 7326 8038 10199 10376 12068 13015 14802 13624 14262 5.2

Other Live- stock

360 352 317 326 410 448 489 692 612 417 -33.3

Total 26048 25449 26361

29642 30919 34255 36393 39638 37058 36915 -0.5

LS per lack of popu-lation

66 57 52 51 48 48 45 50 39 38 -2.56

Source: Livestock Census, Economic Survey of Maharashtra 2008-09 # Percent change in 2007 over 2003

130

The table No.3.25 shows that during 2007 the population of buffalo,

sheep and goat was increased by 3.3% and 5.2% respectively over 2003

while number of cattle and other livestock was decreased by 5.4% and 33.3%

respectively. The overall population of livestock was decreased by 0.5% in

2007 over 2003. It is also cleared from the above table that during the year

2007 the population of sheep and goat is highest i.e.14262 thousand

(38.63%) followed by cattle and buffaloes i.e.15941 thousand (43.18%) and

6295 (17.05%) thousand respectively.

It is observed from the above table that the livestock population during

the period 1972 to 1997 was shows increasing trend when Operation Flood

Programme was in progress i.e. from 1970 to 1996 which was decreased

latter on. It means that Operation Flood Programme was successful and there

is necessity of another white revolution.

3.13 Milk Production in Maharashtra:

Maharashtra stands sixth in India in milk production by producing 7210

thousand MT milk in the year 2007-08, as against the production of milk at the

All India level was 104.8 million MT. Per capita daily availability of milk in India

was 252 gms, while it was 186 gms. in the State. The data of milk production

during the year 1970-71 to 2007-08 of Maharashtra State is shown in Table

No.3.26

The table no. 3.26 shows that the trend of milk production during 1970-

71 to 2007-08 is increasing steadily. During Operation Flood Programme

Maharashtra State’s annual milk production has near about fivefold; rising

1062 thousand Tonnes in 1970-71 to 4991 thousand Tonnes in 1995-96.

During the last decade milk production is raising from 4991 thousand Tonnes

in 1995-96 to 7210 thousand Tonnes in 2007-08.

Per capita availability of milk in the year 2007-08 is 186 gms which was

increased steadily from 1991, but it is to low as compared to national per

capita availability of milk which is 252 gms. In terms of per capita availability

of milk Maharashtra ranks 14th in the country though he ranks at 6th in milk

production.

131

Table 3.26

Milk Production During the year 1970-71 to 2007-08

Sr. No. Year Milk (000 Tonnes)

Per Capita availability(gms/day)

1 1970-71 1062 N.A.

2 1980-81 1756 N.A.

3 1990-91 3735 N.A.

4 1991-92 3955 136

5 1992-93 4102 138

6 1993-94 4250 140

7 1994-95 4811 156

8 1995-96 4991 163

9 1996-97 5127 161

10 1997-98 5193 161

11 1998-99 5609 168

12 1999-00 5706 168

13 2000-01 5850 162

14 2001-02 6093 172

15 2002-03 6251 172

16 2003-04 6377 172

17 2004-05 6567 176

18 2005-06 6769 178

19 2006-07 6978 182

20 2007-08 7210 186

Source: Department of Animal Husbandry, Govt. of Maharashtra

The milk procurement of the country is 20,070 thousand Kg. per day in

which Maharashtra contributes 1854 thousand Kgs per day. The Maharashtra

state plays vital role in milk procurement of the country.

132

Districtwise and species wise milk production in Maharashtra:

The State has 35 districts which are divided into six revenue division’s

viz. Konkan (Mumbai), Pune, Nashik, Aurangabad, Amravati and Nagpur for

administrative purposes. The Department of Animal Husbandry, Government

of Maharashtra shows separate Latur region covering Latur, Omarabad,

Nanded and Hingoli districts.

The District wise and species wise milk production in Maharashtra

State during the year 2007-08 is shown in the table no.3.27

Table No.3.27

District wise and species wise milk production in Maharashtra State

during the year 2007-08

(In Lakh Kg.)

Sr. no.

District Ind. Cow C.B. Cow Buffaloes Goats Total Milk

Production 1 Mumbai 22.00 47.30 1743.98 1.15 1814.43

2 Thane 288.06 94.50 1633.98 49.49 2066.03

3 Raigad 312.48 70.90 571.52 27.81 982.71

4 Ratnagiri 188.61 165.50 184.70 11.51 550.32

5 Sindhudurg 79.80 70.90 227.89 8.63 387.22

Mumbai Region Total

890.95 449.10 4362.07 98.59 5800.71 (8.05)

6 Nashik 897.85 1229.10 1365.69 170.17 3662.81

7 Dhule 313.01 330.90 645.39 84.72 1374.02

8 Nandurbar 420.10 141.80 592.72 74.93 1229.55

9 Jalgaon 543.65 661.80 2186.27 125.19 3516.91

10 Ahmednagar 690.72 7232.70 1056.73 282.10 9262.25

Nashik Region Total

2865.33 9596.30 5846.80 737.11 19045.54 (26.42)

11 Pune 400.86 4681.70 2043.33 164.45 7290.34

12 Satara 270.25 1938.20 2057.32 153.79 4419.56

13 Sangli 270.25 614.50 2176.86 120.13 3181.74

14 Kolhapur 175.67 1607.30 4304.60 68.91 6156.48

15 Solapur 483.60 2410.90 1576.56 278.45 4749.51

Pune Region Total 1600.63

11252.60

12158.67

785.73 25797.63 (35.78)

16 Aurangabad 352.36 921.80 362.25 102.14 1738.55

133

17 Jalana 302.61 212.70 305.65 64.93 885.89

18 Parbhani 317.01 94.50 677.30 47.13 1135.94

19 Beed 351.19 1134.50 916.87 128.24 2530.80

Aurangabad Region Total

1323.17 2363.50 2262.07 342.44 6291.18 (8.73)

20 Latur 293.62 283.60 950.41 53.58 1581.21

21 Osmanabad 259.07 1063.60 693.24 73.78 2089.69

22 Nanded 692.54 212.70 1185.28 82.86 2173.38

23 Hingoli 264.17 118.20 285.74 36.49 704.60

Latur Region Total 1509.40 1678.10 3114.67 246.71 6548.88 (9.08)

24 Buldhana 407.99 330.90 588.66 83.93 1411.48

25 Akola 149.57 118.20 264.18 35.97 567.92

26 Washim 153.12 47.30 319.22 28.65 548.29

27 Amravati 241.67 212.70 451.31 56.32 962.00

28 Yavatmal 309.75 141.80 466.04 62.73 980.32

Amravati Region Total

1262.10 850.90 2089.41 267.60 4470.01 (6.20)

29 Nagpur 205.82 567.30 347.01 38.52 1158.65

30 Wardha 136.10 330.90 229.32 23.37 719.69

31 Bhandara 82.99 307.30 335.30 23.77 749.36

32 Gondia 159.34 94.50 293.37 22.98 570.19

33 Chandrapur 137.69 118.20 275.47 37.14 568.50

34 Gadchiroli 164.20 23.60 259.84 29.50 377.14

Nagpur Region Total

886.14 1441.80 1640.30 175.28 4143.53 (5.75)

Maharashtra State Total

10337.72 (14.34)

27632.30 (38.33)

31474.00 (43.65)

2653.46 (3.68)

72097.48 (100)

Note: 1. Mumbai includes Mumbai City and Mumbai Suburb 2. Figures in the parenthesis indicates percentage to total Source: Department of Animal Husbandry, Govt. of Maharashtra

During the year 2007-08 milk production of Maharashtra is 72097 lakh

kg. According to species wise milk production Indigenous cow accounts for

10338 lakh kg milk (14.34 %), Crossbred cow accounts for 27632 lakh kg milk

(38.33%)where as buffalo and goat contributes 31474 (43.65%) and 2653

(3.68%) lakh kg milk respectively. From the above table it is clear that in total

milk production there is a domination of buffalo milk (43.65%), however

indigenous and crossbred cow in aggregate produces highest (52.67%) milk

than buffalo and goat milk.

134

It also shows that Pune region (i.e.western Maharashtra) played a

vital role by producing 25797.63 lakh kg milk and stands first in the state. It is

35.78% of total milk production i.e. 72097.48 lakh kg of state. Nashik ,Latur

and Aurangabad region’s ranks second, third and fourth by producing

26.42%, 9.08% and 8.73% respectively. Mumbai region (Konkan) contributes

8.05% of the total milk production in the state where as Nagpur region

produces lowest in the state i.e. 5.75%.

If anyone observes the species wise milk production in western

Maharashtra it shows that cow (including indigenous) and buffalo milk

contributes near about equally. Pune region (i.e. western Maharashtra) played

a vital role in milk production and stands first in the state by producing

25797.63 lakh kg milk ( i.e.35.78% ) . The Pune District produces highest milk

whereas Sangli district produces lowest milk in the Pune Region .The share of

milk production of Sangli district in the State is 4.41% (i.e.3181.74 lakh Kg.)

135

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