In Madhya Pradesh, the major activities undertaken in package are Organization/ revival of 500 Dairy Cooperative Societies, establishment of09 Bulk Milk Coolers, strengthening of
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milk processing plant at Sagar, procurement of milk and marketing. In Uttar Pradesh, the activities under taken were organization/ revival of 560 Dairy Cooperative Societies and their registration, technical investments in improved husbandry practices which include distribution of de-wormers, mineral mixture, and fodder seed distribution, feed and fodder distribution, working capital for supporting the milk procurement through DCSs, meeting transportation cost towards marketing of milk and training. Additionally, one milk processing plant as Jhansi, strengthening and up-gradation of infrastructure at Chitrakoot and Jalaun district was also undertaken in the package.
Overall Physical Progress
The status of progress of the dairy projects in the Bundelkhand region is presented as under in Table 66:
Table 66 Physical progress under Dairy Sector in UP & MP
State Activities Unit Targets Achievement %
Achievement
Madhya Pradesh
Organization of DCS No. 500 561 112%
Bulk Milk Coolers No. 9 14 156%
Milk Processing Units (Renovation &
Upgradation)
No. 1 1 100%
Average Daily Milk Collection
K.G/ day 25000 36418 145%
Milk Tanker No. 3 3
Uttar Pradesh
Organize DCS No. 560 560 100%
Technical Investment
De-wormer No. of Ben 65198 65198 100%
Mineral Mixture No. of Ben 18480 18480 100%
Berseem Mini Kit No. of Ben 16800 16800 100%
Bajra Minikit No. of Ben 8400 8400 100%
Urea Molasses (link
block) No. of Ben 68400 68400 100%
Animal Feed No. of Ben 93861 70037 75%
Average Daily Milk
Collection K.G/ day 59680 25600 43%
Milk Transportation Cost No. 7 7 100%
Training and Exposure
Exposure Visit No. of Ben 427 427 100%
Promotional Activities No. 679 679 100%
Training of Field Staffs No. of Ben 70 70 100%
Training of Managerial Level Staffs
No. of Ben 28 28 100%
Plant renovation and
upgradation No. 5 5 100%
As can be seen, the progress reported by both the states is almost 100% against the targets.
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Major Observations from Field Visits: Uttar Pradesh
As a part of Quick Impact evaluation study, every activity which was created under the Bundelkhand package was visited on sample basis. The sample include, 09 Cooperative Societies in 05 out of 07 districts of Uttar Pradesh were visited. Also, the milk processing unit at Jhansi, milk chilling centre at Jalaun and Chitrakoot were also visited and information was obtained as per the designed check list. Discussions with the beneficiaries/ milk pourers, secretary of DCS, milk inspectors and officers of processing and chilling centres were held to obtain their feedback on the benefits generated from the intervention.
Table 67 below gives brief findings of the indicators evaluated during the field visits.
MILK PROCESSING CENTRE ESTABLISHED UNDER BSP IN JHANSI
111 Table 67 Status and impact of dairy development under Bundelkahand Package in UP
Indicators Unit Jhansi Lalitpur Jalaun Chitrakoot Banda Hamirpur Mahoba Total
Bulk Milk Coolers No 6 0 0 5 0 10 0 21
Milk Chilling Centre No 0 1 0 0 0 0 0 1
Milk Processing Plant No 1 0 1 1 0 0 0 3
Capacity LPD 10000 5000 30000 10000 0 0 0 55000
Milk Route Established No 8 1 NA 6 2 4 4 25
No of active routes No 1 0 NA 1 1 4 4 11
Daily Milk Received at BMC/
Chilling Centres (Average)
Litre/day 5000 803 6500 2000 896 960 81.5 16240.5
Total Dairy Cooperative
Societies No 80 80 80 80 80 80 80 560
Non Functional Dairy
Cooperatives No 66 64 9 65 31 67 75 377
Functional Dairy Cooperative Societies
No 14 16 71 15 49 13 5 183
Sample of Dairy Cooperative
Societies Visited No 1 1 0 0 4 2 1 9
Total Members No 32 No
Records found
NA NA 90 122 80 324
Women Members No 2 6 23 4 35
Ratio (Men to Women) 15:1 14:1 4.3:1 19:1 8.25:1
SC/ST Participation No 3 14 21 9 47
SC/ST Participation % 9% 16% 17% 11% 15%
Total pourer members No 4 55 44 23 126
Milk Collection Litre/day 09-11 40-50 30-50 59-86
Average/ day (Lean season) Litre/day 9 35 30.75 72.5
Average/ day (Flush Season) Litre/day 20 55 45.84 160
Total Payment disbursed Rupees NA NA NA NA NA NA NA
Price Realization Rs./Litre NA Rs.21 - 23 Rs. 22.10 - 29.5 Rs. 10.8-15
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The progress of the dairy sector in Uttar Pradesh has not achieved the desired results and most of the societies established are not functioning at present.
i. The milk processing centre at Jhansi of 10000 litres per day capacity is running at less than half the potential capacity. The average milk collected per day varies significantly during the flush season and peak season. During the months of October, November, the average collection goes upto 5000 litters per day which goes down to 400- 800 litres during the lean season. Overall the units are running at significantly low level.
ii. Out of the targeted procurement of 55000 litres per day, the current procurement from the seven districts is found to be 16000 litres per day which 70% less than the desired level for self sustenance.
iii. Out of 25 routes to be activated, only 11 routes are functional as per the reports obtained during the visits and interaction with the department officials.
iv. Out of 560 Dairy Cooperative Societies which were revived/ organized, 377 (67%) are sick/ non functional. Although, 183 (23%) are reportedly functional but the actual number may be less considering the grim situation of dairy.
v. A total of 09 Dairy Cooperative Societies were chosen, 03 randomly from Jhansi, Lalitpur and Hamirpur, while rest six were chosen in consultation with the department officials in order to study their relative performance and assess the actual status. The societies in Jhansi, Lalitpur and the one chosen in Hamirpur are collecting milk ranging in between 9 litres to 30 litres a day. The best performing dairies which were shown by the officials collecting milk not more than 40 litres during the lean season and not more than 90 litres during the flush season. The most encouraging societies were found in Banda where 4 societies shown were collecting milk between 40 to 50 litres a day.
vi. Out of total 324 members form 09 DCS, only 126 (38%) members are pouring milk to the cooperative societies while the rest either sells it to the private collectors or consume. Only 10% of the members were found to be women, which in terms of ratio is for every 9 men there is 1 women members.
vii. The price realization from selling of the milk to cooperatives not at the desired level.
The prices paid to the pourers range in between Rs.11.00 to Rs. 15.00 per litre in Mahoba to maximum of Rs. 22.00 to Rs. 29.00 per litre in Hamirpur. The secretary of DCS sells after collection to private players, at the rate of Rs 32.00 to Rs. 35 litres keeping the margin. As there is no incentive for the pourer to sell the milk to cooperative societies, this defeats the very purpose of creating the Dairy Cooperative Society.
viii. Even after the renovation of milk processing plant of Jalaun, Jhansi and Chitrakoot, less than the required supply of the milk has
resulted in sub-optimal utilization of asset created. In Chitrakoot, the treatment plant is found to be incomplete. The packaging machines are installed in Chitrakoot and Jhansi. A part of milk collected in Chitrakoot is packed and sold but that is not enough to reduce to increasing losses of the unit.
ix. In Lalitpur, Rs. 1.00 core working capital is
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required to run the chilling plant, which is 100% complete. The assets installed is lying in-fructuous and depreciating at a high rate. Six (06). There is no availability of water in the chilling centre despite of 06 boring already done in the campus.
x. The transportation cost in all the routes is reportedly high to an extent of Rs 4.00 to 15.00 per litre. The officials of the dairy department informed that the societies are not getting any transport subsidy and as such cost on transport per litre of milk has increased substantially and the societies are incurring losses due to high transportation cost.
xi. At Hamirpur, the concerned dairy development officer reported that Rs. 1.00 crore payments are pending with Kanpur Milk Union which has become sick and liquidated. The pending payment has severely affected the payment to pourers. The average lag in payment reported is 3 weeks but in actual it is more than a month.
Further, with closure of the Kanpur Dairy, the disposal of milk collected at the chilling centre/ milk coolers has become one of the major bottlenecks.
Major Observations during field visits: Madhya Pradesh
The dairy sector in Madhya Pradesh has shown an impressive progress since the inception of the package. The funds have been fully utilized and infrastructures have been fully created and functional. The results presented in Table 68 below the results achieved by the dairy development department in Madhya Pradesh.
114 Table 68 Status and impact of dairy development in MP
Indicators Unit Sagar Chhatarpur Damoh Panna Tikamgarh Datia Total
Bulk Milk Coolers No 1 3 2 3 3 2 14
Milk Chilling Centre No 0 0 0 0 0 0 0
Milk Processing Plant No 1 0 0 0 0 0 1
Capacity LPD 5000 4500 4500 3000 5000 3000 25000
Milk Route Established No 7 7 6 4 8 7 39
No of active routes No 7 7 4 4 8 7 37
Daily Milk Received at BMC/
Chilling Centres (Average) Litre/day 12294 6480 3301 2734 8703 7701 41213
Total Dairy Cooperative Societies No 105 96 95 77 140 48 561
Non Functional Dairy Cooperatives
No 7 4 30 1 0 0 42
Functional Dairy Cooperative
Societies No 98 92 65 76 140 48 519
Sample of Dairy Cooperative
Societies Visited No - 5 5 5 5 -
Total Members No 3386 3455 2796 2537 4739 1547 18460
Women Members No 1304 1121 814 654 3101 1035 8029
Ratio (Men to Women)# - 2.15:1 0.01:1 0.42:1 0.59:1 - 1.29:1
SC/ST Participation# No - 18 46 37 13 -
SC/ST Participation % 6% 37% 21% 5% - 13.45%
Total pourer members No
Milk Collection
Average/ day Litre/day - 118.18 34.35 81.83 141.65 - 95.12
Total Payment disbursed Rs.(Lakh) 1686.71 1049.21 409.14 478.46 1593.84 806.08 6023.44
Price Realization Rs./Litre 21.9-31.9 14.9-29.6 21.9-29.6 17.4-24.5
# Based on sample cooperative societies visited
115 i. A total of 14 bulk milk coolers were installed
against the targeted 09 and 01 milk processing plant located in Sagar was renovated and upgraded to the capacity of 20000 litres per day. Against the capacity of 20000 LPD, the plant is operating at a capacity of more than 28,000 LPD.
ii. Total DCS established is 561 against the targeted 500 DCS of which 519 are functional on 37 out of 39 established milk routes.
iii. Against the targeted milk collection of 25000 LPD, the current collection is 41213 LPD which is 64% more than the targeted milk collection.
iv. Total membership created through revival/ reorganizing the DCS is 18460 of which 8029 were women member which accounts for 43% of the total members of the societies. The man to women ratio is much significant in case of Madhya Pradesh (1:1.29), thus creating favourably the environment to participate in economic activities and empowerment.
v. Since, the inception of package after revival of dairy sector in Madhya Pradesh, the amount that has gone to the members of Dairy
Cooperative Societies is Rs. 6023.44 lakh. Thus, each member family of the cooperative has been able to generate additional Rs. 8184.00 per annum from the dairy activity which is quite significant addition to its overall income.
vi. The payments made to pourers are strictly made on the rates based on SNF and Fat percentage
vii. The creation of infrastructure and institutionalization of whole process has benefited the farmers who use to carry milk earlier to large distance of more than 18 Kms as reflected by the farmer of Sagar district. Since, there were no cooperative societies, the milk was usually sold to private dealer and market was more or less oligopsonic where there was large number of sellers but few buyers who used to dictate the terms of trade. The establishment of cooperative societies in have been able to create a competitive market in the region.
viii. The price realization of milk per litre estimated range in between Rs. 15.00 to Rs.
32.00 depending on the seasons which affect the fat/SNF percentage and milk productivity.