CHAPTER-III

WORKING AND PERFORMANCE OF CO-OPERATIVE MILK

PRODUCERS' UNION IN PONDICHERRY

3.1 Introduction

3.2 The Ponidcherry Co-operative Milk Producers' Union Ltd.

3.3 Geographical Location

3.4 Pondicherry Municipality

3.5 Summary
 93

CHAPTER-III
WORKING AND PERFORMANCE OF CO-OPERATIVE MILK
PRODUCERS' UNION IN PONDICHERRY

3.1 INTRODUCTION

Prior to the advent of the French into India, Pondicherry was a little known

fishermen village. The area was under the survey of the Avdhra Dynastry and

later under the Pallavas. However when the French landed here, the area was

under Muslim domination. These pockets were taken over by the French after a

series of encounters with their European rival, the British. Actually Pondicherry

was under French regime from 26* September 1816 to 31*^ October 1954.'

The union Territory of Pondicherry as it is constituted today consists of

four regions namely Pondicherry, Karaikkal, Mahe and Yanam and was merged de

facto with the Union on V^ November 1954. On August 16*, 1962 these former

French settler were declared de Jure Indian Union Territory. The Union Territory

of Pondicherry is unique in the sense that all the four constituent units be far away.

Apart from each other they are intimated by the states of Tamil Nadu, Kerala and

Andhra Pradhesh.

1. Annual Administration Report 2005-06, Department of Animal Husbandry

and Animal Welfare, Government of Puducherry, 2006, p.l
2. Dairy Year Boole 2005-06, Government of India 2006, p. 17
 94

The territory is divided into two natural divisions of coastal plains and hilly

areas, agriculture is the most important occupation of the people. Pondicherry has

the largest number of livestock and rearing of livestock is one of the important

income generating occupations. There has been a considerable expansion in the

banking network in the union territory. Essential commodities are being

distributed through fair price shops run by the co-operatives.

With the rise in the demand for animal products, particularly for milk on

account of growing population and great demand for milk products, an acute need

was felt for stepping up production of milk and milk products. To meet the steep

rise in the demand in urban areas co-operative milk producers' societies were

started which involved in milk collection and supply.^

There are two urban milk supply unions under co-operatives sector, one at

Pondicherry and the other at Karaikal for marketing milk. These unions collect

milk produced from the primary co-operative societies scattered through the two

regions and distribute the milk in urban areas in the morning and evening.

The Pondicherry co-operative milk producers' union was established in the

year 1972. The operation Flood II was initiated in this union during 1982. This

Union has a dairy plant with a processing capacity of 50,000 liters of milk per day.

The dairy plant produces milk and by products such ghee, butter, flavoured milk.

3. Annual Administration Report 2005-06, op.cit., p.2.

 95

milk beda, etc. and sells to the public. The Karaikkal co-operative milk supply

society has processing capacity of 10,000 liters per day and apart from this it

produces ghee and Khoa. Besides the co-operative milk supply societies, there are

a large number of private vendors in this Territory whose subsidairy occupation is

selling of milk. The production of milk and by products by these societies for the

year 2005-2006 are depicted in Table 3.1

TABLE 3.1
Production and by Products of Milk
Sl.No. Item Pondicherry Karaikal

1. Milk procured from primary co-operatives societies 24,082,440 Mts 57,80,023 Ltrs
2. Milk procured from Vilupuram and Pondicherry Milk Union 26,691.820 Mts 4,55,813 Ltrs
3. Total Milk procurement 50,774.26 Mts 62,35,836 Ltrs
4. Ghee production by the supply societyAJnion 79,173.700 Kgs 1,341 Kgs
5. Ghee procured from Villupuram / Pondicherry Milk Union - 1,650 Kgs
6. Tonned Milk Production 16,539.730 Mts -
7. Khoa Production 18,514.100 Kgs 1,043 Kgs
8. Flavoured milk production 40,770.400 Ltrs -
9. Curd production 20,431.100 Ltrs 5,859 Ltrs

Sourc e: Administrative Report 2005-06 Government oi •Pondicherry.

3.2 THE PONDICHERRY CO-OPERATIVE MILK PRODUCERS' UNION

LTD (PCMPU)

The Pondicherry Co-operative Milk Producers' Union had its origin as the

Pondicherry Co-operative Milk Supply Society during 1955. Initially the society

had 50 individual members on its rolls. This gradually increased to the extent of

8,000 milk pouring members just before was recognized into milk producers'
 96

union. The union was the first co-operative society which was registered in

Pondicherry. It still maintains its prominence amongst the Co-operative societies

in Pondicherry and it acts as the Apex Co-operative Society.

The supply society was unable to extend any good deal of input activities to

the producing members to encourage milk production and was unable to impress

upon the consumers also on the quality aspects. Thus the supply society was able

to function only as unorganized middlemen between the much scattered producers

and consumers.^

3.2.1 NDDB

The co-operative dairy established through the National Dairy

Development Board, Anand was commissioned on 12* April 1971 at a cost of

Rs.23.60 lakhs with financial assistance from the Government of Pondicherry.

Infact the milk supply society had its prime objective as services to the urban

consumers with good quality milk rather milk production enhancement and better

deal to the rural producers.

Pursuant to the recommendations contained in the master plan for dairy

development, the Pondicherry Co-operative Milk Supply Society was converted

into the Pondicherry Co-operative Milk Producers' Union with 46 primary

societies affiliated to it and the management of the dairy was entrusted to the

4. Ponlait Profile, 2005-06. PCMPU Ltd., Pondicherry, 2006, p.n.

 97

union. The union started functioning with effect from 1.7.1973 and primaries with

effect from 1.8.1973. Infact all the above developments initiated the beginning of

the nations' historic and biggest dairy development project in Pondicherry also.

As per the guidelines of the National Dairy Development Board, the

Government of Pondicherry requested the Indian Dairy Corporation to finance the

dairy development project in the union territory of Pondicherry under Operation

Flood II. In October 1979 the National Dairy Development Board prepared a

development plan and titles. Based on the plan a team of Indian dairy corporation

officials visited Pondicherry between 28* and 31^' January 1980, appraised the

projects and prepared an outlay of Rs.102.49 lakhs. Thus Pondicherry was

brought in to operation flood map by the launching of operation flood II in 1982

by the Pondicherry Co-operative Milk Producers' Union.^

With the take off of operation flood II in Pondicherry the milk union

initiated steps to convert the traditional Primary Co-operative into Anand Pattern

Societies where quality was given the top priority.

5. Report of NDDB 2005-06, Government of India, 2005, p.6.

 98

3.2.2 Objectives

The objective of the union is to carry out activities conducive to the

economic and socio economic development of the Milk Producers by organizing

effectively the Production, Processing and Marketing of commodities.^

To achieve the above objective the union is carrying on the following

activities effectively.

a) Purchase, pool, process, manufacture, and distribute commodities of the

members and others with out affecting the interest of the members.

b) Own or hold on lease of otherwise, movable or immovable properties and

dispose off the same.

c) Purchase and/or erect buildings, plants and machineries and or ancillary

equipments.

d) Organise new Milk Producers' Co-operative societies.

e) Levy supervision charges with the permission of the registrar.

f) Undertake and or encourage production of milk and growing the fodder and

agricultural products.

g) Own herd of cattle for breeding purpose.

6. Report of PONLAIT, Department of Co-operation, Government of

Pondicherry, 1999, p. 17.
 99

h) Provide veterinary and artificial insemination services and other technical

inputs for the enhancement of milk production and medicines for prophylactic

and preventive purpose,

i) Undertake or to assist in the marketing of cattle,

j) Insurance cover to cattle,

k) Render technical, administrative or other necessary assistance to other milk

scheme.

1) Undertake general insurance work related to the union and members of the

societies on agency basis,

m) Carry on Co-operative propaganda and impart amongst the members

co-operative knowledge and its application to business methods,

n) Arrange training to employees of the union and members,

o) Establish Research and Development agencies having separate existence

under the overall control of the union, contribute to their funds and raise funds

for the same,

p) Organise and encourage savings amongst milk producers and assist in creation

of self-help groups.
 100

q) Generally carry on such other activities as would further the above objectives

and to do all such things as are incidental or conducive to the attainment of the

above mentioned objectives.^

3.2.3 Resources of Funds

I. Funds may be raised by: Entrance fees, Shares, Deposits, Loans,

Donations, Grants, aids and subsidies

II The authorized share capital is Rs. 1,00,00,000/- divided into 10,000

shares of Rs.lOOO each allotted to the Primary Milk Producers' Co-operative

societies. The union issues up to 100 shares to each members.

III. The funds raised have not exceeded 12 times the total paid up share

capital and reserve fund. The union may accept funds from any development

agency or any financial institution by accepting loan and the like as per the terms

and conditions prescribed by such institution as may be mutually agreed upon.

3.2.4 Organisation Structure of tlie Union

The Pondicherry Co-operative Milk Producers' Union is a part of two tier

structure which consists of Dairy Co-operative Societies at village level. The

Pondicherry Co-operative Milk Producers' Union Ltd. is the apex body at the state

level. The members of the society elect the management committee members by

election among them as president of the society.

7. Report of PONLAIT, op.cit., pp.6-7.

 101

The president of the Dairy Co-operative Societies affiliated to the union for

the general body of the Pondicherry Co-operative Milk Producers' Union and they

elect the members of the Board of Directors of the union. The members of the

board of directors elect one among the elected members as the chairman.

In the board of directors of the Pondichery Co-operative Milk Producers'

Union, in addition to the 12 elected members, there are 4 more members one

nominee each of Registrar of Co-operative Societies, Animal Husbandry

Department, Government of Pondicherry, National Dairy Development Board and

The Managing Director and he is the chief executive of the Union.

3.2.5 Origin and Growth

History tells us that PONLAIT came in to existence as Pondicherry Milk

Supply Society' registered as 1^* Co-operative Society in the Union Territory of

Pondicherry on 07.02.1955. Started in a tiny shed, its primary objective and focus

were to supply milk to the Urban consumers. As time passed by the supply society

diversified its activity from consumers to producers and concentrated in increasing

the milk production by giving various assistance/incentives to the milk producing

farmers. The union started procuring milk from the village producers on quality

8. Report of PONLAIT, op.cit., p. 19.

 102

basis from 1970 onwards. To keep pace with the milk production, the milk union

on 12.04.1971 also set up a dairy Plant with 10,000 Ltrs capacity for processing.^

During 1973, the supply society was converted into Co-operative Milk

Producers' Union with the objective of shifting its focus on the milk producing

community and its welfare. With the success of the Amul, the National Dairy

Development Board programmed to replicate the Anand pattern (collecting quality

milk from the members and payment of remunerative price in cash regularly and

providing milk production, enhancement inputs in kind all over the nation. The

Pondicherry Co-operative Milk Producers' Union has also taken up the worlds

largest dairy expansion programme and the dairy plant was expanded to 50,000

Ltrs capacity per day. All the milk primary co-operative societies were converted

in to Anand pattern societies. 'Ponlait' has entered the MINEMONIC club

conceived, implemented, promoted and popularized by the NDDB for the entire

dairy co-operative of the Nation with effect from 30.03.2002.'^

Thus Ponlait was committed to improve the economic and social uplift of

the rural farming/milk producing community and supplying the urban consumers

with good quality milk. It is the only institution in Pondicherry extending more

9. Annual Administrative Report 2004-05, op.cit., pp.43-44.

10. Ibid., p.45.
 103

than a crore every month to rural economy in cash for the benefits of the farming

community by way of milk purchase.''

The Primary Dairy Co-operative Societies functioning under the control of

the 'Ponlait' grows in length and breadth. The membership, share capital and

functioning DCs are depicted in Table 3.2,

TABLE 3.2
Primary Societies and Membersliip

Sl.No. Growth
Particulars 2000-01 2001-02 2002-03 2005-04 2004-05 2005-06 2006-07 Rate

1. Organized CS 92 92 93 96 100 104 101 109.78

2. Functional DCs 89 91 92 94 94 98 96 107.87
3. Members 27249 28736 28949 32000 32807 34933 36078 132.40
4. Women Members 10992 12523 12580 13894 13957 15338 16000 145.56
5. Share Capital in Lakhs 48 48 66.67 72.30 76.35 79.35 86.17 179.52

Source: Annual Issues of Ponlait.

It is evident from Table 3.2 that there has been a constant growth of all

components comparatively speaking the growth rate of share capital has been the

highest by per cent.

3.2.6 Activities of Different Units of the Milk Union

Milk Procurement and Input Wing

• 'Ponlait' is operating in the Pondicherry Region with 97 affiliated functioning

Dairy Co-operative Societies.

11. Annual Report Ponlait 2005-06 PCMPU Ltd., p.20.

 104

• There are 34,798 Cattle owners who become members in the Dairy

Co-operative Societies at villages and supplying milk to Ponlait

• Milk Supplying members are paid fortnightly in cash with remunerative milk

price and input in kind

• The Primary responsibility of procurement and input section is to procure

clean and quality milk from the village cattle owners and carryout milk

production enhancement seWices.

• To achieve this objective, the Procurement & Input Wing is conducting

various programmes like Clean Milk Production and Quality Milk

Procurement at Dairy Co-operative Societies.

• Besides the main activity, the milk supplying members are also provided with

milk animals Cattle Feed, Green Fodder and Artificial Inseminatin facility.

The milk procurement, marketing and inputs details are presented in

Table 3.3.

12. Aimual Administration Report 2005-06, Op.cit., p.21.

 105

TABLE 3.3
Procurement Marketing and Inputs
(Rs.in Lakhs)
2000- 2001- 2002- 2005- 2004- 2005- 2006-
Sl.No. Particulars 01 02 03 04 05 06 07

1. Average Milk Procurement 37767 45217 50214 51240 50063 55027 58000

2. Fat % 4.35 4.31 4.30 4.32 4.32 4.24 4.16

3. Total Al done 425 468 482 532 513 550 515

4. Local Milk Marketing 47706 48154 42907 46301 51419 592)8 68500

5. Turnover 2209 2239 2510 2819 3063 3694 4456

6. Net Profit/Loss -13.44 -8.29 1.51 67.02 4.34 10.00 -246.03

7. Accumulated Loss 26 34.3 32.8 - - - 233.14

Source: Ponlait Profile 2006-07.

3.2.7 Milk Processing

• The present handling capacity of the Dairy plant is 50,000 Ltrs per day.

However with prudent technical manpower and Top management support

an average of 80,000 ltrs of milk is handled per day and 93,000 litrs of milk

handled in peak

• 3 varieties of milk namely Tonned milk standardized milk and premium

milk are produced as per the consumer requirements. The daily consumer

demand is met fully and the present demand is 62,000 to 65,000 litres per

day
 106

• From the August 2002, the Dairy is supplying 15,000 litres of standardized

milk to school children in the morning under Sri Rajiv Gandhi School

Children Break Fast Scheme, the 1** of its kind in the nation organized by

the Government of Pondicherry. Besides at present the Union is supplying

milk to 28500 litres of the students both in the morning and Evening. The

Evening milk supply was effected from 20.10.2005 as desired by the

Government of Pondicherry.

• Besides milk processing and grading the Dairy is equipped to produce 15

MTs of ghee and 1500 kgs of Khoa ( milk peda) monthly. The Ponlait

Ghee and Khoa are much sought after products in the Pondicherry town.

• The Dairy is producing 1000-1500 pockets of flavoured milk and 500-1000

of Butter Milk every day and sells in Pondicherry town.

• The Dairy is also producing Paneer and curd as per the requirements of the

consumer as and when needed.

The various important milk products produced and sold by the 'Ponlait'

over a period of six years is shown in Table 3.5.

13. Annual Administration Report 2005-06, op.cit., p. 16.

 107

TABLE 3.4
Milk Product Sales
SI. Particulars Units 2000- 2001- 2002- 2005- 2004- 2005- 2006-
No. 01 02 03 04 05 06 07

1. Ghee M.Tonn 198 Tl\ 167 148 108 79 102

2. Khoa Kgs 1177 4949 4.93 7.6 16.3 18.5 23.9
3. Flavoured Milk Liters 14750 18546 65 14.5 19.7 40.8 46.8
Source: Ponlait Profile 2005-06

Quality Assurance by Making Proper Milk Testing in Laboratory at Dairy

Since the milk is a highly perishable commodity, proper care is taken to

maintain quality of the milk right from the point of production to the point of

consumption. At the village level the milk poured by the individual member

producers are tested at the primary society.

The milk tested for the quality at society level reaches the Dairy Plant. The

raw milk is tested organoleptically at the Dairy reception dock for its quality and

then the individual society sample are tested for its fat content and other microbial

standards.

Apart from this the processed milk is sampled at every point of storage

during the process and proper care is taken to maintain quality standards.

Finally, the different varieties of milk are graded and kept ready for packing

to the consumers. The pouched milk samples are randomly taken and tested for its

shiefl life after despatch to the consumers. Presently the milk is despatched to the
 108

market at 5 degree Centrigrade in three varieties viz toned milk 3.0 per cent Fat

8.5 per cent SNF, Stanadradised Milk 4.5 per cent Fat 8.5 per cent SNF and the

Premium Milk 5.0 per cent Fat 9.0 per cent SNF (SNF - Solids Not Fat)

Day and dayout maintaining the quality of milk receives the top priority.

The Price per litre of milk procurement and sales are depicted in Table 3.5.

TABLE 3.5
Price Per Litre For Procurement & Sales (from 2000 to 2006)
(in Rs.)
Particulars 2000-01 2001-02 2002-03 2005-04 2004-05 2005-06 2006-07

Procurement
Price per kg of 70.50 78.23 78.23 78.23 78.23 78.23 85.92
total solids

Procurement
Price per litre (Fat
9.17 10.17 10.17 10.17 10.17 10.17 11.17
4.5% + SNF
8.5%)

Toned Milk Sales

10.50 12.00 12.00 12.00 12.00 12.00 12
Price / Litre

Source: Ponlait Profile 2006-07.

It is evident from Table 3.5 that the difference (Rs.1.83) in procurement

price and the sales price of milk has been the same since 2001-02.

3.2.9 Marketing

The Pondicherry Co-operative Milk Producers' Union is operating in the

Pondicherry market. Selling three different varietes of milk catering to the

 109

different segments of the market was under its brand name "Ponlait" Ponlait is the

number one milk brand in the Pondicheny town. Though there are many private

players in the market, Ponlait is the major market shareholders. A market survey

finding indicates that he present market share of Ponlait is around 52 per cent.

The present average market through 'Ponlait' is 62,000 Itrs/day and the

sales is in the uptrend. It is anticipated that the sales curve may touch its peak

(60,000 Ltrs. average) during January 2006.

To cater to the urban population, 180 retail outlets are operated by retail

sales agents. The retail outlets are supplied with milk through a network of 10

milk distribution routes daily in the morning and the evening.

Besides, the Union is also running five milk parlours to sell milk and milk

products. Milk is made available to the urban consumers 24 hours a day through

two such parlours. The total milk sales by the union per day is given in Table 3.6.
 no

TABLE 3.6
Total Milk Sales
(Litres Per day)

Sl.No. Year Quantity

L 1996-97 33897
2. 1997-98 38624
3. 1998-99 43304
4. 1999-00 46417
5. 2000-01 47706
6. 2001-02 48152
7. 2002-03 42936
8. 2003-04 52935
9. 2004-05 58698
10. 2005-06 73075
n. 2006-07 82000
Source: Ponlait Profile 2006-07

It is clear from Table 3.6 that milk sales per day has increased nearly three

fold by showing an annual growth rate of 242.23 per cent and a compound growth

rate of 7.58 per cent.

3.2.10 Cattle Feed

Ponlait owns a Cattle Feed Plant of 5 MT/day capacity in Thattanchavady

Industrial Estate, Pondicherry-9

 Ill

Compounded Cattle Feed is produced with cost effective ingredients and

supplied to the members through Dairy Co-operative Societies on non profit

motive.

Ponlait is extending subsidy of Rs.lOO/- as provided by the Government of

Pondicherry to each bag containing 50 Kgs of Feed out of the total cost of

Rs.312/- per bag. The present monthly production and supply is 235 MTS. In

addition 'Ponlait' Cattle Feed is supplied to neighbouring Villupuram District

also. The quantity of the cattle feed is being tested regularly.

The balanced compounded cattle feed produced in the ponlait cattle feed

plant is proved to be effective for animal health and quality milk production. The

cattle feed production during 1999-2000 to 2006-2007 are presented in Table 3.7

TABLE 3.7
Cattle Feed Production
(in metric tones)
Sl.No. Year Quantity

1. 1999-00 2065
2. 2000-01 2126
3. 2001-02 1173
4. 2002-03 2100
5. 2003-04 2230
6. 2004-05 2349
7. 2005-06 3108
8. 2006-07 6524
Source: Ponlait Profile 2006-07.
 112

It is clear from Table 3.7 that the quantity of cattle feed production by the

Ponlait has doubled over a period of eight years on account of the demand for such

food for the animals which has also grown double the quantity.

3.2.11 Administration

• The Ponlait Administration is vested with the committee of management

comprising 12 elected representatives from the Presidents of Dairy Co-

operative Societies and a nominee from National Dairy Development

Board, Co-operative Department and Department of Animal Husbandry

and Managing Director of the Milk Union.

• Since the committee of management is dissolved, the Administrator

nominated by a Deputy Registrar from the Co-operative Department is

looking after in lieu of the Baord of Management with effect from

06.09.2002

• As per the order of the High Court, Chennai, an Advisory Board with the

following three members has been constituted by the RCS in order to guide

the Administrator from making policy decisions and other administrative

matters.

1. Registrar of Co-operative Societies - Chairman

2. State Director, NDDB, Erode - Member
3. Director, AHD, Pondicherry - Member
 113

At present 173 permanent employees in various cadres are working in the

14
union.

3.2.12 Functions of 'Ponlait'

At Present there are 95 functional dairy co-operative societies (DCS)

catering to the needs of 36000 members including 16000 women members.'^ Out

of these, 18 Dairy Co-operative Societies are functioning exclusively for the

women members as women Dairy Co-operatives. There were 19 women members

who have become chairperson of these societies. Besides, in the Management

Committee, of all the village level societies there is reservation of 3 seats

exclusively for women members.

The village level primary co-operative society purchases milk from its

members on the basis of Fat and SNF content of milk. The collected milk is sent

to the Union level Dairy every day morning and evening and makes payment once

in a fortnight. Milk collected from the Dairy Co-operative Societies by the Union

is at an average of 50,000 liters per day. The Milk procurement per DCS is around

650 liters per day. There are 7,250 active members supplying milk to the Dairy

Co-operative Societies. Every fortnight, an amount of Rs.90 lakhs is distributed to

14. Annual Administration Report 2005-06, Op.cit., p.7

15. Report on the Working of Co-operatives in India 2005-06, Department of
Co-operation, Government of India, New Delhi, p.l 18
 114

the farmer members in the rural areas of the Pondicherry region. The union has

never failed to make payment to buyer society with in the stipulated time frame.

This milk union owns a Dairy Plant having a capacity of 50 thousands liters

per day. The union has processed more than 50,000 liters of milk per day during

the past four years and exceeded the maximum capacity of the unit. The union is

marketing 50,000 liters per day and 15,000 liters of milk is being supplied to

school children under Rajiv Gandhi Breakfast Scheme, Government of

pondicherry from August 2002. At present the Union members sell tonned milk /

Standard milk and premium milk in sachets at the rate of Rs.l2/- Rs.l4/- and

Rs.l5/- per litre respectively. In addition the Dairy by products of milk like

Ghee/khoa/Butter milk/flavoured milk/Badam milk/Paneer are being sold at a

remunerative price to the consumers through their parlours in the city.'^

The Union assists the Dairy Co-operative Societies to enhance the milk

production by providing inputs and extension services. Cattle feed produced from

the Union's Feed Mixing Plant is distributed to the milk producers through the

DCS. Out of 94 fiinctional DCS, 70 per cent of the DCS are presently purchasing

cattle feed produced by the Union.

Cultivation of Fodder crop is being encouraged in DCS operational villages

under the Fodder Promotion Schemes Launched by the Union. Under this scheme

16. Annual Administration Report 2005-06, Op.cit., p.25.

 115

fodder seeds and fertilizers are supplied free of cost for the first time to interested

members for cultivation of fodder in 5 cents of land. Presently about 24 acres of

land is under cultivation of fodder crops being undertaken by 200 farmers.

Recently new product homogenized premium milk has been introduced in

the Pondicherry urban market to cater to the requirements of institutional buyers of

upper class segment with a low price tag. The progressing sale of premium milk is

around 6,500 liters a day. 'Ponlait' has targeted to push 8,000 liters a day of

premium milk with in a year.

3.2.13 Development Activities of the Union

The Union is initiating action to expand the Dairy unit to cope up with the

prevailing procurements and also forecasting the future procurements. The union

developmental activities proposed are mentioned below.

a) Expansion of Dairy Plant

It is proposed to expand the capacity of the dairy plant from 50,000 liters

to 1,00,000 liters per day in order to meet out the requirements of both producers

and consumers in total. Action has already been taken in consultation with the

NDDB for undertaking the civil works immediately. Besides machineries will

also be purchased for expansion.

17. Annual Report, Ponlait 2002, p.l3.

 116

b) Installation of Milk Chilling Plant at Dairy Co-operative Societies

The Milk Union is procuring milk from its 94 member Dairy Co-operative

Societies which are situated in villages of Pondicherry region. On an average,

Milk Union is procuring 50,000 liters per day from its members through contract

vehicles in nine milk routes. These vehicles are collecting Milk in cans from the

societies and transporting the milk for three to four hours depending upon the

distance and quantity of milk. In this method of transport spillage, sourage,

substandard and shortage of milk resulted and the societies are incurring loss.

Therefore, it is proposed to install Bulk Milk coolers at dairy co-operative

societies in a phased manner to arrest spillages and also to avoid sour milk.

c) Purchase of Cream Separator/Homogenizer

The new 10,000 LPH HTST Pasteurizer Plant was commissioned in April

2004. But the capacity of the existing Cream Separator and Homogenizer with

5,000 LPH and 2,000 LPH cannot be connected to the new 10000 LPH Pasteuizer.

This leads to under Utilization of the new Pasteuizer. In order to reduce the

processing time and to improve the quality of the processed milk, Cream

Separator and Homogenizer of suitable capacity to match the 10000 LPH HTST

Pasteuizer Plant becomes inevitable.

18. Dairy Year Book, Op.cit, p.7.

 117

The approximate cost of 10000 LPH Cream Separator is about Rs.25 Lakhs

and that of the homogenizer is about Rs.40 lakhs and necessary action is being

taken in this regard.

d) Clean Milk Production

The Ponlait is procuring milk from its 94 functional member Dairy Co-

operative Societies on an average 50,000 liters per day through nine milk routes.

During the year 2003-04 the Union received 34,419 liters of milk sour/curdered

from the societies which amounts to 0.2 per cent on total milk received by the

union.

Therefore it is proposed to adopt the clean Milk practices at societies in

order to minimize the receipt of the sour and curdled milk from societies and

improve the quality of raw milk procurement and to prvent the societies and union

from incurring losses.*^

e) Ice Cream Parlours

Ponlait is the No. 1 Milk Brand in Pondicherry town, has gone a long way in

milk by-product like Ghee, Khoa etc. Since Ice cream is a product which has good

demand from consumers of all age groups, not only in summer, but through out

19. Ibid, pp. 12-14.

 118

the year, Ponlait proposes to start an ice cream parlours at the heart of the town

which will be a real attraction to the customers of Pondicherry.

3.2.14 Welfare Activities

The various welfare activities of the Union includes the following. Group

Insurance for DCS members with a premium of Rs.30 by the members and 50 by

the Union, Personal Accident Insurance for DCS pouring members with premium

paid by the Union at Rs.l5 per member, women pouring members Group

Insurance premium paid by Union at Rs.l5 per women member, Cattle Insurance

for DCS members Cows premium 30 per cent by members, 30 per cent by the
'J(\

Society and 40 per cent by the Union.

3.2.15 Processing & Marlceting

The existing processing facilities and its capacity utilization are given in

Table 3.8.

20. Dairy Year Book 2007, Op.cit.

 119

TABLE 3.8
Processing Facilities and Capacity Utilization

Year Capacity TLPD Average

Capacity Utilized
Procurement
2000-01 50 47.9 96
2001-02 50 50.6 102
2002-03 50 51.0 102
2003-04 50 53.0 102
2004-05 50 53.5 102
2005-06 50 53.9 102
Source: Report of Ponlait, 2006.

The union is procuring cow milk from its affiliated Dairy Co-operative

Milk Producers Societies and Marketing Pasteurized, Toned Milk, Standardized

Milk and Premium Milk along with milk products Ghee, Khoa, Flavored Milk,

Butter Milk and the like.

The Pondicherry Milk Union is marketing 75000 liters of milk per day to

the consumers and institutions through 100 outlets and 6 parlours in the

Pondicherry city. This Union's market share is 45 to 50 per cent and currently the

union markets Toned milk, Standard milk and Premium milk in 200 and 500 ml

sachets are sold at normal prices.

The total milk sales increased from 28,100 litres per day in 1995-96 to an

average of 48200 liters per day in 2001-02.

 120

3.2.16 Management Information System

The union has installed computers in all financial areas for milk receipt,

milk billing, Financial Accounting, Milk Marketing, C.F. units Accounts, Payroll

etc. Regular management information reporting was introduced in 1995 and

further the NDDB had provided a computer with 100 per cent grant for a data

transferring to main server of NDDB at Anand and data processing and prepares

reports as required by the management and NDDB under internet based dairy

information system. The union has developed in house packages to operate

activities and transaction through the computer.

3.3 GEOGRAPHICAL LOCATION

Pondicherry is situated on the east coast of India, the coromandal coast in

the Bay of Bengal at Latitude 12.5 and longitude 79 6' Pondicherry as a Union

Territory consisting of 4 regions viz, Pondicherry, Karaikal, Mahe and Yanam.

These four regions are not contiguous geographically but are separated from each

other. Pondicherry region is located in the East Coast bounded by Cuddalore and

Villupuram Districts while Karaikal region is also located in the East Coast but

bounded by Nagai Distritct. Mahe region is located in the west coast near

cannonore District of Kerala state. Yanam region is located in the East Godavari

21. Annual Administration Report 2005-06, Op.cit., p. 17.

 121

District of Andhra Pradesh. Entire Mahe and Yanam regions have been treated as

urban areas for census purpose 22

3.3.1 Population

According to 2001 census, the total population of the Urban Territory of

Pondicheery is 807785 persons. There are 408081 males and 399704 females with

a sex ratio of 979 females per 1000 males. The density of population is 1642

persons per Sq. Km in respect of Union Territory of Pondicherry. Among the four

regions of Union Territory of Pondicherry, Mahe has the highest density with

3716 persons per Sq.Km Table 3.9 gives the area population and density of

population in all the four regions.

TABLE 3.9
Area Population and Density
Region Area Population 2001 Census Density Percentage
(According to per Sq.km of Decadal
Survey of India Males Females Total Growth Rate
in sq.km.) (1991 -2001)

Pondicherry 293 3693189 365686 735004 2534 20.82

Karaikal 160 84365 86275 170640 1060 17.11
Mahe 9 17146 19677 36823 4091 10.09
Yanam 30 15876 15486 31362 1568 54.52
Union 492 486705 487124 973829 2029 20.56
Territory of
Pondicherry

Source: Directorate of Economics and Statistics, Pondicherry.

22. India Year Book 2005-06, New Delhi, p.210

23. Report of tlie Census 2001, Government of India, New Delhi 2001, p.87.
 122

The rural population of the Union Territory of Pondicherry is 290800

persons, which constitutes 36 per cent of the total population and 64 per cent of

the total population live in urban area. It is worth mentioning here that total rural

area of the Union Territory of Pondicherry is 350.60 Sq.Km.^"* whereas urban

area is only 141.40 Sq.Km.

3.3.2 Rainfall and Seasonal Condition

The Union Territory of Pondicherry receives rainfall both from south-west

monsoon and northeast monsoon. The rainfall year (June to May) is divided into

four seasons: namely

(i) South-West monsoon period

(ii) North - East monsoon period
(iii) Winter period and
(iv) Hot weather period
Among the above four seasons southwest monsoon plays a key role in

deciding the production of Khariff (short term crops) in the Union Territory of

Pondicherry. Mahe region which is located in the west coast on the Kerala state

border receives major rainfall during this season.

3.3.3 Area irrigated by different Sources of Irrigation

Table 3.11 shows area by various sources which highlights the importance

of each source for the Union Territory as a whole.

24. Abstract, Pondicherry Government of Puducherry, 2005-06 p,5

 123

TABLE 3.10
Area under Irrigation by Hectares
Sl.No. Source 2001-02 2002-03 2003-04 2004-05 2005-06

1. Canals 8608 8400 8376 7937 8155

2. Tanks - - - - -

3. Tube wells 13796 13537 13077 13547 13398

4. Ordinary wills - - - - -

5. Other Sources + 76 70 64 60 75
6. Total area irrigated (Net) 22480 22007 21517 21544 21628
7. Areas irrigated more than 12700 12637 12691 11627 12015
once
8. Gross area irrigated 35180 34644 34308 33171 33643
Source: Directorate of Economics & Statistics, Pondicherry

It is evident from the Table 3.10 that the net area irrigated by different

sources of irrigation during the year 2005-06 was recorded as 21628 hectares,

which had decreased by 852 hectares as compared to 2001-02.

Table 3.11 shows the area irrigated by various sources which highlights the

importance of each source for the Union Territory as a whole.

 124

TABLE 3.11
Sources and Area Irrigated

Sl.No. Sources of Irrigation Net Area Irrigated Percentage

(in hectares)

1. Canals 8392 38.85

2. Tube Wells 13105 60.77
3. Other Sources 65 0.38

Total 21562 100.00

Source: Directorate of Economics & Statistics, Pondicherry.

Table 3.11 reveals that the canals were the main sources of irrigation in

Karaikal and Yanam regions whereas Pondicherry region mainly depended on

Tube wells as the source of irrigation.

 125

TABLE 3.12
Area under Crops Irrigated
Sl.No. Crops 2001-02 2002-03 2003-04 2004-05 2005-06
1. Food Crops
Paddy 26026 26488 26349 24622 25450
Ragi 193 167 140 112 123
Cumbu 94 155 154 102 149
Other millets + 5 2 1 - 3
Total cereals 26318 26812 26644 24836 25725
Blackgram 214 188 282 270 97
Greengram 2 28 61 22 71
Other pulses @ 8 3 6 4 6
Total Pulses 224 219 349 296 174
Total food grains 26542 27031 26993 25132 25899
Sugarcane 3149 2616 2397 2710 2798
Plaintain 172 201 265 304 282
Tapioca 734 532 543 649 365
Chillies 36 17 5 8 11
Other food Crops 244 257 217 263 256
Total food crops 30877 30654 30420 29066 29611
Con-Food Crops
Cotton 961 549 459 453 357
Groundnut 1922 1771 1311 952 860
GIngelly 74 48 90 57 52
Other Non-food 1346 1622 1928 5643 2769
Crops
Total non-food 4303 3990 3788 4105 4038
crops
Grand Total 35180 34644 34208 33171 33649
+ Includes Cholam, Varagu and Thenai
@ includes Redgram, Karamani and Pemmpairu
Source: Directorate of Economics and Statistics, Pondicherry.
 126

Table 3.13 depicts the area under all crops in Pondicherry

TABLE 3.13
Area under All Crops
2001- 2002- 2003- 2004- 2005-
Sl.No. Crops
02 03 04 05 06
I Food Crops
Paddy 26026 26488 26349 24622 25450
Ragi 193 167 140 112 124
Cumbu 246 315 213 149 170
Other millets 9 6 6 4 4
Total cereals 26474 26976 26711 24887 25748
Blackgram 2709 3560 3245 3413 3159
Greengram 2489 2369 2543 2548 2453
Other pulses 48 65 37 58 65
Total Pulses 52246 5994 5825 6019 5677
Total food Grains 31720 32970 32536 30906 31425
Sugarcane 3149 26169 2697 2710 2798
Plantain 172 201 265 304 282
Mango 208 212 214 219 217
Cashew nut 207 205 198 206 210
Tapioca 734 532 543 649 365
Chillies 36 17 5 8 12
Otherfood crops 510 517 491 531 524
Total food crops 36736 37270 36649 35533 35833
II Non-Food Crops
Cotton 961 549 459 453 357
Groundnut 2222 2017 1463 1046 898
Gingelly 169 147 124 147 133
Coconut 2083 2117 2132 2176 2214
Other non-food crops 2303 2553 2977 3236 2969
Total Non-Food Crops 7738 7383 7155 7058 6571
Grand Total (Food & Non- 44474 44653 43804 42591 42104
Food crops)
Source: Directorate of Economics & Statistics, Pondicherry.
 127

Table 3.12 and 3.13 revealed that during the year 2005-06 the total area

irrigated under different crops was 33643 hectares which constitutes 77 per cent of

the total cropped area i.e. 42184 hectares in the Union Territory of Pondicherry as

against 35180 hectares (i.e 79 Per cent) of the year 2001-02. The area irrigated

under different crops was reduced by 2 per cent in the year 2004-05 as against the

year 2001-02.

Table 3.14 reveals the percentage of gross area irrigated under different

crops for the Union Territory of Pondicherry as a whole in the year 1999-2000.

TABLE 3.14
Gross area irrigated under different crops
Gross area irrigated
Sl.No. Name of the Crop in 2004-2005 Percentage
(in hectors)
1. Paddy 25723 76.46
2. Ragi 161 0.48
3. Cumbu 152 0.45
4. Sugar Cane 2540 7.55
5. Ground Nut 1720 5.11
6. Other Millets - -
7. Pulses 213 0.63
8. Fruits & Vegetables 960 2.85
9. Condiments and Spices 17 0.05
10. Other non-food crops 2156 6.41
Total 33643 100.00
Source: Directorate of Economics and Statistics, Pondicherry.

From Table 3.14 it is inferred that out of the gross area irrigated for

cultivating different crops, paddy is cultivated in the maximum percentage of

irrigated area (i.e 76.4%), the condiments and spices are cultivated in minimum
 128

percentage of irrigated area (i.e. 0.5%). The fruits and vegetables are cultivated

only in 926 (i.e 2.85 %) out of the total gross irrigated area (i.e 33643 hectares)

3.4 PONDICHERRY MUNICIPALITY

The civic bodies in the Union Territory were constituted by a French

Metropolitan Decree dated 12* March 1880. The above decree divided the entire

region into 8 communes. Each commune was provided with a municipal council

consisting of Mayors and Deputy Mayors and Councilors for the Administration

of its affairs. The decree which was the basic law of municipalities has been

replaced by the Pondicherry Municipalities Act 1973. Which came into force on

26* January 1974. The Pondicherry Municipality which was constituted under the

act of 1973 is a selection Grade Municipality and comprises the erst while

communes of Pondicherry and Mudaliarpet and its headquarters in Pondicherry.

The total number of councilors is 42. Out of 42 wards, 4 wards have been reserved

for schedules castes. The Mayor and Deputy Mayor have been redesignated as

chairman and vice chairman on 31.03.1978 and a special officer has been

appointed to exercise the powers and to perform the duties conferred and imposed

upon the municipal council including the standing committee and other

committees and that of the chairman and vice-chairman and other authorities other

than the commissioner.

 129

The total area of Pondicherry Municipality is 19.46 square kms. This town

has more than 25000 residential houses. The total length of the roads that are

under the maintenance of municipality is 170 kms. The total length of drains

which are under the maintenance of municipality is 340 kms.

T A B L E 3.15
Area of Crops Irrigated
SI. 2001- 2002- 2003- 2004- 2005-
No Crops 02 03 04 05 06
Food Crops - Cereals
Paddy
I Crop 5771 6218 6066 5553 6251
II Crop 14044 14436 14512 12675 12431
III Crop 5629 5483 5685 5914 6383
Total 25444 26137 26263 24142 25065
Ragi 123 125 138 114 121
Cumbu 149 151 102 176 139
Cholam 3 6 1 36 55
Other Millets (Thenai) 0 2 4 0 15
Total cereals 25719 26421 26508 24435 25395
PULSES
Blackgram 97 191 273 309 347
Greengram 71 46 6 6 7
Other pulses 6 20 12 12 35
Total pulses 174 257 327 327 389
Total Food Grains 25893 26678 24762 24762 25784
Sugarcane 2798 2464 2330 2330 1733
 130

Fruits and Vegetables

Banana 282 239 225 274 280
Citrus 0 0 1 1 1
Mangoes 0 0 3 0 0
Guava 11 12 22 28 21
Water Melon - - - - 52
Other fresh fruits 43 24 43 49 3
Tapioca 365 342 464 437 567
Sweet potatoes 0 0 1 0 6
Onion 14 13 16 3 7
Brinjal 45 52 71 102 78
Tomato 2 10 2 2 3
Yam (Karunai) - - - - 2
Lady's finger - - - - 15
Cucumber - - - - 7
Pumpkin - - - - 45
Other Guard - - - - 5
Other Vegetables 137 133 142 147 113
Total Fruits and Vegetables 899 825 990 1043 1205
Condiments and spices
Chillies 11 9 6 15
Turmeric 4 4 3 2
Total Condiments & Spices 15 13 9 17
Total Food Crops 29605 29980 29917 28152
Non-Food Crops
Fibre
Cotton 357 452 575 314
Oil Seeds
Groundnut 860 1142 1169 1238
Coconut 680 664 722 669
Seasamum 52 91 95 361
Mustard 0 0 0 1
Soyabeans 4 0 3 0
Other Oil seeds 0 0 0 0
Total Oil Seeds 1596 1896 1989 2269
 131

Drugs and Narcotics

Betal Vines 21 20 19 19
Other Non-Food Crops
Fodder crops 42 50 60 121
Flower Garden 36 39 43 29
Other Mendicinal Plant
Casuarina 1986 1709 1030 323
Total Non-Food Crops 4038 4166 3716 3075
Gross cropped area
Total Food Crops 29605 29980 29917 28152
Total Non-Food Crops 4038 4166 3716 3075
Grand Total 33643 34146 33633 31227
Areas Cropped more than 12015 12756 12761 12533
once
Net Area Cropped 21628 21390 20872 18694
Source: Directorate of Economics and Statistics, Pondicherry.

3.5 SUMMARY

This chapter has presented a clear view of the Ponlait its functions

administrative set up and the geographical conditions of the Union Territory.