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

67
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

68
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
69
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
5
per cent while in semi-arid areas the contribution is over 40 per cent”. 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 LS GDP
sector) % to Agri.
Rs. % Rs. % GDP
Share 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.

71
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
72
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
16
in India. 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
73
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

74
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
21
population and an increase in milk production by about 30 % in five years.
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
75
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
76
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.

77
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)
Amt. Spent Amt. Spent
Total
Sr. on Animal on
Plan Period Plan Total (A +B)
No. Husbandry Dairying
Outlay
(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 6626 413.3 261.4 674.7(10.18)
(1966-1969)
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 N.A. N.A. N.A. 2669.9
(1978-1980)
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

79
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
33
producer and a reasonable price to consumer. 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
34
handling plants and 6 milk product factories 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.

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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
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 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.
82
 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
83
breeding policy. The project is being implemented by State Implementing
Agencies (SIA’s). Presently, 26 states and 1 UTs are participating in the
48
project.

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

84
 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

85
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
Projection for the
Sl. Livestock Growth Rate
Unit Year
No. Products (in percent)
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

86
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.
87
 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
58
and Union Territory of Delhi. 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
59
of Rs.77 crores by the IDC. 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.
88
 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. Pre-
1978 1979- 1980- 1981- 1982- 1983- 1984-
No Area of Impact progra
-79 80 81 82 83 84 85
. mme
1. No. of milk 1.5 2.4 4.1 5.7 7.4 8.7 9.8 10.2
producers families
(in millions)
2. No. of improved 0.8 1.4 2.6 3.9 5.6 7.3 8.9 10.2
milch animals
(in millions)
3. Milk procured and 2.3 3.9 6.4 8.4 10.8 13.5 16.0 18.3
marketed by Co-
operatives (daily
average in million
Lts.)
4. Milk production per 107 107 108 112 118 125 135 144
capita daily in India
(in gms.)
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

89
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.

90
 Table No. 3.5
Growth of Village Milk Producers Co-operatives and Procurement under
Operation Flood at a Glance ( 1970-1995)

No. of Co- Member Annual Milk

Year operative Producers Procurement
Societies (‘000’) (‘000’ Tonnes)
Operation Flood I
1970-71 1588 278 189.8
1975-76 4533 562 419.7
1980-81 13270 1747 934.4
Operation Flood
II
1981-82 18422 2124 1014.7
1982-83 23498 2620 1613.3
1983-84 28614 3116 1901.6
1984-85 34523 3632 2109.7
Operation Flood
III
1985-86 42692 4484 2876.2
1986-87 49077 5097 2865.2
1987-88 54525 5666 2810.5
1988-89 58883 6250 2909.0
1989-90 60825 7003 3582.1
1990-91 63415 7482 3541.3
1991-92 64057 7945 3428.0
1992-93 65469 8371 3856.8
1993-94 67247 8667 4054.6
1994-95 72600 9263 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.

91
 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
Operation Flood Phases
Key Parameters
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 2.56 5.78 10.99
procurement(mkgpd)
Liquid milk 27.9 50.1 100.2
marketing(llpd)
Processing Capacity
Rural Dairies(llpd) 35.9 87.8 180.9
Metro Dairies(llpd) 29.0 35.0 38.8
Milk drying 261.0 507.5 842.0
capacity(mtpd)
Technical Inputs
No. of AI Centres 4900 7500 16800
No. of AI done/year 882000 1330000 3940000
Cattle feed 1.7 3.3 4.9
capacity(000MTPD)
States Covered Bihar, Gujarat, Bihar, Gujarat, Bihar, Gujarat,
Haryana, Haryana, Haryana,
Karnataka, Karnataka, M.P., Karnataka, M.P.,
M.P., Maharashtra, Maharashtra,
Maharashtra, Rajasthan, U.P., Rajasthan, U.P.,
Rajasthan, West Bengal, West Bengal, A.P.,
U.P., West A.P., Assam, Goa, Assam, Goa, H.P., J
Bengal H.P.,J & K., & K., Kerala, Orissa,
Kerala, Orissa, Sikkim, Tamil Nadu,
Sikkim, Tamil Tripura, Andaman &
Nadu, Tripura, Nicobar and
Andaman & Pondicherry,
Nicobar and Nagaland
Pondicherry
Source: Vijay Paul Sharma,2000
Note: llpd- lakh litres per day, mtpd-metric tones per day, mkgpd-million kilo gram per
day

92
 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.

93
 Table No.3.7
Dairy Co-operatives- Progress on Key Parameters during 2008-09
No.of DCS Farmer Women Milk Milk
State/UT Organize Members Members Procurement Marketing
(Cumulative) ‘000’ ‘000’ (TkgPD) @(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

94
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
95
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.

96
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,

97
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

98
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 54.4 47.3 51.0 51.8 53.4 54.6 59.2 62.1 64.4 64.4 64.5
Female
Cattle
Buffalo 43.4 44.9 51.2 53.0 57.4 62.0 69.8 76.0 84.2 89.9 97.9
Adult 21.0 21.7 24.3 25.4 28.6 31.3 32.5 39.1 43.8 46.8 51.0
Female
Buffalo
Total 198.7 203.6 226.8 229.2 235.7 242.0 262.2 275.7 288.8 288.8 283.1
Bovines
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 1.5 1.5 1.3 1.1 0.9 0.9 0.9 0.8 0.8 0.8 0.8
and
Ponies
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 292.9 306.6 336.5 344.5 353.2 369.4 419.6 445.2 470.9 485.4 485.0
Livestock
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

99
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
Population (000) Population (000) % Increase/
Livestock
Year 1997 Year 2003 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 288799 283103 -1.97
Population
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

100
 Table No. 3.11
Distribution of Livestock Population According to Size of Landholding
(All India, In Millions)

Marginal Small 1 Semi- Medium Large

Category
Below 1 to 2 medium 2 4 to 10 Above All
of Land
Hect. Hect. to 4 Hect. Hect. 10 Hect. Class
Holdings
(57.1)* (20.3)* (17.7)* (7.3)* (1.6)*
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 161.56 120.85 88.48 64.44 20.98 438.36
(36.85)** (27.56)** (20.18)** (14.70)** (4.78)**
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.

101
 Table No.3.12
Milch Bovine Population by Sates (2003) (In Thousands)
Crossbred Female
Indigenous Milch Bovine
State/UT over 2 and ½ Total Buffalo over 3
over 3 Yrs. Total
Yrs. Yrs.
Andaman & 5 16 22 6 27
Nicobar
Andhra 537 2221 2758 5847 8605
Pradesh
Arunachal 5 143 148 5 153
Pradesh
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 1 12 12 2 14
Haveli
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 359 520 879 501 1379
Pradesh
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 142 6031 3173 4159 10332
Pradesh
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

102
 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)
1997 2003
Sr.No Animals
World India World India
1 Cattle 1309 198.88 1350 185.18
(15.19) (13.71)
2 Buffalo 159.2 91.93 170.3 97.92
(57.74) (57.49)
3 Sheep 1043.1 57.49 1038.7 61.47
(5.51) (5.91)
4 Goat 679 122.72 771.5 124.36
(18.07) (16.11)
5 Horse 57.1 0.83 55.1 0.75
(1.45) (1.36)
6 Camel 18.0 0.91 19.2 0.63
(5.05) (3.28)
7 Pig 830.7 13.29 941.5 13.52
(1.59) (1.43)
8 Mule 13.2 0.22 12.9 0.18
(1.66) (1.39)
9 Donkey 40.4 0.88 41.5 0.65
(2.17) (1.56)
Total 4149.7 477.15 4400.7 484.66
(11.49) (11.01)
Source: Livestock Census Directorate of Economics and Statistics
M/O Agriculture and various Census Report

103
 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.

104
 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)

105
 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

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

106
 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
2.45 2.45 2.45
Republic of)
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

107
 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.

108
 TABLE 3.17
World Top TenTotal Milk Producing Countries during 2008
(Figures in Lakh Metric Tonnes)
% to
Sr.No. Country Cow Buffalo Total
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
Russian
5 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
New
9 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.

109
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
Production(Million Per Capita
Year
Tonnes) 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

110
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.

111
 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

112
 Table No. 3. 2 0
113
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

114
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
115
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

117
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.

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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.
119
 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

120
 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 –

121
 • 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

122
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.
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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 .

124
 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)
Dividend
Year Gross Profit Turnover
(Incentives)
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.

125
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.

126
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 7 121 1007 3868 22709 10018 10254 10254
Borrowings
Working Capital 10 345 2103 22663 1028514 68808 70427 77471
Milk procured 7 784 8541 20175 128578 138020 141268 153395
(Value)
Milk & Milk 8 904 8831 35143 131110 59687 65397 71937
Products sold
(Value)
Union/Society in 6 23 51 36 42 45 47 51
Profit
Amount of Profit 0.09 12 29 148 13019 1266 1152 1270
Union/Society in 9 20 30 22 22 41 33 45
Loss
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.

127
 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 7 1 289 1827 13426 3888 3944 3944
Borrowings
Working Capital 26 314 1992 12950 1241321 24897 25256 27782
Milk procured 67 810 8531 35052 3234941 109946 111531 128260
(Value)
Milk & Milk 69 841 9132 29914 3403403 64954 67081 77143
Products sold
(Value)
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

128
 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- chan
1961 1966 1972 1978 1982 1987 1992 1997 2003 2007
cular ge
#
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 7273 7326 8038 10199 10376 12068 13015 14802 13624 14262 5.2
& Goat
Other 360 352 317 326 410 448 489 692 612 417 -33.3
Live-
stock
Total 26048 25449 26361 29642 30919 34255 36393 39638 37058 36915 -0.5

LS per 66 57 52 51 48 48 45 50 39 38 -2.56
lack of
popu-
lation
Source: Livestock Census, Economic Survey of Maharashtra 2008-09
# Percent change in 2007 over 2003

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 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.

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 Table 3.26
Milk Production During the year 1970-71 to 2007-08
Milk (000 Per Capita
Sr. No. Year
Tonnes) 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.

131
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. Total Milk
District Ind. Cow C.B. Cow Buffaloes Goats
no. 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 890.95 449.10 4362.07 98.59 5800.71
Total (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 2865.33 9596.30 5846.80 737.11 19045.54
Total (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

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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 1323.17 2363.50 2262.07 342.44 6291.18
Region Total (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 1262.10 850.90 2089.41 267.60 4470.01
Total (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 886.14 1441.80 1640.30 175.28 4143.53
Total (5.75)
Maharashtra State 10337.72 27632.30 31474.00 2653.46 72097.48
Total (14.34) (38.33) (43.65) (3.68) (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.

133
 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.)

134
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138