POTENTIAL OF DAIRY INDUSTRIES IN MADHYA PREDESH

1. AND DEMOGRAPHIC COMPARISON WITH AMUL GUJARAT BKBARTARIA, CFA, LLB (HONS), CONSULTANT FOOD AND AGRO INDUSTRIES. POTENTIAL OF DAIRY INDUSTRIES IN MADHYA PREDESH

2. POTENTIAL OF DAIRY INDUSTRIES IN MADHYA PREDESH MADHYA PRADESH IS A POTENTIAL STATE FOR DEVELOPMENT OF DAIRY AND MILK PRODUCT INDUSTRIES THE PURPOSE OF DEVELOPMENT OF DAIRY AND MILK PRODUCTS INDUSTRIES IS PASSING ON THE BENEFITS TO MILK PRODUCERS, ANIMAL OWNERS AND DAIRY FARMERS. EARM REVENUES BY WAY OF TAXATION CREATION OF EMPLOYMENT OPPURTUNITIES GIVE IMPETUS TO INDUSTRIALISATION OF THE STATE

3. POTENTIAL OF DAIRY INDUSTRIES IN MADHYA PRADESH THE PRODUCTS WHICH CAN BE MANUFATURED IN MP ARE DESI GHEE, DAIRY WHITENERS, CHEESE POWDER, DAIRY CREMERS PALM KERNEL OIL, SPRAY MILK POWDER, PANEER AND CASEIN , SHREEKHAND AND MAVA, AND MANY MORE PRODUCTS THERE IS GREAT POTENTIAL FOR SUPPLY OF PASTURISED MILK IN THE STATE

4. MP AND GUJRAT EXCEPT SIX DUGDHA SANGH , AND A FEW MEDIUM SIZED BUSINESS ENTERPRISES THERE ARE NO MANUFACTURERS IN ORGANISED SECTOR AT PERESNT CONTROLS 15% OF TOTAL BUSINESS SMALL PLAYERS ARE THERE BUT DUE TO DIFFICULTY FACED IN SUPPLIES OF MILK THEIR BUSINESS IS ON DECLINE AT PRESENT 65% BUSINESS OF RAW MILK AND MILK PRODUCTS IS HANDLED BY THESE UNORGANISED PLAYERS 20% OF DEMEND IS MET THOUGH THE SUPPLIES OF OUTSIDE STATES IN GHEE, BUTTER, ICECREAM AND MILK. ACCORDING TO OUR SURVEY THE BRAND VALUE OF SANCHI IS NOT VERY HIGH AND IS SELLING DUE TO NON AVAILABILITY OF OTHER BRANDS AND INDIRECT PROTECTION SOME VILLAGES ARE DEPENDING UPON PACKET SUPPLIES OF MILK. FARMERS ARE NOT INTERESTED IN MILKING ANIMALS

5. COMPARISON WITH AMUL Amul collects daily 447000 liters of milk from 21.20 lacks farmers through 10411 milk collection centers and delivers goods of Rs 600 lacks per day through 50000 retail outlets throughout the country Massive employment is provided by Amul through this route in the state The geographical locations of the clusters which supplies maximum milk to Amul is even more underdeveloped than MP

6. THE CONSTRAINTS THERE IS CONSTRAINT IN THE SUPPLY SIDE DUE TO NON AVAILABILITY OF INFRASTRUCTURE FOR COLLECTION OF MILK FROM THE VILLAGES. THIS IS DIMINISHING THE INTEREST OF THE FARMERS THOUGH THE POPULATION OF BOVINE ANIMALS, 12900 (000) IS THE SECOND HIGHEST IN THE COUNTRY AFTER UTTAR PREDESH, 18501(000) AND IN GUJARAT IT IS ONLY 7655(000) (AS PER NDDB STATITICS 17.09.2010) BUT THE MILK SUPPLY IS THE LESSER THAN GUJRAT AND U.P. THE SUPPORT FROM THE STAKEHOLDERS IS NOT SUBSTANTIAL THE GRAZING GROUNDS WHICH WAS ALMOST AVAILABLE WITH EVERY VILLAGE IS NO LONGER AVAILABLE TO THE LIVE STOCK OWNERS SPECIALLY LAND LESS PEOPLE DUE TO GOVRNMENT DECISION . THE FORESTS ARE LIMITED AND THE AVAILABLE FEED RESOURCES FALLS SHORT OF NUTRITIONAL FODDER. THE POPULATIONS OF GOOD QUALITY ANIMALS IS NOT MUCH IN MP ALL THE NATIONALISED BANKS ARE INSURANCE AGENTS AND THEY CHARGE 4-5% INSURANCE PREMIUM FROM FARMERS, IT SHOULD BE 2-2.25 % MAXIMUM THE POPULATION OF ANIMAL DOES NOT HAVE HIGH MILKING ANIMALS

7. PRESENT BUSINESS MODELS FOR PROCUREMENT OF MILK IN UNORGANISED SECTOR ADVANCE TO THE EXTENT OF RS 15000-20000 AS PART COST OF ANIMAL IS GIVEN TO FARMERS AND INTEREST COST IS REDUCED FROM THE PURCAHSED COST OF MILK, AND THE FARMERS PURCHASE ANIMAL OF POOR BREED IN SUCH LOW COST AND THAN SUPPLIES MILK WITH WATER TO EARN PROFITS. THERE IS NO TRAINING AND AWARENESS CAMPS FOR DEVELOPMENT OF DAIRIES MAINTENANCE OF ANIMALS AND ALSO THE TYPES OF MILKING ANIMALS AVAILABLE IN THE COUNTRY IN PUNJAB, GUJRAT AND RAJASTHAN MARGIN MONEY TO THE EXTENT OF 15 % OF THE COST OF ANIMAL IS POVIDED BY GOVERNMENT AGENCIES AND 80 % LOAN IS AVAILABLE TO FARMERS.IN MP NO SUCH SCHEME EXIST THERE IS SUPPLY-DEMAND MISMATCH THE ADJOINING AREAS OF GUJRAT IS SUPPLIED THROUGH ANIMAL AND OTHER PLAYERS TO MEET THE DEMAND.

8. DEMAND -SUPPLY SO IN NUT SHELL IT CAN BE SAID THAT INDUSTRIES SHALL BE SUSTAINABLE WHEN THE SUPPLY OF MILK INCREASES SUBSTANTIALLY TO ATLEAST 300 GMS DAY LEVELFROM PRESENT 263 GMS OR ANY CORPORATE TAKES UP ANY INTEGRATED PROJECT FOR IMPROVEMENT OF SUPLIES AS WELL AS DEVELOPMENT OF MILK PROCESSING CENTRE

9. WOMEN EMPOWERMENT & OTHER BENEFITS THE SHARE OF AGRICULTURE AND LIVE STOCK SECTORS IN GDP IS 15.33 AND 3.93 AND THERE IS GRAET POTENTIAL TO INCERSE THE SHARE OF LIVESTOCK. SUATAINABLE GROTH AND THE RURAL EMPLOYMENT IS CREATED BY DEVELOPING MILK PRODICTION CENTRES. REDUCING DEPENDEBILITY ON ORGANIC FERTILISERS OF THE FARMERS AND PARTICULRLY THE SMALL AND MARGINAL FARMERS FACES LOTS OF HURDLE IN PROVCUREMENT OF ORGANIC FERTILISERS. THE FARM PRODUCE OUTPUT SHALL ALSO INCREASE THE GOBAR GAS PLANST SHALL REDUCE THE BURDEN ON ELECTRICTY AND GAS IS WOMAN SHG IS PROMOTED FOR SUPPLY OF MILK THE WOMAN EMPOWERMENT SHALL TAKE PLACE

10. COMPARISON OF STATES DATA 1997-98 2004-05 2009-10 YEARLY GROWTH RATE (000 TONES) MADHYAPRADESH 5377 5508 7167 2.56% GUGRAT 4913 6745 8844 6.15% RAJSTHAN 6487 8310 9548 3.62% UTTAR PRADESH 12934 16512 20203 4.32% THE GROWTH IN MILK PRODUCTION IN MP IN LAST 13 YEARS AS PER DEPARTMENTOF ANIMAL HUSBANDRY, MINISTRY OF AGRICULTURE IS BELOW THE NATIONAL GROWTH AND THE AVILABILITY OF PER CAPITA MILK IS ABOUT 263 GMS/DAY ( NATIONAL AVERAGE) WHEREAS IN MP IT IS 278 GMS/DAY, IN GUJRAT 418 GMS/DAY IN PUNJAB IT IS 944 AND IN HARYANA IT IS 682, IN ANDHRA IT IS 342. HENCE SURPLUS MILK FOR INDUSTRY IS NOT AVAILABLE AND THE SUBSTATIAL DEMAND FOR MILK PRODUCTS IS MET THROUGH SUPPLIES FROM OTHER STATES FOR VIABLE FOOD PROCESSING UNIT GROWTH IN MILK PRODUCTION IS VERY NECESSARY AND CONSTRAINTS ARE TO BE REMOVED THERE SHOULD BE POLITICAL WILL TO ACHIVE THE SAME.

11. STRATEGY MAKE AVAILABLE GOOD QUALITY ANIMALS THROUGH IMPORT MATCHING OF SUPPLY-DEMAND IS THE CRUX OF THE PROJECT PROVIDE INCENTIVE TO CORPORATES WHO SET UP INTEGRATED MILK PRODCUING AND PROCESSING INDUSTRIES GIVE CONTRACT FARMIMNG STATUS TO THE CORPORATES AND PROVIDE THEM LONG TERM LOANS FOR ADVANCING TO THE FARMERS WHO AGREE TO SUPPLY MILK TO THESE COPORATES AND PURCHASE HIGH QUALITY MILKING ANIMALS

12. ADVANTAGES TO STATE BY INCREASING THE PRODUCTION OF MILK IN THE STATE VARIOUS MILK BASED UNITS WILL AUTOMATCICALLY DEVELOP. WOMEN EMPOWERMENT SHALL TAKE PLACE AND THE QUALITY OF LIFE WILL IMPROVE IN THE REMOTE VILLAGE AND EMPLOYMENT GENERATION SHALL TAKE PLACE. LEATHER AVAILABILITY SHALL IMPROVE. SEVERAL ANCILLIARY UNITS SHALL DEVELOP THE EXISTING COLD STORAGE NETWORK HAVE CAPACITIES FOR CHILLING PLANTS AND STORAGE OF MILK SHALL FIND ALTERNATE PRODUCTS FOR STORAGE AND THEIR INCOME SHALL INCREASE. NEW COLD CHAIN FACILITIES SHALL DEVELOP. PROFESSIONAL MANAGERS AND TECHNOCRATS SHALL GET JOBS. DEPENDEBILITY OF ORGANIC FERTILSER SHALL REDUCE AND SOIL CONSERAVTIONS SHALL TAKE PLACE WITH THE INDUCTION OF ORGANIC FERTILISERS VEGETABLES PRODUCTIVITY SHALL IMPROVE

13. RECOMMENDATION FOR GROWTH THERE ARE 5-6 BIG INFRASTRUCTURS IN MP WHICH ARE NOT ABLE TO PERFORM SATIFACTORIY AND ACHIVE THE OBJECTIVE OF DEVELOPMENT THIS IS A SUGGESION THAT STATE GOVT. SHOULD CONVERT IN STEPS THESE EXISTING DAIRY INFRASTRUCTURE THROUGH PPP (Built Operate Manage) METHOD. THIS SUGESSION IS MADE DUE TO GOVERNMENT MIND TO ATTRACT MORE PRIVATE SECTOR INVESTMENTS. GOVERNMENT SHOULD FORMULTE A SCEHME FOR DAIRY INDUSTRIES IN THE STATE AND JUST LIKE CONTRACT FARMING THE MILK SUPPLY BUSINESS SHOULD BE INCLUDED AND COMPANIES SHOULD BE GIVEN INCENTIVES, PROVIDED LOANS FOR ADVANCING TO FARMERS FOR PURCHASE OF ANIMALS AND COMPANY SHOULD PAY THE LOANS BY WAY OF ADJUSTMENT

14. RECOMMENDATION FOR GROWTH CONTD AT LEAST THE NATIONALISED BANK SHOULD CONSIDER FINACING THE DAIRIES IN THE STATE, AT PRESENT MOST OF THE NATIONALISED BANKS ARE RELUCTANTS. THERE SHOULD BE SEPARATE TARGET WITH EVERY BANK TO FINANCE THE BOVINE ANIMALS THE SHG OF WOMAN ENTREPRENEURS FOR BOVINE ANIMALS SHOULD BE PROMOTED INSTEAD OF MILK COOPERATIVES OF FARMERS. THAT TOO FOR WOMEN OF THOSE FAMILIES WHCIH BELONG TO SMALL AND MARGINAL FARMERS AND LANDLESS GROUP THE CONCESSIONAIRE IN CASE OF PPP PROJECT SHALL ENSURE CREATION OF GOOD INFRASTRUCTURE FOR COLLECTION OF MILK IN THE REMOTE VILLAGES.THIS WILL ENSURE REGULAR SUPPLIES OF MILK CHILLING CENTRES AND STOARGE OF MILK SHOULD BE PROMOTED AS THRUST SECTOR UNITS DESPITE OF SMALL SIZE AND CAPITAL INVESTMENT ON TRANSPORT VEHICLES ( REFRIGERATED VAN) SHOULD BE GIVEN 50% CAPITAL INVESTMENT SUBSIDY AT PRESENT IT 25% UNDER MARKETING INFRASTRUCTURE PROJECT BY NABARD THE CONCESSIONAIRE OR PRIVATE PROMOTERS SHALL PROVIDE GUARANTEE FOR THE LOAN TO WOMEN SHG AND MAKE PAYMENT DIRECTLY TO BANKS

15. RECOMMENDATION FOR GROWTH CONTD THE CONCESSIONAIRE/CORPORATE SHALL MAINTAIN TEAM OF VETERIANRY DOCTORS. THE CONCESSIONAIRE/CORPORATE SHALL ARRANGE AWARENESS PROGRAMMES. ONCE THE MILK AVAILBILITY IN THE STATE IS IMPROVED THE MILK BASED UNITS SHALL FLOURISH AND INDUSTRIES SHALL COME AUTOMATICALLY NARMADA VALLEY AND THE REHABILITATED PERSONS SHOULD BE PROMOTED IN THESE BUSINESS OF REARING OF ANIMAL AND MILK SUPPLY CENTRES , FROM DAY ONE THEIR INCOME WILL START HE EXEMPTION UNDER SECTION 35 AD OF INCOME TAX SHOULD ALSO INCLUDE STORAGE OF MILK AND MILK PRODUCTS THE SALES OF MILK BY FARMERS OR SMALL DAIRY FARMERS SHOULD BE EXMPETED INCOME THERE SHOULD BE CLEAR CUT MENTION OF PROVISION OF AGING OF ANIMAL LIKE DEPRECIATION FOR OTHER ASSETS IN INCOME TAX ACT.

16. B.K.BARTARIA THANKS