Dairy Development Department

Dairy Development Department And Milk Supply Schemes In Tamil Nadu

Policy Note - 2003-2004

Demand No. - 8

Dairy sector has assumed much significance by generating income not only to the rural but also to the urban and semi-urban population in the state especially to women folk by providing self employment opportunity.  Milk and milk products provide essential nutrition to all walks of life.  It provides livelihood to millions of small and marginal farmers in the state. Tamilnadu is an agricultural oriented State and majority of the farmers owns cattle. Dairying provides the main source of income next to agriculture. In a tropical country like India, agriculture may fail sometimes, due to monsoon failure but dairying never fails and gives them regular, steady income.

The State Dairy Development Department was established in 1958. The administrative and statutory controls over all the milk cooperatives in the State were transferred to the Dairy Development Department on 1.8.1965.  The Commissioner for Milk Production and Dairy Development was made as the functional Registrar under the Tamilnadu Cooperative Societies Act. With the advent of 'Anand pattern' in the State of Tamilnadu, Tamilnadu Co-operative Milk Producers' Federation Limited was registered on 1st February 1981.  The commercial activities of Department such as Milk Procurement, Processing, packing and sale of milk to the consumers etc., hitherto dealt with by the Tamilnadu Dairy development Corporation Ltd., was transferred to the newly registered Tamilnadu Co-operative Milk producers' Federation Ltd.

In the wake of liberalization policy, private dairies have entered in the field of dairying.  As per the direction of Hon'ble Chief Minister of Tamilnadu high priority has been given for improving the performance of Co-operatives by adopting a systematic approach and proper strategy implementation in Milk Co-operatives. Significant achievement has been made by Milk Producers' Cooperative Societies, Unions and Federation in the State of Tamilnadu.

TWO FOLD OBJECTIVES OF THE DAIRY DEVELOPMENT DEPARTMENT

1. Assure a remunerative price for the milk produced by the milk producers' societies through a stable, steady and well organized market support.

2. Distribution of quality milk and milk products at reasonable prices to the consumers.

Bearing the above two objectives in mind, the following major multifarious activities are undertaken by the Dairy Development Department.

Provision of free veterinary health cover to all animals owned by the members of milk cooperatives, implementation of Artificial Insemination Programme, supply of balanced cattle feed and inculcation of farmers with the modern animal husbandry methods and practices.

All activities, which are essential for the up gradation of the milch animals and improving their productivity in the long run, are also to be imparted on them.

Provision/creation of necessary infrastructure facilities for the enhancement of processing and marketing has been made by way of establishing new chilling centres, pasteurization plants and adoption of modern marketing system in order to supply quality milk to the consumers.

3. DEPARTMENTAL SET UP

The Commissioner for Milk Production and Dairy Development is the Head of the Dairy Development Department in Tamilnadu.  He is Functional Registrar in respect of Dairy Cooperatives.  He is also the Ex officio Managing Director of the Tamilnadu Cooperative Milk Producers' Federation Ltd.,

The Commissioner for Milk Production and Dairy Development exercises all the statutory powers with regard to the registration of societies, supervision, inspection, inquiry, disputes, liquidation of milk cooperatives including the District Cooperative Milk Producers' Unions and Federation under the relevant provisions of the Tamilnadu Cooperative Societies Act 1983 and Tamilnadu Cooperatives Societies Rules 1988.  In discharging the statutory functions, the Commissioner for Milk Production and Dairy Development is assisted by the Deputy Milk Commissioner (Cooperation) in the rank of Joint Registrar of Cooperative Societies and a Deputy Registrar at the Headquarters besides 23 Deputy Registrars at the District level by way of conferring the powers of the Functional Registrar.  The details of staff working in the office of the Commissioner for Milk Production and Dairy Development are enclosed in the annexure.

FUNCTIONS OF THE DAIRY DEVELOPMENT DEPARTMENT

The main functions of the Dairy Development Department are Orgainsation of societies, registration of societies, supervision and control of primary milk cooperatives, District Cooperative Milk Producers Union and Tamilnadu Cooperative Milk Producers Federation.

The Dairy Development Department exercises statutory function - like Inquiry, Inspection, Surcharge and Supersession, appointment of special officers liquidation and winding up of dormant Societies etc.  The Commissioner for Milk Production and Dairy Development, Deputy Milk Commissioner (Co-operation), and Circle Deputy Registrars (Dairying) are vested with quasi-Judicial powers in respect of settlement of disputes, appeal, revision and review under various provisions of Tamilnadu Cooperative Societies Act 1983 & the rules made there under.

The Commissioner for Milk Production and Dairy Development has been designated as the State Registering Authority for the state of Tamilnadu, under the provisions of Milk and Milk Products Order'92. All the Dairy units including private Dairies handling more than 10,000 lpd of milk or Milk Products containing milk solids in excess of 500 Metric tones per annum has to obtain registration certificate under the provision of Milk and Milk Products Order'92. The Commissioner for Milk Production and Dairy Development / State Registering Authority has been conferred with powers to register the dairy units having handling capacity from 10,000 LPD to 2 lakh LPD. The Commissioner / State Registering Authority / Deputy Milk Commissioner   (Co-operation) / District collector and Deputy registrars have been authorised to carry out supervision and periodic inspection of the dairies.  

PRIMARY DAIRY COOPERATIVES

A minimum of 25 or more individuals competent to contract under section 11 of the Indian Contract Act of 1872 owning milch animals can form a primary Dairy Cooperative Society, with one or more villages as its area of operation. Such persons have to approach the Circle Deputy Registrar (Dairying) office functioning at the District for further guidance. The members of Primary Cooperative milk society have to supply milk to the Society which will procure milk on quality basis and they will receive milk cost once in 10 days / 15 days from the Society. Milch animals are provided with free veterinary health cover, artificial insemination and the supply of balanced cattle feed. Induction of farmers on modern animal husbandry practices are aimed at by upgrading the milch animals and thereby improving their productivity in the long run for the benefit of the members.  

WOMEN MILK PRODUCERS COOPERATIVE SOCIETIES

In order to encourage the women member to contribute more to the dairy sector they are called upon to organise women milk producers' cooperative societies in their respective areas.  There are 1404 women milk producers cooperative societies functioning in Tamilnadu

APPOINTMENT OF SPECIAL OFFICERS

Primary Milk Cooperative Societies and District Cooperative Milk Producers Unions and Federation were previously administered by elected Boards. As the terms of office of the members of elected Board already expired and as they were continuing only on extended term of office as per section 33(10)(aa) of Tamilnadu Cooperative Societies Act 1983, the Government issued orders terminating the extended term of office of members of Boards of these societies and the Special Officers have been appointed under section 89(1) of Tamilnadu Cooperative Societies Act 1983. All the primary Milk Cooperative Societies are now functioning under the Control of Special Officers since 26.5.2001.  In respect of District Cooperative Milk Producers Unions, the Collectors of respective Districts have been appointed as Special Officers and for Tamilnadu Cooperative Milk Producers Federation Ltd., the Managing Director of the Federation has been appointed as Special Officer.

FUNCTIONS OF DISTRICT COOPERATIVE MILK PRODUCERS UNIONS

There are 17 District Cooperative Milk Producers' Unions functioning in the State of Tamilnadu covering 28 Districts.

There are 16 Dairies in District Co-operative Milk Producers' Unions with an installed processing capacity of 18.76 LLPD.

There are 39 Chilling Centres in District Co-operative Milk Producers' Unions with installed chilling capacities of 11.64 LLPD respectively.

Establishment of chilling centers

Formation of new milk routes to collect the milk produced by the member societies

Collection of milk from societies, process and pack in modern dairy plants by maintaining quality standards.

 Supply of quality milk to Chennai Metro under hygienic conditions.

Fixation of procurement and selling price of Milk.

Increase of liquid milk sales by introducing innovative sales promotional activities.

Supply of inputs to the member societies obtained from unions.

Render Veterinary Health Service and emergency service to the cattle of members of primaries

Impart training on first aid and on Artificial insemination to the staff of member societies.

Extending Artificial insemination services to the cattle owned by the members of Milk Cooperative Societies.

Providing milk cans, milk 'O' testers and LN2 containers.

Salem, Erode, Madurai and Dharmapuri Unions are acting as Feeder Balance Dairies. Surplus milk in the District Unions, after meeting their local sales is diverted to the nearest Feeder Balancing Dairies for conversion into milk products, such as Skim Milk Powder, Butter and Ghee.

The three Cattle Feed Plants at Madhavaram, Erode and Kappalur are run by the Kancheepuram -Tiruvallur Union, Erode Union, Madurai Union respectively. The production capacity of these cattle feed plants is 100 MT per day each. The balanced cattle feed is produced in the form of pellets and mash are supplied to the members of the Milk Co-operatives, livestock farms manned by the Animal Husbandry Department and to various local bodies including the Corporation of Chennai.

FUNCTIONS OF FEDERATION:

The Tamilnadu Co-operative Milk Producers' Federation Limited is an apex body of 17 District Cooperative Milk Producers' Unions. The Federation has four dairy plants in Chennai, one at Ambattur with a capacity of 4.00 lakh litres per day, another at Madhavaram with a capacity of 2.00 lakh litres per day and the third dairy at Sholinganallur with a capacity of 4.00 lakh litres per day.  These dairies collect milk from District Unions process and pack in sachets and send for sale to the consumers in and around Chennai City.  The fourth dairy at Ayanavaram is engaged in the manufacture of milk products such as Yogurt, ice cream, khova and Mysorpa.

The marketing of Milk and Milk Products of the Federation is being carried out by the three wings namely,

1. Metro Liquid milk marketing.

2. Metro Milk Product marketing.

3. Up country marketing.

Marketing of the products in Chennai Metro and suburbs are directly carried out by the product wing of the Federation located at Nandanam.  The products are stored at the godown at Ambattur and distributed to the outlets.

The sales of milk and milk product is being carried out through 36 parlours, 125 Franchise Retail Outlets (FROs), 8 Wholesale dealers, 3000 Retailers and 44 Milk Consumers' Co-operative Societies.  Federation also caters to the needs for functions like marriages by booking Special Orders.

Standardised milk is being sold through 217 Automatic Vending Machines and 178 FRPs to the city consumers.  Milk products are also sold in certain AVMs Unit. Recently, sachet milk sales are also introduced in AVMs unit.

The Federation coordinates the activities of the District Unions and provides technical expertise as and when required and also undertakes planning and erection, expansion and commissioning of Dairy Plants and Chilling Centres of the unions on turnkey basis.  The Federation helps the unions in marketing their by products like skim milk powder, ghee, butter and cheese in Tamilnadu and in other States.

PROCUREMENT PRICE:

The procurement price payable to milk producers was revised from 01.12.2001 as follows:

SELLING PRICE:

The selling price of Toned / Standardised / Full Cream milk in sachets and in AVM units are as detailed below:

INPUT PROGRAMME - MILK PRODUCTION ENHANCEMENT PROGRAMME:

13.07 lakh cows and 2.72 lakh buffaloes are under the Co-operative fold and they are provided with breeding cover through artificial insemination by using frozen semen.  Producer members are supplied with cattle feed and fodder for their animals.  Health cover through mobile veterinary units and vaccination against Foot and Mouth Disease and Theileriasis diseases are also provided.

 ARTIFICIAL INSEMINATION AND ANIMAL HEALTH  ACTIVITIES:

The Artificial Insemination facilities are made available in 2515 Dairy Cooperative Societies. The village level workers in the Milk Producers Cooperative Societies have been imparted training in artificial insemination technology.  During the year 2002-2003, 12.26 lakh milch cattle were inseminated with frozen semen and 3.07 lakh calves have born during the year 2002-2003.  District Co-operative Milk Producers' Unions are operating mobile veterinary units with qualified veterinary doctors. 4539 Dairy Cooperative Societies are covered under animal health programme.  They have treated 5.35 lakh cases in 2002-2003.  To attend the distress calls from the members, emergency veterinary units are also operated.  During the year 2002-2003, 56 regular veterinary units and 35 emergency units are functioning under the control of District Co-operative Milk Producers' Unions.

 BREEDING PROGRAMME:

As a result of artificial insemination, 1.48 lakhs female calves of superior germ plasm were born during the year 2002-2003.  Frozen semen straws of 10.83 lakhs of White Cattle and 2.95 lakhs of Black Cattle were produced at the Nucleus Jersey and Stud Farm (NJF) at Udhagamandalam and in the Buffalo Frozen Semen Station (BFSS) at Erode respectively during the year 2002-2003.

REHABILITATION OF UNIONS -  9th FIVE YEAR PLAN - CENTRAL SECTOR PLAN SCHEME- ASSISTANCE TO CO-OPERATIVES  

The Government of India formulated a scheme to rehabilitate District Co-operative Milk producers' Unions, which envisages 50% grant from the State Government and 50% matching grant from Government of India to the loss making District Co-operative Milk Producers' Unions subject to certain conditions laid down on this issue. 

National Dairy Development Board after their preliminary assessment have selected two District Unions namely Erode and Villupuram.  Under this scheme Government of Tamilnadu have released a sum of Rs.6.50 Crore.  Govt. of India have released Rs.1.50 crore and Rs.2.25 crore, towards the first year share for Villupuram Union and Erode Union respectively.

Both the Unions have utilised the amount to settle the milk cost dues to the producers.