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

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

2. OBJECTIVES OF THE DAIRY DEVELOPMENT

DEPARTMENT

(1) Assure a remunerative price for the milk produced by the members of the Milk Producers' Co-operative Societies through a stable, steady and well organized market support.

(2) Distribution of quality milk and milk products to the consumers at reasonable price.

Keeping these objectives in mind, a number of activities are undertaken by the Dairy Development Department, viz., 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 to impart training to farmers about the modern animal husbandry methods and practices.

All activities, which are essential for the upgradation of the milch animals and improving their productivity in the long run, have been undertaken.

Provision of necessary infrastructure facilities for marketing milk and milk products and supply of quality milk to the consumer has been made by way of establishing new chilling centres, pasteurization plants and adoption of modern processing system.

3. DEPARTMENTAL SET UP

The Commissioner for Milk Production and Dairy Development is the Head of the Dairy Development Department. He is Functional Registrar in respect of Dairy Cooperatives in the State. He is also the Ex-officio Managing Director of the Tamilnadu Cooperative Milk Producers' Federation Limited i.e. Aavin.

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 Cooperative Societies Rules, 1988. While discharging the statutory functions, the Commissioner for Milk Production and Dairy Development is assisted by the Deputy Milk Commissioner (Co-operation) who is in the rank of Joint Registrar of Cooperative Societies and a Deputy Registrar at the Headquarters besides 23 Deputy Registrars (Dairying) 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 shown in the annexure.

4. FUNCTIONS OF THE DAIRY DEVELOPMENT DEPARTMENT

The main functions of the Dairy Development Department include orgainsation of societies, registration of societies, supervision and control of primary milk cooperatives, District Cooperative Milk Producers Unions 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 Tamilnadu Cooperative societies Rules, 1988 made thereunder.

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 tonnes 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 2,00,000 lpd. The Commissioner / State Registering Authority, Deputy Milk Commissioner (Co-operation) / District Collectors and Deputy Registrars (Dairying) have been authorised to carry out supervision and periodic inspection of the dairies.

4.1 PRIMARY DAIRY COOPERATIVES MILK

SOCIETIES

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's (Dairying) office functioning at the District for further guidance. The members of Primary Cooperative milk society have to supply milk to the Society which procure milk on quality basis and they 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.

4.2 WOMEN MILK PRODUCERS’ COOPERATIVE

SOCIETIES

In order to encourage the women members to contribute more to the dairy sector, they are being called upon to organise women milk producers' cooperative societies in their respective areas. There are 1451 women milk producers’ cooperative societies functioning in Tamilnadu.

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. Consequent on the bifurcation of the Dharmapuri District and creation of new District namely Krishnagiri, the District Collector of Krishnagiri has been appointed as Special Officer of Dharmapuri District Cooperative Milk Producers’ Unions Ltd., with effect from 27.2.2004.

5. DISTRICT COOPERATIVE MILK PRODUCERS UNIONS

There are 17 District Cooperative Milk Producers' Unions functioning in the State of Tamilnadu covering 30 Districts. There are 16 Dairies in District Co-operative Milk Producers' Unions with an installed processing capacity of 18.92 llpd. Apart from these, there are 39 Chilling Centres in District Co-operative Milk Producers' Unions with installed chilling capacities of 12.83 llpd. Major functions of District Co-operative Milk Producers’ Unions are as follows.

(1) Establishment of chilling centres

(2) Formation of new milk routes to collect milk produced by the members of the societies.

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

(4) Supply of quality milk to Chennai Metro under hygienic conditions.

(5) Fixation of procurement and selling price of Milk

(6) Increase of liquid milk sales by introducing innovative sales promotional activities.

(7) Supply of inputs to the members of the societies.

(8) Render Veterinary Health Service and

emergency service to the cattle of members of primaries, to Impart training on First aid and on Artificial insemination to the staff of member societies.

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

(10) Providing milk cans, milk 'O' testers and LN2 containers.

(11) Salem, Erode, Madurai and Dharmapuri Unions are the Feeder Balancing 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.

(12) 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 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.

6. FUNCTIONS OF THE FEDERATION (TCMPF)

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 Ambattur product Dairy is also engaged in the manufacture of milk products such as Yogurt, Ice Cream, Khova, Gulabjamoon, Buttermilk, Curd and Mysorepak. New products such as ‘Aavin’ Delite, Curd in cup, Lassi, Flavoured Milk in bottles and SMP in retail pack have been introduced during this year.

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 in sachets is being carried out through 23 zones, 529 depots, 172 distribution points, 47 whole sale milk distributors, 50 milk retailers and 50 Milk Consumers’ Co-operative Societies. The sale of milk products is being carried out through 37 parlours, 137 Franchise Retail Outlets (FROs), 12 Wholesale dealers, and 3000 Retailers. The Federation also caters to the needs for functions like marriages by booking Special Orders.

Standardised milk, buffalo milk and double toned milk are being sold through 218 automatic vending machines and 180 Fibre Reinforced Plastic Tanks (FRPs) to the city consumers. Milk products are also sold in certain AVM Units. Sachet milk is also sold from Automatic Vending Machines (AVMs).

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

7. MILK PROCUREMENT:

Most of the rural people especially women, eke out their livelihood by rearing milch animals and supplying milk to the Milk Cooperatives. Keeping this in view and to improve the rural economy and enhance the personal income of the stake holders in rural areas, Government directed the Tamilnadu Cooperative Milk Producers Federation Limited, and District Cooperative Milk Producers Unions to raise the procurement price of the cow's milk from Rs.9.50 to Rs.10.50 per litre and buffalo's milk from Rs.11.44 to Rs.12.50 per litre with effect from 1.6.2004 and that the milk cost as per the revised procurement price should be disbursed to the Milk Producers without any delay. While increasing the procurement price of the milk it is assured that there would not be any increase in the selling price to the consumers.

In order to improve milk production and to generate employment in rural areas, the Hon'ble Chief Minister of Tamilnadu has announced a scheme on 1.6.2004 to increase the number of milch animals in each panchayat union by atleast 1000 over and above the existing number of milch animals. The scheme will be implemented in all 385 panchayat unions in Tamilnadu and necessary steps are being taken to organise loan to beneficiaries through banks at lesser rate of interest to purchase milch animals.

The procurement price payable to milk producers has been revised from 01.06.2004 as follows:

8. MILK SELLING PRICE (SACHETS) :

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

Sachet Milk:

9. MILK PRODUCTION ENHANCEMENT

PROGRAMME

In the State, 12.46 lakhs cows and 2.21 lakhs 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 Theliariases diseases are also provided.

10. ARTIFICIAL INSEMINATION AND ANIMAL

HEALTH ACTIVITIES:

The Artificial Insemination facilities are made available in 2222 Dairy Cooperative Societies. The village level workers in the Milk Producers Cooperative Societies are being imparted training in artificial insemination technology. During the year 2003-2004, 12.14 lakh milch cattle were inseminated with frozen semen and 3.27 lakh calves born during the year 2003-2004. District Co-operative Milk Producers' Unions are operating mobile veterinary units with qualified veterinary doctors. 5022 Dairy Cooperative Societies are covered under animal health programme. They have treated 5.29 lakhs cases in 2003-2004. To attend the distress calls from the members, emergency veterinary units are also operated. During the year 2003-2004, 74 regular veterinary units and 24 emergency units are functioning under the control of District Co-operative Milk Producers' Unions.

11. BREEDING PROGRAMME

As a result of artificial insemination, 1.51 lakhs female calves of superior germplasm were born during the year 2003-2004. Frozen semen straws of 12.56 lakhs of White Cattle and 2.28 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 2003-2004.

12. REHABILITATION OF UNIONS

The Government of India formulated a scheme under 9th Five Year Plan 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 wipe out cash loss in such Unions and make them viable with a suitable rehabilitation plan subject to certain conditions laid down on this issue.

National Dairy Development Board (NDDB) 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 and Government of India have released the first year share of Rs.3.75 crore and the second year share of Rs.2.00 crore for Villupuram and Erode Union respectively. The third year share of Rs. 75 lakh is yet to be received. Both the Unions have utilised the amount to settle the milk cost dues to the producers and started earning profit from the first year of the implementation.

13. SUPPORT TO TRAINING AND EMPLOYMENT PROGRAMME (STEP)

A scheme of Support to Training and Employment Programme for women was introduced during 2002-03, to enhance the socio-economic conditions of the rural women who are heading the family and who do not own any property and the families of Scheduled Castes and Scheduled Tribes who are interested in the Dairy sector, The cost of the scheme is Rs.649.463 lakh. This scheme will be implemented in 3 years in the area of operation of Salem, Erode, Coimbatore, Vellore, Villipuram, Dharmapuri and Tiruchirapalli District Cooperative Milk Producers Unions and 10,000 women will be given training on the principles of co-operative law, artificial insemination, first aid, use of Milk Testing Instruments, detection of adulteration in milk. This scheme is implemented with 90% assistance from Government of India while the remaining 10% is met by the District Cooperative Milk Producers Unions on behalf of the beneficiaries.

The first installment of Rs.132.48 lakhs has been received from the Government of India. Out of which Rs.111.08 lakhs has been spent. Against the target of formation of 110 women's Milk Producers Cooperative Societies and enrollment of 7750 women members till 2003-2004, 110 women Cooperative Milk Producers Societies have been formed and 7688 women have been enrolled as members.

The average milk procurement in the state through Co-operative societies has been increased from 18.88 llpd to 20.60 llpd, which shows an annual growth of 9.11 percent.

In order to ensure better price to members' and procurement of quality milk, the system of testing of milk is introduced at primary level. The steps taken to improve the quality of milk yielded good results. The quality of milk received at Chennai with regard to Fat is increased from 4.3 to 4.5 percent and the SNF (Solid Non Fat) in the milk is increased from 8.2 to 8.3 percent. As a result of these improvement, better quality milk is supplied to consumers.

A total sum of Rs.35.00 crores was pending payment from societies to producers as on May 2001. Pursuant to the efforts taken by the Federation and District Unions in clearing the dues, the payment of dues to the milk producers have been settled fully in the last financial year and it is being maintained in the current year also. Now the milk cost payment is made to the milk producers once in 10 days without any backlog.

209 Milk Producers Cooperative Societies have been organised during the year 2003-2004.

During the year 2000-2001, out of 7626 functioning societies, only 3950 Primary Milk Producers Cooperative Societies had earned profit. To extend the financial benefits such as payment of milk cost in time, payment of bonus and "patronage rebate" to the milk pouring members of the Primary Milk Producers' Cooperative Societies, it is mandatory that every society has to function on profit. Keeping this in mind, effective steps were taken to improve the financial conditions of the societies and as a result of such effective measures all the 7117 functioning societies are working on profit during the year 2003-2004.

(B) DISTRICT UNION LEVEL

The District Cooperative Milk Producers Unions at Salem, Madurai, Coimbatore, Trichy, Erode, Sivagangai, Tirunelveli and the Nilgiris have adopted Common Mnemonic Symbol, which symbolise the supply of quality milk to the consumers. This has paved the way for popularising the brand 'Aavin' among the public.

The Salem and Erode powder plants have obtained Export Licence from the competent authority to export Skim Milk Powder. This will enable these unions to export the milk powder.

From 1996 to 2001 the average sale of Ghee per year was only 3411 M. T. Similarly the average sale of Skim Milk Powder was 2647 M.T per year. As a result of constructive measures taken, the Federation and Unions have improved the sale of Ghee to 6230 M.T and the sale of Skimmed Milk Powder to 9631 M.T in the year 2003 - 2004.

In order to handle the increased milk procurement during the year 2003-2004, the infrastructure facilities at Dairy level as well as at Chilling Centres were strengthened at a total cost of Rs. 25.00 lakhs. New generators were installed for Trichy and Villupuram Milk Unions at a cost of Rs.37.00 lakhs and a new boiler was installed for Villupuram Dairy at a total cost of Rs. 12.00 lakhs.

A new powder packing machine to pack SMP in small packets was also installed at Erode District Co-operative Milk Producers' Union Limited at a total cost of Rs.40.00 lakhs.

In order to overcome the private competition, new Homogenisers will be installed shortly at Coimbatore, Trichy and Chennai at a total cost of Rs. 250.00 lakhs. 

The process of expansion of the capacity of the milk packing facility at Sholinganallur Dairy upto 3 lakh litre per day is under execution at an estimated cost of Rs. 1.5 Crore.

A Cleaning In Place ( CIP ) system for Madhavaram dairy will be purchased and installed at a total estimated cost of Rs. 37.00 lakhs.

It has been proposed to establish a new chilling centre at Thelur village near Vilankudikaikatti in Perambalur District with a handling capacity of 1.00 llpd at a total cost of Rs.2.00 Crores.

During the year 2000-2001, out of 17 District Cooperative Milk Producers Unions only 5 District Cooperative Milk Producers Unions earned profit. During the year 2003-04, 15 District Cooperative Milk Producers Unions namely Erode, Villupuram, Vellore, Salem, Dharmapuri, Coimbatore, the Nilgiris, Madurai, Dindigul Trichy, Thanjavur, Sivagangai, Pudukkottai, Tirunelveli and Kanyakumari are working on profit.

(C) AT FEDERATION LEVEL

The Common Mnemonic Symbol was introduced in Tamilnadu Cooperative Milk Producers' Federation, Chennai on 12.11.2001 by National Dairy Development Board. All the distribution vehicles at Chennai are painted with mnemonic symbol to popularise the symbol.

(2) Advertisement over radio, television, besides permanent displays such as hoardings, advertisements on bus shelters etc., have been done to popularise consumption of Aavin milk and milk products.

(3) Market promotion schemes prizes and gifts to card holding consumers have been introduced to counter private competitors and to encourage other consumers to come to Aavin fold.

(4) The Federation was running on loss upto 2000-2001. As per the directions of Hon'ble Chief Minister effective steps were taken and the Federation has created a historic achievement, by earning revenue surplus of Rs.17.21 crores during the year 2003-04 as a result of the following measures and the competitive marketing strategies adopted.

(1) Reduction in vehicle operating expenditure.

(2) Collection of fresh, pure and quality milk from District Co-operative Milk Producers' Unions to meet the Metro Demand.

(3) Reduction in wastage of films.

(4) Reduction in spillage.

(5) Reduction in Stores inventory.

(6) Reduction in the usage of engineering consumables like Furnace oil, water and electricity in Dairy plants.

(7) Selling of Skim Milk powder, Butter and Ghee at higher competitive price.

(8) Supply of Tetra milk to Air India

(15) GENERAL STATISTICS ON DAIRY DEVELOPMENT SECTOR

As per the direction of the Hon'ble Chief Minister of Tamilnadu it has been proposed to install 14 bulk milk coolers at Milk Producers' Co-operative Societies (MPCS) attached to Thiruvannamalai, Chinnasalem and Jayankondam area to improve the initial quality of milk of the societies, affiliated to the Vellore, Villupuram and Trichy District Cooperative Milk Producers' Unions.

The Buffalo frozen semen station at Erode will be shifted to Pudukudi village in Thanjavur District with all modern facilities to improve buffalo breeding in the State.

It has been programmed to increase the sachet milk sale from 6.13 llpd to 6.75 llpd and the bulk vending milk sale from 0.85 llpd to 0.95 llpd totally 7.70 llpd in Chennai Metro in the year 2004-2005. As a result of continuous quality improvements undertaken, our Metro Dairies at Chennai have now been awarded ISO 9001:2000 for excellence in " receiving, processing, standardising, packing and despatch of liquid milk and flavoured milk." Our commitment to quality has led us further to obtain HACCP (Hazard analysis and critical control point) accreditation, which is under process and will be conferred on our Metro Dairies shortly.

17.  INFRASTRUCTURE FACILITIES

It is expected that the milk procurement in the coming years may go upto 23 – 25 lakhs lpd. To cope up with this situation, it has been planned to increase the chilling, processing, cream handling facilities, powder making facilities in the dairies of the State. A proposal has been prepared to avail financial assistance from National Dairy Development Board to the tune of Rs.25.00 crores for strengthening the infrastructure facilities in Trichy, Madurai, Vellore and Salem DCMPUs. It is also proposed to install one 30 MT powder plant and a 3-lakh lpd dairy with the assistance from National Dairy Development Board funds.

  18.  QUALITY CONTROL LABORATORY

 A Quality Control Laboratory at the cost of Rs.77.88 lakhs on 100% subsidy from the Central Government has started functioning from 31.3.2004. The above Laboratory functions under the direct control of Commissioner for Milk Production and Dairy Development with a view to ensure the supply of quality milk to the consumers, milk samples are being collected from sales points and shops and quality of samples are tested at the above said laboratory. 

 19.  PART II SCHEMES   -  2004-2005

 (1)      5263 Stainless Steel milk cans will be supplied to 1053 Milk Cooperative Societies at a total cost of Rs.1 crore.  The Government of Tamilnadu will bear the 50% of the cost and balance 50% will be met by the beneficiary societies.

(2)      424 LN2 containers with a storage capacity of 3 litres each will be supplied to 424 Primary Cooperative Societies at the cost of Rs.36 lakhs the Government will bear the 50% of the cost and balance 50% will be met by the beneficiary societies.

(3)      6 Bulk milk coolers of 2,000 litre capacity each will be installed at 6 District Cooperative Milk Producers Unions at the cost of Rs.42 lakhs.  The Government share will be Rs.20 lakhs and the balance of Rs.22 lakhs will be borne by the beneficiary unions.

(4)      The road repair works to an extent of 2.8 KM at Madhavaram Milk Colony will be undertaken by the Government at the cost of Rs.30 lakhs.

 20. DEPARTMENT OF AUDIT FOR MILK COOPERATIVES

The Department of Audit for Milk Cooperatives is functioning from 1.10.1987. This Department is entrusted with the statutory audit of village level Primary Milk Cooperative Societies, District Level Cooperative Milk Producers' Union and the State Level Tamilnadu Cooperative Milk Producers' Federation.  In this department there are 370 employees who are working under lent service basis from other departments like Cooperative Department etc.

AUDIT PROGRESS

(A)   Audit of Primary Milk Cooperative Societies:

 Out of 8555 Societies programmed for audit for the year 2002-2003, audit in respect of 6089 societies has been completed as on 31.3.2004.  Audit in respect of 2466 societies is in progress.

 (B)  Audit of District co-operative Milk Producers' Union:

 Audit Certificates were issued for all the District Cooperative Milk Producers' Unions upto 1998-99.

Audit for the year 1999-2000:

 Out of 17 Unions, Audit Certificates issued for 16 Unions. Audit for the remaining one union is under progress.

 Audit for the year 2000-2001:

 Out of 17 unions, audit certificates issued for 14 unions.  Audit for 3 union is under progress.

 Audit for the year 2001-02:

 Out of 17 unions, audit certificates issued for 12 unions.   Report received for one union and audit for 4 unions is under progress.

 Audit for the year 2002-2003:

 Out of 17 unions, audit certificates issued for 7 unions and audit for 10 unions is under progress.

 (C) Audit of the Tamilnadu Cooperative Milk Producers' Federation:

 Audit certificate has been issued upto 1999-2000. The certificate for the year 1999-2000 will be issued after test audit by Director of Audit for Milk Cooperatives. For the year 2000-2001, audit has been completed and FAM has to be issued. Audit for the year 2001-2002 is in progress and for the year 2002-2003, audit is to be commenced, shortly.

 GOVERNMENT REVENUE:

 For the audit year 2000-2001 and 2001-2002, under Audit Fees and F.R. Cost Rs.278.73 lakhs was collected and remitted into Government account out of the demand amount of Rs.287.28 lakhs upto the month of March, 2004.

 For the audit Year 2002-2003, under Audit Fees and F.R. cost Rs.155.29 lakhs were collected and remitted into Government account out of the demand amount Rs.160.98 lakhs upto the month of March 2004.

21.  SUMMING UP

The Dairy Development Department encourages rural farmers who own milch animals to come into Co-operative fold by becoming members of the respective Societies so as to enable them to get better price for their milk.

All 17 District Co-operative Milk Producers' Unions, and the Tamilnadu Co-operative Milk Producers Federation Limited are marketing different varieties of quality milk and milk products to the consumers in the brand name of "Aavin" to cater to the needs of the consumers.  The Federation and Unions provide immense opportunities to the unemployed youth, who may approach the Department for agencies for selling liquid milk and milk products such as Ghee, Butter, Ice cream, Khova etc., and earn regular income and enhance their standard of living. The performance of the Dairy Development  Department and Aavin has scaled a new high during the year 2003 – 2004 as a result of the vision and dynamic leadership of the Honourable Chief Minister. Aavin, which was not only reeling under tremendous financial loss and erosion of their market share but also was not able to settle the milk dues to the producers, has been turned around totally and has been making profits continuously for the past three years.

The strategies devised during the current year under the able guidance of the Honourable Chief Minister would usher us into a new era of Dairy Development improving the lot of the farmers.

                S. RAMACHANDRAN,

MINSTER FOR MILK AND DAIRY DEVELOPMENT.