Proposal for Strengthening
of
The Dairy Sector
In
Bundel-khand Region
of
Uttar Pradesh
Department of Dairy Development, U.P.
Total Project Cost – Rs. 26.74 Crore
State Project Implementing Unit for Dairy Sector
Pradeshik Cooperative Dairy Federation
29, Park Road, Lucknow
A Proposal for rebuild up of Dairy Activities in the
Bundel-khand region of the State of Uttar Pradesh
under the aegis of
the Dairy Development
Department against the ASA Package Sanctioned by
the Central Govt.
As per the directives of the State Govt. a proposal for the districts in the
Bundel-khand region of the State is being placed for financial assistance to the
tune of 2673.93 lac Rs./- to initiate intensive Dairy Development activities in
the region for socio economic empowerment of the small & marginal farmers
of the region via cooperative dairy network.
Objective: The proposed initiative would be helpful for socio economic
empowerment of the village based milk producers in the region.
Proposal: It is proposed to organize a total of 560 New Village Dairy Coop.
societies in the region so as to ensure round the year additional market
network for the milk producers at the farmer’s doorsteps in the region.
To ensure that even the remotest of villages are covered via the
proposed network, financial assistance for hired transport vehicles to procure
milk from the remotest of rural pockets has been proposed under the head
promotional activities. In addition TIP activities (Distribution of Mineral
Mixture/ Provision for First Aid & Emergency Services, Distribution of
UMLB, Fodder Minikits etc) are being proposed so as to ensure that Dairying
as a self employment activity is a commercially viable venture at the level of
the Dairy Farmers.
Training & Extension activity is being proposed for Capacity Buildup.
In order to ensure effective regulation of milk price payment to the affiliated
milk producers, working capital for 15 days of the milk price to be paid is
being desired for.
Under the proposed scheme of things it is being envisaged that the
current level of milk procurement which stands at 13,000 kgs /day (i.e. 0.88 %
of marketable surplus) would go up to 59,680 kgs /day, which would be 4.06
% of the marketable surplus. In the context increased levels of milk being so
procured would need to be marketed effectively (Available market in Jhansi &
the newly developing urban areas nearby), a New Chilling Center & a Dairy is
being proposed here, together with up-gradation & modernization of Dairy
Units in the region. As per the proposed plan the proposed initiative would be
commercially empowering venture for the masses in the region.
Current Status of Dairy Development in the Bundel- khand Region:
1- All the seven districts of the region are being catered to by 05 Milk
Unions.
2- As per the statistical figures available Milk Production in the region
stands at 29.58 lac Kgs against which the marketable surplus reads
14.70. (Annexure 2)
3- Against the total Abad Grams in the region, which stand at 4567 a total
of 1012 VDCs have been organized out of which 431 are functional.
4- At the moment a total of 13,000 kgs of milk is being procured which is
0.08 % of the marketable surplus.
5- Dairy cooperatives are offering 20.00 Rs./- per liter of milk at 6.5 % Fat
& 9.0 % SNF.
Proposed Extension & TIP Program:
1- Extension Program (Chaupal, Milk Day, Calf Rally & Exposure Visits)
2- Training & Capacity Build Up.
3- Technical Inputs Program (Viz: Distribution of Green Fodder Mini kits/
Vaccination/ Mineral Mixture/ UMLB/ Balanced Cattle Feed/
Chemical treatment of Dry Fodder for nutritional enhancement.
The Proposed Program Components:
1- Village level Dairy Co-operative Society:
A total of 80 village level dairy co-operative societies are proposed to be
organized per distt., taking the tally to 560 functional village dairy coop.
societies in the region. In the context as per the proposed action plan 40 VDC’s
are to be organised per distt in the first year (2010-11), followed by 40 VDC’s
second year viz: 2011-2012. At the prevailing rate of 50,000.00 Rs./- per VDC
being organized a total of 280 lac Rs./- is being desired under the proposed
head.
Year
VDC’s
Unit Rate Rs./- (000)
Total Amount (In Lac
Rs./)
140.00
140.00
280.00
Details are as per annexure 01.
2010-11
2011-12
Total
280
280
560
50
50
2-Milk transport Expense: Remotely placed villages would be networked &
procurement of milk ensured via hired vehicles. Thus financial assistance is
being proposed under this head. As per the proposed plan after the project
initiative gets completed the increase in the level of milk being procured from
the region would make the milk routes viable for years to come. Year wise
funds desired under this activity reads as follows:
Year
2010-11
2011-12
Total
No of Distts.
07
07
Amount (In Lac Rs./)
42.00
42.00
84.00
Details are as per annexure 01.
3-Working Capital for regulation of Milk Price Payment to Milk Producers:
To ensure regular milk price payment to the village based milk producers
working capital is the need of the hour & is being desired i.e. the amount
required for 15 days payment @ Rs./- 26.00 per liter. The amount desired
under the head reads 487.114 lac Rs./-. Year wise funds being desired for
under the proposed initiative reads as follows:
Year
2010-11
2011-12
Total
No of Distts.
07
07
Amount (In Lac Rs./)
254.358
232.752
487.110
Details are as per annexure 01 & 02.
4- Technical Inputs Program: Technical Inputs program components are
proposed to be provided to the milch animals of milk producers affiliated to
the Dairy Cooperative Network so as to optimize /maximize the level of milk
being produced by the milch animals as per their inherent capacity. Under the
proposed head a whole gamut of inputs are being proposed viz: Green
Fodder Mini kits/ Vaccination/ Mineral Mixture/ UMLB/ Balanced Cattle
Feed/ Chemical treatment of Dry Fodder for nutritional enhancement etc. A
total of 70.00 lac Rs./- is being desired under the head. Year wise funds being
desired under this activity read as follows:
Year
No of
Distts
07
07
Rate Lac Rs./- per
Distt.
2.00
4.00
Total Amount (In Lac
Rs./)
2010-11
42.00
2011-12
28.00
Total
70.00
Details as per annexure.
4.1 To propagate the importance of nutrition in Milch Animals an initiative in
the form of distribution of Urea Molasses Lick Blocks (UMLB) has been
proposed. Under the head a financial assistance of Rs./- 164.16 Lacs is being
desired. The number of milk producers being catered to reads 34200 in the
first year & 34200 for the 2nd year respectively.
5- Assistance for Cattle Feed for the Milk Producer Members: The milk
production capacity (Productivity) of the milch animals in the region is quite
below the potential thus rearing of milch animals as a parallel employment
activity has not taken up for sustained self employment. In this context it is
being realized that the millk producers are unaware of or not really convinced
with the importance of balanced cattle feed for enhancement of milk
production. Thus it is being proposed to distribute Cattle Feed so as to
sensitise the village level milk producers towards the importance of balanced
cattle feed. A total assistance of Rs./- 463.53 Lacs is being desired. The number
of milk producers being catered to by the proposed initiative would be 58852
in the first year 33584 in the 2nd year . The details are as follows:
Year
2010-11
2011-12
Total
No of Distts.
07
07
Amount (In Lac Rs./)
355.600
107.930
463.53
Details are as per annexure 01 & 02.
6- Training & Extension Program: It is being envisaged that to promote
dairying as a commercially venture for self employment there lies an
imminent need for capacity build up of the producers at the village level,
wherein promotional activities would have to provided for. An assistance of
Rs./- 35.00 lac is being proposed under the head. Details are as follows:
Year
No of
Distts
07
07
Lac Rs./- per Distt.
Total Amount (In Lac
Rs./)
2010-11
2.00
21.00
2011-12
2.00
14.00
Total
35.00
Details are as per annexure 01.
7- Up-gradation & Infrastructure Development: Increase in the level of milk
being so procured would require up-gradation & modernization of existing
facilities. A New Dairy would also be an immediate necessity for marketing
activities as being proposed under the scheme of things. In the context a new
Dairy of 10,000 liter capacity is being proposed to be placed at Jhansi, together
with up-gradation & modernization of chilling centers in chitrakoot,
Hamirpur, Jallaun & Lakitpur. Details are as follows:
A New Dairy Unit at Jhansi (Capacity 10,000 LPD – Rs./- 720.00 lac
Up-gradation of the Chilling /center at Chitrakoot – Rs.,/- 42.00 lac.
Up-gradation of the Chilling /center at Hamirpur – Rs.,/- 24.00 lac.
Up-gradation of the Chilling /center at Jallaun
– Rs.,/- 74.00 lac.
Construction of Chilling/Center at Lalitpur (Jhansi) – Rs.,/- 125.00 lac.
Thus a total of Rs./- 1090.13 lac is being desired for up-gradation &
modernization of Dairy Units in the region. Details are being enclosed.
8 – A total of Rs./- 2673.93 is being desired under the ASA for Dairy
Development Activities in the Bundel-khand region of the state of Uttar
Pradesh. The proposed initiative would be especially helpful for the socio
economic empowerment of the small& marginal farmers & women in the
Bundel-khand region.
Techno Economic Feasibility:
1- As per the economics worked out for Jhansi Milk Union it is at a loss of
Rs./- 1.50 lac in the third year of its operation. In the context it is to, state that
by the forth year of operation liquid milk sales within the city are expected to
go up to 5000 liters. Even with a marginal income of Rs./- 0.50 paise per liter
at this level the annual income generated under the head will nine lac rupees.
Thus the milk union under question will be viable and in profit by the end of
fourth year.
2- For the Jallaun Milk Union it is to state that even despite a loss of Rs./11.97 lac by the end of 3rd year the plant would have been upgraded by this
time. Liquid Milk Sales within the city being targeted for the fourth year is
8000 liters per day. With a net margin of Rs./- 0.50 per liter of milk the total
annual revenue generated by the year end will be Rs./- 18.00 lac, this would
bring the milk union in cash profit by the end of fourth year.
3- Projected Techno Economic Feasibility report is being placed at annexure -.
4- As desired the full details of the Milk Unions/ chilling centers under
question are being placed at annexure -.
Annexures