CHAPTER - III A PORTRAIT OF BANGALORE MILK UNION LIMITED (BAMUL)

Transcription

1 CHAPTER - III A PORTRAIT OF BANGALORE MILK UNION LIMITED (BAMUL)

2 CHAPTER TTX A. PORTRAIT OF BANGALORE MILK UNION LIMITED (BAMUL) Brief History of Bangalore City : Bangalore is a corrupted form of "Bengaluru'', "Bengalu" in Kannada means 'boiled beans' and "Uru" means 'village' (BENDA KALOORU).1 It owes its origin particularly to Hoysala Kings. T.t came to light during the regime of Vira Ballala ( A-D.). Once king Vira Ballala was to stay for a night at this place and he feeded his horse some boiled beans- Hence.. the name Banga1uru or Bangalore. Only during the regime of Kempe Gowda, a Chieftain of Vijavanagar Empire ( A-D-), this place attained much importance - "Kempe Gowda obtained permission from emperor Achutaraya to establish his capital here and in 1537 A-D. he 1- District Gazetteers - Published by Govt, of Karnataka.

3 built a mud Cort and gave the name Bengaluru to the town which he visualised". 2 Its Salubrious climate with no extreme of temperature and the central location in South India, its protected water supply and the availability of electric power, the liberal policy followed by the State Government in encouraging industries, have been responsible for the present industrial activity in and around Bangalore. The location of vital industries in addition to numerous cloth, cotton, silk and engineering industries and handicrafts like Handlooms, Carpets, Agarbathis, etc., kas changed the face of Bangalore and made it one of the m«st important industrial centres of resurgent India. Evolution of Bangalore Co-operative Milk Producers Union Limited (BAMUL) : In Bangalore city, Dairy Development Programmes were started during 1960's by the Karnataka Government by opening the biggest Dairy in Karnataka i-e- "Bangalore Dairy" and the National Dairy Research Institute continued to have its Southern regional office here- 2- Venkatarayappa K-N. - Bangalore Sociological study University of Bombay, 1957, p.14.

4 c ^ 0 ( As the country's population increased, urbanisation entered our country, the sale of milk became the trade and protection of middlemen in urban areas- They secured milk supplies from farmers at low prices and sold it in nearby towns. The farmers got little out of this distress sale of milk and the income served only as a supplementary source to his agriculture or crop income- In urban areas, there was also d«or to door milking and sale of milk which some milch animal owners of the city carried on. As cross-bred cattle came to the scene during British rule, the urban cattle owner found it profitable to keep cows and buffaloes, for this purpose- Even today in most large towns over 50% of the milk requirement is produced by such city-milch animal owners. This situation prevailed in Bangalore as in most other cities of India till late 19fi5. The early beginning of change started in Bombay in 1952 and in Delhi in 1960, where the Govt, organised milk schemes sold milk through booths scattered all over the cities. The milk was purchased in rural areas, chilled and transported to citydairy, where it was pasteurised, bottled and despatched to the booths. The chilling and subsequent pasteurisation enabled good quality milk to be supplied to urban consumers at a reasonable price.

5 At the National Level, Dairy Division of Ministry of Agriculture initiated expansion of the network of Milk Supply Schemes under the second Five year plan to all towns with a population of over 2,00,000. A special provision was made in the plan budgets for setting up chilling centres and processing dairies with infrastructural support of transport, manpower, etc-, to develop each town milk supply into a milk scheme. The ministry also linked up the intensive cattle breeding scheme, the key village scheme, Artificial Insemination Services and Fodder Development Schemes with the Dairy Development Programmes - The success story of Kaira District Milk Producers' Union at Anand was highlighted in the country as a whole. And the Government of India constituted the National Dairy Development Board (NDDB) for developing dairy sector and the Operational Flood Programme initiated by the NDDB with financial support to State Government through funds generated by gifted Skim milk powder and Butter oil under world Pood Programme stimulated dairy development activities throughout the country. In such a situation, Late Shri M-V.Krishnappa the then Deputy Minister in the Ministry of Agriculture in Delhi,

6 59 who was a great advocate of Co-operative Dairy enterprise, propounded dairy project in Karnataka and due to his initiation, interest and efforts, the Bangalore Dairy was commissioned on January 23, 1965 by the then Prime Minister Shri Lalbahadur Shastri- And thus Shri M-V.Krishnappa is considered as the Father of Dairying in Karnataka. He often talked of making Karnataka the "Denmark of India". The present, tempo of development and its Progress in Karnataka in the field of dairying is in large measure due to the early impetus and encouragement given to this important facet of agricultural and rural development by Shri-M-V.Krishnappa- It was the first ever dairy development project aided by the World Bank. An integrated project was launched in June 1974, in Karnataka to restructure and reorganise Dairy Development activities on Co-operative lines- It has laid the foundation for a new direction in dairy development work- Initially the project was covering Bangalore and Kodar districts as Milk Shed area. But subsequently wi th the introduction of operation Flood II Programme, the Un i on was bifurcated into Bangalore and Kolar Milk Unions on April 1, 1987.

7 60 At the end of September 1984, the World Bank Aided Project ended and the Dairy Development activities continued under operation Flood IT- The activities were extended to cover the entire State except coastal taluks of Uttar Kannada District and the process of Dairy Development was continued in the Second phase from April Karnataka Milk Federation (KMF) came into existence in May After completion of operation Flood II, Dairy Development activities were continued under operation Flood III. The Bangalore Dairy was handed over to Bangalore Milk Union Limited (BAMUL) on September 1, Objectives of Bangalore Dairy : The Main objects of the Dairy are *- 1. To provide assured and remunerative market for al! the milk sold by the farmer members; 2. To provide hygienic milk and milk products to urban consumers? 3. To organise Milk Co-operative Societies at village level and provide extension services; 4- To ensure the provision of milk production inputs, processing facilities and dissemination of know-how?

8 61 5. To facilitate rural development by providing opportunities for self employment at village level? 6- To improve milk production by providing technical input programmes through District Co-operative Societies (DCS) such as? a) Weekly mobile veterinary and emergency facilities, b) Artificial insemination facility, c) Fodder development facility, and d) Sale of balanced cattle feed- Organisational Structure and Place of the Dairy Union : As per Anand Pattern Scheme, Unions are entrusted with the task of procurement, processing and marketing of milk and milk products as well as the supply of input to the milk producers through primary societies. And the Bangalore Union is performing all these activities. Union is the middle tier of the complex co-operatives organisational net-work- Union is formed by federating the village level milk societies in earmarked geographical area. The milk union is organised to make village level milk societies economically viable. The BAMUL Territory extends to 842 DCS as on December 1994 in Bangalore Urban and Rural Districts. The Union operates

9 62 on input facilities through 6 camp offices at Devaoahalli, Doddaballapura, Hoskote, Channapatna, Neelamangala and Ramanagara- It has 3 chilling centres at Anekal, Byrapatna and Doddaballapur- Services Rendered by Union t The union renders the following services :- 1- Providing necessary know-how to societies and farmers through training in animal husbandry and dairy cooperative, 2- Organising milk routes, 3. Establishing chilling centres, dairies, cattle feeds, plants, frozen semen production centre, production of liquid nitrogen, and 4- Establishing Training Centres to educate the farmers about the dairying activities. Operational Highlights of the BAMUL^ : 1- Children Milk Scheme : Since November 19, 1993 under a special scheme of Govt- of Karnataka, BAMUL is supplying milk and milk powder freely to Government schools daily. 3- Progress Report of Bangalore Urban and Rural District Co-operative Milk Producers' Societies Union Ltd' Presented to the World Bank - EEC. Mission during their visit on November 9, 1994-

10 f * f t 0 d 2- Milk Procurement and Marketing : Bangalore Dairy meets the liquid milk market demanded by procuring milk not only from milk shed area of Bangalore. By the end of November 1 994, RAHUL has organised R40 DCS having total membership of 1,44,473- The milk procurement on that date was 340 lakh litres per day (LLPD), covering Bangalore Urban and Rural District, 90% of the milk procured is from cross-bred cow population with the average fat of 4-4% and 8.5% S.n.f. As on November 1994 BAMUL was selling on an average 3.25 LLPD liquid milk in Sachets in Bangalore city and has "captured 60% of the market share. In addition to this, the BAMUI, is also producing and selling milk products in the local market. On an average 4350 kgs of curds, 1252 kgs of butter, 2706 kgs of ghee and 244 kgs of peda are being sold daily. Apart from the local scale of milk and milk products through the authorised agents of BAMUL, the dairy has to meet the demand of Ghee and Butter supply to the Apex body of KMF which in turn arrange for distribution of products to the retail outlets through their wholesale dealers in Bangalore

11 64 city. On an average 10 to 20 MTs of Butter and 40 to 60 MTs of Ghee is supplied by the dairy for such sales. 3. Economic measures taken over the years t Bangalore Dairy has got one of the biggest solar water heating plants, which generates 1 LLPD of hot water- The hot water thus generated is being utilised for boiler (Preheated feed water) at a temperature of 60 C to 80 C for plant cleaning purposes and for cleaning and cooking purposes at canteen - 4- Sale of balanced cattle feed s Cattle feed subsidy is given to the farmers. 5. Artificial Insemination t Yearly, on an average, 1,15,000 inseminations ar being performed by the trained inseminators of the DCS and calves are born annually in the project area. Union is incurring Rs-32 lakhs expenditure for this programme annually and this works out to be 2 paise per litre of milk. 6. Animal Health Coverage i The union is providing free weekly mobile veterinary health coverage to all the DCS by organising 12 mobi1«veterinary routes operated through 7 sub-offices ( camps)

12 to minimise the transportation expenditure and to give quick timely services. Annually, cases are treated in the mobile veterinary routes and the cost of each case treated is Rs Fodder Development = In order to motivate the producers to take up the new pattern of "Fodder Mixed Croping System" an elaborate subsidy programme was offered and spent a large amount to see that farmers switch over to new technology and balance the feeding pattern. Other programmes were also taken up to conserve the surplus fodder grown during rainy season and to use the same under lean season- Schemes such as "silage demonstration; treating paddy straw with urea" at farmers level at union cost, were also taken up to help the farmers who are landless and small farmers. 8- Buffaloe Project of BAMUL t This union has launched unique "HURRAH" buffaloe induction programme as a pilot project in consultation with the

13 6 6 breeding experts of University of Agricultural Sciences, Bangalore. This project is planned to induct 5000 pedigreed high yielding Murrah buffaloes from its "Haryana Home Tract" in a phased manner- To upgrade the existing local buffaloe population of the union and to enhance the quality of milk being collected at DCs, this programme came into existence. 9. Co-operative Development Programme s With a view to strengthen Dairy Co-operative Society at village level both financially and institutionally, cooperative development programme was started in the year 1989 in the union with the financial assistance from the NDDB- Under this programme members of the DCS are enlightened about Cooperative Principles of AMUL pattern. Under this, members' role, rights and responsibilities in the development of the DCS are taught. 10. Financial Progress : Under of-tii Programme, Bangalore Dairy was handed over to Bangalore Urban and Rural Districts Co-operative Milk Producers' Union Ltd. on September 1st, In short, it is called BAMUL- The union through its progressive policies laid by

14 67 the farmers elected Board of Directors and professionally managed officers, cordial relationship with labour, it could emerge as a financially viable co-operative unit. The operational highlights of the Bangalore Urban and Rural Districts Co-operative Milk Producers' Union Ltd- are shown in Table III.l.

15 68 Operational Highlights of Bangalore Urban and Rural District Co-operative Milk Producers' Union Ltd. SI. No. Particulars (Upto December 1994) DCS Functioning DCS Members ' 87,162 1,19,400 1,28,544 1,36,252 1,45, Milk Procurement Routes Average Milk Requirement/ Day from DCS in (kgs) 1,97,387 1,98,510 2,41,523 2,92,033 3,04, Other Dairies (in kgs) 45,329 83,111 89,012 76,306 32, Average Milk Procurement/DCS/DAY (in kgs) Average Milk Sales/day (litre) 2,53,970 2,81,028 2,98,500 3,12,226 3,07, Minimum Amount paid to producers 2-98 per kgs. of milk (in Rs.) Price difference paid to producers in addition to mi.1k price (in Rs ) 2,09,7, ,a1,7nn ,700 2,14,46,000 2,1 6,2 9,non uu/.' it't 10. Share Capital (in Rp

16 Net P ro fit (in F s.) 24,428 63,56,385 15,26,740 91,60,385 4,27,73,401 A fter declaring p ric e d ifferen ce (Less) (le ss) (P ro fit- (P ro fit- (P ro fitp ro v isio n al) p ro v isio n al) p ro v isio n al) 12. Average Milk Product Production/ day (in kgs) a. Butter ,580 2,050 1,099 b- Ghee 2,612 1,261 1,741 2,201 2,609 c. Curds 2, ,913 4,242 d. Peda e. S-M.P f. Casein g. Ice cream Average Milk Product Sales/day (in kgs) 2,443 1,099 2,164 3,607 2,609 4, ,569 BU U61 b'c L'l 08S ' l a- B utter b- Ghee e. Curds 2,690 2,614 1,282 3,5 5 3 d. Peda e. S.M.P. 27

17 70 3 f. Casein 168 g. Ice cream Milk Marketing Structure a. No. of Agents 480 b. No. of Milk Parlour 08 c. Milk Distribution routes Morning 48 ii. Evening No- of Mobile Veterinary Routes, Functioning No- of Animals treated in MVR Routes 1,50, Cost per cases treated in MVR Routes (inrs.) No. of Emergency Routes Functioning No. of Animals treated in Emergency 7.5,449 Routes 20. Cost per cases treated in Rnargenoy Route (in Rs.) No. of AT Centers ,33, , ,92, , ,00, , ,41, ,

18 No- o f AI Done 80, No. of AI done per DCS Cost per AI done (in R s.) No. of Cross Breed Calves Bom 13, Conception Rate (in percentage) 40% 27- Area covered under Fodder Development (in Acres) 3, C a ttle Feed Sales (in tonnes) 5, C a ttle Feed subsidy paid to Farmers (in R s-) Source : Progress Report of the BAMUL (1995). 1,11, ,008 52% 6,536 5,868 8,04, ,17, ,118 50% 3,255 10,028 16,78,000 1,14, ,812 55% 11,135 12,695 44,60,344 87, ,896 51% 4,638 8,172 26,31,738