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Problems and Prospects of Women Co-operatives in Indian Dairy Sector

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Title: Problems and Prospects of Women Co-operatives in Indian Dairy Sector


1
Problems and Prospects of Women Co-operatives in
Indian Dairy Sector
  • Dr. Sushila Kaul
  • Indian Agricultural Statistics Research
    Institute,
  • New Delhi,INDIA.

2
Introduction
  • Co-operation has been known and practiced in
    India since time immemorial.
  • The Co-operative movement has witnessed history
    of about 100 years .
  • The movement has been largely dependent for its
    origin and development on the Government.

3
Co-operation
  • Co-operation, is a form of organization, where in
    people voluntarily associate together as human
    beings on the basis of equality for the promotion
    of their mutual interest.
  • Millions of small farmers isolated in various
    parts of India have gained the strength to
    sustain their livelihood through these
    co-operatives.

4
Objective
  • The present study is an attempt to examine the
    development of co-operative sector in India.
  • It also aims at studying the growth of the
    co-operative societies in milk production and
    distribution.
  • Role of women along with their problems in Indian
    dairy sector has also been discussed.

5
Historical Perspective
  • The co-operative movement in India is about ten
    decades old and is largely dependent on
    government for its origin as well as
    development.
  • The modern co-operative movement got recognition
    when the co-operative credit society act was
    passed in 1904 .

6
Historical Perspective (cont.)
  • Under the act, a society could be formed by only
    ten persons living in the same village or town
    for the encouragement of self help and thrift
    among members.
  • The liability of rural societies was unlimited
    except with special sanction by the local
    government.

7
Historical Perspective (cont.)
  • Since the beginning of the 20th century, the
    co-operative movement in India has made great
    strides.
  • Milk supply unions and milk processing societies
    have been instrumental in improving the income of
    rural people and making goods available in
    distant urban places.

8
Historical Perspective (cont.)
  • In the First Five year plan, co-operation was
    recognized as an instrument of planned economic
    action in democracy. During this plan, the
    percentage of rural population served increased
    from 10 to 16.
  • The co-operation was assigned an important role
    in the second plan as well.

9
Historical Perspective (cont.)
  • As per documents of the third plan, co-operation
    has the merit of combining freedom and
    opportunity for the small man with benefit of
    large scale management and organization as well
    as good will and support from community.

10
Historical Perspective (cont.)
  • During the fourth plan, agricultural
    co-operatives were given a crucial position in
    the strategy of co-operative development.
  • The movement was assigned a place of pride in the
    fifth and subsequent plans as it is suited to
    bring about desired socio-economic challenges in
    the context of existing conditions in the
    country.

11
Historical Perspective (cont.)
  • The co-operative movement is potentially powerful
    and full of social purpose. Though, there are
    some shortcomings and constraints, the
    co-operatives have made strides in variety of
    fields, including milk co-operatives.

12
DAIRY DEVELOPMENT
  • The Indian Dairy Industry acquired substantial
    growth during the 8th Plan, achieving an annual
    output of over 69 million tonnes of milk.
  • Indias milk output during the year 2000-2001 was
    estimated to be 81 million tonnes and is expected
    to reach the level of 85 million tonnes during
    2001-02.

13
Dairying Co-operatives
  • Dairying at the household level is largely
    carried out by women, the membership in most of
    Indias village-level Dairy Co-operative
    Societies (DCS) is heavily dominated by men.
  • Milk production generally takes place in rural
    areas where as the profitable market exists in
    urban areas.
  • Lack of transport facility and organized system
    of processing and marketing, farmers margin is
    very small.

14
Dairy Co-operatives (cont.)
  • In view of these and several other constraints,
    dairy co-operatives may provide an answer for
    proper marketing of fluid milk .
  • The structure of dairy co-operatives consists of
    primary milk producer societies at the primary
    level and milk supply unions at the district
    level.

15
DAIRY CO-OPERATIVE MOVEMENT
  • Co-operative movement began at AMUL in Gujarat
    replicated in 70,000 villages in about 200
    districts.
  • A village milk co-operative is a society of
    primary producers, formed under the guidance of a
    superior or milk supply officer of co-operative
    dairy union.

16
Organization of Dairy Cooperative Societies and
their Membership
  • By November, 2001 more than 99,000 (cumulative)
    Anand Pattern dairy cooperative societies were
    organized involving about 109 lakh (cumulative)
    farmer members

17
MILK CO-OPERATIVES
  • The primary milk societies are federated into
    unions, state federations are functioning in some
    states.
  • At the national level, there is a National
    Co-operative Dairy Federation.
  • The co-operatives have played a significant role
    in marketing of milk and other dairy products in
    countries like Holland, Denmark, U.S.A. and
    Newzealand.

18
MILK CO-OPERATIVES
  • Co-operative milk collection centres are located
    within 5-10 km. Of villages supplying milk.
  • No. of farmers selling milk per centre is 100 to
    1000.
  • Daily collection is 1000 litres to 10,000 litres.

19
Support to Dairy Cooperatives
  • The scheme of Assistance to Cooperatives aims
    at revitalizing the sick dairy cooperative unions
    at the district level and co-operative
    federations at the state level.
  • The Department has approved 12 rehabilitation
    proposals of milk unions in Madhya Pradesh,
    Chattisgarh, Karnataka, Uttar Pradesh, Kerala,
    Maharashtra and West Bengal with a total outlay
    of Rs. 87.86 crores. The scheme is being
    implemented on 5050 basis with the State
    Governments. Out of 50 Government of Indias
    share of Rs. 43.93 crores, an amount of Rs. 22.30
    crores has been released till 4th December 2001.

20
Support to Dairy Cooperatives (cont.)
  • NDDB has become the sole founder of the
    cooperative services from the SAARC region from
    21st November,2001.
  • . The cooperative services are managed by the Dot
    Coop Limited Liability Company (DCLLC), a fully
    owned subsidiary of National Co-operative
    Business Alliance, US (NCBA) in partnership with
    the International Co-operative Alliance (ICA).

21
Building a National Information Network
  • NDDB continues its endeavor to provide real time
    information to dairy cooperatives by setting up
    information systems at various levels using
    modern technology .
  • The scope of the data encompasses demography,
    agriculture and land use, livestock population,
    export and import of dairy commodities, milk
    production and productivity of animals.

22
Perspective Plan, 2010
  • The National Dairy Development Board has drawn up
    a Perspective Plan,2010 for Cooperative Milk
    Unions, with the objective to raise milk
    procurement and increase cooperative share in
    marketing of milk and milk products.

23
PHYSICAL PROGRESS
          Cumulative         _at_  till November,
2001 (provisional)            includes
conventional societies and Taluka Unions
Perspective Plan, 2010 Support to Dairy
Cooperative Progress Milk Milk Product Order
1992 Delhi Milk Scheme HOME
24
Per capita availability
  • The per capita availability of the milk has also
    increased to a level of about 221 g. per day,
  • Still very low as compared to developed nations
    or the world average of 285 g per day.

25
ESTIMATES OF PRODUCTION AND PER CAPITA
AVAILABILITY OF MILK All India (1950-51 to
2001-02 )
Source State/UT Animal Husbandry Departments
26
WORLD ESTIMATES OF MILK PRODUCTION (in million )
SourceFAO Production Year Book 1997 FAOSTAT -
Website  
27
MILK CO-OPERATIVES (cont.)
  • In India such co-operatives are not well
    developed, except a few like Amul in Gujarat.
  • A milk producer becomes a member by buying a
    share from the co-operative society agreeing to
    sell milk to the society.
  • Number of farmers in now over a million.
  • Daily procurement of milk of co-operatives is
    over 13 million litres/day.

28
Role of Co-operatives
  • Co-operatives play an important role in animal
    husbandry and dairying sector, which contributes
    about one-fourth of agricultural GDP of the
    country.
  • Today in India, there are 75,000 societies,
    spread all over the country with a membership of
    10 million.

29
Role of NDDB
  • The National Dairy Development Board has drawn up
    a Perspective Plan,2010 for Cooperative Milk
    Unions, with the objective to raise milk
    procurement and increase cooperative share in
    marketing of milk and milk products.
  • 80 Milk Unions have submitted their Perspective
    Plans to NDDB with an outlay of about Rs. 900
    crore

30
Role of NDDB (cont.)
  • NDDB has approved Plans of about 60 Milk Unions
    with an investment outlay of Rs. 750 crore.
  • Formalities of entering into agreements/hypothecat
    ion of assets are being completed

31
Role of NDDB (cont.)
  • The Perspective Plan has four thrust areas
  • Strengthening the cooperative businesses
  • Enhancing productivity
  • Managing quality
  • Building a national information network

32
Role of NDDB (cont.)
  • NDDB seeks to strengthen the dairy cooperatives
    movement by significantly increasing women dairy
    farmers participation in dairy cooperatives. The
    activities include communication, education,
    extension and training of members, thrift, health
    and income generation. NDDB has initiated pilot
    womens thrift and credit cooperative projects in
    Shajapur (MP) and Tirupati (AP). By November
    2001, 107 Women Thrift Cooperatives (WTC) with a
    membership of 8628 had already been formed.

33
Role of NDDB (cont.)
  • NDDB conducts Farmers Induction Programme
    throughout the year to expose farmers from all
    over the country to the latest developments in
    the dairy farming.
  • They are taken on field visits to village
    socities, milk processing and cattle feed plants

34
Role of NDDB (cont.)
  • The class room session also includes discussion
    on clean milk production and good animal
    management practices.
  • Till December 2001, 2430 farmers including 578
    women participated in 26 Farmers Induction
    Programme.
  • The focus of the project is on the emergence of a
    well-informed constituency of members, responsive
    managing committee, members of the village dairy
    cooperative societies.

35
Role of NDDB (cont.)
  • 2,476 all-woman DCS are functioning in the
    country in selected States.
  • Out of 9.2 million total membership in DCS, 1.63
    million are women (18 per cent).
  • However, women constitute less than three per
    cent of total board members.

36
Role of NDDB (cont.)
  • NDDB strengthening dairy co-operative movement by
    significantly increasing women dairy farmers
    participation in dairy co-operatives.
  • NDDB conducts farmers induction program.
  • 2430 Farmers, including 578 Women participated in
    26 Farmers Induction Programe (till December
    2001).

37
Strengthening the Cooperative Business
  • NDDB continued its efforts to strengthen
    cooperatives through
  • institution building,
  • increased participation of women,
  • farmers induction,
  • and enhanced milk procurement and marketing

38
Details of Milk Supply Societies and Unions in
India
39
  • During 1977-78 to 1997-98, number of societies
    grew by four times, whereas the membership rose
    by four and a half times.
  • Considerable increase in total working capital
    sales of the societies.
  • This indicates that milk producers have taken the
    supply and collection of milk in a big way in the
    rural areas in co-operative sector.

40
Achievments of key components of dairy dev. under
co-op sector
Name of State/UT DCS (no.) Farmer (000) Rural Milk (000 Kg/Day) Milk Marketing Liquid Milk Powder
Andhra Pradesh 5169 734 872 731 2397 126
Bihar 3371 173 281 316 586 125
Gujarat 10606 2147 4464 1701 6960 453
Haryana 3305 180 251 94 530 25
Karnataka 8350 1473 1804 1445 2030 37
Kerala 2331 608 579 608 410 10
Madhya Pradesh 4595 240 287 230 1030 30
Maharashtra 6456 1411 3023 1083 3970 60
Orissa 1353 105 70 96 125 -
Punjab 6566 370 807 404 1460 100.5
Rajasthan 6375 414 782 482 1050 60
Uttar Pradesh 15025 632 709 389 1140 60
41
WOMEN CO-OPERATIVES
  • Gradually women folk are coming forward and also
    getting organized in the form of co-operative
    organizations
  • This provides to them, the advantages of
    large-scale production in handling of milk.
  • Most of these women belong to small and marginal
    farm holdings and constitute the bulk of
    population, with limited resources and means at
    their disposal.

42
 Women co-operative societies (1994-95)
43
WOMEN CO-OPERATIVES (cont.)
  • Women co-operatives are also making significant
    contribution in collection and supply of milk as
    well as in processing of milk.
  • These co-operatives are gradually increasing in
    number but still the members of these societies
    face challenges in day-to-day business operation
    of their societies.

44
WOMEN CO-OPERATIVES (cont.)
  • There still exists some resistance to women as
    co-operative members.
  • They do not have say in decision making policies.
  • There is low literacy of the women folk.
  • Resistance from members of upper socio- economic
    strata of village community towards the poor
    women members.

45
WOMEN CO-OPERATIVES (cont.)
  • Access to finance, lack of managerial ability and
    training also inhibit their progress.
  • All these factors affect the management of women
    Co-operatives adversely.

46
Conclusion
  • Since the beginning of the 20th century, the
    co-operative movement in India has made great
    strides.
  • It has covered various aspects of economic life
    of its members.
  • Though the movement was initiated by the
    government, it has now become the peoples
    movement and its membership and area of operation
    are expanding gradually.

47
Conclusion (cont.)
  • These co-operative societies have played an
    important role in dairy sector of the country.
  • Milk supply unions and milk processing societies
    have been instrumental in improving the income of
    rural people and making goods available in
    distant urban places

48
Conclusion (cont.)
  • Women co-operatives are also making significant
    contribution in collection and supply of milk as
    well as in processing of milk.
  • These co-operatives are gradually increasing in
    number but still the members of these societies
    face challenges in day-to-day business operation
    of their societies.

49
Conclusion (cont.)
  • To utilise the full potential of these societies,
    there is a need of proper training, and access to
    adequate finance for running these co-operatives
    efficiently.
  • Attitudinal change in rural sector will go a long
    way in developing these societies.

50
References
  • Central Statistical Organization (various issues)
    Statistical Abstracts of India, Deptt. Of
    Statistics, Ministry of Planning ,New Delhi.
  • Deptt.AHD,Dairy Division,Ministry of Agri.
  • F.A.O. Production Year Book(variou issues).
  • Mamoria,C.B.(1982) Agricultural Co-operative
    Structure in India, Kitab Mahal.
  • NABARD(1994-95)Statistical Statement Relating
    to the co-operative movement in India.

51
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