3. MALAPPURAM DISTRICT Contents

Home , Malappuram district, Palakkad district, Pattambi

Contents

Executive Summary ...... 59 3.1 General Features ...... 63 3.2 Trend in Cattle Population ...... 65 3.3 Trend in Milk Production from Bovines ...... 66 3.4 Milk Chilling ...... 66 3.5 Milk Processing ...... 67 3.6 Milk Marketing ...... 70 3.7 Milk Procurement ...... 78 3.8 Cattle Shed and Farm Machineries ...... 86 3.9 Cattle Induction ...... 88 3.10 Establishment of Laboratory in Malappuram/Kozhikode Dairy and MCP Nilambur ...... 89 3.11 Clean Milk Production ...... 91 3.12 Technical Input Services (TIS) ...... 92 3.13 Information and Communication Technology Networking ...... 94 3.14 Manpower Development ...... 955 3.15 Working Capital - Malappuram District ...... 97

58 Executive Summary

The Malappuram district is not Nilambur. The cost comes to Rs among the frontline dairy districts 87.00 lakh. of the state. The cattle farming are The market survey shows that at a subsistence level. The official supply demand gap for milk in statistics shows that the cattle Malappuram district is 3.9 LLPD. numbers declined by 63 per cent The market share of MRCMPU in from 1996 to 2012 and in milk the liquid milk segment is just cows by 29 per cent. The annual under 15 per cent which is not milk production from bovines also impressive. In milk consumption declined from 142.29 thousand MT Malappuram was far behind the (1997-98) to 98.46 (2011-12). other districts in Malabar, several The MRCMPU do not have a studies have shown. Malappuram processing dairy in Malappuram had a special liking for curd and district. The milk procured from milk powder. This trend in milk the district is transported to powder consumption is gradually Kozhikode dairy for processing and changing in favor of liquid milk. the processed milk is transported The inadequate market back to the district and marketed. infrastructure is yet another These crisscross transports not reason for the low market share of only attract additional cost but liquid milk in Malappuram district. also cause quality deterioration Hence an aggressive marketing and inconsistent supplies to the strategy supported by adequate dealers and consumers. Therefore infrastructure and consumer a new Dairy will soon come up in canvassing is required. New milk Malappuram district, it is parlors and Shoppe are suggested understood. Until then the to be opened in prominent public present arrangement will continue. places. Wide publicity through The investments suggested one print and visual media is also cold store, one compressor and suggested. Periodic market survey one DG set are for the MCP, and R&D on consumer preferences

59 Malappuram District likes and preferences (example sheds constructing new cattle niche products, attractive packing sheds and supplying farm for curd, flavored milk ice cream, machineries and equipments on Peda, etc.) are also suggested. The subsidy price are suggested at a estimated cost on market total cost of Rs 63.0 lakh. promotion in Malappuram district In order to motivate and attract works out to Rs 394.85 lakh. cattle keeping among the below The MRCMPU has built up an poverty line (BPL) families, women extensive net work of DCS and and SC/ST communities a cattle BMCs for milk procurement from induction program is suggested. farmers. Most of the DCS have NABARD norms shall be followed reasonably good milk testing for administering the subsidies. facilities. All BMC DCS have The overall expenditure for 240 facility for MBRT estimation. The animals is estimated to be Rs field level milk testing, however, 92.55 lakh. requires further refinement. The It is suggested to establish a major constraints identified in central milk testing lab at milk procurement are lack of Kozhikode by pooling the funds convenient buildings for DCS, from all the districts. This will inadequacy of good quality water, eliminate duplication of expense in incentives for clean milk all other labs. Malappuram district production and support for cattle also can avail this facility. All this feed transport. The suggested and certain additional equipments procurement activities in and furniture required for Malappuram district will cost Rs Malappuram are estimated to cost 137.95 lakh. is Rs 104.00 lakh.

The lack of good cattle sheds and The other farmer beneficiary farm machineries are identified to programs suggested are be a major constraint in dairy distribution of stainless steel production in Malappuram utensils, milking machines, etc. at district. Strengthening of old cattle a cost of Rs 17.25 lakh.

60 Malappuram District

The technical input services programs would cost Rs 107.0 include support for animal lakh. breeding, health care and The business plan of MRCMPU prophylaxis, fodder development suggests substantial increase in and other associated activities for milk procurement and sale in the benefit of participating farmer Malappuram district. The milk members. The activities suggested prices are to be paid to the farmers except those being attended by the regularly which alone cost Rupees line departments will cost Rs 224 lakh now and is expected to 46.00 lakh. progress to Rupees 285 lakh at the The Malappuram district needs to current rate of growth (8%) in network the various units and procurement in the next three DCS for effective information years (Table 3.21). In addition, sharing and communication. The keeping a buffer stock of raw and suggested system is a client server finished goods is essential to architecture network with six safeguard against any possible centers at each district (Palakkad, contingencies in milk business. Malappuram, Kozhikode, Wayanad, This, as also several other Kannur, and Kasaragod) and a requirements force the Milk Union central server system linking all to borrow money from the open these six centers the data and market which causes extra burden information will be made available to the Union and the farmers. to all the districts and DCS. The Hence it is suggested that an estimated cost is Rs 150.60 lakh. amount of Rs 285 lakh shall be paid to the milk Union as a The HRD through training and onetime assistance for Working skill development is a routine Capital. activity of MRCMPU. Several programs were running since few The suggested programs for years. It is suggested to scale down Malappuram district and the cost certain programs. The suggested shall be summed up as follows.

61 Malappuram District

Amount Component Rs in Lakh Milk processing and packaging 87.00 Milk marketing 394.85 Milk procurement 137.95 Cattle shed and farm machineries 63.00 Cattle induction 92.55 Constructing laboratories 104.00 CMP kits to farmers 17.25 Technical input services 46.00 Information and communication technology 150.60 Human resource development 107.00 Working capital 285.00 Total 1485.20

62 Malappuram District

3.1 General Features Panchayats. There are 278 Malappuram District, formed in Municipal wards and 1843 Gram 1969, is surrounded by Nilgiris of Panchayat wards in Malappuram Tamil Nadu in the east, Arabian district. Sea in the west, Kozhikode and The official census 2011 shows Wayanad districts in the north and that Malappuram district has a Palakkad and Thrissur districts in population of 41.10 lakh of which the south. The district has an area 19.61 lakh are male and 21.49 of 3350 sq.km. which is 9.13 per lakh female and a sex ratio of 1096 cent of total area of the State. Like per 1000 males. Malappuram most other districts of the State, accounts for 12.31 per cent of the Malappuram district consists of total population of the State. The three natural divisions – low land, decadal growth in population is midland and high land. The 13.39 per cent in comparison to topography of the district is highly the State average of 4.86 per cent undulating starting from the and national average of 17.64 per hilltops covered with thick forests cent. The density of population as on the east along the Nilgiris. It per 2011 census is 1158/sq. km. gradually slopes down to the in comparison to 1021 during valleys and the small hills, before 2001. The literacy rate in finally ending on the sandy flat Malappuram is 93.55 per cent surface of luxuriant coconut (2011 census). The 2011 Census groves in the west. shows that 55.81 per cent of total Malappuram district consists of six population lives in rural areas and Taluks (Nilambur, Ernad, 44.19 percent in urban Tirurangadi, Tirur, Perinthalmanna agglomerations. and Ponnani), seven Municipalities The district has more or less the (Malappuram, Perinthalmanna, same climatic conditions prevalent Manjeri, Ponnani, Tirur, Kottakkal else-where in the state, viz., dry and Nilambur) fifteen Block season from December to Panchayats and 100 Grama February, hot season from March

63 Malappuram District to May, and the South West in the district, has got coverage of Monsoon from October to 26305 hectares. Another November. The South West important cash crop is arecanut. Monsoon is usually very heavy and Despite the support of government nearly 75 per cent of the annual with subsidy and services, with the rainfall is received during this exception of rubber, crop season. The climate is generally production is declining. hot and humid; the range of The livelihood support of the temperature varying between 30 marginal and landless farmers 0C and 20 0C. The Average annual (small income group) is livestock. rainfall is 2900 mm (Farm Guide, The surging household income 2012). from foreign remittances and Agriculture continues to be the plantation crops like rubber has mainstay of the population, sidelined livestock production. involving 75 per cent of the people, Less than 20 per cent of directly or indirectly and is the households own some form of endeavor of small holders. The livestock. Cattle are the most vast majority of the peasants are prominent species and milk the small land holders. 2.36 lakh major livestock output. hectares are holdings below one The vast network of institutions hectare. Only 16,107 hectares of under the state Animal Husbandry holdings are above 2 hectares. The Department services the livestock main crops raised are Paddy, farmers in the district. The Coconut, Tapioca, Arecanut, important institutions include one Cashew nut, Banana, Rubber, District Veterinary Center, ninety Pulses, Ginger, Pepper and Betel four Veterinary Dispensaries, vine. Coconut tops with a total eleven Veterinary Hospitals four area of one lakh hectares. Paddy is Veterinary Poly Clinics, one cultivated in 31,098 hectares. hundred and sixteen Artificial Paddy has lost predominance Insemination Units and one among crops during the last two district poultry farm. The decades. Rubber, a main cash crop 64 Malappuram District department of Dairy Development 3.2 Trend in Cattle has a district office and fourteen Population Dairy Extension Service Units in The cattle population in various parts of the district and Malappuram declined sharply look after the dairy extension between 1996 and 2012 (Fig. 3.1) services. The MRCMPU has one both the total (63 per cent) and chilling plant, one P&I Unit at cows in milk (29 per cent) Nilambur and two marketing showed similar trends from 1996 depots at Kottakkal and Nilambur to 2007 but animals in milk for milk procurement and sale. substantially increased between One hundred and seventy nine 2007 and 2012. The in milk DCS functioning in villages collect, buffalo had mixed fortune. The test the quality and dispatch milk numbers sharply declined from to the processing Dairies, pay the price of milk at regular intervals to 9615 to 1821 between 1996 and the dairy farmers and channel the 2007 and thereafter substantially support and services from the line gained till 2012. Although the departments and the milk Union. accuracy of data on cattle

Fig 3.1 Cattle population Malappuram District (source Cattle Census AHD GOK) 250000

200000

150000

100000 Numbers

50000

0 1996 2003 2007 2012 Total Cattle 229765 134703 105329 84131 Cows in milk 62206 40742 33543 57000 Buffalo in milk 9615 1857 1821 4200

65 Malappuram District numbers is questionable, it is witnessed sharp to moderate certain that the many dairy increase in milk production. farmers in Malappuram district Surprisingly, in Malappuram, opted out of dairying after 1996 animals in milk went up but milk due to economic and other factors. production declined that is a difficult situation to explain. 3.3 Trend in Milk Production Although the accuracy of the data is questionable, we have to accept from Bovines these figures as we do not have According to the ISS estimates any alternate estimates. (Fig. 3.2) the annual milk production in Malappuram 3.4 Milk Chilling increased from 142 thousand MT The milk chilling capacity within in 1997-98 to 174 thousand MT in Malappuram during 2013-14 is 2001-02 and declined to 98.46 shown in table 3.1. thousand MT in 2011-12. The trend in Malappuram district is During the year the volume of milk contrary to that observed in other chilled and supplied to Kozhikode districts. In almost all other Dairy was 23,700 liter (53 per cent districts the last two to three years of installed chilling capacity). The

Fig 3.2 Milk Production Malappuram district from Bovine (source ISS AHD GOK) 200

180

160

140

120

100

80 Milk '000MT Milk 60 40

0 97-98 2001-02 2004-05 2008-09 2011-12 142.29 173.59 111.43 124.73 98.46

66 Malappuram District

Table 3.1 Chilling Facility in marketable surplus of milk. The Malappuram 2013-14 milk procured from the district is Sl. Source Capacity being transported to Kozhikode No. 1 BMC DCS (5) 14000 liter Dairy, processed and transported 2 Milk chilling plant, 30000 liter back to Malappuram and Nilambur marketed. Such two-way movement Total 44000 liter of milk incurs additional vast majority of DCS (172 out of transportation cost with the Union 219) in Malappuram district are and the milk producers bearing it. not linked to the BMC system of Now the Union is selling 67,825 milk procurement and instead liter of milk daily in the district. In resort to can collection and addition to the Kozhikode Dairy, transport to dairy dock/MCP. The where the Malappuram milk is lack of sufficient volume of milk is processed, the Wayanad and the reason cited for not installing Palakkad Dairies also market milk more number of BMCs. A policy in the district from different entry decision to start a processing dairy points. The supplies to the retail in Malappuram district has outlets are made through direct already been taken which will routes as well as the Marketing change the scenario of dairy Depots (Cold Store Units) newly production in the district. established at Kottakkal, Pattambi Therefore, additional chilling and Nilambur. Kozhikode, capacity is not recommended at Palakkad and Kannur Dairies, the this stage. feeder Dairies for Malappuram district, have limitations to take 3.5 Milk Processing additional load and for further Malappuram is the only district expansion. The long distance under MRCMPU without a milk transport causes quality issues as processing facility as the growth in well. In the wake of the recently milk sales was not impressive and introduced Food Safety and the district had very small Standards Act (FSSA), quality will

67 Malappuram District be a major factor in deciding the farmers in Malappuram the future marketability of milk. The processing facility in Kozhikode/ absence of a dairy near the Palakkad dairies are to be market/consumption points enhanced for which the causes hardships to the retail installation of equipments shown outlets and customers. From the in table 3.3 are suggested. These marketing and customer point of equipments could eventually be view, the dairy should be as near shifted to the upcoming to the customer as possible. The Malappuram dairy. Dealers are not satisfied by the a. Cold Storage/Deep Freezer morning and evening deliveries and Refrigeration Compressor alone. They prefer multiple A depot has been established in deliveries every day. Under this the existing Milk Chilling plant at compelling situation, it became Nilambur. The available cold imperative to have the processing storage facility is inadequate to facility in Malappuram compelling cater to the demand for milk and the Milk Union and the ice cream products distributed Government of Kerala to take a through the depot. Hence it is decision. suggested to install additional new

cold store, deep freezers and 3.5.1 Milk Chilling Plant, refrigeration compressor. Nilambur

Tables 3.2 and 3.3 present the b. DG Set existing and the proposed The existing DG set capacity will equipment inventory at the be in adequate after installing Nilambur chilling plant and the cold store, deep freezers and Malappuram respectively. In the refrigeration compressor. Hence, wake of the decision to establish a the DG set is to be replaced with new dairy, major upgrading is not a 320 kVA DG set. suggested. However, to ensure the continued milk procurement from

68 Malappuram District

Table 3.2 Existing Equipments in Nilambur Milk Chilling Plant

Sl. No. Equipment/Facility Capacity Quantity 1 Reception 1.1 Can roller conveyor 600 cans/hr 1 1.2 Can tipping bar 600 cans/hr 1 1.3 Can drip saver 600 cans/hr 1 1.4 Dump tank 2 Kl 1 1.5 Weigh bowl (SS 304) 600 Kg 1 1.6 Scale for weigh bowl 600 kg 1 1.7 Can scrubber (SS 304) 500 L 2 1.8 Can steaming block Single can 1 2 Processing/Storage Equipment 2.1 Milk chillers 10 KLPH 1 2.2 Milk pump 10 KLPH 2 2.3 Vertical milk storage tank 10 KLPH 2 2.4 Ghee pump 3000 LPH 1 2.5 Ghee clarifier 2000 LPH 1 2.6 Milk pumps 10000 LPH 2 2.7 Refrigeration compressors 12 TR 2 (make/model/type/cap.) 2.8 Ice bank tank 100 KL 1 2.9 IBT coil 2000 Mtr 1 2.10 ATN condenser coil 90 Tr 1 2.11 Condenser pump 30 KLPH 3 2.12 Chilled water pump 30 KLPH 2 2.13 Chilled water agitator 5 HP 2 2.14 DG set 150 KVA 1 2.15 Transformer 200 KVA 1 2.16 HT protection gear 600 A 1 2.17 LT panel 415 V 1 2.18 Motor control centres 415 V 1 2.19 Push button stations 6 Buttons 1 2.20 Water storage tank 50 KL 1 2.21 Water pumps 20 KLPH 2

69 Malappuram District

Table 3.3 Equipments Suggested under NPDD for Milk Processing in Malappuram District Total Sl. No. of Unit Cost Component Specification Cost (Rs No. Units (Rs) in Lakh) 1 Milk pump 10 KLPH 4 50000 2.00 2 SS pipes and fittings Lot 1 500000 5.00 3 Refrigeration compressors 30 TR 1 3000000 30.00 with accessories 4 Cold store (including 5 TR 1 2500000 25.00 equipments) 5 DG set 320 KVA 1 2500000 25.00 Total 87.00

3.6 Milk Marketing Dairies (Kozhikode, Wayanad and 3.6.1 Organization of Milk Palakkad), one Product Dairy at Marketing Kozhikode and three milk depots The organization of milk marketing (Kottakkal, Nilambur and activities in Malappuram is Pattambi) together share the illustrated as fig. 3.3 In the marketing of milk and milk absence of a dedicated Dairy for products in the district. Malappuram, three processing

Fig. 3.3 Organization of Milk Marketing Activities in Malappuram District

Prod. Dairy WYND Dairy PKD Dairy KKD Dairy, Ghee, Peda, Milk, Curd, Milk, Curd, Milk, Curd Palada, Flv Ghee, Butter Ghee, Butter Ice cream, Milk Milk Milk Butter Milk

Kottakkal Depot Pattambi Depot Nilambur Depot

Wholesalers

Retailers

70 Malappuram District

The milk depot is a recent Wayanad Dairy and Kozhikode marketing concept introduced in product Dairy. The Nilambur MRCMPU. Each depot will have Depot receives the bulk of the one or more portable cold rooms to supplies from Kozhikode store milk and products apart from processing and product dairies the freezers for ice cream. The and small consignment from processed milk and milk products Wayanad Dairy. Pattambi receives are bulk transported from the supplies from Palakkad Dairy and processing centers, stored and re- Kozhikode Product Dairy. distributed to the retailers. The interior and difficult to reach 3.6.2 Supply Chain and Sales of places are reached using small Milk and Products transport vehicles (Ape). The In general milk, curd and butter system offers flexibility in milk are directly distributed from distribution of liquid milk. The the depots/dairy to the retail retailers can afford to make late outlets using PUF insulated mini indent after assessing the trucks. The milk products reach requirement. The quick and the retail points through the prompt supplies ensure cold chain wholesalers. In addition, the retail maintenance. outlets adjacent to the processing Dairies are directly served by the The remote and interior Dairies as shown in fig. 3.3. This consumers are better served this being the general practice, way apart from saving the retailers sometimes milk is distributed from the uncertainty of long through the wholesalers and waiting for the milk truck. products through the milk depots Malappuram has two depots, one in Malappuram district depending at Kottakkal and the other at on the ease of operation and Nilambur. A third one situated in economy. Pattambi of the neighboring district is partially serving Milk and milk products sold in Malappuram. The Kottakkal depot Malappuram are shown in table receives the major supplies from 3.4. It may be seen that milk sales 71 Malappuram District reported a quantum jump from (bottom up approach), and shows 2009-10 to 2013-14. Similar that the market for liquid milk in increases are seen in almost all Malappuram district during 2013- milk products as well, except Sip 14 was 85,825 LPD (Milma 67,825 Up. The observed spurt is partially plus 18,000 by the competitors). In due to the re-organization of this method the sales of marketing area and consequent competitors are assessed through addition of depots (earlier booked in a series of interviews and its neighboring districts – Kozhikode, accuracy generally is moderate. Palakkad and Wayanad). The sales in this case pertain Nevertheless the recent re- mostly to urban areas. organization of marketing function Yet another way of calculating the in Malappuram has yielded results market is by understanding the in terms of hike in sales. end user purchases. The sample

survey conducted by the study 3.6.3 Market Size and Market group (June 2014) shows that the Share per capita consumption among Market size is the total volume of a rural people is 105 ml and urban given market. Market size 77 ml. The market size is calculated on a standard practice, calculated as shown in table 3.5. competitive sales approach

Table 3.4 Milk and Milk Products Sold in Malappuram District

Milk/Product 2009-10 2013-14

Liquid milk (LPD) 32356 67825 Curd (Liter/day) 9710 14672 Ghee (Kg/month) 30000 40502 Ice cream (Liter/month) 5200 20332 Butter milk (200 ml Pkts./day) 3927 5683 Milk peda (Kg/month) 2400 4404 Sip up (Pkts./month) 125000 86354 Palada (Kg/month) 300 972 Milma plus (Bottles/month) 4600 16885

72 Malappuram District

Table 3.5 Supply Demand Position in Malappuram District 2014 Sl. Description Rural Urban Total No. 1 Population number 1013721 2072572 3086293 2 Cattle holdings % 20 0 NA 3 Potential consumers (1 x 0.8) 810977 2072572 2883549 4 Actual % consumers as per HH survey 93 77 5 Actual consumers (3 x 4/100) 754208 1595880 2350089 6 Per capita cons – survey result (ml per day) 105 77 7 Household consumer demand LPD (6 x 5/1000) 79192 122883 202075 8 Inst. demand 20% of urban consumption 0 24577 24577 9 Total demand (7+8) 79192 147459 226651 10 Milma supply 67825 11 Market share % 30

The total estimated market in that the supports under the NPDD Malappuram district is huge, 2.26 and the marketing strategies LLPD while the MRCMPU should be geared up to improve marketed 67,825 LPD and their the market coverage in competitors 18,000 LPD adding up Malappuram district. to 85,825 LPD leaving a gap of 1.41 LLPD. The market share of 3.6.4 Marketing Infrastructure- Milma competitors seems to be Current Status under estimated. The survey Table 3.6 shows the current status shows that a sizeable section of of marketing facilities available for Malappuram population, 35 per milk and milk products in cent, continues to consume milk Malappuram district. Malappuram powder. The market share of has a moderate network of Milma is just 30 per cent of the institutions, wholesalers and retail market size. The entire outlets, set up for marketing milk institutional segment is catered to and milk products in the district. by the private dealers from within The market analysis, however, and outside the state. The market shows that there is a huge exploitation by Milma suggests potential waiting to be exploited

73 Malappuram District especially because the rural sector market potential in full, the is opening up for milk and milk infrastructure needs to be products and the use of milk strengthened. powder is gradually but steadily 3.6.5 Key Issues and giving way to liquid milk. Also, the Recommendations changing food habits are moving in Table 3.7 is self-explanatory. Few favor of milk and products like items deserving special mention curd and ghee. To exploit the are explained below.

Table 3.6 Existing Marketing Facility Malappuram District 2013-14 Sl. Facility/Equipment Quantity No. 1 Wholesalers for product (No.) 34 2 Retail outlets milk and products (No.) 279 3 Milk parlors (No.) 2 4 Milma shoppe (No.) 6 5 Marketing depots/Hub (Mobile cold storage) (No.) 2 6 PUF vehicle container (3 MT) (No.) 25 7 PUF Vehicle Container (1.5 MT) (No.) 1 8 % milk routes using PUF vehicles for milk distribution 100 9 PUF box 50 ltr. (No.) 393 10 PUF box 100 ltr. (No.) 191 11 PUF box 150 ltr. (No.) 54 12 PUF box 25 ltr. (No.) 154 13 200 liter freezers for dealers (No.) 99 14 200 liter freezers glass top for dealers (No.) 20 15 120 LTR. freezer (No.) 30 16 Deep freezer 320 ltr. (No.) 25

Table 3.7 Marketing Infrastructure Proposed for Malappuram District under NPDD Programme Total No. of Unit No. Description Cost (Rs Units Cost (Rs) in Lakh) 1 Depot/Parlor 1.1 Milk parlor civil 12 50000 6 1.2 Milk parlor equipments 12 10000 1.2 1.3 Shoppe support 6 500000 30 1.4 Space in super market 15 20000 3 1.5 Decorated mobile product vehicle 3 50000 1.5

74 Malappuram District

Total No. of Unit No. Description Cost (Rs Units Cost (Rs) in Lakh) 2 Marketing Infrastructure for Preserving/Maintaining Quality of Milk 2.1 PUF vehicle container (3 MT) 3 250000 7.5 2.2 PUF box 25-4600 ltr. 375 LS 12.75 2.3 Shipper box for ice cream 30 6000 1.8 2.4 200 liter freezers for dealers 90 13000 11.7 200 liter freezers glass top for 2.5 dealers 120 17000 20.4 2.6 120 LTR freezer 90 11000 9.9 2.7 500 ltr. freezer for dairy 10 23000 2.3 2.8 Deep freezer 320 ltr. 120 17000 20.4 2.9 Deep freezer 320 ltr. (Glass top) 90 20000 18 2.10 Visi-cooler 220 ltr. 120 20000 24 2.11 Freezer subsidy 30 5000 1.5 2.12 Refrigerator subsidy 30 3000 0.9 2.13 Visi-cooler 320 ltr. 90 30000 27.00 2.14 Canopy with eutectic freezer subsidy 15 100000 15 3 Awareness Programme for Consumers 3.1 Consumer awareness programme & publicity 90 50000 180.00 Total 394.85 a. Milk Parlors provide the necessary market The milk parlors will be positioned stimulus for higher sales of Milma in strategic locations to attract milk and milk products in the more consumers to Milma district. Therefore 12 more parlors products. Apart from selling the are suggested to be established Milma products the Parlors will in the district. Support for also act as a media to improve the civil structure, furnishing and visibility of Milma products. equipments are suggested at a cost Buyers will be served milk and of Rs 50,000 per parlor. milk products in a consumer b. Milma Shoppe friendly environment. All the The Milma Shoppe in towns can be parlors started during Phase I considered as a bigger version of IDDP are performing well and they

75 Malappuram District milk parlors to increase the IDDP scheme during the yester visibility of the products and to years, the entire milk transport increase the sales. Improving the from Kozhikode/ Wayanad/ visibility of Milma milk and Palakkad dairies, the feeder dairies products is important to scale up to Malappuram district, has its business. Improving the switched over to PUF insulated business is crucial to sustain milk vehicles. The PUF boxes of varying production and the livelihood sizes, 50-150 liter provided at 50 support to the resource poor milk per cent subsidy, in the retail producers operating under the outlets together with the PUF hard conditions of Malappuram bodied transport vehicles ensure district. Keeping this in mind, the perfect end-to-end cold chain and MRCMPU started ‘Milma Shoppe’ quality supply of dairy products to in Malappuram district. Shoppe is consumers. Three more PUF a brand shop of Milma with all the body is suggested as standby Milma products available at the for replacement of old and outlet and it works round the unserviceable ones and to operate clock. It has won the appreciation new routes. of one and all and is found to be d. PUF Boxes/Visi-Coolers an effective tool to publicize its MRCMPU has effectively products. It is suggested that six demonstrated that PUF Boxes is more shops may be started in the most suited and the cheapest towns during the project period. method to maintain uninterrupted c. PUF Bodies cold chain from the point of origin Among the various marketing to the point of consumption. infrastructures provided under the Freezers are uneconomical to CSS, the introduction of PUF preserve small volume milk. The insulated vehicles in milk PUF boxes supplied under the distribution routes and PUF boxes IDDP/SIQCMP are providing good in the retail outlets are worth service to this end. Our field mentioning. With the addition of exposure visits revealed that the the PUF containers under the retailers wholeheartedly welcome 76 Malappuram District the PUF boxes because they are market share in the ice cream viable alternatives for the energy segment. The major hurdle consuming freezers. They occupy identified against the market less space, easily movable and expansion in Malappuram district easy to clean. The boxes maintain is the lack of user friendly and the temperature cold for about 3-4 energy saving freezers at retail hours during which the milk is points. During IDDP Phase I, generally sold out. It is proposed SIQCMP the Milk Union invested that all retailers shall be provided in retailer level freezers and as a result the sales of ice cream have with new or additional PUF boxes increased from 5200 liter/month to achieve 100 per cent cold chain in 2010-11 to 20,332 liter/month maintenance. in 2013-14. Yet there is more to be Visi-coolers are excellent achieved. A three pronged market equipment to keep the cold of intervention – appoint more products like flavored milk. Hence wholesale dealers, equip all retail they (the PUF boxes and Visi- points with suitable size freezers coolers) are suggested as part of and wide publicity through TV market promotion. channels is suggested. Freezers of varying sizes are additionally e. Freezers for Ice Cream required. In addition canopy fitted Promotion vehicles are recommended for MRCMPU markets milk products special sales in tourist spots and such as ghee, curd, butter milk, prominent on road locations. milk peda, palada mix, flavored f. Consumer Awareness and milk and ice cream. The share of Publicity milk products in the total turnover of the Union is around 24 per cent Consumer awareness camps are and is crucial for its financial being held and dairy visits security and liquidity. Among all organized to explain the chain of the products, ice cream is the activities involved in milk most promising. Unfortunately, procurement from farmers to sales Milma has less than 5 per cent at retail outlets. The consumers get an opportunity to gather 77 Malappuram District firsthand information on quality Malappuram, it is being looked assurance followed at various after by the P&I Unit functioning stages of milk reception, at MCP Nilambur. The Unit has processing and marketing. established a network of village Advertisement boards and banners level DCS in the district to are exhibited in busy places for the procure milk from dairy farmers. publicity of the milk and milk The organization of milk products. Awareness activities are procurement is explained in fig. inadequate to reach all segments 3.4. of consumers and general public. Also Malappuram district has its BMC DCS means a DCS in which specificities in food habits. Hence, the BMC is installed, Cluster DCS it is suggested that consumer means a DCS which supplies milk awareness programs should go to the BMC, and the direct DCS beyond the usual styles and enter means a DCS which supplies milk into newer frontiers to attract more directly in the Dairy/MCP. The consumers into the fold of Milma. milk producer delivers the An aggressive consumer education household surplus milk either in cum advertisement program the BMC DCS, Cluster DCS or through all channels of media Direct DCS. The Cluster DCS in shall be launched in Malappuram for two purposes – awareness turn delivers the milk to the creation among all sections of nearest BMC. The direct DCS people and market promotion - as supply milk direct to dairy dock. a tool for socio economic 32 DCS dispatch milk direct to the improvement for which an amount Dairy in Kozhikode. The Pattambi of Rs125 lakh is suggested. milk chilling plant collects milk from 28 DCS in Malappuram apart 3.7 Milk Procurement from the 74 from Palakkad district. Kottakkal MCP collects milk from 3.7.1 Organization of Milk 22 DCS. The Nilambur milk Procurement chilling plant collects milk from Milk procurement is one of the 122 DCS all in Malappuram. Both key functions of MRCMPU and in

78 Malappuram District

Fig. 3.4 Organization of Milk Procurement – Malappuram

NMBR MCP KKD DAIRY PTMB MCP

BMC DCS

Cluster DCS

Milk Direct DCS Producers Direct DCS

Key words: NMBR MCP – Nilambur Milk Chilling Plant; KKD – Kozhikode; PTMB MCP – Pattambi Milk Chilling Plant chilling plants (Pattambi and Although the Milk Union takes Nilambur) are feeder units to every possible step to collect the Kozhikode Dairy. The district has entire milk from the producers, six BMCs functioning in five DCS. flush season stresses and long BMC DCS chill the milk before distance transport from transporting to Kozhikode Dairy. Malappuram to Kozhikode often The Dairy in turn processes and creates operational issues and markets the milk in towns and disruption of procurement. The other urban areas within and past experience of MRCMPU in outside the district. The whole other districts shows that the chain of activities - procurement, demand created by a steady and processing and marketing - is well progressive milk collection coupled orchestrated and well executed. with remunerative milk price and

79 Malappuram District regular payment stimulate local The DCS classified according to milk production. The same daily procurement shows that 20 strategy can be adopted in per cent were collecting less than Malappuram district too and 100 LPD and yet another 28 per the pre-requisite is a central cent between 100 and 200 LPD. processing Dairy. The study shows that those DCS are not economically viable. The 3.7.2 Profile of DCS in reasons for the poor procurement Malappuram rate can be attributed to the Table 3.8 shows the profile of the location of DCS in non-farming DCS in Malappuram district. From area, induction of non-producers among the 43,854 registered milk as members and other options for producers in the district, on an selling milk. The relocation of average 8700 (19.8%) alone those DCS needs to be considered. supplied milk during 2013-14. The Out of 219 DCS, 69 (31%) function low proportion of suppliers is due in own building; 121 (55%) have to non-removal of the non- electricity and water producers from the DCS roll arrangements. The absence of own because of the cumbersome building, lack of electricity and statutory procedures. The average lack of good quality water in procurement per DCS was 214 adequate quantity are identified to LPD and per supplier 4.83 LPD be the reasons for poor hygiene during 2013-14. The local sale, and poor microbial quality of milk. 11243 LPD, accounted for 24 per The average MBRT of milk from cent of the daily procurement majority number of DCS is 65 indicating fair demand for milk minutes (Table 3.8). from the locality due to falling milk production. The rate of 3.7.3 Milk Procurement procurement per DCS is poor in Coverage comparison with other districts of Malappuram has 1845 Panchayat the region. wards of which 50 per cent are under milk procurement coverage. 80 Malappuram District

Table 3.8 Profile of DCS in Malappuram District March 2014 Sl. Description Quantity No. 1 No. of functional APCOS (31-3-2014) 219 2 No. of farmer members/DCS 200 (43854) 3 Av. number of suppliers/DCS 39 (8700) 4 Milk procured from farmers in DCS (LPD) 46820 5 Local sales (LPD) 11243 6 Milk supplied to milk union (LPD) 35577 7 Av. farmer procurement/DCS (LPD) 214 8 Av. procurement/supplier (LPD) 5.38 9 Av. procurement price paid to DCS (Rs/Kg) 28.69 10 Av. price - Local sales (Rs/liter) NA 11 No. of DCs collected <100 LPD 46 12 No. of DCS collected 101 - 200 LPD 61 13 No. of DCS collected 201 - 300 LPD 42 14 No. of DCS collected 301 - 500 LPD 53 15 No. of DCS collected >500 LPD 17 16 Av. fat% 3.95 17 Av. SNF% 8.3 18 No. of BMCs 5 19 Installed capacity 14000 20 Av. collection through BMC in MPM district 12500 (LPD) 21 No. of DCS making supply at dairy dock & MCP 13 22 No. of DCS provided AMCU (including DDD) 56 23 No. of DCS provided analyzer only (including 19 DDD) 24 No. of DCS provided EMT 85 25 No. of DCS provided EMT only (no analyzer) 29 26 No. of DCS provided Gerbers test equipment 135 only 27 No. of Panchayat wards in the district 100 28 % coverage under milk procurement 70 29 % wards having potential for milk collection 15 30 No. of DCS in own building 69 31 No. of DCS having adequate water supply 123 arrangements 32 No. of DCS having standby generators 2 33 No. of DCS having electricity 121 34 No. of milk cans supplied during last five years 470 35 Milk spoiled (LPD) 15 36 Av. MBRT - milk supplied through BMC 120 37 Av. MBRT - milk supplied at dairy dock 65

81 Malappuram District

As nearly 25 per cent of the As the price paid to the dairy geographical area is forest and as farmer is based on the quality of the costal belt has few cattle, only the milk, facility for assessing it at about 15 per cent of the left out the DCS is crucial. The wards have the potential for cooperatives in Malappuram follow starting new DCS. any of the three known procedures of quality assessment, namely 3.7.4 Milk Quality and Quality conventional milk testing (Gerber’s Administration in DCS test for fat and LR for SNF The MRCMPU follows two axes determination), Milk-O-Tester for pricing i.e., farmers are paid on fat and LR for SNF and Automatic the basis of milk fat and SNF in Milk Collection Units (AMCU) for the milk. The village cooperatives quality and price determination. are equipped to determine the fat The AMCU is the most desirable and SNF. Few DCS are equipped to because it is convenient, error detect added preservatives, proof, quick and transparent. adulterants and neutralizers as Table 3.9 shows that 56 out of 217 well. APCOS possess AMCU.

Table 3.9 Average Quality of Milk in Malappuram, 2013-14

Parameter Values Fat % APCOS 3.95 Fat % non-APCOS NA SNF % APCOS 8.30 SNF % non APCOS NA

Av. MBR time BMC DCS (Mts) 93 Av. MBR time direct DCS (Mts) 60 No. of APCOS using/ supplied 56 AMCU No. of APCOS using/ supplied 85 Milk O tester & LR No. of APCOS using/ supplied 18 Gerber’s test & LR

82 Malappuram District

Although most of the DCS we are of the opinion that the possessing AMCU use them for analyzers need to be re-introduced milk collection very few use the after rectifying the practical issues auto analyzer (one of the in consultation with the instruments of AMCU) reportedly manufacturers and suppliers. due to the slowness in testing. Almost all BMC DCS possess Some units are reported to be equipments for MBRT estimation. erratic in fat and SNF estimation But not all of them have started while some others have using them. inconsistent results. The poor About the quality of milk procured performance of the analyzers from Malappuram district, the fat causes hardships to the farmers content averaged 3.95 per cent, and DCS and the DCS have and SNF 8.3 per cent which needs discontinued its usage or changed improvement. The average MBRT the configuration of the system by of milk from BMC is 95 minutes substituting EMT instead of and that of dock supplied milk is analyzer. The EMT test fat only 60 minutes which again is not and SNF has to be calculated after appreciable. In the years to come taking manual reading of both compositional and bacterial lactometer. In such cases the quality will have a telling influence farmer cannot understand the fat on the marketability of milk. and SNF content in the milk Farmer education and use of supplied and cannot get an instant AMCU can further improve the print out from the AMCU thus compositional quality while the defeating the very purpose of best way to usher in microbial introducing AMCU and quality is to incorporate this as a automation. AMCUs are excellent third parameter in the price gadgets to ensure transparency in formula. Towards this end, it is milk procurement in village DCS. suggested to introduce an It avoids the hassles of quality incentive for the good quality checking, volume measurement (microbial) milk under the NPDD and payment of milk price. Hence as a beginning. 83 Malappuram District

3.7.5 Key Issues and Suggestions a. Buildings The key issue in Malappuram is the As pointed out in the forgoing low rate of procurement per DCS sections a sizeable number of DCS and supplier and the burgeoning function in rented buildings. Most mismatch between demand and of them do not have the minimum supply. To address this, Rs 487.89 facilities for hassle free milk lakh has been invested in collection and dispatch. BMC Malappuram district under the installation is virtually impossible IDDP and SIQCMP schemes. The and effluent disposal is a serious IDDP support is available for two issue. Therefore, it is suggested to more years (2014-15 and 2015-16). include provision for subsidizing After considering all those facts and new DCS buildings at the rate of the need to push the milk Rs one lakh per DCS. Eighteen production further in Malappuram DCS are identified to have the land the following suggestions (Table and financial capacity to do this 3.10) are put forward for the during the project period. consideration of NPDD. Table 3.10 Suggested Support for Milk Procurement under NPDD Malappuram District

Sl. No. of Unit Total Cost Milk Procurement No. Units Cost (Rs) (Rs in Lakh) 1 Building construction 18 100000 18.00 2 Water supply system 10 60000 6.00 3 Bore well 10 25000 2.50 4 Open well 15 10000 1.50 5 Working capital assistance 3 30000 0.90 6 Aluminium cans 300 2500 7.50 7 Automatic milk collection units 3 125000 3.75 8 Electronic milk tester 4 15000 0.60 9 Electric centrifuge 8 2500 0.20 10 Weighing scale 3 15000 0.45 11 Hand held billing device 8 10000 0.80 12 Management grant to DCS 8 30000 2.40 13 Subsidy to milk transport 370000 0.5 1.85 14 Subsidy to cattle feed transport 21500 400 86.00 15 Incentive to better quality milk 1000 LPD 0.5 5.50 Total 137.95

84 Malappuram District b. Water Supply System quantity that will be sold in Developing water source and Malappuram district in three water supply is becoming years comes to 21,500 MT. An increasingly important in amount of Rs 0.4/kg is the Malappuram. Most of the DCS suggested subsidy for transport find it difficult to mobilize cost. The total for three years adequate capital for investment. works out to Rs 86 lakh. The Hence, a subsidy of Rs 60,000 amount may be provided as per unit is suggested for 10 subsidy so that the price of cattle numbers at an estimated cost of feed can be kept low. Rs 6.0 lakh. Water harvesting, d. Incentives for Good Quality installing water tanks and Milk pumping facilities are envisaged. Consequent to the implementation In addition digging 10 bore wells of SIQCMP the bacterial content at the rate of Rs 25,000 per unit in raw milk has been and 15 open wells at the rate of significantly reduced. The low Rs 10,000 per unit are also bacterial content improves the suggested for the district. organoleptic properties (taste and c. Subsidy for Cattle Feed flavor) of the milk apart from Transport heat stability and longer shelf Milma cattle feed is being sold life. The products made from through the DCS. The farmers fresh milk (low bacterial milk) are wholeheartedly welcome the specially liked by the consumers. arrangement because of the Both the consumer and the Milk convenience, easy access and Union is benefited from clean credit facility. The transport of milk but not the producer. The cattle feed from producer farmers are not compensated for company to the DCS entails cost. their extra effort to produce good It is suggested to subsidize the quality milk. As a beginning it is transport cost. The estimated proposed that the top two per

85 Malappuram District

cent of the milk may be paid an operational ease and animal incentive of Re 0.50 per liter. The comfort. Most of the cattle sheds estimated daily procurement is in Malappuram are a mere make 50,000 LPD and the outlay at the shift shelter with mud/wood floor, suggested rate works out to Rs tile/asbestos/PVC/Silpaulin roof, 5.5 lakh for three years. dark and musky, all in one floor (no urine or dung channel) 3.8 Cattle Shed and Farm and without any watering Machineries arrangements. The cows remain in this shelter most of the time (no Table 3.11 Farm Equipments grazing). The hind quarters and Supplied from MRCMPU and the udder often remain soiled by MRDF to Farmers in Malappuram dung and mud. Udder and teat District injury is common. Feeding of water Sl. Item Quantity is only occasional. Considering No. 1 Cattle sheds modified 228 the importance of god cattle sheds, 2 Milking machines 41 the Milk Union procured funds for 3 Rubber mats 673 cattle shed modifications and 4 Pressure washers 16 construction of new cattle sheds 5 Gen sets 2 under the IDDP and SIQCMP 6 Cow drinker 12 schemes. In the past, 228 cattle 7 Chaff cutter - Motorized 2 sheds have been funded under the Well-constructed cattle sheds are a IDDP/SIQCMP schemes. During pre-requisite for clean milk the course of the field work we production. A dirty cattle shed found that the floor of cattle sheds contributes substantially towards are well made using the allotted external contamination of milk and fund. However, construction of entry of microbes in to the udder new cattle sheds is very expensive causing sub-clinical/clinical in Kerala due to the high labor mastitis. A well-constructed cattle cost and the cost of materials. The shed should also provide budget provision of Rs 10,000/- is

86 Malappuram District thoroughly inadequate and will not cattle keeping and making the meet even 10 per cent of the daily chores less arduous is overall cost. Therefore, it would be crucial for the very sustenance of more sensible if the support could dairy farming. Considering the be extended for renovation and economic and social significance of modification of the cattle sheds dairying, the MRCMPU has with watering facility rather than initiated financial support for farm insisting on a new cattle shed. The mechanization. The Union has numbers suggested are given as been providing and channeling table 3.12. support since the last few years. However, only few farmers could On the face of shrinking family be funded so far and many more size, changing status of women in are waiting. It is suggested that the society, and opportunities for assistance may be continued and employment in other sectors of the funded under NPBBDD. The economy the availability of labor components suggested, quantity for dairy farming is fast declining. and the estimated cost are Hired labor for dairy farm activity presented in table 3.12. is uncommon in the district.

Hence, reducing the labor for

Table 3.12 Cattle Shed and Farm Machineries Proposed under NPDD for Malappuram District

Total Cost Sl. No. of Unit Cost Component Units (Rs in No. Units (Rs) Lakh) 1 Strengthening of old sheds No. and constructing new sheds 150 15000 22.50 2 Auto watering system No. 75 5000 3.75 Cattle Farm

Mechanization 3 Gen set No. 9 75000 6.75 4 Pressure washers No. 150 7500 11.25 5 Rubber mats No. 750 2500 18.75 Total (4.0) 1155 63.00

87 Malappuram District

3.9 Cattle Induction recommended to be supported The lack of easy access to bank under NPDD. loan at affordable interest remains Only BPL families will be a major obstacle for the new included for cattle induction entrants into the cattle farming. To activity. overcome this issue, cattle induction schemes have been Fifty percent of cows and implemented by several fifty percent of heifers are development agencies in the State. reserved for women.

The MRCMPU too distributed 1700 Women members will be heifers to 370 farmers in allowed 75 per cent price Malappuram to promote cattle subsidy and others 50 per rearing. cent of purchase price.

Cattle keeping in the district are a Transportation cost shall be job of economically weaker met in full under the sections of people (BPL families) scheme. and women. It continues to be a Seventy five percent of the major source of securing daily insurance amount shall be livelihood to them, especially included under the scheme women. Therefore the following and the balance as numbers of cattle (Table 3.13) are beneficiary contribution.

Table 3.13 Cattle induction Program Proposed in Malappuram District Total Cost Sl. No. of Unit Cost Cattle Induction (Rs in No. Units (Rs) Lakh) 1 Purchase of animals 120 40000 48.00 2 Purchase of heifers 120 30000 36.00 3 Transportation cost of 240 2000 4.80 animals 4 Cattle/Heifer insurance 150 2500 3.75 Total 92.55

88 Malappuram District

3.10 Establishment of resource pooling is justifiable Laboratory in because:

Malappuram/Kozhikode 1. As part of modernizing the Dairy and MCP Nilambur hygienic systems in the Dairy, An amount of Rs 51.58 lakh had automatic data capturing been invested under phase I & II of system, software for easy IDDP and SIQCMP schemes and monitoring of FSMs and a Rs 22.1 lakh by Milk Union in high capacity pressure jet is upgrading the Kozhikode/MCP proposed in the Project.

Nilambur dairy lab. The lab has 2. While the Kozhikode dairy facilities including equipment for has ISO: 22000 certification, routine tests. However, the recertification and provision requested for the central surveillance audits and lab is to develop and equip it. The certain equipment and suggestion is to turn the Milk software for the maintenance Testing Lab in Kozhikode dairy of these systems are to be into a ‘state of the art’ lab capable acquired. The amount of carrying out all the mandatory suggested is towards this and extra mandatory tests. The end. necessity to have a central lab by

Table 3.14 Establishment of Laboratories under NPDD in Malappuram Total Cost Sl. No. of Unit Cost Item of Expenditure (Rs in No. Units (Rs) Lakh) A Capital Expenditure 1 Central milk testing lab 1 LS 70.00 2 Purchase of laboratory furniture 1 500000 5.00 3 Automatic data capturing system 1 2200000 22.00 4 High capacity pressure jet 1 100000 1.00 5 FSMS monitoring software 1 100000 1.00 B Recurring Expenditure 1 Accreditation and certification of dairy establishments under 1 500000 5.00 HACCP/ISO Total 104.00

89 Malappuram District

3. Certification audits and all the samples for antibiotic, subsequent yearly survival pesticide residues are audits by the officials from analysed in the approved the accreditation body are to laboratories outside. The lab be conducted in the once completed can organization to evaluate the undertake analysis like food safety system. A number bacterial enumeration, of hygiene systems, trainings, screening for pesticide and and other capital investments antibiotic residues, and many are needed for the above more. Both raw milk and process. finished products can be tested monthly. Internal 4. In the light of stringent food regulatory action can also be safety laws like Food Safety taken in instances of non- and Standards Act, 2011 and compliance with quality increasing awareness of the standards. This lab can also consumers about food safety examine consumer and consumer rights, it is complaints regarding quality essential that the of dairy products. Water organization acquires FSMS supply in the farms and Certification for the entire processing plant can be unit for supplying safe screened for coliform products with consistent bacteria. The processing and quality. cooling water in the dairy 5. The MRCMPU is upgrading processing plants are the Kozhikode dairy lab as required to be tested on a Central Milk Testing Lab for monthly basis, which can be the union, with modern carried out in the proposed testing facilities so that the lab. The Central Dairy lab dairies in the all the six assists in ensuring that all districts can do the costly dairy products produced in analysis of their milk samples the units meet the high at a central point. At present 90 Malappuram District

quality standards that the facilitate the improvement of consumers expect from quality of milk. Only few farmers MILMA. in the district are the beneficiaries of this component 3.11 Clean Milk Production and many more are waiting for Under the SIQCMP scheme the the benefits. Therefore the MRCMPU had supplied the utensils and vessels may be following articles to the farmers in supplied through the DCS free of Malappuram district (Table 3.15). cost under the NPDD to those Supplying cleaning agents and farmers who are yet to receive sanitizers to farmers had little impact on clean milk production. them. The numbers suggested In practice the farmers discontinue and the financial requirement is the use of chemicals and provided in table 3.16. disinfectants once the free supply Milking machines are relevant in is stopped. Hence the supply of today’s context as the family free detergent/chemicals for udder labor for farmstead jobs are /utensil cleaning is not steadily declining. Our field recommended. exposure visits show that almost Supplying stainless steel utensils all the beneficiary farmers of (the milking utensils and earlier schemes use the carrying vessels) are of use to the machines although continuous farmers and they wholeheartedly service back up is essential. It is welcome it. These utensils suggested that twenty farm

Table 3.15 CMP Kits Supplied under SIQCMP Scheme in Malappuram District

Sl. Financial Description Physical No. (Rs in Lakh)

1 Detergents & chemicals to DCS/farmers lot 8.32 2 Stainless steel utensils to beneficiaries 39.01 3 Milking machines 93 27.9

91 Malappuram District

Table 3.16 CMP Kits and Milking Machines Suggested under NPDD for Malappuram District

Sl. No. of Unit Cost Total Cost Components No. Units (Rs) (Rs in Lakh) 1 Stainless steel utensil kit/ accessories 1500 400 6.0 2 Electricity operated milking machine & other equipments 20 55000 11.0 for hygienic milk handling at Village/Farmer level 3 Manual milking machines 50 6000 3.00 Total (7.0) 17.25 owners owning five or more SIQCMP schemes earlier milking cows shall be supplied implemented in the district. An milking machines at subsidized amount of Rs 55.40 lakh have (75 per cent) rate under NPDD. been spent for providing various It is also suggested that 50 hand support inputs and services under operated machines shall be the IDDP/SIQCMP schemes. supplied to the needy farmers The TIS are under the state after making a scientific and domain and the line departments methodical field trial in have a plethora of schemes for association with KVASU. supporting the farm level activities. However, as the household survey 3.12 Technical Input Services shows the efficacy of these services (TIS) especially the AI and health care The technical input services delivery at farm gates remain poor. include support for animal Since those services are in the breeding, health care including domain of the State, the change in prophylaxis, fodder development service delivery requires policy and other associated activities for decisions. In order to avoid the benefit of participating farmer duplication of such services (AI, members. The TIS was a major health care, homestead fodder component under the IDDP and production) are not suggested

92 Malappuram District under the NPDD. The components based program centrally controlled suggested for Malappuram (Table and monitored from HO of 3.17) are those not covered by the MRCMPU. line departments and are the most The conventional homestead essential. fodder production is a tried and The LN containers are for failed program in Kerala. The replacement of the ones in use. As reasons are many, the most this component is covered under important being land the NPBB, separate provision is fragmentation and the declining not requested. The animal health farming activities. On the other and breeding input camps include hand large land holdings and a pilot program for fertility fallow land are potential sources management of dairy cows among for fodder production – fodder as a farmers. The programs envisage value added crop in irrigated land. identification of infertile cows, The fodder so produced shall be providing management and marketed among the DCS veterinary support to correct members at cost price. The scheme reproductive problems if any, and shall be a flagship program of documenting the information for NPDD. adoption elsewhere. It is a DCS

Table 3.17 Technical Input Services Suggested in Malappuram District under NPDD Total Cost Sl. No. of Unit Component (Rs in No. Units Cost (Rs) Lakh) 1 Liquid nitrogen containers 6 0 0 2 Audio visual kits etc. 1 200000 2.00 3 Animal health & breeding input camps LS 25.00 4 Chaff cutter 36 20000 7.20 5 Commercial fodder production 10 100000 10.00 Total 46.00

93 Malappuram District

3.13 Information and the Milk Union is in the infant Communication stages of exploiting the benefits of Technology Networking IC technology. The MRCMPU apart from being a The current status of IC farmers’ organization is also a technology use is that the dairies multi-crore business concern. Its are computerized and internally business units are far flung and networked (intranet). Few DCS are widely distributed. The application also computerized but not and full utilization of information networked. The milk Union and communication technology proposes to expand the IC so that alone will enable the MRCMPU to the system will function as a client modernize their units and keep server architecture network with a abreast of their competitors. It is center in each district (Palakkad, also essential that the whole Malappuram, Kozhikode, Wayanad, business of MRCMPU is Kannur, and Kasaragod) and a transparent to their stakeholders, central server system linking all the dairy farmers. Unfortunately,

Table 3.18 Information and Communication Technology Networking- Malappuram District

Unit Amount Sl. Purchase of Computer/HHB Rate (Rs Units (Rs in No. in Lakh) Lakh) 1 Desktop 0.50 16 8.00 2 Laptop & Netbook 0.60 11 6.60 3 Hand held range of computers 0.30 30 9.00 4 Rack server 9.00 3 27.00 5 42 U server rack 1.00 1 1.00 6 Foldable TFT console 0.45 0.00 7 Server storage device 8.00 1 8.00 8 Tape backup 8.00 1 8.00 9 UPS for server 7.00 1 7.00 10 Weblogic server suite purchase 15.00 3 45.00 11 Oracle database 12C 15.00 1 15.00 12 Antivirus software 1.00 1 1.00 13 Hardware & networking 10.00 1 10.00 14 Software consultation charges (AMC) 5.00 1 5.00 Total 150.60

94 Malappuram District these six centers. The data and reduction, energy conservation information will be made available and product improvement in to all the districts and DCS. The MRCMPU. Apart from the Union details of the proposed system are employees, the staff and elected given as annex-1. The expenditure members of the DCS and the is to be shared between the district Board are also trained on projects. The share of Malappuram appropriate subjects. Table 3.19 district is illustrated as table 3.18. shows the numbers trained in various categories from 3.14 Manpower Development Malappuram district. The training and development The DCS staff has been trained program is adopted as a tool for at the HRD Centre, Kozhikode organizational development and to under MRCMPU on the relevant make strides in productivity subjects. The trainers included standards including cost

Table 3.19 Employees and Elected Members Trained from Malappuram District Number of Sl. Training Course Persons No. Trained 1 C D program a No. of programmes 10 b No. farmers trained 1260 c FIP- local farmers attended 927 d Management orientation (MCMOP) 80 2 Training of BMC/DCS/MCC staff 6 3 Training of DCS secretary 143 4 Training of DCS employees 119 5 Training on AI 12 6 Training of farmers on GMP/GHP 873 7 Training of farmers on AH practices 124 8 FIP 543 9 Training on marketing 22 10 Training of management committee members 83

95 Malappuram District those from within the upgrading their skill and organization and also experts knowledge. An amount of Rs 54.4 invited from other organizations. lakh has been spent for various The duration ranged from one to training programs in three days and the subjects Malappuram district under the handled were those relevant to IDDP and CMP Phase I and II. the concerned groups. 3.14.1 Key Issues and The CD program includes Suggestions training in village cooperatives 1. Future training especially followed by a visit to processing those for the middle level Dairy/cattle feed plant. Farmers employees starting from the are the trainees. The farmers level of Supervisors should Induction program is normally be hand on training carried out in the HRD Centre, exclusively on subjects and Kozhikode. The Dairy Animal skills relevant to them. Management Training to the 2. Farmers training should be farmers has been undertaken in organized in the villages APCOS DCS. The training with the support of LSG and included lectures by experts and Village Extension Workers visit to a few well run farms. The under MRCMPU. farmers were given opportunities to see for themselves the success 3. All out and comprehensive and failure stories. training on Mastitis Eradication, Clean Milk The training for MRCMPU Production for farmers, employees is arranged by the Village Extension Workers Head Office in the institutions of and DCS employees should repute in India, both inside and be initiated on a project outside the State. An interaction mode and results closely with a test group showed that the watched and monitored. trainings were partially useful for

96 Malappuram District

4. The Dairy Managers, 6. The FIP must be gradually Production Officers and phased out. Marketing staff should be The courses suggested and the exposed to higher levels of estimated cost is given in table knowledge on production 3.20. and marketing management. They should be provided 3.15 Working Capital – opportunity to visit centers Malappuram District of excellence outside the Large amount of Working Capital state. are needed to ensure smooth and

5. The thrust of capacity uninterrupted supply of raw materials, consumables, etc. for its building of higher level manufacturing and sales employees should be on operations. modern Management Systems rather than on Each unit shall maintain technical subjects. They minimum quantity of finished should be exposed to what products at all times to ensure happens in dairy sector uninterrupted sales. Minimum elsewhere in the country (eg: quantity of all raw materials, consumables packing materials, Schreiber Dynamix) to stores and spares, etc. are widen their vision and required to maintain smooth outlook. processing/production operation.

Table 3.20 Proposed Training Program under NPDD Malappuram District Total Cost Sl. No. of Unit Name of Course Units (Rs in No. Units Cost (Rs) Lakh) 1 CD programme 15 80000 12.0 2 Training DCS employees & elected members Lot 15.00 3 MRCMPU employees Person 125 3000 10.00 4 Institutional skill development 70.00 Total 107.0

97 Malappuram District

The working capital requirement of addition the Milk Union is supplying the Union is fluctuating cattle feed and other inputs to the throughout the year depending on societies on credit basis. Present local milk procurement. The milk supply of cattle feed to societies is procurement of the Union more than 600 MT per month. fluctuates drastically between the The Milk Union do not have flush and lean season. Union adequate cash reserve to meet the needs huge amount of Working expenses mentioned above. The Capital during lean season Union resorts to soft loans and (January to May) and flush season over drafts to avoid disruption of (June, July, October, November). milk value payments to farmers This is to ensure timely milk value and to maintain supplied and to the farmers even when money is services to DCS. The borrowings held up in the form of inventory attract interest which in turn like ghee, skimmed milk powder, limits the farmer beneficiary consumables, and cattle feed etc. programs and investments in During lean season union is dairy. In coming years the burden procuring milk from other states for is poised for increase. Hence it is which payments are made in requested that an amount of Rs advance. SMP is also to be stored to 285 lakh may be paid as a onetime take care of any possible short assistance towards working capital supply from outside state. During assistance for Malappuram flush season funds are needed to district. The amount requested is stock ghee, converted SMP, cream, equal to milk value for 21 days as etc. which are produced in excess of shown in table 3.21. normal market requirements. In

Table 3.21 The Milk value due for 21 Days in Malappuram District to Farmers

Milk Procurement (LPD) Average Total Milk Total Milk Milk Price Days value (Base Value(EOP) 2013-14 2014- 2015- 2016- (Rs.) Year) (Lakh) (Lakh) (Actual) 15 16 17 0.37 0.40 0.43 0.47 28.88 21 224.40 285.05