CHAPTER - III

A PORTRAIT OF BANGALORE MILK UNION LIMITED (BAMUL)

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 (1171-1219

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 (1516-69 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.

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.

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 city-

dairy, 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.

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,

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 wasbifurcated into Bangalore and Kolar Milk Unions on April 1 ,

1987.

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 1984. Karnataka Milk Federation

(KMF) came into existence in May 1984.

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, 1988-

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?

61

5. To facilitate rural development by providing oppor­

tunities 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, andd) 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

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 co­

operative,

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 1994 - 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-

f * f t0 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 theretail outlets through their wholesale dealers in Bangalore

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 (Pre­

heated 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

32000 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)

to minimise the transportation expenditure and to give quick

timely services. Annually, 192000 cases are treated in the

mobile veterinary routes and the cost of each case treated is

Rs-16.

7- 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

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, co­

operative 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 Co­

operative 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, 1988. In short, it iscalled BAMUL- The union through its progressive policies laid by

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.

Oper

atio

nal

High

ligh

ts o

f Ba

ngal

ore

Urba

n an

d Ru

ral

Dist

rict

Co-

oper

ativ

e Mi

lk P

roducers'

Unio

n Ltd.

68

2,16

,29,

non

94.-8

1,70

0 2,

14,4

6,00

094

,a1,

7nn

uu/.' it't

10. S

hare

Capital

(in

Rp

842

1,45,364 53

3,04

,858

32,1

76 367

3,07

,467

.5

5.68

803

1,36,252 60

2,92

,033

76,3

06 373

3,12

,226

5.68

763

1,28,544 44

2,41

,523

89,012 327

2,98

,500

5.59

16.83.000

723

1,19,400 44

1,98,510

83,111 275

2,81

,028

5-05

2,09,7 ,433

01-

DCS

Func

tion

ing

510

02-

DCS

Memb

ers

' 87,162

03.

Milk

Pro

cure

ment

Rou

tes

35

04.

Aver

age Mi

lk Req

uire

ment

/Da

y fr

om DCS

in

(kgs)

1,97,387

05.

Othe

r Da

irie

s (in kgs)

45,3

29

06.

Aver

age

Milk

Pro

cure

ment

/DCS

/DAY

(in kgs)

367

07.

Aver

age Mi

lk S

ales

/day

(litre)

2,53

,970

08.

Mini

mum Am

ount

pai

d to pro

duce

rs

2-98

per

kgs. o

f mi

lk (

in Rs.)

09.

Pric

e di

ffer

ence

paid

to p

rodu

cers

in a

dditio

n to mi .1 k

pric

e (in

Rs )

1994-95

(Upto De

cemb

er

1994)

1993-94

1992-93

1991-92

1987-88

2

Part

icular

sSI.

No.

11. Net

Prof

it (in

Fs.)

24,4

28

63,5

6,38

5 15

,26,

740

91,6

0,38

5 4,

27,7

3,40

1A

fter d

ecla

ring p

rice

diff

eren

ce

(Les

s)

(less

) (P

rofit

- (P

rofit

- (P

rofit

-

69

1,09

9

2,60

9

4,24

2

25904

1,09

9

2,60

9

4,24

2

259

2,44

3

2,16

4

3,60

7

192

1 ,569

2,05

0

2,20

1

3,91

3

195

179 46 05

BU

U61

b'CL'l

08S' l1,58

0

1,74

1

3870 19

1

478 32 09

614

1,28

2

3,55

3

199 27614

1,26

1

670

199 19 21 09

426

2,69

0

2,61

4 53426

2,61

2

2,64

4 54 750 57 08

a. Bu

tter

b- Gh

ee

c. C

urds

d. P

eda

e.

S-M

.P.

f. C

asei

n

g.

Ice c

ream

13. Ave

rage

Milk

Prod

uct S

ales

/day

(in

kgs)

a- Bu

tter

b- Gh

ee

e. Cur

ds

d.

Peda

e.

S.M

.P.

Ave

rage

Milk

Prod

uct P

rodu

ctio

n/

day (

in kg

s)12

.

prov

isio

nal) provis

iona

l) provisio

nal)

70

04 630 13 57 28 12

1,41,162

17.00 7

21,5

60

101-87 302

20 05 620 13 56 23 12

2,00

,562

15.92 7

26,534

103.45 346

60 30 12

1,92,419

14.55 7

25,483

95.76

33123 09 740 09

31 09 560 09 57 30 11

1,33,678

14.49 6

21,7

26

91 .03

320

15.

No-

of M

obil

e Ve

teri

nary

Rou

tes,

Func

tion

ing

8

16.

No-

of A

nima

ls t

reat

ed i

n MV

R Ro

utes

1,50,430

17.

Cost

per

cas

es t

reat

ed i

n MV

R Ro

utes

(inR

s.)

13.40

18.

No.

of E

merg

ency

Rou

tes

Func

tion

ing

4

19.

No.

of Animals t

reated in Emergency

7.5,449

Routes

20.

Cost per cases treated i

n Rnargenoy

Route

(in Rs.)

42.78

21.

No.

of A

T Centers

221

168 08 480 08 48 27

ii.

Even

ing

Morn

ing

c. M

ilk

Dist

ribu

tion

rou

tes

b. N

o. o

f Mi

lk P

arlo

ur

14. M

ilk Ma

rket

ing

Stru

ctur

e

a. N

o. o

f Ag

ents

g. I

ce c

ream

f. C

asei

n

3

71

Sour

ce : P

rogr

ess R

epor

t of th

e BA

MU

L (199

5).

87,0

44 32

18.8

6

24,8

96 51%

4,63

8

8,17

2

26,3

1,73

8

1,14

,437 28

19.0

6

32,8

12 55%

11,1

35

12,6

95

44,6

0,34

4

1,17

,706 30

15.5

6

32,1

18 50%

3,25

5

10,0

28

16,7

8,00

0

1,11

,642 29

14-7

3

31,0

08 52%

6,53

6

5,86

8

8,04

,000

5,79

5

80,4

02 30

12.1

2

13,9

84 40%

28.

Cat

tle Fe

ed Sa

les (i

n ton

nes)

29.

Cat

tle Fe

ed su

bsid

y pai

d to

Farm

ers (i

n Rs-

)

27- Are

a cov

ered

unde

r Fod

der D

evel

opm

ent

(in A

cres

) 3,

484

26. Con

cept

ion R

ate (i

n per

cent

age)

25. No.

of Cr

oss B

reed

Cal

ves B

om

23- No.

of AI

done

per D

CS

24. Cos

t per

AI do

ne (in

Rs.)

22. No-

of AI

Done

5