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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
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