dairy sub sector report - final submission

8/13/2019 Dairy Sub Sector Report - Final Submission

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CONTENTSAcknowledgementsExecutive summary ......................................................................................................31. Background .......................................................................................................... 8

1.1 National context ........................................................................................... 81.2 Chhattisgarh State Context...........................................................................91.3 Importance of Dairy sub sector in Chhattisgarh State............................. 11

2. Dairy Sub Sector Study Objectives and Methodology......................................122.1 Objectives of sub sector study ....................................................................122.2 Methodology................................................................................................13

3. Sub sector Map .......................................................................................................133.1The production sub system ...............................................................................143.2 The processing sub system ..............................................................................163.3 The marketing sub system ............................................................................... 173.4 Condition of support industries .....................................................................203.5 The Policy and Institutional Context ..............................................................213.6 The Environmental Context ........................................................................... 223.7 Financial Overlays ........................................................................................... 22

4. Key Constraints and Leverage Points .................................................................. 234.1 Key constraints at production, processing and marketing........................... 234.2 Strategic Choices and Key Recommendations.............................................. 24

Photos.................................................................. Error! Bookmark not defined.Annexures: Glimpses of FGDs and Household Interview...................................... 33


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Acknowledgements

Present Sub sector study has involved visits to 5 districts, interactionwith rural dairy farmers, commercial units, and suppliers of breed,feed, health services and marketing agencies. Being an intensive field

work, study team was beaming with inquisitiveness and explorations.We acknowledge our gratitude to all respondents in the study, whohad been kind to openly share their views and perceptions. We areespecially thankful to the villagers of Maheshpur, Madguri, Karwan inSaguja and Bastar, who welcomed us and provided insights in thestate of affair.

We are extremely grateful to Dr. R.K Singh, Director, CGSIRD, whoseguidance and trust motivated us to take up extensive fieldinvestigations and analyse the facts in an action framework format.Perhaps making study come out of theoretical understanding level to

an actionable intelligence level is what may distinguish this reportfrom any other similar study in the state. If any such action emergesfrom present study, we dedicate it to the insights of Dr. R.K. Singh.

We would also like to extend our deep felt thanks to Mr. R.S Gautamand Mr. Srinubabu, who had worked incessantly to mange keycontacts at various sites and logistics.

We feel indebted to Dr Sankar Dutta, Dean, The Livelihood School, ashe has been there behind us providing always a better framework tolook into things and brought in his passion for sub sector study.

Sanjeev Kumar

Dhanajaya,B N

Angad Prasad Singh


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Executive summary

The Dairy sub Sector in Chhattisgarh state is still in primal stage, though it has goodnumber of cattle population. The rearing of cattle are mainly concentrated in central part

of the state surrounding the capital city Raipur. In northern part of the state hassignificant number of cattle. It is observed that the rearing of livestock animals especiallyin villages has focus on draught power rather than milk. Smallholder milk productivity isabysmally low, and milk is not considered as major product. The cattle rearing systemhas been extensive grazing and low input cost based. The study of Dairy sub sector inChhattisgarh highlighted following major trends/issues -

There exist commercial dairy in small pockets around Raipur and some majorcities. These farms are mainly operated by migrated farmers from UP, Bihar andJharkand.

Demand of milk and milk products are highly skewed with urban centeredconsumers and local rural demand of milk is very low.

The cooperative structure for procurement of milk by Raipur Milk Union (Sanchibrand) has very limited success. Only about 265 societies are active at present.

Through out the state majority of the livestock rearers are marginal producershaving 4-6 animals per households. Indigenous breeds are pretty common in thestate.

Though State has progressive breeding policy in place , has good networks of A.Iservices by Government and Non Government agencies, the successful adoptionof A.I has been only in periphery of towns , where assured milk market has beenavailable. It has been of special significance that breeding effort has not matched/

complemented well with input level interventions like green fodder production,concentrate feed supplementation and assured market. Efforts has been isolatedservice delivery rather than market led demand based model.

Three marketing channels can be found in the state. They are1o Raw milk direct from farmer to rural consumer (less than 5%)o Raw milk via intermediaries (Dhoodia / Chandi) to urban (70%)o Raw milk by dairy farms to consumers and commercial establishment

like hotels (25%)

Local milk vendors are the most dominant milk sale channels through out thestate. The price offered by these local agents is around Rs 20 -25 per litre

compared to Rs. 16-18 offered by milk cooperative society.

These informal marketing agents have been operating efficiently and controlledmore than 90 % of the milk trade in the state. They supply milk to householdsand hotels with the margin of Rs. 2 / liter over and above the collection rate.

These informal milk traders are functioning at the radius of 25 KM from the city. The veterinary service in the state is found to be satisfactory.

1These are estimated figures based on interaction with key player


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The government initiatives for shifting urban dairy farmers through the schemeof Gopal Nagar is very interesting and has resulted in protecting urban livestockrearers.

The backward linkages of the Dairy subsector such as availability of quality feeds,green fodder, AI services, extension services etc are not integrated at dairy

producers level making present effort dissipated and unyielding. The learningon this front by stakeholders has been slow.

Key Recommendations

As per existing factor and demand condition of dairy, it is recommended thatdairy development in the state should take a cluster approach with making 10 to15 Kms radius of a town as milk shed area. A set of 1000 to 2000 families having

basic dairy resources should be identified a cluster based approach in milkproduction enhancement should be undertaken. Present dispersed approach ofdairy promotion has been not able to take advantages of resources and market.

The identified cluster should take up an integrated effort to work on factorconditions like irrigation and fodder production and the whole dairydevelopment process should be divided into phases starting from irrigation and

fodder development. It is strongly recommended that rural and semi urban youth havingentrepreneurship and dairy farm training at major commercial dairy farm in thestate. The training should be imparted in collaboration with commercial farms

with focus on practical knowledge and hands on understanding of business. The present dairy livestock health service provisions calls for Promotion of dairy

managers/ livestock health workers on scale State development agencies should identify Breeding zone in the central region of

state and special program for promoting it as breed development area to supplyimproved dairy cows/buffaloes to other area within state should be promoted.The present outside state purchase and price has been a detrimental factor in thegrowth of dairy sector in the state.

Commercial dairy farm owners of the state should be involved in policy andaction forum of dairy development in the state.

Improved bull procurement from commercial farms in the state. Panchyat basedbull breeding system with incentives based on crossbred produced is highlydesirable.

Livestock Insurance has received a very low penetration in the state includingorganised dairy farms. A central government program on breeding and improved

breed livestock insurance is operational but it requires further impetus to workon the state of awareness and promotion.

Gokulgram model seem useful provided some close monitoring is kept. Creditand Insurance in Gokulgram should be strengthened.

Role of PRIs and suggested model for dairy based livelihood strengthening

Panchayati Raj Institutions could play a vita role in input linkages like common landgreen fodder production, grazing land development and collective payment basedstorage of dry fodder and hay. VRTI (Vivekanand Research & Training Institute in Bhuj(Gujarat) has developed a model for community managed fee based fodder bank, whichcan be replicated by Panchayat in the state.

Panchayat can prepare and recommend young youths and farmers from village,interested in dairy farming and can link with government programs and input services.


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Study team recommends a decenralised milk chilling plant (ranging from 1000 to 5000ltrs) in the radius of 25 Kms from the major towns. This should be placed on operationalroute basis and PRI based on business principles may take up role of its managementthrough selecting and appointing an entrepreneur for this purpose.

The milk fro a periphery of 5 to 10 Kms may be collected by such a center and payment

made on weekly basis. This collective milk may be sold to Dairy cooperatives at a bulkrate and or can be sold to retail customers in urban dwellings by a SHG federation.

The average cost of chilling and transportation (if 1000 ltr of milk is procured withseasonal fluctuation less than 30% over the year) will be around Rs 1.50 per liter per day.So a price margin of Rs 3 between procurement and selling can make such organizations

work effectively. However some initial investment has to be mobilized as grant as theprocurement of 1000 liter will take 6 months to 1 year time and till then break even will

be difficult.

We recommend to take this whole in three distinct but cohesive phases in the state

Phase 1 (one year) Identification of potential milk cluster in radius of around 10 to 15 Km from the

town Select target beneficiaries/producers and work on Irrigation sources, green

fodder cultivation and improved dairy management Train rural youths on dairy farming and basic livestock health care Capacity building of farmer through exposure, training and video shows Extensive A.I with improved indigenous dairy breed and exotic breed with

selected farmers as per state breeding policy Explore and establish input linkage providers

Phase 2 (1 to 2 year)-

Establishment of bulk milk coolers (starting from 1000 ltr capacity) in the areaand initiating procurement of milk

Strengthen supply of fodder seeds, concentrate feeds, mineral mixture andawareness building on it

Regular meeting of milk pourers on quality and milk procurement systems Building capacity of marketing and procurement agency Campaigning in the area for low cost quality milk productionPhase 3 (2 to 5 years)

Developing institutional capacity of milk production and procurement Networking and inter linking of such procurement centers for mutual

learning and systems improvement Facilitating larger level role of community led programs implementation of

for integrated benefited of member families Enhance quality of milk and reduce cost of milk production through adopting

improved and efficient system

Conclusion


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The present Sub sector study has delved in to market segmentation of milk in the stateand factors affecting dairy productivity. The present constraints and strength of businessprocess at Input, procurement, processing and marketing were studied and dignosed.

It is evident that milk market in Chhattisgarh has been concerntrated to pockets of uranarea and demand is surpassing the supply. However the milk demands in rural areas and

very small towns are not significant to promote decentralised dairy development. The

constraints in the state had been on both fronts At input level itself starting from breedto green fodder and if this over taken, market if not linked with urban.

Da i r y d ev el o pm en t i n t h e st a t e n eed s t o b e c l u st er b a sed , w i t h i n v i c i n i t y o f

u r b a n a r ea a n d u n d er t a k en i n p h a s ed m a n n er . The role of commercial dairyfarm, which is significant in share of milk production, needs to be more synergistic withgovernment effort and a functional collaboration on this front is required. State alsoneeds to identify breeding zone in central part and a special scheme of developing localelite cows and buffaloes to act as supply center for other part of the state is required. Thiscould provide further impetus to dairy development in central region and can wellsupplement the adoption of improved practices.

Study team concludes that state has an unique opportunity to work on demand basedproduct (milk) in the state and this could help to generate millions of livelihood in thestate on one hand and ensure quality and balanced nutritious food to the public of stateon another.


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1.Background

In India, the dairy sector is important for various reasons. Among these itscomplementarities with agriculture and to enrich the protein diet are significant. Besidethese functions, it also play role in balancing the rural inequity. Dairying helps the rural

poor in having additional regular income. In recent decades the dairy sector has emergedas an important source of rural employment and income in the country. However, thesedevelopments are not uniform across the nation. While southern and western Indiaregions have shown tremendous growth in Dairy sector, the central region has beenlagging behind. One such poor performing state is Chhattisgrh state.

Chhattisgarh is one of the three new states added to the Indian Union in November2000. The state is endowed with a large and diverse livestock population. Over 75 percent of all species of livestock in the state is owned by the small holder group. Over 70per cent of the rural households own livestock and earn supplementary incomes out ofthem, meager though it is. Livestock sector in Chhattisgarh is therefore extremelylivelihood intensive. However, very low productivity and very large numbers are the

hallmark of the livestock in Chhattisgarh.

As Chhattisgarh State is predominantly agriculture based, the systematic approach forDairy sector development could enhance the livelihood opportunities for the people. Inthis connection the Sub Sector study of Dairy in Chhattisgarh was undertaken by TheLivelihood School through State Institute of Rural Development, under BackwardRegion Grant Fund. The main objective of the study is to map and analyse the process ofproduction and to identify scope for interventions.

1.1 Na t i o n a l co n t ex tThe growth of the dairy sector in India during the last three decades has been

impressive, at more than five percent per annum and the country has emerged as thelargest producer of milk in the world. The following chart 1 shows the steady increase inmilk production in the country over last then years. It is well acknowledged that suitablegovernment polices and Operation Flood programe are the chief contributor for thesuccess in the dairy sector in the country. The favorable finance flow under various

welfare and development schemes to take up dairy enterprises by the poor rural familieshas created millions of livelihood across the country. The rapid urbanization in thecountry and overall economic development has resulted in growing demand for the milkand milk products in the country. The continuous technology development andextension services have added to the development of the dairy sector in the country.

The performance of Indian dairy sector over the last three decades (post-OF

period) has been extremely impressive. The milk production in the country hasmore than trebled to over 80 million tons between 1970-71 and 2000-01 with anaverage increase of about 4.5 per cent per annum, which in comparison to worldsrate of about 1 per cent is much higher. During the period 2000 to 2006, the milkproduction increased by around 16% in India but Chhattisgarh was able toincrease its milk production by less than 8% only.


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Chart 1: Trend in Milk Production i n Indi a

0

20000

40000

60000

80000

100000

120000

97-98 98-99 99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08

Years

AnnualMilkP

roduction

(Thousand

Tonnes)

The country is now the largest milk producer in the world, with dairying providing animportant livelihood support for the rural poor in India. The profitability of dairyenterprises, to a large extent, is dependent on the efficiency of the marketing network.However, market access for smallholder livestock producers remains a major constraintin many parts of India, especially in Chhattisgarh State.

1.2 Chh a t t i sg a r h St a t e Con t ex tThe state of Chhattisgarh came in to existence on November 1, 2000. This land lockedstate was carved out of Madhya Pradesh. The total area of the state is 1,35,000 Sq. kmand has a total of 18 districts, with Raipur as the State capital. The climate of the state is

mainly tropical, humid and sub-humid. Mahanadi is the principal river of the State andthe other rivers are the Godavari and the Narmada. Population of Chhattisgarh forms 2per cent of the total population of India. As per 2001 census, 80 per cent of the totalpopulation lives in rural areas and the remaining 20 per cent lives in urban areas. TheScheduled Tribes (ST) and Scheduled Caste (SC) accounts for 43.4 per cent of the Statespopulation. The Literacy rate has improved steadily from 42.91 per cent in 1991 to 64.7per cent in 2001.

Chhattisgarh's Gross State Domestic Product (GSDP) is estimated at Rs.95, 204 crore for2008- 09, registering a growth of 19.88 percent over the previous year, according to aneconomic survey 2009-10. Per capita income grew 13 per cent in 2008-09, but thegrowth may be attributed more to the growth in secondary sector and less to the primary

sector.

1.2.1 Agriculture in Chhattisgarh

On the basis of climate & topography the state isdivided into three agro climatic zones. The Ba s t a rP l a t e au comprises of Bastar, Dantewada, Beejapur &Narayanpur districts and a part of Kanker (excludingCharama, Narharpur & Kanker Blocks). Northern partsof the state comes under " N o r t h e r n H i l l y R eg i o n "


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which comprises of Sarguja, Koriya & Jashpur Districts. Bilaspur, Raipur, Janjgeer-Champa, Raigarh, Rajnandgaon, Kawardha, Durg, Mahasamund, Dhamtari, Korba andparts of Kanker come under "P la i n s o f Chha t t i s g a r h ".

Out of 137.00 lakh hectares geographical area of Chhattisgarh, 43 per cent area comesunder cultivation while 44 per cent is under forest cover.Almost 80 per cent of thepopulation isdependent on agriculture and agriculture related occupations.

Agriculture is still the backbone of states economy.

Rice is the major crop of the state occupying 2/3rdof the total cropped area while thepulses, oil seed and horticulture occupied 17 per cent, 5 per cent and 2 per centrespectively. How ever the productivity of Rice per ha when compared tonational average is 30 per cent less. Due to rain dependency of agriculture, thescope for the second crop post rainy season is severely limited in un irrigated areas.

Agriculture is the major source of income for the rural house holds in Chhattisgarh andincome from agriculture is supplemented by income from wage labour and income fromlivestock.

1.2.2 Livestock and Dairy in

Chhattisgarh

Chhattisgarh has a rich livestock wealth of 1.4core animals, as per the 2007 livestock census, of

which the maximum of 65 per cent is the cattlepopulation followed by 20 per cent of goatpopulation. Buffalo constitute 11 per cent of thetotal while pigs and sheep are 3 and 2 per centrespectively of the total population. The animalsin general are smaller in size and have poorproduction potential. The growth andreproductive efficiency is also poor. The stategovernment has assigned high priority for promoting livestock production in its Vision2010 document.

Estimates of Milk Production State wise

(million tonnes)

State2000-

012001-

022002-

032003-

042004-

052005-

06

All India 80.607 84.406 86.159 88.082 92.484 97.066

Gujarat 5.312 5.862 6.089 6.421 6.745 6.96

Haryana 4.85 4.978 5.124 5.221 5.222 5.299

Madhya

Pradesh 4.761 5.283 5.343 5.388 5.506 6.283Uttar Pradesh 13.857 14.648 15.288 15.943 16.512 17.356

Chhattisgarh 0.777 0.795 0.804 0.812 0.831 0.839

Source:http://www.nddb.org/statistics/milkproduction_states.html

Chart 2: Livestock Distribution in

Chhattisgarh State

Cattle, 65

Goat, 20

Buffalo, 11

Pig, 3

Sheep, 2


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1.3 I m p o r t a n ce o f D a i r y su b sec t or i n Chh a t t i sg a r h St a t eAbout 80 percent of States population lives in rural areas, largely dependent onagriculture and allied activities for livelihood. The State thus accords high priority toagriculture and rural development. In this backdrop, Dairying could emerge as animportant source of income and employment for the rural poor. It acts as a bufferagainst income shocks of crop failure which is a frequent phenomenon in Chhattisgarh.

Dairy activity could provide a continuous stream of income thus improving thelivelihoods. Cattle and buffalo are an important source of manure and draught power,

which are vital to improving crop production and environment. The following tabledepicts the district wise number of cattle and buffalo in the state>

Table 1: Cattle and Buffalo Population of Chhattisgarh State

Sl.No

District Cattle Buffalo

1 Raipur 1027060 2488222 Mahasamund 363637 880973 Dhamtari 250652 63044

4 Durg 849868 1932605 Rajnandgaon 619286 1139036 Kawardha 247418 681807 Jagadalpur 646831 1356588 Kanker 328960 518919 Dantewada 570643 45145

10 Bilaspur 658344 19012211 Jangir 477216 16103112 Korba 208154 7330013 Sarguja 950327 19939114 Korea 218011 4925915 Raigarh 462133 105932

16 Jashpurnagar 392783 49513Total 8271323 1836542

The per capita availability of milk is only 84g per day as against 224g per day as anational average. The total milk production of Chhattisgarh is only 0.55 million tonnesagainst 84 million tonnes milk production in India. Thus, the contribution ofChhattisgarh to the national milk production is only 0.65 per cent.

Per capita availability of milk in selected states in India; 2000-01 to 2005-06

Per Capita Availability of Milk by States (gms/day)

State 00-01 01-02 02-03 03-0404-05 05-06

All India 220 225 230 231 233 241

Gujarat 280 317 321 330 344 349

Haryana 614 645 647 643 631 628

MadhyaPradesh 211 240 236 233 233 262UttarPradesh 223 241 245 250 254 262

Chhattisgarh 100 105 103 102 103 103


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Though the milk yield is still low compare to national level, the total milk production inthe state is on increasing trend. The below chart 3 depicts that the total milk productionin the state was 777 thousand tones in 2000-01 and has increased to 866 ThousandTonnes in 2007-08. This clearly shows that there exist high potential in the state toharness the benefits from the Dairy sector, there by helping household improve theirlivelihoods.

Chart 3: Trend in Milk Production in Chhattisgarh State

720

740

760

780

800

820

840

860

880

2000-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08

Years

AnnualMilkProduction

(ThousandTonnes)

The milk yield in the state (cattle as well as of buffalo) is about half of the nationalaverage. Low yield is due to a lack of adoption of technology, feed scarcity andinadequate animal health services. For instance, only 3 per cent of the milk cows in thestate belong to crossbreds, much less compared to the national average of 22 per cent.Similarly, the livestock units per veterinarian in the State are about 36000 as comparedto the national average of about 8000.

Nevertheless with appropriate technological, institutional and policy support Dairy subsector has considerable potential for growth and thereby could be an important pathwayfor poverty reduction. Rapid economic growth as being witnessed in the State, is causinga shift in the food consumption basket in favour of dairy products, which offersconsiderable scope to raise opportunity in Dairy sub sector.

2.Dairy Sub Sector Study Objectives andMethodology

2 .1 Ob j ect i v es o f su b sec t o r st u dyThe dairy sub sector study aims to:

Map and analyze the process of productiono Input procurement subsystem,o Input processing subsystem,o Technology subsystem,o Labour/skill transfer subsystem,o Output subsystem,o Output processing subsystem, ando Output marketing subsystem.


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Compare and contrast the existing process of production with bigger players in thesubsector to identify scope for interventions.

Identify Best Practices, Quality Control Protocols, and Certification Processes. Conduct inflow-outflow analysis and assess the potential for marketing of products. Identify domestic and international trends, issues and opportunities related to the

sub sectors.

Propose a marketing strategy for a five year period supplemented by marketInformation Identify legal hurdles, if any that inhibit effective performance of the subsector. Suggest models of Public, Private and community partnership that can be replicated

in various regions and identify role of community, panchayat and privateentrepreneurs therein and also suggest necessary changes in policy & legalframework, if any.

Identify the extent of market led, state led and civil society led coordination failuresin each subsector.

Suggest intervention strategy.

2 .2M et h o d o l og y

Dairy Subsector study was carried out using primary data / information. Therepresentative sample was selected. The sample districts include representation fromthree agro climatic zones of Chhattisgarh. The districts selected were Surguja in northand Bastar in the south Chhattisgarh. Raipur and Durg in central Chhattisgarh andRajnandgaon in west Chhattisgarh.

The study tools included Key Informant Interviews (KII), House hold interviews, usingstructured and semi structured questionnaires. Focused Group Discussion (FGD) andParticipatory Learning and Actions (PLA) with various players in the value chain andcritical observations (tools included as Annexure). The interviewees and groups were

selected using random stratified sampling method.

To minimize the distortions in interpretation and analysis use of audio visual aids weremade. While conducting PRA with village community, regarding the risks associated

with upgrading the scale of goat rearing, visual placards were used, based on which thegroups ranked the associated and perceived risks. Also all the interviews were recordedusing sound recorder and the process documented using video recorders.

3. Sub sector Map

The analysis of the Dairy sub sector revealed that, the following are the key stakeholdersare;

Fodder and feed producers / suppliers Veterinary service providers, Financial institutions Milk producers Traders Dairy cooperatives Transporters Wholesalers


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Retailers and The consumers

The following section explains role and status of the above stakeholders in processproduction, processing, marketing and other support systems. Using this information, atthe end a sub sector map is constructed for easy analysis and to find out leverage pointsfor appropriate decision making.

3 .1Th e p r odu c t i on sub sys t em

The input sub system in the state composed of Breed and breeding Green and dry fodder Concentrate Feed and feed supplements Prevention and Health care Sanitation and Management

Major observations

Over 6 brands of cattle feed apart from loose local cattle feed. Three major processing plants. Bhatapara as major trading centerNo Mineral mixture & Urea molasses block (UMB) plant in the state Chaffing of fodder is not in practice, lead to high wastage of dry fodder Complete feed block can utlise rice straw efficiently

The livestock rearing especially in villages has more social and cultural value thaneconomic value. As a result more of descript animals are found rather than crossbreedanimals. Keeping of 5-10 cattles is common infarming family. Farmers keep cows to meet theirdomestic needs. Therefore, livestock became an

integral part of farming system as such. Ingeneral, cattles are in more number than of

buffaloes. The animal power is used foragricultural operation and the dung is used asmanure and fuel. In recent years the rearing ofcross breeds are slowly increasing in the state. Inurban areas the commercial dairying is gainingmomentum.

With regard to the production system, in general animals are reared in cattle sheds,which are made up of thatched / tiles roof. The floor is earthen and litter management is

unsatisfactory. The entire herd is housed in congested and unhygienic condition.Provision of standing space, sanitary, feed and fodder supply and loafing area are notsatisfactory. The stall feeding is observed to be very low in the state and open grazing ofthe animal is the common scene in the state.

Most of buffaloes reared in Chhattisgarh are of non descript type. However, in citiesMurrah buffaloes are maintained by organized dairy sector. Their number varies from 5to 250 dairy buffaloes in one farm. Buffalo milk is the major source of milk supply inmajor cities.

Production system in Northern CG


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The farmers provide their livestock 60%. Straw, 35% green fodder (including weeds fromcultivated fields, crop residues hand cut tree leaves and grazed grass) and 5%concentrates during August to December. However, in rest of the months they have onlydried straw along with little amount of home made residual grains and grain by-products. The livestock (cattle and buffalo) gained at the rate of 0.1 kg /day. The cows

calve every other year and produce 300 to 350 kg of milk in one lactation. However ifthese stock can be fed on diet containing high proportions of green fodder and/orconcentrate, it can gain 0.3 kg/d body weight andcalves in every one and half years and produce 1200litters of milk per lactation.

The milk productivity is very low. The main reasonbehind the poor productivity is poor geneticendowment of the animals and inadequate availabilityof feed and fodder. The deficiency of feed and fodder isnot only in quantity but also in quality. This results notonly in low production but also in poor reproduction

and health status of the animals, which adverselyaffects the income of the farmers.

Hence following are the main observations: More than 90% of cattle and buffaloes of Chhattisgarh are of nondescript type.

They have late maturity, shorter lactation length, poor milk productionpotential and longer calving interval as compared to exotic dairy breeds andtheir crossbreeds.

The animals of Chhattisgarh state, particularly in rural areas, do not getadequate amount of feed and fodder. The proper proportion of different

nutrients is also lacking. The paddy straw forms the main source of roughageproviding bulk to the animals though deficient in energy and minerals. Thevitamin and mineral deficiencies are usual occurrences.

The main reason behind the low productive and reproductive performance ofthe non-descript animals is poor genetic potential and inadequateenvironmental conditions, which include feeding, management and health care.Though, by improving the environmental conditions the performance of theanimals can be improved to some extent but not beyond the limit imposed by the

Production system in Plain central region


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genetic potential of the animal. Moreover, it is of temporary nature and doesnot pass on to the progeny.

Sanitary housing, periodical de-worming, regular check up for any diseasewould help raise the calf to sound body weight at maturity for giving optimum

productivity.Animals should be managed in a way to minimize any kind ofstress (climatic, nutritional, disease, parasitic etc.) to enable them exhibit all

time optimum productive performance.

There is a great scope for the improvement in the genetic potential of the non-descript animals by proper breeding methods. The improvement brought aboutby this method will be of permanent nature and is passed on to the progenygeneration also.

Skill & Technology sub system

Low awareness and capacity in Rural farmers Has high technology variation Abbis dairy has started automated milk

parlour whereas Tribes did not milk cow

Training class room centric making it less useful for target clients3 .2 Th e p r ocess i ng sub sy st em

Milk cooperative Societies are engaged in proper processing of collected milk likeChilling and pasteurization and processing for preparation of various products likestandard milk, toned milk, double toned milk, ghee, etc. The few private dairies are alsodoing processing of the milk. However, the work efficiency of the existing milk plants ofcooperative is not satisfactory. The below table depicts the working efficiency of the milkplants in the state.

Table 2: Working efficiency of existing milk plant in Chhattisgarh

District InstalledCapacity WorkingEfficiencyRaipur 1 Lakh litres /

day50%

Bilaspur 10000 / day 70%Basna 2000 day 60%Dhamtari 2000 day 50%Rajnandgaon 1000 / day 30 %

(Source: Discussion with Raipur milk co-operative society)The demand is more for fresh milk than of the processed milk in the state. Hence, thetraditional milk supply is predominantly seen in the state. The fresh milk collected by themilk traders (Dhoodiya) are being supplied to hotels and households in urban area with

out any processing. Demands of dairy products are increasing day by day hence there isurgent need for increasing collection of milk and running all the existing plants withtheir full efficiency.The major observation on this front are

Very low processing Liquid fresh milk is consumer preference Traditional processing in sweets and milk beverages preferred Small volume makes processing economically unviable


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3 .3 The m a r k e t i n g s ub sy st em

Once the milk is produced by the producers, there are three ways through which the milkreaches to the consumers.

1) Through the co-operative dairy unions. In the Dairy sector basically the AnandPattern is being followed in all over India. The Pattern is three-tire pattern, whereinat the very grass root level there is village Dairy Committees. The primary milkproducers at the village are its members who sell their milk to the Committee. In thisCommittee the members themselves elect a secretary who buys milk on behalf of theCommittee. At the second level there are District Dairy Unions, constituted by

various Village Dairy Committees. The milk bought in the Village Dairy Committeesis transported to the District Dairy Unions. At the District Dairy Unions the milk isprocessed and other milk products are prepared. At the apex level the District DairyUnions constitute a Dairy Federation, which markets milk and other milk products.

All these Committees, Unions and Federations are managed by their electedmembers and governed by Cooperative Laws and by-laws. In Chhattisgarh the

structure of Dairy Sector is quite different and it is only two tire system. There is nofederation in Chhattisgarh as there is only one Dairy Union i.e. Raipur Dairy Union.Milk is produced at villages by individual farmers and sold to village dairycommittee.

The milk collected at various village dairy committees is then transported to theRaipur Dairy Union. At Raipur Dairy Union the milk so collected is processed andother value added milk products are prepared, packed and marketed. These milk andmilk products are marketed through wholesalers and retailers who have their ownmargins. Raipur Dairy Union is managed by National Dairy Development Board andthere is no elected board of members.

Though this cooperative structure is in existence since many years, ithandles approximately 5 percent of the total milk production in the state.The apparent reason as quoted by producers is that the price paid for thismilk (Rs 16 18 per litre) is not attractive as compared to the marketprice.

2) Through the individuals / Dhoodiya who sell their milk directly to the consumers.This forms the major marketing route for milk in the state. It handles about 90 percent of the milk production in the state. The Individual farmer or milk man(Dhoodiya) takes / collects the milk and transported to the nearby city hotels /households to market the milk. The contract supply at the pre agreed rate by thehoteliers are the system and the price under such system Ranges from Rs. 18 up to

Rs. 25 per litre. As the consumer in the state still prefers raw fresh milk, largenumber of households prefers to get the milk from traditional milk man.

3) Third channel is through the private companies, like Abees Dairy in Chhattisgarh,who produce and process milk and milk products in their own plants and sell it to theconsumers. In the whole process there are various other stakeholders involved apartfrom the three major players.

These three milk routes and intermittent support agencies for production, processingand marketing are depicted in the following sub sector map. Over all commercial


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establishments such as hotels in urban areas are the major consumers of the milkaccounting for about 45 per cent of the milk, while urban and rural householdsconsumes about 35 percent and 20 percent milk approximately.

Major observations on marketing are Demand surpasses production Milk consumption is urban centric phenomenon Liquid milk market is over 85% in the business volume Traditional channel of milkmen and direct selling is still predominant Fresh milk is the preference for consumer


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Sub Sector Map of Diary Sub Sector in Chhattisgarh state

Input Supplier

MilkProduction

Collection /Bulking

Processing

Transporting

Wholesaling

Retailing

RuralConsumers

20%

UrbanConsumers

35%

CommercialEstablishments

(45%)

PrivateTraders

VeterinaryDepartment

Small

Holders(80%))

Medium &Large

Holders

CommercialDairies like

Abids (5 %)Dhoodiya /

Chandi

RaipurDhoodSangha(5 %)

Traders


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At present, unorganized milk traders put a stiff competition to the organized milk sector.Therefore, organized milk marketing has a dual task to attract more and more producer-sellers to its fold by offering good price, and to help producers to produce more milk. Co-operatives provide their members bargaining power, fair deal, and assistance inimproving the productivity of the dairy business. But, the co-operatives have to facesome problems also like low literacy of member-farmers, lack of their ownership overproductive assets, lack of credit/finance, lack of training facilities, etc.

As far as dairy industry is concerned, forecasting of demand, procurement of raw milk,and transportation of processed milk are the vital components of supply chainmanagement. On this front, Indian co-operatives are little susceptible and lag behind themultinational corporations and other private firms. Non-observance of timeliness,inefficient distribution of milk, frequent break-downs of milk vans, delays in loading andunloading at depots lead to disturbed supply of milk and its products.

3 .4 Con d i t i o n o f su ppo r t i n d u st r i es

3.4.1 Livestock Services

Most of the livestock services like artificial insemination/natural service, vaccination,deworming etc. are time-sensitive, which Government institutions, at times, are not ableto deliver due to financial as well as bureaucratic constraints. However, in Chhattisgarhstate, these livestock related support services are being carried out in collaboration withprivate companies like JK Trust. Though these private companies primarily focus on

Artificial Insemination services, the government department with its availableinfrastructure has been providing satisfactory services to the cattle rearers. In recent five

years the result of such AI services has been very positive and slowly gaining momentum.The response from cattle rearers also found to be very conducive to the governmentefforts.

In many interior areas these services needs to be improved. This necessitates theproviding for efficient and effective decentralized services in tune with demandsemanating from users. Efforts can be made to provide such services at the farmers door,linked with cost recovery for economic viability. Availability of credit in time andtechnology support are the two important services needed for livestock development inthe rural areas.

3.4.2 Fodder Availability

The importance of feed and fodder in livestock production hardly needs to be

emphasized. In Chhattisgarh state, two major sources of fodder supply are crop residualand fodder from common property resources like forests, permanent pastures andgrazing land. The availability of cultivated fodder is very rare. As majority area in theState follows mono cropping approach with Paddy, the availability of different varietiesof fodder is also scarce. A significant portion of crop residue, particularly paddy and

wheat straw, is being wasted, as there is no system for chopping of straw. Whole straw isbeing fed to the cattle resulting in waste of fodder. The non availability of green fodderhas posed major threat for dairy development in the state.


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Emphasis needs be given on enrichment of straw/stover, preparation of hay/silage toovercome fodder scarcities during the lean season, conversion of fodder into feed blockto facilitate transport of fodder from surplus areas, establishment of fodder banks andpromotion of chaff cutters. The productivity as well as carrying capacity of public andforestland are decreasing due to impropermanagement of common property resourcesand lack of coordination between the

different agencies involved. For sustainableand economic livestock production, thisproblem needs to be addressed throughscientific utilisation of traditional pasturesand integration with the WatershedDevelopment Programme, especially forsilvi-pastoral development. Forenhancement of grass production, measuresshould be taken to bring larger areas under

joint forest management and treatment ofwastelands and areas under problem soils.

Increasing areas under cultivated fodder production needs to be addressed with specialemphasis. Efforts should be made to increase productivity through promotion ofintensive fodder production technologies, quality fodder seed production by specialisedagencies and use of wasteland for tree and bush based fodder production.

3.4.3 Animal Feed

Oil cakes, maize and cereal by-products areimportant ingredients of animal feeds. Coarsegrains and cottonseed are traditionally used ascattle feed. Measures should be taken to fill upthe deficit in the requirement of feeds inquantitative and qualitative terms. At present, a

very small portion of grains produced in thecountry is utilised for livestock and poultryfeeding. Rain-fed and arid zones presentenormous prospects for production of feedgrains. Steps will be taken to developspecifications for many agro by-products likemango seed kernel, mahua cake, neem cake, soya pulp, whey powder etc. so that thesecould be utilised for feeding livestock. Quality control of animal feed will be givenimportance. The existing feed availability through wholesalers and retailers needs to bestrengthened.

3 .5 The Po l i cy an d I n s t i t u t i o n a l Con t ex t

Since formation of Chhattisgarh as new state, the government has been focusing ondevelopment of livestock, especially for dairy development in the state through variouspolicy initiatives. Some of the important initiatives on dairy sector front are breedingimprovement programmes with the involvement of private companies, establishment ofGopal Nagar and expansion of department veterinary services.


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Table : Dairy Sub Sector Players, Their Role and Financial InterfaceSub sectorplayers

Role and Present Status Financial interface

Feed andfoddersuppliers

Production of feed andmaking accessible to thefarmers. Presently theiractivity in the state is in

downward trend owing todecreased demand. However,their role is very much crucialfor vibrancy of dairysubsector.

10-20 percent profit margin is ideal forsurvival of business.

Milk Producer Livestock rearing andproduction of milk

As most of the family members andincluding in the rearing activity, theirmargin is difficult to assess. However,in terms of price of milk at the finalconsumers, the producers proportionis about 60-70 per cent which is a goodenough. However, as feed and fodderconstraints, their net profit margin ison reducing trend.

Local Milktrader(Dhoodiya)

Collection of milk fromproducer families and sellingto households / hotels. Sometimes producer themselvesassumes this role

In the existing practice, their margin isRs. 2 per litre.

Wholesalers /Retailers

Processed milk from DairyCooperative / privatecompany are distributedthrough wholesalers andretailers

Their numbers are very few and areconcentrating in Raipur city. Theymargin is around 5-10 percent.

Transporters Mainly for Cooperatives andprivate dairy company

They are engaged by dairy cooperativeand private companies on contract

basis and account to Rs. 1-2 Rs per litre.

4. Key Constraints and Leverage Points

4 .1 K ey con s t r a i n t s a t p r o du c t i o n , p r o c essi n g an d

m a r k e t i n g

Production

Cattle rearing focus more on drought power than dairyLarge number of animals with low productivity.Non availability of feed and fodder (both in quality and quantity)Health services particularly in remote and hilly areas.


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Processing

Aggregation is difficult due to low quantity and disperse production baseLow consciousness on quality aspects of milk both by producer and traders.

Marketing

Skewed consumer base to urban areasHigh dependence on traditional traders

4 .2 St r a t e g i c Cho i c es and K ey Recom m en da t i o n s

Key Recommendations

As per existing factor and demand condition of dairy, it is recommended thatdairy development in the state should take a cluster approach with making 10 to15 Kms radius of a town as milk shed area. A set of 1000 to 2000 families having

basic dairy resources should be identified a cluster based approach in milk

production enhancement should be undertaken. Present dispersed approach ofdairy promotion has been not able to take advantages of resources and market.

The identified cluster should take up an integrated effort to work on factorconditions like irrigation and fodder production and the whole dairydevelopment process should be divided into phases starting from irrigation andfodder development.

It is strongly recommended that rural and semi urban youth havingentrepreneurship and dairy farm training at major commercial dairy farm in thestate. The training should be imparted in collaboration with commercial farms

with focus on practical knowledge and hands on understanding of business. The present dairy livestock health service provisions calls for Promotion of dairy

managers/ livestock health workers on scale

State development agencies should identify Breeding zone in the central region ofstate and special program for promoting it as breed development area to supplyimproved dairy cows/buffaloes to other area within state should be promoted.The present outside state purchase and price has been a detrimental factor in thegrowth of dairy sector in the state.

Commercial dairy farm owners of the state should be involved in policy andaction forum of dairy development in the state.

Improved bull procurement from commercial farms in the state. Panchyat basedbull breeding system with incentives based on crossbred produced is highlydesirable.

Livestock Insurance has received a very low penetration in the state includingorganised dairy farms. A central government program on breeding and improved

breed livestock insurance is operational but it requires further impetus to workon the state of awareness and promotion.

Gokulgram model seem useful provided some close monitoring is kept. Creditand Insurance in Gokulgram should be strengthened.

Role of PRIs and suggested model for dairy based livelihood strengthening

Panchayati Raj Institutions could play a vita role in input linkages like common landgreen fodder production, grazing land development and collective payment basedstorage of dry fodder and hay. VRTI (Vivekanand Research & Training Institute in Bhuj


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(Gujarat) has developed a model for community managed fee based fodder bank, whichcan be replicated by Panchayat in the state.

Panchayat can prepare and recommend young youths and farmers from village,interested in dairy farming and can link with government programs and input services.

Study team recommends a decenralised milk chilling plant (ranging from 1000 to 5000

ltrs) in the radius of 25 Kms from the major towns. This should be placed on operationalroute basis and PRI based on business principles may take up role of its managementthrough selecting and appointing an entrepreneur for this purpose.

The milk fro a periphery of 5 to 10 Kms may becollected by such a center and payment made on

weekly basis. This collective milk may be sold toDairy cooperatives at a bulk rate and or can be soldto retail customers in urban dwellings by a SHGfederation.

The average cost of chilling and transportation (if1000 ltr of milk is procured with seasonalfluctuation less than 30% over the year) will bearound Rs 1.50 per liter per day.So a price margin of Rs 3 between procurement and selling can make such organizations

work effectively. However some initial investment has to be mobilized as grant as theprocurement of 1000 liter will take 6 months to 1 year time and till then break even will

be difficult.

We recommend to take this whole in three distinct but cohesive phases in the state

Phase 1 (one year) Identification of potential milk cluster in radius of around 10 to 15 Km from the

town

Select target beneficiaries/producers and work on Irrigation sources, greenfodder cultivation and improved dairy management

Train rural youths on dairy farming and basic livestock health care Capacity building of farmer through exposure, training and video shows Extensive A.I with improved indigenous dairy breed and exotic breed with

selected farmers as per state breeding policy Explore and establish input linkage providers

Phase 2 (1 to 2 year)-

Establishment of bulk milk coolers (starting from 1000 ltr capacity) in the areaand initiating procurement of milk

Strengthen supply of fodder seeds, concentrate feeds, mineral mixture andawareness building on it Regular meeting of milk pourers on quality and milk procurement systems Building capacity of marketing and procurement agency Campaigning in the area for low cost quality milk productionPhase 3 (2 to 5 years)

Developing institutional capacity of milk production and procurement


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Networking and inter linking of such procurement centers for mutuallearning and systems improvement

Facilitating larger level role of community led programs implementation offor integrated benefited of member families

Enhance quality of milk and reduce cost of milk production through adoptingimproved and efficient system

Conclusion

The present Sub sector study has delved in to market segmentation of milk in the stateand factors affecting dairy productivity. The present constraints and strength of businessprocess at Input, procurement, processing and marketing were studied and dignosed.

It is evident that milk market in Chhattisgarh has been concerntrated to pockets of uranarea and demand is surpassing the supply. However the milk demands in rural areas and

very small towns are not significant to promote decentralised dairy development. Theconstraints in the state had been on both fronts At input level itself starting from breedto green fodder and if this over taken, market if not linked with urban.

Da i r y d ev el o pm en t i n t h e st a t e n eed s t o b e c l u st er b a sed , w i t h i n v i c i n i t y o f

u r b a n a r ea a n d u n d er t a k en i n p h a s ed m a n n er . The role of commercial dairyfarm, which is significant in share of milk production, needs to be more synergistic withgovernment effort and a functional collaboration on this front is required. State alsoneeds to identify breeding zone in central part and a special scheme of developing localelite cows and buffaloes to act as supply center for other part of the state is required. Thiscould provide further impetus to dairy development in central region and can wellsupplement the adoption of improved practices.

Study team concludes that state has an unique opportunity to work on demand basedproduct (milk) in the state and this could help to generate millions of livelihood in thestate on one hand and ensure quality and balanced nutritious food to the public of state

on another.


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Cattle Shed

Dairy plant


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Risk Analysis in Dairying

Typical Cattle shed in Chhattisgarh


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Milk supply to city hotels by Dhudiya

Non Descript Cattle


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AI Service by Department

Private dairy farms in urban areas


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Annexures: Glimpses of FGDs and HouseholdInterview

1) Marginal Producers Group, Maheshpur, Surajpur, Sarguja(Village about 20 kms from District headquaters)

Animal Feed price: 60 Kg bag for Rs.700 (@ Rs. 12 per kg). About Rs.30 to 40 would be spent per day for feeding one cow. [ Animal feed, grass,

corn, cooked Dalia, De Oiled Cakes of mustard and tisi]

Semi stall fed. Desi Cow remain wet for 4-6 months; Maximum milk production 5 Ltr/day. Milking done by men and women. Milk rates; Rs. 20/Ltr for both cow and Buffalo. AI done by Vet dept, if the veterinarian is informed on mobile phone he comes and

does the AI. The charge is nominal, Rs. 10-20. To borne the travel expense.

Jersey cross is better than HF cross; Haryana is also in demand as the calvesproduced by the cross is better for draught purposes.

Not all the rearers are interested for getting AI, of all only about 100 rearers areinterested, as the cross breed require better care and the jersey cross calves are notgood for draught purposes.

DCS was operational in nearby village- Silphili, where the milk production is high,but the

DCS has become dysfunctional. As the market rate for the milk is higher than whatthe dairy cooperative offer. The average rate based on fat and snf comes to aboutRs.14 per kg.

Milk is sold locally to hoatels, some producers sell directly while others sell throughmiddle men. There are two models (i) the price of the milk sold for 6 days goes to theowner while one days goes to the middle men. (ii) Rs. 18 per kg milk is given to theowner while Rs. 2 is taken by the middle men.

Insurance for animal not there, people are not interested because of the difficulty ingetting their claims from the insurance companies.

Price of big calf: Min Rs. 5000 and on an average Rs. 10,000. Weekly Animal haat on every Friday in Latori. Mainly draught animals traded,

demand for milch animals very low.

2) Marginal Producers Group - Karwan Basti, Barki Para,Surajpur, Sarguja

(Village about 25 kms from District headquaters)

165 HHs in the village (SC- 18,muslim - 40) 8 SHGs functional (5 women SHGs) Main Income comes from Agriculture. Both Kharif and Rabi Crops taken are:

o Paddyo Wheato Sugarcaneo Potato

Average cattle heads present in a HH: 2-3; maximum present in a single HH is 15. Profiatbility:

o Cattle- for milk and calves for draught purposes and manureo Oxens (including buffalo bulls)


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4) Household Interviews

1) Village : Kugda Basti, Raipur District. Farmer Name: Pappu YadavFarmer profile: Rears about 20 cattles (all are non descript type) and about 30goats.

Key points emerging out of interview:

Aware about loan facilities for purchase of animals from banks, but notavailed so far.

Aware about animal insurance but not taken. Milk yield is very less and sufficient to meet the local demand in the village

itself. No need to find outside market.

Price for milk in the village is Rs. 12 to 15 per litter for both cow andbuffalow milk. There is no price difference between these two.

There is outside milkman or Chandi to buy the milk in the village. Dung will be used to make dung cake and also used as compost for

agriculture field. These dung cake will be come to use in the rainy seasonfor two months.

There is no problem of water availability in the village even in summerseasons. There are tanks near village.

Dry fodder i.e paddy straw is the only feed available to the animal. Extension service regarding animal husbandry is very weak in the village.

No veterinary doctors visit the villages to give awareness to the farmers.

Women are involving more in activities related to animal husbandry.

2) Village: Gokul Nagar, Bilai Farmer Name: Satpal Chowdary

Farmer Profile: Migrated from UP settled in Bilai. Main occupation is rearingcows. Has about 40 cross breed animals. Availed the space at Gokul Nagar andshifted his animal rearing business from Bilai town to Gokul Nagar.

Key points emerging out of interview: The Gokul Nagar has 164 plots developed by corporation for shifting

animal husbandry activity from town. The plot size is based on number ofanimals. For a household haven 100 animals 100 ft X60ft space wasallotted. For 70 animals 80X60 sq ft, for 50 animals 60X60 sq.ft, 30-40animals 60X50 sq.ft. 15-20 animals 60X40 sq.ft, 10-15 animal 60X30sq.ft, < 10 animals 50X30 sq. ft plots were allotted.

The plots were allotted on lease basis for 15 years and the rate was Rs. 35 /sq. ft. The scheme was started in 2005 and took abot four years tocomplete. All infrastructures such as roads, drains, water facilities,veterinary hospitals, feed and fodder shop, and electricity are provided.For fodders 10 shops are built. The houses were constructed by householdsthemselves. Houses should be built only for animals and for staying of 1-2care takers.


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The scheme has not supported for purchase of animals. Majority are rearing Murra buffalow and Jersey cows. Cow gives 15-20

litre milk and 10-12 lt by buffallow.

Cost of rearing is around Rs 70/animal/day. Feed and fodder Rs. 60 andRs 10 for labour charges. Feeds from Batapara near Raipur and the cost isRs. 12/kg.

Milk rate Rs. 16-17 per litre and for buffallow milk up to Rs. 25 and sells tohotels.

Sanchi dairy offers less price. Their price is Rs 18-19 per litre. They have Bilai Urban Dhood cooperative society of 668 members. It is a

private society and society negotiated to reduce the plot rate from Rs. 60/sq ft to Rs. 35/Sq ft.

Green fodder is not available. They feed only dry fodder and concentrates. Veterinary service is good in the area. There exist AI service with Murra and fee is Rs. 5 only. Demand for milk is very good in the area especially from Hotels, sweet

shops. Some hotels purchase five to ten tons of milk every day.

Government should provide loan facilities to purchase animals. As they donot have any agriculture land no bank is willing to lend any loan to them. They are aware about animal insurance scheme. Dairy business is facing lots of problems. Milk price is not in tune with

other input costs. As a result it is not paying preposition right now. Themilk price should be increased to Rs. 40 per litre to meet all the costs.

Rs. 300 / tractor load is the price for cow dung. Gobar gas plant is installed in Gokul Nagar to provide lighting and gobar

gas to all plots. Yet to function.

5) Retail feed Trader

Town: Damda Name: Rohit Kumar Yadav

Brief profile: Provision shop owner who also trades cattle feed. Five years back hehad about 70 dairy animals but now rears only 5-7 animals. He has given up thisdairy business owing to problems like water, green fodder and land availability inthe city.

Just five years back the dairy business was one of the main activities inDamda village and on an average people used to rear 30 animals, all are of

local breeds. But now a days people have given up this business mainlydue to non remunerative price to milk on one hand and increased cost ofinputs.

Though the local demand for milk is good, the milk price is notremunerative now a days.

To protect the livelihoods of the city based dairy farmers, Chattisgarh statehas implemented Gokut Nagar scheme and provided all needed facilitieslike water, space, gobar management, feed and fodder availability,veterinary service etc at one place. This scheme is implemented in all


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major cities, mainly in district head quarters, in about 100-200 acres ofland outside the city. This has reduced the hygienic problem in the city.This scheme is a very good initiative by the government.

He is trading all kinds of feeds like wheet feed, peas feed etc and sellsabout 1.5 quintals per day. The selling price of the feed ranges from Rs. 10to 12 per kg.

The farmers feed about 4 kg sof feed (2 kgs each in morning and evening)and spends about Rs 50 per animal per day on feed.

Over all cost of animal rearing is Rs 100 per day per animal and can expectRs 120-140 income during milking period.

He purchases the feed from Durg from a wholesale trader. The demand for feed is gradually decreasing as the cattle population in the

area is slowly reducing.

dairy sub sector report - final submission

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