Strengthening of Cooperatives Technological up-gradation, increased women

participation and financial inclusion

Meenesh Shah

DGM-CS

Points to be covered

• Back Ground on Co-operative movement and Operation Flood

• Coverage by Co-operatives.

• Technological Up gradation

• Increased Women Participation

• Financial Inclusion

• In 1946, Exploitation by middleman led farmers of

Kaira district to unite under the leadership of Shri

Sardar Patel, Shri Morarji Desai & Shri Tribhuvan

Das Patel

• Refusing to be further oppressed, the farmers in

area went on milk strike and demanded formation of

Cooperative

• Pressure worked and British Government accepted

the request. Finally, Kaira District Cooperative

(AMUL) was registered

• Leadership of Shri Tribhuvan Das coupled with

professional skills of Dr. Kurien made the

cooperative movement a remarkable success story

Dairy Cooperative movement

• In 1964, India’s then Prime

Minister Shri Lal Bahadur

Shastri visited Anand to

inaugurate a cattle feed

plant

• He spent a night in a village

to understand the reasons

for the success of the

cooperative.

• Convinced about the true

development through

cooperative strategy, he

desired that the Anand

model be replicated all over

India, leading to creation of

NDDB

Genesis of White Revolution

Pre-Operation Flood

• Stagnation in domestic

milk production

• Milk production hovered

around 20 million tonnes

• Per capita availability in

fact declined during the

period

17 19 20 21.2

0

10

20

30

40

1950-51 1955-56 1960-61 1968-69

Milk production in million tonnes

124 124 124 112

0

50

100

1950-51 1955-56 1960-61 1968-69

Per capita milk availability in gms/day

Role of CS Group – Operation Flood

Facilitated replication of Anand

Pattern during OF through

Spearhead Teams:

• Formation of village and

district level cooperatives

• Support in institution

building and women

empowerment programmes

• Capacity building

• Governance support through

Board meeting participation

• Lobbying support for enabling

legislation

• Extension support

Operation Flood - White Revolution

Parameters OF – 1

(1970-80)

OF- II

(1980-85)

OF – III

(1985-96)

Current

2013-14

Village societies 13,284 34,523 72,744 160,000

Farmer Members (lakh) 17 36 93 154

No of district unions

/milksheds

39 136 170 198

Milk procurement by

coops (lakh kg/day)

26 58 109 343

Liquid milk sale by

coops (lakh litre/day)

28 45 89 294

Milk Production – 1970-71 to 2013-14

• Increased production: 22 to 137.9 million tones (anticipated)

• Has become largest milk producing nation in the world

• Around 17 % of world milk production

• Per capita milk availability has grown to about 300 gms/day

22

31.6

53.9

66.2

97.1

121.3

132.4 137.9

0

20

40

60

80

100

120

140

160

70-71 80-81 90-91 95-96 05-06 10-11 12-13 13-14

Year

Milk Production (MMT)

The organised sector (cooperative + private) procures about 15 % of

national milk production & 30 % of marketable surplus

Total production* : 3600 lakh kg/ day

Marketable surplus : 52 %

Procurement share unorganised & organised sectors

Producers retain: 1700

lakh kg/ day (48 %)

Marketable surplus:

1900 lakh kg/ day

(52 %)

Unorganised 1300

lakh kg/day (70 %)

Organised 600

lakh kg/ day

(30 %)

Coop 300

(15 %)

Private 300

(15 %)

*Base case: 2012-13

Coverage by cooperatives

Dairy Cooperative Coverage (2012-13)

Sr.

No. State

Prod.

(LKgPD)

Surplus

(LKgPD)

Proc. as

% of

prod.

Proc. as

% of

surplus

Villages

covered %

Producers

covered in %

1 Guj 283 186 44 67 77 78

2 Kar 157 113 32 44 65 55

3 Mah 239 153 20 31 21 24

4 TN 192 166 14 16 65 77

5 Raj 382 174 5 11 28 14

6 AP 350 263 7 9 28 16

7 UP 639 345 1 2 11 6

8 Pun 266 154 5 8 61 14

9 Ker 76 60 12 16 105 85

10 Bih 188 98 7 14 39 9

11 MP 242 169 4 5 9 4

12 Har 193 31 2 12 40 10

13 WB 133 76 2 3 4 3

14 Ori 47 26 8 14 20 14

Total 3387 2016 10% 17% 23 20

Coverage by cooperatives

Presence in

about 23% villages

Reach out to

Around 20% milch animal

owning households

Procure

Around 17% of marketable

surplus (= 10% of milk

production)

Technological up-gradation to increase

share of cooperatives

• Technology has opened new avenues to provide,

handle and use information.

• Up-gradation of village level milk procurement

infrastructure is needed to win the trust of milk

producers. It will help in proper grading and

monitoring of the procured milk

• Countries worldwide have upgraded technology

in dairy sector and benefitted in terms of

quality, quantity as well as effective monitoring

• Automatic weighing of the

milk, testing of milk quality

• Acknowledgement slip to

milk producers for

quantity, quality and value

• Member information

• Testing of milk

adulteration

Ensuring Fairness and transparency

through technological interventions

Ensuring Fairness and transparency

through technological interventions

• Customized rate chart

can be configured

• Upgraded technology also

ensures to send

customized SMS to

producer with required

details such as FAT, SNF,

Quantity, rate etc.

• Real time online data

transfer to the server of

the main dairy plant

without loss of data

Role of women in dairying

• 85% of the rural women

engaged in rearing of

livestock

• Women left out of decision

making, though the major

contributor in animal rearing

• To increase women

participation, all women

Dairy Cooperative Societies to

be organized and enrolling of

more women members in the

existing DCS

• Experience shows that

women are more competent

in managing scarce family

resources

Steps taken so far for increasing women involvement Women Dairy Cooperative Leadership Programme (WDCLP)

• Potential women leaders identified, groomed to participate as members and subsequently in governance of dairy cooperatives

• Focus on formation of thrift and credit groups for women and income generating activities, leading to dairying and cooperative membership

0.62

1.25

1.9

2.47

4.1

4.38

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

86-87 91-92 96-97 01-02 10-11 13-14

Women members in Dairy Cooperatives (million)

Enhancing Women Involvement in Dairy Cooperatives (EWIC)

• Focus on increasing

women members on

Management Committees

of DCS and Board of

Directors in Milk Union

• Activities included : Male

sensitization

programmes, women

education and Self Help

Group formation

131388 143534154092

174076

197958

250000

0

50000

100000

150000

200000

250000

300000

'00-01 '01-02 '02-03 '03-04 '04-05 '10-11

Women in governance roles in DCS

Increase women’s participation through…

• Organisation of exclusive Women DCS,

increase women membership at least 50% in

existing DCS and direct payment to their bank

account

• Training & Capacity building programme for

skill development of women in modern milking

operations/centralised processing can be

promoted

• Facilitating entrepreneurship of women on

commercial dairy farming by providing

requisite technical knowhow and incentivize by

attractive financial assistance

Available schemes for funding

Apart from NDP I, financial assistance and subsidy for

undertaking activities to increase participation of women in

dairy cooperatives can be sought through various central

Government schemes, such as:

• National Rural Livelihood Mission (NRLM)

• Support to Training and Employment Programme for Women

(STEP)

• National Programme for Bovine Breeding and Dairy

Development (NPDDBB)

Need for Financial Inclusion

• Small and medium farmers

contribute more to milk

procurement

• Lack access to financial

services, Exploitation by

moneylenders

• Milk bill payments can be

transferred directly to

individual bank accounts

• Will increase their credit

worthiness and open them to

a range of financial

services/products offered by

banks/agencies

Pradhan Mantri Jan Dhan Yojana A step in right direction

“Pradhan Mantri Jan Dhan Yojana” announced by the Prime

Minister on 15 August 2014 is a National Mission for financial

Inclusion to ensure access to financial services in an affordable

manner.

The state cooperative federations and unions can encourage all

those members who do not have a bank account to open an

account under the scheme, so that milk bill payments can be

transferred directly in to individual bank accounts.

Salient points of the scheme

• Anyone can open a bank account with special

benefits of Rupay debit card, accidental coverage of

Rs. 1 lakh and with no minimum balance

• Additional benefits would accrue through credit of

direct benefit transfer under Government schemes,

interest on savings

• Overdraft facility upto Rs. 5000 after six months, life

insurance cover of Rs. 30000, access to pension etc.

• Only one account per household can avail overdraft

and for this preference is given to female member

Information dissemination through SMS/audio message

• NDDB has initiated sharing informational

content in form of SMS/audio message

regarding key aspects of dairying/animal

husbandry with farmers in regional languages

• Mobile nos. of milk producers with the help of

Federations/Unions are being collected by

NDDB to fulfill the above

• Federations/Unions can forward the mobile

nos. of their producer members to NDDB

regularly

Emerging challenges before

Cooperatives

• Poor financial health/ debt servicing

• Ageing Manpower, Paucity of trained manpower, No

succession planning. Frequent changes of Union/Federation

MDs and transfers. Low pay-scales hindering induction of

quality manpower

• Lack of autonomy in pricing and recruitment

• Need for credit and capital investment for upgradation of

technology, cold chain building and R&D

• Presence of multiple co-operative society acts.

• Need for value addition and diversification of milk and milk

products and strong brand building

• Competition among co-operatives

Thank You !!

Financial Position of Unions (2012-13)

State Milk Unions

Nos.

No. of Unions with

positive networth

No. of unions

reporting

accumulated

losses*

Gujarat 17 16 0

Karnataka 13 13 3

Maharashtra 24 19 7

Tamil Nadu 17 4 11

Kerala 3 3 2

Haryana 6 5 5

Rajasthan 21 11 10

Andhra Pradesh 4 4 0

Telangana 2 2 0

Bihar 4 3 1

West Bengal 16 2 1

Orissa 11 5 4

Punjab 11 4 8

Madhya Pradesh 5 4 3

Uttar Pradesh 59 11 40

Total 213 106 95