A study on Sikkim Co-operative milk union limited, Tadong

A study on Sikkim Co-operative milk union limited, Tadong

CHAPTER-11.1 INTRODUCTION TO THE STUDY Sikkim is alandlockedIndian statelocated in the Himalayanmountains. The state is bordered byNepalto the west, China'sTibet Autonomous Regionto the north and east, and Bhutanto the east. The Indian state ofWest Bengallies to the south.With 610,577 inhabitants as ofthe 2011 census, Sikkim is the least populous state in India and the second-smallest state after Goain total area, covering approximately 7,096km2(2,740sqmi).Sikkim is nonetheless geographically diverse due to its location in the Himalayas; the climate ranges fromsubtropicalto highalpine, andKangchenjunga, the world's third-highest peak, is located on Sikkim's border with Nepal.Sikkim is a popular tourist destination, owing to its culture, scenery andbiodiversity. It also has the onlyopen land borderbetween India and China.Sikkim'scapitaland largest city isGangtok. On the merger of Sikkim with the Indian Dominion in 1975 the then Governor of Sikkim Shri B.B.Lal initiated the idea of forming a Co-operative Milk Union in Sikkim, probably being encouraged with the success that had been achieved in the State of Gujarat. Therefore, the matter was taken up with Dr..V.Kurien, the then Chairman of National Dairy Development Board(NDDB) who also paid a visit to Sikkim in 1977 as a guest of the State. After discussion with the State Government Dr.Kurien agreed to implement Anand Pattern Co-operative societies in Sikkim. Accordingly, from 1978 the Spear Head Team of NDDB started working in the three districts of the State viz East, West and South. Prior to this, Sikkim Livestock Development Corporation (SLDC) looked after the dairying business since its existence in 1977. Ultimately, on 1.7.1980, Sikkim Co-operative Milk Producers' Union Limited was formed after being registered under the State Co-operative Societies Act, 1978 and having taken over the project from NDDB, it started functioning at the present complex at 5th Mile, Tadong and at Karfectar, Jorethang w.e.f. November 1981, as an apex level (two-tier) Organisation of the primary Milk Producers' Co-operative Societies (MPCS) at village level. The Sikkim Milk Union came into being during the Operation Flood II programme of the NDDB and was established through financial assistance by the erstwhile Indian Dairy Corporation (IDC) and technical guidance of the implementing agency, the NDDB.

Status of societies organized under the union as on 31/3/2012SLNORegistrationStatusWESTDISTRICTSOUTHDISTRICTEASTDISTRICTTOTALGRANDTOTAL

FNFFNFFNFFNF

1Registered(Jorethang)6582215008723110

2Registered(Gangtok)00552626313162

3Un-registered (Jorethang)2225111100333669

4Un-registerd (Gangtok)003171428174562

TOTAL873341484054168135303

*F-Functional; NF-Non-Functional at present

1.2 HISTORY OF CO-OPERATIVE MOVEMENT IN SIKKIM

To speed up states socio-economy, the early account of the Cooperative Movement was started with the enactment of Sikkim Cooperative Societies Act 1955. Under the Act, Consumers cooperatives mostly managed by Ex-soldiers and agricultural cooperatives were promoted. After the State joined the Indian mainstream, the 1955 Cooperative Act was repealed and replaced by a comprehensive Sikkim Cooperative Societies Act, 1978 and Sikkim Cooperative Societies Rule, 1981. Milk cooperative network on Anand Model with Sikkim Milk Union at the Apex Level is being promoted. A chain of consumer cooperative societies under Public Distribution Scheme (PDS) of Govt. of India, Sikkim State Cooperative Supply and Marketing Federation with village MPCS as members for farm input supply, consumer distribution, farm output marketing, credit disbursement and deposit mobilization is also being set up. The Sikkim State Cooperative Bank is also being organized and actively promoted. The Sikkim State Cooperative Union organized and established in 2002 is being promoted to progressively develop standard of the general people in cultivating cooperative ideals.

With the policy and dynamic decision of the Govt., the erstwhile 35 MPCS were re-organized with one MPCS in each of the 166 existing Gram Panchayat Units of the State. The labor contract and construction cooperatives are vigorously being promoted and keeping in mind the broad policy priorities of the Govt. to concentrate development of economy on areas like tourism, medicinal herb plantation, livestock farming including dairy, floriculture and orchid farming etc. The State has proposed to promote producers cooperatives rather than continuing with the traditional consumerism form of economic development concept. The Cooperation Department is also suitably expanded, strengthened and needful extent of decentralization were done.Since inception of policy for formation of various construction cooperatives by the Govt. especially focusing educated unemployed to execute all construction works falls under village Gram Panchayat and Municipal wards worth up to Rs. 3.00 Crores without tender. Similarly, cooperative societies formed by registered contractors and labour including women are also eligible for awarding construction works up to Rs. 1.00 Crores of Gram Panchayat and Municipal wards wards without tender. The provision of 10% mobilization advances against work's value shall also be given to the cooperatives to execute the works. As on March 2013 there are 2337 such GP level construction cooperatives were organized from where 27489 individuals became the members of these cooperatives out of which 11041 are female.As on 31st March 2013, there are all together 3013 cooperatives of which 6 are apex level cooperatives in the State. There are all together 90290 individual share holder members of cooperative societies in Sikkim. The total paid-up Share capital of these cooperatives is Rs. 2370.51 Lakhs and working capitals is Rs 25021.16 Lakhs. The annual business turnover of Rs. 17777.66 lakhs, loans and advances of Rs. 4053.54 lakhs, bank deposits of Rs. 18529.42 lakhs and also execution of construction works about to Rs. 8257.83 lakhs awarded to over 300 GP level construction cooperatives are the major achievements of the cooperativesduring 2012-13.

1.3 ORGANISATION PROFILE The Sikkim Cooperative Milk Producers Union Ltd. was set up in the year 1980. The society has been registered under the Sikkim State Cooperative Societies Act, 1978. It is an apex cooperative federation and the primary milk producers cooperative societies formed at the village level. Its area of operation extend the whole of Sikkim expect North District. Initially, two Milk processing plants one at 5th Mile Tadong, Gangtok and other at Karfectar, Jorethang having processing capacities of 10,000 and 5,000 litres per day respectively were setup with financial assistance of Rs. 1.63 Crores from Government of India under Centrally Sponsored scheme executed by NDDB. A further sum of Rs. 65.66 lakhs was received under Operation Flood II. Later in the year 1991, a chilling plant was installed at Gyalshing in the West District. The Board of Directors consists of 12 members of whom six are elected members and the rest being nominated by the Government. It was in the year 1979-80 that Govt. of India has launched Operation Flood-II programme through National Dairy Development Board (NDDB) to promote milk marketing and dairy activities on Anand Model. The scheme was also extended to State of Sikkim under OF-II in 1982, which gave birth to primary milk producers cooperatives and their federal body - the Sikkim Cooperative Milk Producers UnionLtd.

The major objectives of the Union is to provide a ready market and remunerative price for poor and marginal milk producers who are reside in the far flung remote villages of the State and to supply hygienic milk to the urban consumers at reasonable rates and also stabilize consumer milk price in the market MILK PROCUREMENT RATES OFFERD TO FARMERS

WITH THIS, FARMERS ARE TODAY RECEIVING 135.29% MORE SINCE THEIR EARNINGS IN APRIL 2007 The Sikkim Milk Union [SMU] has enhanced its procurement price for the farmers with effect from 01 April 2012. A press release issued by the Managing Director, SMU informs that the decision on this was accorded by the Sikkim Milk Union Board and the same was concurred by the state government.The Sikkim Milk Union has shown consistent progress in the last four years by making profit and transferring benefit to the farmers in form of price hike and bonus incentives. To go in tune with the business requirement and to benefit farmers, the Sikkim Milk Union recently revised its procurement and consumer price of milk, the release informs.In the last four years, the Sikkim Milk Union has revised its farmers procurement prices with an increase of about 111.76% from the 2007 levels. The increase was done by Rs. 2 per litre in July 2011, Rs. 1 per litre in October 2010, Rs. 1.50 during the month of March 2010, Rs. 1.50 per litre during June 2009, Rs. 2 per litre during 2008 and Rs. 1 per litre in the month of August 2007.Now, a further upward revision of Rs. 2 per litre has been provided to the farmers.The release states that with this revision, the farmers procurement has gone up by 135.29% higher than the rates of April 2007 to benefit them.At the revised rate, the price of average milk having 4.0% Fat and 8.0% SNF milk is paid the rate of Rs.22.05 per litre and the minimum acceptable quality of having 3.5 % Fat and 7.5 % SNF is paid at the rate of Rs. 20.00 per litre and good quality milk with 5.5 % Fat and 8.5 % SNF is paid at the rate of Rs. 26.80 per litre to the village milk cooperative societies.The newly revised milk payment for the month of April 2012 to the village Milk Cooperative Societies was released by the Sikkim Milk Union on 03 May 2012. Subsequently the village milk societies are releasing the payments at the revised rates to farmers for the milk supplied during the month of April 2012. About 10000 farmers families are being benefited out the enhanced procurement milk price, the release adds.

LIST OF PRODUCTS MANUFACTUREDSN.PRODUCTSTYPES OF FLAVOURAVAILABES INMARKETED AS

1PasteurisedPackaged Milka. PasteurisedHigh cream Milkb. PasteurisedToned Milka. PasteurisedHigh CreamMilk-1000mlb. PasteurisedToned Milk-500ml

SIKKIM MILK

2Curd-a. 500 ml packetsb. 200 ml cupsMUSKAN

3Lassi-200 ml packets SIKKIM LASSI

4Butter-1 kg PacksSIKKIM BUTTER

5Ice creama. Vanillab. Strawberryc. Alaichid. Mangoe. Chocolatea. Family Packs of250 ml,500 ml,1000 mlb. Cups of 90 mlc. Candy bar of 60 ml

ICE CREAMFROMSIKKIMEMPIRE

6Paneer-200 g,500 g, and 1 kgSIKKIM PANEER

7Cream-250 g and 500 gCREAM

8Churpi-500g packsSIKKIMCHURPI

9Flavoured Milk-250 ml bottles-

DETAILS OF MAJOR DAIRY EQUIPMENTSGANGTOK DAIRY PLANTS.NParticuarls of Dairy EquipmentsQuantityCapacity

1.Milk Weighing Balance For RMDD1300 Kg

2.SS Dump Tank For Milk Reception11000 Kg

3.SS Can Scubber (Old)1

4.HTST Milk Pasteurizer25 KLPH

5.Plate Type Milk Chiller15 KLPH

6.Cream Seperator11 KLPH

7.SS Chilled Milk Storage Tank With 2 Agitator Motor Hp110 kl

8.SS Processed Milk Storage Tank45 kl

9.SS Processed Milk Storage Tank210 kl

10.Automatic Milk Packaging Machine Single Head (Old)22500 Packets Per Hour (PPH)

11.Automatic Milk Packaging Machine Double Head (New)35000 PPH

12.Automatic Curd Packaging Machine Single Head12500 PPH

13.SS Vat For Curd Making11000 Lts.

14.Curd Incubator11000 Lts.

15.Curd Incubator1500 Lts.

16.SS Curd Ripening Trough1200 Lts.

17.Butter Churn (Old)1300 Lts./Batch

18.Flexi Herm Vat11000 Lts.

19.Homogenizer (2 Stage)`11000 LPH

20.Air Compressor With Air Receiving Tank21000 Lts.

21.SS Hot Water Tank (Old)11000 Lts.

22.CIP System1

23.Oil Fired Boiler (Old & New) 2600 Kg/Hr

24.Water Softener1300 Lts./Hr

25.Ammonia Reciprocating Compressor System(Frick Vilter 454 XI)153.6 TR At 14ofSuction Temp. &185 Psig Condensing Pressure

26.Ammonia Receiver17.5m x 2.5m x 2.4m

AIMS AND OBJECTIVE

The primary aim of the Sikkim Milk Union is to provide remunerative market for milk producers in the far-flung remote villages and make hygienic milk and milk products available to the urban consumers at reasonable rates thereby achieving the following objectives.

aStabilize price of milk by connecting areas of surplus milk to the milk-deficient towns and cities.

bUplift the socio-economic condition of the rural poor by increasing their income through sale oftheir milk.

cEnhance milk production of milch animals by providing technical inputs such as balanced milchration, fodder seeds, fodder saplings thus helping to increase the income of the farmers.

dEnhance milk yield of the milch cattle of the farmers by improving their genetic potential throughartificial insemination and by providing pedigree bulls for natural service.

eProvide year-round assured market for the milk of the farmers unlike other agricultural produce.

fProvide rural employment both as dairy farmers and as employees of the MPCS as Secretary/Tester/Helper.

SUMMARISATION OF ABOVE FLOW DIAGRAM:An organisation set up,the government of Sikkim rest at top as an open body and under government of sikkim it has two subheads-animal husbandary,livestock and veterinary services department which provide technical support and solve administration issues where as the other co-operation department solves co-operation related issues.The Sikkim cooperative milk producers union is headed by a board of directors.the board of directors is composed of onechairman elected by the board of directors for a period of 3 years,nine elected representative from the milk producers cooperative societies,secretary from department of animal husbandary,livestock fisheries and veterinary services,register of co operative society,representatives from the finance department,government of Sikkim,managing director from Sikkim State Cooperative Bank (SISCO),Representatives from the National Dairy Development Board and Managing Director as member secretary or on deputation from the government of Sikkim.The union has two productions units-one at 5th Mile Tadong,Gangtok in East Sikkim and another at Karfectar,Jorethang in South Sikkim.Each of these units is headed by Joint General Manager working directly under the administrative supervision of the Managing Director.With the help of subordinates,these two Joint General Manager perform various activities like procurement and input,processing and product marketing,accounting and administration at units levels.

BOARD OF DIRECTORS OF THE ORGNISATIONSL NO.NAMEDESIGNATIONPOSITIONINTHEBOARD

01ShriM.B.RaiChairman,SakyongMPCS,WestSikkim/SikkimMilkUnion.Chairman

02ShriKhemlalLuitelViceChairman,SMU/ChairmanDhanbariMPCS,EastSikkim.ViceChairman

03Shri.D.P.SharmaIAS,Secretary,AnimalHusbandryandVeterinaryservicesDepartment,Govt.ofSikkimDirector

04Shri.DadulBhutiaRegistrar,CooperationDepartment,GovernmentofSikkimDirector

05ShriD.N.SharmaPrincipalDirector,Finance,Rev.&Exp,GovernmentofSikkimDirector

06ShriM.L.RaiChairman,TikpurMPCS,WestSikkim.Director

07ShriB.K.GurungChairman,BadaSamdongMPCS.Director

08ShriN.B.PradhanChairman,MelliDaraMPCSDirector

09ShriSherBdr.GurungChairman,KalukMPCSDirector

10ShriA.B.RaiMiddleRaigaonMPCS,EastSikkimDirector

11ShriMangalJitRaiChairman,BengMPCS,EastSikkimDirector

12ShriGokulRaiChairman,BikmatMPCSDirector

13Dr.P.SenthilKumarIFS,ManagingDirector,SikkimMilkUnion.

MemberSecretary

1.4 SIKKIM DAIRY MISSION:AIMING TO MAKE SIKKIM A DAIRY HUB Another path-breaking initiative of the State government under the leadership of the Honble Chief Minister, the Sikkim Dairy Mission 2009-2012 envisages multiple long term benefits to the farmers and to open up livelihood avenues for unemployed rural people. The mission was launched with the primary objective to enhance milk production level making Sikkim a milk-surplus State. It also aims to make dairy enterprise a sustainable source of income for the rural populace of Sikkim, according to the vision of the Honble Chief Minister.Dairy development is a vital tool to uplift the socio-economic status of the rural farmers. Recognizing such importance, the Sikkim Dairy Mission has been mandate to enhance milk procurement by the dairy cooperatives to substantial volumes per day. Young entrepreneurs are also encouraged to take up dairy farming as an attractive commercial activity.Among the strategies outlined in the mission, high yielding crossbreed cows are provided to farmers and dairy cooperatives. Sikkim Milk Union is one of the exemplary dairy cooperative in the State and a successful venture of the State government in dairy farming expansion.The Sikkim Dairy Mission is an effort of the State government to expand the traditional system of animal husbandry into commercial activities through cluster development approach. This involves free distribution of high yielding milching cows, high breed of goats, piglets, etc to the rural households.The Sikkim Dairy Mission while providing sustainable income generating activity to the farmers also aims to make milk products readily available to all rural and urban households. This is to ensure that the nutritional requirements of the households are met.The mission further supports feed and fodder production for supplying nutritive requirement of livestock for better productivity. High yielding milching cows are being provided under the mission to farmers at regular intervals.To cater to the needs of veterinary services, very important for the success of the Sikkim Dairy Mission and other animal husbandry activities, the State government has a network of hospitals, dispensaries, stockman centres, Artificial Insemination (AI) Centres and disease investigation laboratories. With the support of all these institutions and due to intensive preventive measures, there has been no incidence of Foot and Mouth Disease (FMD) in livestock and no incidence of Highly Pathogenic Avian Influenza (HPAI) have been recorded for the last two to four years period.The targeted beneficiaries would be provided with training for capacity building under the Sikkim Dairy Mission. Awareness programmes under the mission are also held to enable them to take up dairy farming in a full-fledged manner. The mission provides for proper health care and management of the cows and dairy enterprises by making required vaccinations and medicines free of cost or at subsidized rates.In order to allow the progressive farmers to easily expand their dairy farm, the State government is facilitating them for financial tie up with public financial institutions like NABARD and SISCO Bank. Credit facilities are provided to them at prescribed reasonable rates.One of the major achievements of the dairy sector is the Sikkim Alpine Cheese Spread launched in 2003 produced by a dairy unit in Dentam, West Sikkim. The product has scored over similar products of major dairy firms and has made forays in national and international markets. The unit has also launched Alpine Cheese Gouda, rated one of the best in the country and is being exported to other nations under Amul.

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