Milking the potentials: Study Report on Dairy Sub Sector in Chhattisgarh

Sanjeev Kumar Dhananjaya BN Angad Prasad Singh

The Livelihood School

CONTENTS Acknowledgements

Executive summary ......................................................................................................3 1. Background .......................................................................................................... 8 1.1 National context ........................................................................................... 8 1.2 Chhattisgarh State Context...........................................................................9 1.3 Importance of Dairy sub sector in Chhattisgarh State............................. 11 2. Dairy Sub Sector Study Objectives and Methodology......................................12 2.1 Objectives of sub sector study ....................................................................12 2.2 Methodology ................................................................................................13 3. Sub sector Map .......................................................................................................13 3.1The production sub system ...............................................................................14 3.2 The processing sub system ..............................................................................16 3.3 The marketing sub system ............................................................................... 17 3.4 Condition of support industries ..................................................................... 20 3.5 The Policy and Institutional Context ..............................................................21 3.6 The Environmental Context ........................................................................... 22 3.7 Financial Overlays ........................................................................................... 22 4. Key Constraints and Leverage Points .................................................................. 23 4.1 Key constraints at production, processing and marketing........................... 23 4.2 Strategic Choices and Key Recommendations.............................................. 24 Photos .................................................................. Error! Bookmark not defined. Annexures: Glimpses of FGDs and Household Interview...................................... 33

Acknowledgements
Present Sub sector study has involved visits to 5 districts, interaction with 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, who had been kind to openly share their views and perceptions. We are especially thankful to the villagers of Maheshpur, Madguri, Karwan in Saguja and Bastar, who welcomed us and provided insights in the state of affair.

We are extremely grateful to Dr. R.K Singh, Director, CGSIRD, whose guidance and trust motivated us to take up extensive field investigations 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 report from any other similar study in the state. If any such action emerges from 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 Gautam and Mr. Srinubabu, who had worked incessantly to mange key contacts at various sites and logistics.

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

Sanjeev Kumar Dhanajaya,B N Angad Prasad Singh

Executive summary
The Dairy sub Sector in Chhattisgarh state is still in primal stage, though it has good number 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 has significant number of cattle. It is observed that the rearing of livestock animals especially in villages has focus on draught power rather than milk. Smallholder milk productivity is abysmally low, and milk is not considered as major product. The cattle rearing system has been extensive grazing and low input cost based. The study of Dairy sub sector in Chhattisgarh highlighted following major trends/issues There exist commercial dairy in small pockets around Raipur and some major cities. These farms are mainly operated by migrated farmers from UP, Bihar and Jharkand. Demand of milk and milk products are highly skewed with urban centered consumers and local rural demand of milk is very low. The cooperative structure for procurement of milk by Raipur Milk Union (Sanchi brand) has very limited success. Only about 265 societies are active at present. Through out the state majority of the livestock rearers are marginal producers having 4-6 animals per households. Indigenous breeds are pretty common in the state. Though State has progressive breeding policy in place , has good networks of A.I services by Government and Non Government agencies, the successful adoption of A.I has been only in periphery of towns , where assured milk market has been available. 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 isolated service delivery rather than market led demand based model. Three marketing channels can be found in the state. They are1 o 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 the state. 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 controlled more than 90 % of the milk trade in the state. They supply milk to households and 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.
1

These are estimated figures based on interaction with key player

 The government initiatives for shifting urban dairy farmers through the scheme of Gopal Nagar is very interesting and has resulted in protecting urban livestock rearers. 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 learning on this front by stakeholders has been slow. Key Recommendations As per existing factor and demand condition of dairy, it is recommended that dairy development in the state should take a cluster approach with making 10 to 15 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 of dairy promotion has been not able to take advantages of resources and market. The identified cluster should take up an integrated effort to work on factor conditions like irrigation and fodder production and the whole dairy development process should be divided into phases starting from irrigation and fodder development. It is strongly recommended that rural and semi urban youth having entrepreneurship and dairy farm training at major commercial dairy farm in the state. 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 supply improved dairy cows/buffaloes to other area within state should be promoted. The present outside state purchase and price has been a detrimental factor in the growth of dairy sector in the state. Commercial dairy farm owners of the state should be involved in policy and action forum of dairy development in the state. Improved bull procurement from commercial farms in the state. Panchyat based bull breeding system with incentives based on crossbred produced is highly desirable. Livestock Insurance has received a very low penetration in the state including organised dairy farms. A central government program on breeding and improved breed livestock insurance is operational but it requires further impetus to work on the state of awareness and promotion. Gokulgram model seem useful provided some close monitoring is kept. Credit and 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 land green fodder production, grazing land development and collective payment based storage of dry fodder and hay. VRTI (Vivekanand Research & Training Institute in Bhuj (Gujarat) has developed a model for community managed fee based fodder bank, which can 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 operational route basis and PRI based on business principles may take up role of its management through 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 bulk rate 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 with seasonal 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 the procurement 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 area and initiating procurement of milk Strengthen supply of fodder seeds, concentrate feeds, mineral mixture and awareness 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 production Phase 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

The present Sub sector study has delved in to market segmentation of milk in the state and factors affecting dairy productivity. The present constraints and strength of business process at Input, procurement, processing and marketing were studied and dignosed. It is evident that milk market in Chhattisgarh has been concerntrated to pockets of uran area 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 breed to green fodder and if this over taken, market if not linked with urban. Dairy development in the state needs to be cluster based, within vicinity of urban area and undertaken in phased manner. The role of commercial dairy farm, which is significant in share of milk production, needs to be more synergistic with government effort and a functional collaboration on this front is required. State also needs to identify breeding zone in central part and a special scheme of developing local elite cows and buffaloes to act as supply center for other part of the state is required. This could provide further impetus to dairy development in central region and can well supplement the adoption of improved practices. Study team concludes that state has an unique opportunity to work on demand based product (milk) in the state and this could help to generate millions of livelihood in the state on one hand and ensure quality and balanced nutritious food to the public of state on another.

1. Background
In India, the dairy sector is important for various reasons. Among these its complementarities with agriculture and to enrich the protein diet are significant. Beside these 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 emerged as an important source of rural employment and income in the country. However, these developments are not uniform across the nation. While southern and western India regions have shown tremendous growth in Dairy sector, the central region has been lagging behind. One such poor performing state is Chhattisgrh state. Chhattisgarh is one of the three new states added to the Indian Union in November 2000. The state is endowed with a large and diverse livestock population. Over 75 per cent of all species of livestock in the state is owned by the small holder group. Over 70 per cent of the rural households own livestock and earn supplementary incomes out of them, meager though it is. Livestock sector in Chhattisgarh is therefore extremely livelihood 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 for Dairy sector development could enhance the livelihood opportunities for the people. In this connection the Sub Sector study of Dairy in Chhattisgarh was undertaken by The Livelihood School through State Institute of Rural Development, under Backward Region Grant Fund. The main objective of the study is to map and analyse the process of production and to identify scope for interventions. 1.1

National context

The 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 the largest producer of milk in the world. The following chart 1 shows the steady increase in milk production in the country over last then years. It is well acknowledged that suitable government polices and Operation Flood programe are the chief contributor for the success 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 families has created millions of livelihood across the country. The rapid urbanization in the country and overall economic development has resulted in growing demand for the milk and milk products in the country. The continuous technology development and extension 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 has more than trebled to over 80 million tons between 1970-71 and 2000-01 with an average increase of about 4.5 per cent per annum, which in comparison to worlds rate of about 1 per cent is much higher. During the period 2000 to 2006, the milk production increased by around 16% in India but Chhattisgarh was able to increase its milk production by less than 8% only.

Chart 1: Trend in Milk Production in India

Annual Milk Production (Thousand Tonnes)
120000 100000 80000 60000 40000 20000 0 97-98 98-99 99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08

Years

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

1.2 Chhattisgarh State Context

The state of Chhattisgarh came in to existence on November 1, 2000. This land locked state was carved out of Madhya Pradesh. The total area of the state is 1,35,000 Sq. km and 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 and the other rivers are the Godavari and the Narmada. Population of Chhattisgarh forms 2 per cent of the total population of India. As per 2001 census, 80 per cent of the total population lives in rural areas and the remaining 20 per cent lives in urban areas. The Scheduled Tribes (ST) and Scheduled Caste (SC) accounts for 43.4 per cent of the States population. The Literacy rate has improved steadily from 42.91 per cent in 1991 to 64.7 per cent in 2001. Chhattisgarh's Gross State Domestic Product (GSDP) is estimated at Rs.95, 204 crore for 2008- 09, registering a growth of 19.88 percent over the previous year, according to an economic survey 2009-10. Per capita income grew 13 per cent in 2008-09, but the growth 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 is divided into three agro climatic zones. The Bastar Plateau comprises of Bastar, Dantewada, Beejapur & Narayanpur districts and a part of Kanker (excluding Charama, Narharpur & Kanker Blocks). Northern parts of the state comes under "Northern Hilly Region"

which comprises of Sarguja, Koriya & Jashpur Districts. Bilaspur, Raipur, JanjgeerChampa, Raigarh, Rajnandgaon, Kawardha, Durg, Mahasamund, Dhamtari, Korba and parts of Kanker come under "Plains of Chhattisgarh". Out of 137.00 lakh hectares geographical area of Chhattisgarh, 43 per cent area comes under cultivation while 44 per cent is under forest cover. Almost 80 per cent of the population is dependent on agriculture and agriculture related occupations. Agriculture is still the backbone of states economy. Rice is the major crop of the state occupying 2/3rd of the total cropped area while the pulses, oil seed and horticulture occupied 17 per cent, 5 per cent and 2 per cent respectively. How ever the productivity of Rice per ha when compared to national average is 30 per cent less. Due to rain dependency of agriculture, the scope 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 and income from agriculture is supplemented by income from wage labour and income from livestock.

1.2.2 Livestock and Dairy in Chhattisgarh

Chart 2: Livestock Distribution in Chhattisgarh State

Chhattisgarh has a rich livestock wealth of 1.4 Goat, 20 core animals, as per the 2007 livestock census, of which the maximum of 65 per cent is the cattle Buffalo, 11 population followed by 20 per cent of goat population. Buffalo constitute 11 per cent of the Pig, 3 total while pigs and sheep are 3 and 2 per cent Cattle, 65 Sheep, 2 respectively of the total population. The animals in general are smaller in size and have poor production potential. The growth and reproductive efficiency is also poor. The state government has assigned high priority for promoting livestock production in its Vision 2010 document.
Estimates of Milk Production State wise
(million tonnes) State All India Gujarat Haryana Madhya Pradesh Uttar Pradesh Chhattisgarh 200001 80.607 5.312 4.85 4.761 13.857 0.777 200102 84.406 5.862 4.978 5.283 14.648 0.795 200203 86.159 6.089 5.124 5.343 15.288 0.804 200304 88.082 6.421 5.221 5.388 15.943 0.812 200405 92.484 6.745 5.222 5.506 16.512 0.831 200506 97.066 6.96 5.299 6.283 17.356 0.839

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

10

1.3 Importance of Dairy sub sector in Chhattisgarh State

About 80 percent of States population lives in rural areas, largely dependent on agriculture and allied activities for livelihood. The State thus accords high priority to agriculture and rural development. In this backdrop, Dairying could emerge as an important source of income and employment for the rural poor. It acts as a buffer against income shocks of crop failure which is a frequent phenomenon in Chhattisgarh. Dairy activity could provide a continuous stream of income thus improving the livelihoods. Cattle and buffalo are an important source of manure and draught power, which are vital to improving crop production and environment. The following table depicts the district wise number of cattle and buffalo in the state> Table 1: Cattle and Buffalo Population of Chhattisgarh State Sl. No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 District Raipur Mahasamund Dhamtari Durg Rajnandgaon Kawardha Jagadalpur Kanker Dantewada Bilaspur Jangir Korba Sarguja Korea Raigarh Jashpurnagar Total Cattle 1027060 363637 250652 849868 619286 247418 646831 328960 570643 658344 477216 208154 950327 218011 462133 392783 8271323 Buffalo 248822 88097 63044 193260 113903 68180 135658 51891 45145 190122 161031 73300 199391 49259 105932 49513 1836542

The per capita availability of milk is only 84g per day as against 224g per day as a national average. The total milk production of Chhattisgarh is only 0.55 million tonnes against 84 million tonnes milk production in India. Thus, the contribution of Chhattisgarh 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 All India Gujarat Haryana Madhya Pradesh Uttar Pradesh Chhattisgarh 00-01 220 280 614 211 223 100 01-02 225 317 645 240 241 105 02-03 230 321 647 236 245 103 03-04 231 330 643 233 250 102 0405 233 344 631 233 254 103 05-06 241 349 628 262 262 103

11

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

Chart 3: Trend in Milk Production in Chhattisgarh State

880 860 840 820 800 780 760 740 720 2000-01

Annual Milk Production (Thousand Tonnes)

01-02

02-03

03-04 Years

04-05

05-06

06-07

07-08

The milk yield in the state (cattle as well as of buffalo) is about half of the national average. Low yield is due to a lack of adoption of technology, feed scarcity and inadequate animal health services. For instance, only 3 per cent of the milk cows in the state 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 compared to the national average of about 8000. Nevertheless with appropriate technological, institutional and policy support Dairy sub sector has considerable potential for growth and thereby could be an important pathway for poverty reduction. Rapid economic growth as being witnessed in the State, is causing a shift in the food consumption basket in favour of dairy products, which offers considerable scope to raise opportunity in Dairy sub sector.

2. Dairy Sub Sector Study Objectives and Methodology

2.1 Objectives of sub sector study
The dairy sub sector study aims to: Map and analyze the process of production o Input procurement subsystem, o Input processing subsystem, o Technology subsystem, o Labour/skill transfer subsystem, o Output subsystem, o Output processing subsystem, and o Output marketing subsystem.

12

 Compare and contrast the existing process of production with bigger players in the subsector 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 market Information 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 private entrepreneurs therein and also suggest necessary changes in policy & legal framework, if any. Identify the extent of market led, state led and civil society led coordination failures in each subsector. Suggest intervention strategy.

2.2 Methodology
Dairy Subsector study was carried out using primary data / information. The representative sample was selected. The sample districts include representation from three agro climatic zones of Chhattisgarh. The districts selected were Surguja in north and Bastar in the south Chhattisgarh. Raipur and Durg in central Chhattisgarh and Rajnandgaon in west Chhattisgarh. The study tools included Key Informant Interviews (KII), House hold interviews, using structured and semi structured questionnaires. Focused Group Discussion (FGD) and Participatory Learning and Actions (PLA) with various players in the value chain and critical 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 were made. While conducting PRA with village community, regarding the risks associated with upgrading the scale of goat rearing, visual placards were used, based on which the groups ranked the associated and perceived risks. Also all the interviews were recorded using 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 stakeholders are; Fodder and feed producers / suppliers Veterinary service providers, Financial institutions Milk producers Traders Dairy cooperatives Transporters Wholesalers

13

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

3.1The production sub system

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 center No 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 than economic value. As a result more of descript animals are found rather than crossbreed animals. Keeping of 5-10 cattles is common in farming family. Farmers keep cows to meet their domestic needs. Therefore, livestock became an integral part of farming system as such. In general, cattles are in more number than of buffaloes. The animal power is used for agricultural operation and the dung is used as manure and fuel. In recent years the rearing of cross breeds are slowly increasing in the state. In urban areas the commercial dairying is gaining Production system in Northern CG momentum. 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 not satisfactory. The stall feeding is observed to be very low in the state and open grazing of the animal is the common scene in the state. Most of buffaloes reared in Chhattisgarh are of non descript type. However, in cities Murrah buffaloes are maintained by organized dairy sector. Their number varies from 5 to 250 dairy buffaloes in one farm. Buffalo milk is the major source of milk supply in major cities.

14

Production system in Plain central region

The farmers provide their livestock 60%. Straw, 35% green fodder (including weeds from cultivated 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 only dried straw along with little amount of home made residual grains and grain byproducts. 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 if these stock can be fed on diet containing high proportions of green fodder and/or concentrate, it can gain 0.3 kg/d body weight and calves in every one and half years and produce 1200 litters of milk per lactation. The milk productivity is very low. The main reason behind the poor productivity is poor genetic endowment of the animals and inadequate availability of feed and fodder. The deficiency of feed and fodder is not only in quantity but also in quality. This results not only in low production but also in poor reproduction and health status of the animals, which adversely affects 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 production potential and longer calving interval as compared to exotic dairy breeds and their crossbreeds. The animals of Chhattisgarh state, particularly in rural areas, do not get adequate amount of feed and fodder. The proper proportion of different nutrients is also lacking. The paddy straw forms the main source of roughage providing bulk to the animals though deficient in energy and minerals. The vitamin and mineral deficiencies are usual occurrences. The main reason behind the low productive and reproductive performance of the non-descript animals is poor genetic potential and inadequate environmental conditions, which include feeding, management and health care. Though, by improving the environmental conditions the performance of the animals can be improved to some extent but not beyond the limit imposed by the

15

genetic potential of the animal. Moreover, it is of temporary nature and does not pass on to the progeny. Sanitary housing, periodical de-worming, regular check up for any disease would 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 of stress (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 nondescript animals by proper breeding methods. The improvement brought about by this method will be of permanent nature and is passed on to the progeny generation 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 clients

3.2 The processing sub system

Milk cooperative Societies are engaged in proper processing of collected milk like Chilling and pasteurization and processing for preparation of various products like standard milk, toned milk, double toned milk, ghee, etc. The few private dairies are also doing processing of the milk. However, the work efficiency of the existing milk plants of cooperative is not satisfactory. The below table depicts the working efficiency of the milk plants in the state. Table 2: Working efficiency of existing milk plant in Chhattisgarh District Raipur Bilaspur Basna Dhamtari Rajnandgaon Installed Capacity 1 Lakh litres / day 10000 / day 2000 day 2000 day 1000 / day Working Efficiency 50% 70% 60% 50% 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, the traditional milk supply is predominantly seen in the state. The fresh milk collected by the milk 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 is urgent need for increasing collection of milk and running all the existing plants with their 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

16

3.3 The marketing sub system

Once the milk is produced by the producers, there are three ways through which the milk reaches to the consumers. 1) Through the co-operative dairy unions. In the Dairy sector basically the Anand Pattern is being followed in all over India. The Pattern is three-tire pattern, wherein at the very grass root level there is village Dairy Committees. The primary milk producers at the village are its members who sell their milk to the Committee. In this Committee the members themselves elect a secretary who buys milk on behalf of the Committee. At the second level there are District Dairy Unions, constituted by various Village Dairy Committees. The milk bought in the Village Dairy Committees is transported to the District Dairy Unions. At the District Dairy Unions the milk is processed and other milk products are prepared. At the apex level the District Dairy Unions constitute a Dairy Federation, which markets milk and other milk products. All these Committees, Unions and Federations are managed by their elected members 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 no federation 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 dairy committee. The milk collected at various village dairy committees is then transported to the Raipur Dairy Union. At Raipur Dairy Union the milk so collected is processed and other value added milk products are prepared, packed and marketed. These milk and milk products are marketed through wholesalers and retailers who have their own margins. Raipur Dairy Union is managed by National Dairy Development Board and there is no elected board of members. Though this cooperative structure is in existence since many years, it handles approximately 5 percent of the total milk production in the state. The apparent reason as quoted by producers is that the price paid for this milk (Rs 16 18 per litre) is not attractive as compared to the market price. 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 per cent 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 the hoteliers 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, large number 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 the consumers. In the whole process there are various other stakeholders involved apart from the three major players. These three milk routes and intermittent support agencies for production, processing and marketing are depicted in the following sub sector map. Over all commercial

17

establishments such as hotels in urban areas are the major consumers of the milk accounting for about 45 per cent of the milk, while urban and rural households consumes 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

18

Sub Sector Map of Diary Sub Sector in Chhattisgarh state

Rural Consumers (20%)

Retailing

Urban Consumers (35%)

Commercial Establishments (45%)

Traders

Wholesaling

Transporting

Raipur Dhood Sangha (5 %)

Processing

Collection / Bulking

Dhoodiya / Chandi Medium & Large Holders (10%)

Commercial Dairies like Abids (5 %)

Milk Production

Small Holders(80%))

Input Supplier

Private Traders

Veterinary Department

19

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 producersellers to its fold by offering good price, and to help producers to produce more milk. Cooperatives provide their members bargaining power, fair deal, and assistance in improving the productivity of the dairy business. But, the co-operatives have to face some problems also like low literacy of member-farmers, lack of their ownership over productive 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 chain management. On this front, Indian co-operatives are little susceptible and lag behind the multinational corporations and other private firms. Non-observance of timeliness, inefficient distribution of milk, frequent break-downs of milk vans, delays in loading and unloading at depots lead to disturbed supply of milk and its products.

3.4 Condition of support industries

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 able to deliver due to financial as well as bureaucratic constraints. However, in Chhattisgarh state, these livestock related support services are being carried out in collaboration with private companies like JK Trust. Though these private companies primarily focus on Artificial Insemination services, the government department with its available infrastructure 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 government efforts. In many interior areas these services needs to be improved. This necessitates the providing for efficient and effective decentralized services in tune with demands emanating 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 and technology support are the two important services needed for livestock development in the 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 residual and fodder from common property resources like forests, permanent pastures and grazing land. The availability of cultivated fodder is very rare. As majority area in the State follows mono cropping approach with Paddy, the availability of different varieties of 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 is being fed to the cattle resulting in waste of fodder. The non availability of green fodder has posed major threat for dairy development in the state.

20

Emphasis needs be given on enrichment of straw/stover, preparation of hay/silage to overcome fodder scarcities during the lean season, conversion of fodder into feed block to facilitate transport of fodder from surplus areas, establishment of fodder banks and promotion of chaff cutters. The productivity as well as carrying capacity of public and forestland are decreasing due to improper management of common property resources and lack of coordination between the different agencies involved. For sustainable and economic livestock production, this problem needs to be addressed through scientific utilisation of traditional pastures and integration with the Watershed Development Programme, especially for silvi-pastoral development. For enhancement of grass production, measures should be taken to bring larger areas under joint forest management and treatment of wastelands and areas under problem soils. Increasing areas under cultivated fodder production needs to be addressed with special emphasis. Efforts should be made to increase productivity through promotion of intensive fodder production technologies, quality fodder seed production by specialised agencies and use of wasteland for tree and bush based fodder production. 3.4.3 Animal Feed Oil cakes, maize and cereal by-products are important ingredients of animal feeds. Coarse grains and cottonseed are traditionally used as cattle feed. Measures should be taken to fill up the deficit in the requirement of feeds in quantitative and qualitative terms. At present, a very small portion of grains produced in the country is utilised for livestock and poultry feeding. Rain-fed and arid zones present enormous prospects for production of feed grains. Steps will be taken to develop specifications for many agro by-products like mango seed kernel, mahua cake, neem cake, soya pulp, whey powder etc. so that these could be utilised for feeding livestock. Quality control of animal feed will be given importance. The existing feed availability through wholesalers and retailers needs to be strengthened.

3.5 The Policy and Institutional Context

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

21

The Gopal Nagar scheme was initiated about four years back aiming to shift urban dairy farming activities to a new area exclusively built to rear the animals. This scheme has been in operation in all the major cities. Under this scheme, separate land is identified on outskirt of the city, 5-10 KM from the city limit, and crating infrastructure such as road, water, electricity, fodder and feed shops, veterinary hospitals etc. The land of different size was allotted to all the livestock rearing families of the city area on lease basis. With this farmers build the houses for rearing of animals and shift their animals to this new area. It is observed that, farmers have appreciated very much on Gopal Nagar Schemes and have shifted their animals to the new areas. These new exclusive area for rearing of dairy animals has opened scope for commercial dairy farming by interested individuals. In Durg Gopal Nagar area, few farmers have started mini dairy plant by housing 50-100 animals. Such Gopal Nagar scheme has impacted very positively in protecting the livelihoods of the dairy depending families of urban areas. However, the schemes success is not uniform through out the state.

3.6 The Environmental Context

Chhattisgarh has sub-humid climate. About 90 per cent of the average annual rainfall occurs during southwest monsoon (June to September). The average annual rainfall is 1422 mm in Chhattisgarh plain, 1452 mm in Bastar plateau and 1610 mm in Northern hills. May is the hottest and December-January are the coldest months of the year. During summer the peak temperature reaches up to 46C in the month of May while during the winter season the minimum temperature reaches as low as 12C. The atmospheric humidity is usually low during summer month (30-40%) and reaches its peak value (90%) after the onset of monsoon. These environmental context of the state has come in the way of sustenance of the cross breeds such as HF and Jersey. Hence, careful efforts are needed to introduce suitable breeds to improve the productivity of the animals.

3.7 Financial Overlays

Dairying activity in Chhattisgarh state majorly focuses on supply of milk to the consumers. The production of other dairy products is negligible. All trade in this sub sector concentrated on channelizing milk from producer to consumers, with or with out processing. The major players included farmers, traders, input suppliers, transporters, wholesalers and retailers. The existing financial interface for each of these players is listed in below table.

22

Table : Dairy Sub Sector Players, Their Role and Financial Interface Sub sector Role and Present Status Financial interface players Feed and Production of feed and 10-20 percent profit margin is ideal for fodder making accessible to the survival of business. suppliers farmers. Presently their activity in the state is in downward trend owing to decreased demand. However, their role is very much crucial for vibrancy of dairy subsector. Milk Producer Livestock rearing and As most of the family members and production of milk including in the rearing activity, their margin is difficult to assess. However, in terms of price of milk at the final consumers, the producers proportion is about 60-70 per cent which is a good enough. However, as feed and fodder constraints, their net profit margin is on reducing trend. Local Milk Collection of milk from In the existing practice, their margin is trader producer families and selling Rs. 2 per litre. (Dhoodiya) to households / hotels. Some times producer themselves assumes this role Wholesalers / Processed milk from Dairy Their numbers are very few and are Retailers Cooperative / private concentrating in Raipur city. They company are distributed margin is around 5-10 percent. through wholesalers and retailers Transporters Mainly for Cooperatives and They are engaged by dairy cooperative private dairy company and private companies on contract basis and account to Rs. 1-2 Rs per litre.

4. Key Constraints and Leverage Points

4.1 Key constraints at production, processing and marketing
Production Cattle rearing focus more on drought power than dairy Large 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.

23

Processing Aggregation is difficult due to low quantity and disperse production base Low consciousness on quality aspects of milk both by producer and traders. Marketing Skewed consumer base to urban areas High dependence on traditional traders

4.2 Strategic Choices and Key Recommendations

Key Recommendations As per existing factor and demand condition of dairy, it is recommended that dairy development in the state should take a cluster approach with making 10 to 15 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 of dairy promotion has been not able to take advantages of resources and market. The identified cluster should take up an integrated effort to work on factor conditions like irrigation and fodder production and the whole dairy development process should be divided into phases starting from irrigation and fodder development. It is strongly recommended that rural and semi urban youth having entrepreneurship and dairy farm training at major commercial dairy farm in the state. 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 supply improved dairy cows/buffaloes to other area within state should be promoted. The present outside state purchase and price has been a detrimental factor in the growth of dairy sector in the state. Commercial dairy farm owners of the state should be involved in policy and action forum of dairy development in the state. Improved bull procurement from commercial farms in the state. Panchyat based bull breeding system with incentives based on crossbred produced is highly desirable. Livestock Insurance has received a very low penetration in the state including organised dairy farms. A central government program on breeding and improved breed livestock insurance is operational but it requires further impetus to work on the state of awareness and promotion. Gokulgram model seem useful provided some close monitoring is kept. Credit and 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 land green fodder production, grazing land development and collective payment based storage of dry fodder and hay. VRTI (Vivekanand Research & Training Institute in Bhuj

24

(Gujarat) has developed a model for community managed fee based fodder bank, which can 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 operational route basis and PRI based on business principles may take up role of its management through 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 bulk rate 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 with seasonal fluctuation less than 30% over the year) will be Rural BMC at Dholpur in Rajasthan 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 the procurement 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 area and initiating procurement of milk Strengthen supply of fodder seeds, concentrate feeds, mineral mixture and awareness 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 production Phase 3 (2 to 5 years) Developing institutional capacity of milk production and procurement

25

 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 The present Sub sector study has delved in to market segmentation of milk in the state and factors affecting dairy productivity. The present constraints and strength of business process at Input, procurement, processing and marketing were studied and dignosed. It is evident that milk market in Chhattisgarh has been concerntrated to pockets of uran area 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 breed to green fodder and if this over taken, market if not linked with urban. Dairy development in the state needs to be cluster based, within vicinity of urban area and undertaken in phased manner. The role of commercial dairy farm, which is significant in share of milk production, needs to be more synergistic with government effort and a functional collaboration on this front is required. State also needs to identify breeding zone in central part and a special scheme of developing local elite cows and buffaloes to act as supply center for other part of the state is required. This could provide further impetus to dairy development in central region and can well supplement the adoption of improved practices. Study team concludes that state has an unique opportunity to work on demand based product (milk) in the state and this could help to generate millions of livelihood in the state on one hand and ensure quality and balanced nutritious food to the public of state on another.

26

Visual glances of state of affairs in Dairy in CG

Gopal Nagar

FGD at Ambikapur

27

Dairy plant

Cattle Shed

28

Typical Cattle shed in Chhattisgarh

Risk Analysis in Dairying

29

FGD at Sarguja district

Heap of Dung Cakes as Fuel

30

Non Descript Cattle

Milk supply to city hotels by Dhudiya

31

Private dairy farms in urban areas

AI Service by Department

32

Annexures: Glimpses of FGDs and Household Interview

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 calves produced by the cross is better for draught purposes. Not all the rearers are interested for getting AI, of all only about 100 rearers are interested, as the cross breed require better care and the jersey cross calves are not good 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 what the dairy cooperative offer. The average rate based on fat and snf comes to about Rs.14 per kg. Milk is sold locally to hoatels, some producers sell directly while others sell through middle men. There are two models (i) the price of the milk sold for 6 days goes to the owner while one days goes to the middle men. (ii) Rs. 18 per kg milk is given to the owner while Rs. 2 is taken by the middle men. Insurance for animal not there, people are not interested because of the difficulty in getting 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 Paddy o Wheat o Sugarcane o 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 manure o Oxens (including buffalo bulls)

33

50% of the cattle population is cross breed and 50% are desi (local breed. Breeding through AI, the AVFO comes for the AI when called. Cross breed cows yield 4-5 Ltr of milk at a time. Cattle fed with animal feed, wheat husks, cooked dalia. If fed properly would cost Rs.50.Grazin land very limited, are stall fed. Green fodder cultivation very less.Not aware of the use of mineral mixture. Straw chopping machine has a commercial potential. Milk rate: Rs. 20/Ltr in village. Calves sold locally in Rs.1500-2500 Female calve (jersey) sold in Rs. 3000- Rs. 4000. Ploughing done mainly with Oxens. There are more than 20 tractors in the village, but are not suitable for ploughing in rainy season. Vaccination, De worming done in cattle. Vet hospital 1 km (karwan sub centre) F1 of Jersey is profitable.

3) Marginal Producers Group : Madguri Village, Kusmi,

Sarguja
(Village about 80 kms from District headquaters) There are about 150 House Holds in village; SC-19, ST- 70, OBC-40 and Gen-4. Major Sources of HH income (Rank wise): o Agriculture (single crop-Paddy; Irrigation problem is there) o Wages from labour (local and migration to places like Ranchi, Punjab, Delhi etc.) o Animal Rearing (Draught is major support received) Profitability from Livestock (Rank wise): o Piggery (gives birth to 8-12 piglets; local breed of pigs reared; piglets sold in Rs. 400-500) o Goatery (1-2 kids; kids above 6 months of age sold in more than Rs. 500, good buck of 8 to 10 months can fetch Rs, 2000-3000) Average herd size of cattle in HHs is 2-3 cattle heads. Avg milk yield for local breed cattle is 1-2 ltrs per day. While that of Jersey cross is 4 ltrs/day. Feeding practices: Free grazing supplement given when wet. In Khariff season people take their cattle to jungle for grazing, while in Rabi season the cattle is left free as no Rabi crop is taken. Predators risk is low for cattle. The panchayat here does not function as efficiently as should, participation is not there. Vaccinations were given to animal during the rainy season. Houses for cattle and goats exist (the floor of goat houses are elevated). Theft of animal is not there. Animal for sale comes for sale from Bihar. Draught is the major purpose for which the cattle & buffs are reared. Cow dung is used as fertilizers and not as fuel.

34

4) Household Interviews

1) Village : Kugda Basti, Raipur District. Farmer Name: Pappu Yadav Farmer profile: Rears about 20 cattles (all are non descript type) and about 30 goats. Key points emerging out of interview: Aware about loan facilities for purchase of animals from banks, but not availed 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 and buffalow 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 season for two months. There is no problem of water availability in the village even in summer seasons. 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. Farmer Name: Satpal Chowdary

2) Village: Gokul Nagar, Bilai

Farmer Profile: Migrated from UP settled in Bilai. Main occupation is rearing cows. Has about 40 cross breed animals. Availed the space at Gokul Nagar and shifted 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 of animals. For a household haven 100 animals 100 ft X60ft space was allotted. For 70 animals 80X60 sq ft, for 50 animals 60X60 sq.ft, 30-40 animals 60X50 sq.ft. 15-20 animals 60X40 sq.ft, 10-15 animal 60X30 sq.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 to complete. 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 households themselves. Houses should be built only for animals and for staying of 1-2 care takers. 35

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 and Rs 10 for labour charges. Feeds from Batapara near Raipur and the cost is Rs. 12/kg. Milk rate Rs. 16-17 per litre and for buffallow milk up to Rs. 25 and sells to hotels. 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 do not 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. The milk 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 he had about 70 dairy animals but now rears only 5-7 animals. He has given up this dairy business owing to problems like water, green fodder and land availability in the city. Just five years back the dairy business was one of the main activities in Damda 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 mainly due to non remunerative price to milk on one hand and increased cost of inputs. Though the local demand for milk is good, the milk price is not remunerative now a days. To protect the livelihoods of the city based dairy farmers, Chattisgarh state has implemented Gokut Nagar scheme and provided all needed facilities like water, space, gobar management, feed and fodder availability, veterinary service etc at one place. This scheme is implemented in all 36

major cities, mainly in district head quarters, in about 100-200 acres of land 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 sells about 1.5 quintals per day. The selling price of the feed ranges from Rs. 10 to 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 expect Rs 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.

37