Strengthening Infrastructure for Quality & Clean Milk Production (A Centrally Sponsored Plan Scheme)

The scheme started during 2004-05 for Creation of necessary infrastructure for production of quality milk and milk products at the farmers level up to the points of consumption by Improvement of milking procedure at the farmers level, Training and Strengthening of infrastructure to create mass awareness about importance of clean milk production. The scheme is implemented through the State Government by District Cooperative Milk Union/ State Level Milk Federation. The Scheme is implemented on 100% grants-in-aid basis to the State Government/UTs for the components, training of farmer members, supply of detergents and antiseptic solutions, stainless steel utensils, strengthening of existing laboratory facilities whereas 75% financial assistance is provided for setting up of milk chilling facilities at village level in the form of bulk milk coolers. Administrative approval of the scheme for 20010-11 is enclosed. Achievement: This scheme is being continued during the 11th Five year Plan with an annual outlay of Rs 20.60 Crore for 2009-10. Since inception, 144 projects with a total cost of Rs 228.84 crore with a central share of Rs.186.76 crore have been approved up to under the scheme. So far under this scheme 5.43 lakh farmers were trained and 1716 numbers of Bulk milk coolers with a total chilling capacity of 31,27,300 Litre has been installed and 1157 existing laboratories have been strengthened. Annual Outlay during Xth Plan period (Central assistance) (Rs. in Crore) Budget Estimate(BE) Year 2002-03 2003-04 2004-05 2005-06 2006-07 Total 10th Plan 2007-08 2008-09 2009-10 th Total 11 Plan (Till 31.3.10) 0.00 0.00 8.42 20.00 35.00 63.42 16.00 20.00 20.60 56.60

Expenditure 0.00 0.00 24.64 30.39 24.65 79.68 20.89 21.29 21.76 63.94

Evaluation & impact study of the scheme was conducted by Centre for Management Development, Thiruvananthapuram during 2008-09. The major recommendations for modification of the scheme are:

The funds are to be released directly to the Implementing Agency to reduce procedural delay. Measures to broad base the scheme & eligibility criteria to expand its scope and functioning. The scheme should aim to cover farm gate to the consumer so that clean milk produced in farm is not deteriorated at production stage. Pre-project appraisal by a third party to be made an essential pre-condition for the approval of CMP scheme. The training under Clean Milk Production needs to be extended to farmers, DCS staff, BMC operators, Board of Directors, Dairy Plant Staff. Expose the quality control personnel, both the DCS and Dairies to appropriate knowledge, skills and equipments. The new components to construct buildings for DCS, cattle shed, strengthening marketing infrastructure for quality, can washing facility, solar water heaters, strengthening lab (DCS/BMC/Dairy Plant) as per required quality norms under PFA, networking system of DCS/QC labs, assistance for eradication of sub-clinical mastitis etc among others may be incorporated to the scheme along with provisions for basic water & electricity infrastructure at BMC Unit for greater impact on quality of milk. The premium milk sold at higher price could enable to pay premium price to the farmers. Preference to be given to Milk Unions/Federations paying/ plans to pay a differential price to farmers. A corpus may be created under each union to extend support for utensils and vessels. The pails and vessels may be distributed at subsidized rate-50% subsidy from the scheme, 25% from the union and 25% as farmers share.

Agencies with 1 LLPD & above milk procurement be considered under the scheme and agencies handling more than 10 LLPD may be excluded.

Draft EFC memo is being prepared based on the recommendations & experience gained while implementing the scheme.