CHEPTER 1INTRODUCTION

1.1 Background

1.2 Rural Development

1.3 Cooperatives

1.4 Technology

1.5 Choice of the Subject and description of problems

1.6 Objective of the Research

1.7 Hypothesis and Research Questions

1.8 Scope, Sample and Limitations of Research

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Introduction1.1 Background

India has a vast rural area so it is called country of villager. A 2\3 ofpopulation lives there. It is back bond of nation’s development. So without ruraldevelopment progress is not possible. Merely political freedom is not enougheconomic solidarity is also needs. Where social justice and equality become strong.

Mahatma Gandhi had his own riews about development, has presentedhis opinion that in the process of development as long as poores of poorperson is not in centre there hardships will not reduce. If without remarkablechance in their life style and without keen role in the progress process realdevelopment is very far. In other if villages’ basic needs are fulfill bythemselves they will makes progress.

In early days needs were limited. Up to food cloths and shelter. But inglobal era needs increased also hard ships have increase. So thinking over thematters shards stop the harresment of people from administrative society.Economically to up lift the people’s life and make transperant-speedly and clearprocess of progress to achieve the goal of self confident and self developmentthis view has expanded now a days.

Village development is a continuous process which runs on the basic ofpublic opinion- co opinion –equality and on social justice, in which using thetechnology by available means human welfare is dine for the last man and bywhich wanted co-alit ion and balance is kept in the nature.

Rajiv Gandhi in 1984 had said that the public sector is loss with publicthey do his got enough benefit of development no active rule in the processof development and this system is not capable bringing proper improvement inlife style. The root accrue for this fallen was of speedy, confident andtransperant haven’t intimation technology it is accepted that because of thispoor become more poor and the reach become more reach so technologyshould reach to the people in proper from to improve industry to developedpolitical or to bring root change in society for that remarkable charge is neededin modern manage system.

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In the last decades of 20th century globalization era was started and thewhere struetive was on the basic of liberalization privatization, and globalization(lpg) The whole world is known as “Global Village” so information and itsspeneadiy became compulsory in every field which its called informationnetworking system. 1.1

1.2 Rural Development

1.2.1 What is Rural?

The problems of defining rural areas are more intractable than those ofdefining urban areas, leading one observer to suggest that what constitutes ruralityis largely a matter of convenience . The problem lies in capturing both themultiplicity of types of rural areas that exist (ranging, for example, from smallsettlements on the fringe of large towns and cities to remote villages andhamlets, and from ‘green belt’ agriculture to areas of extensive arable farming),and the economic and social changes that have taken place in rural placeslinking them more closely to an urban style of life and work. However, despitethe conceptual problems of capturing what ‘rurality’ is, rural areas are generallyobserved to have particular attributes which give them distinctive character. Theseattributes include tracts of open country side, low population densities, ascattering of small to medium sized settlements, less developed transportinfrastructure and lack of access to services and amenities,especially of thetype provided in larger urban centres. Each of these characteristics has, at onetime or another, been built into attempts to define ‘rurality’ for practicalpurposes. Beshiri Ronald & Bollman Ray D. 1.2

1.2.2 What is Rural Development ?

Sustainable development is the management and conservation of thenatural resources base, and the orientation of technological and institutionalchange in such a manner as to ensure the attainment and continued satisfactionof human needs for present and future generations. Such sustainable developmentin the agriculture, forestry and fisheries sectors conserves land, water, plantand animal genetic resources, is environmentally non-degrading, technicallyappropriate, economically viable and socially acceptable.

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Every sector in a modern society is affected by the breathtakingdevelopment in science and technology. The rural areas are no exception. Forinstance, we must certainly study the impact of modern bio-technology onagriculture, dairy technology, livestock production in the food industry. Importantquestions in this study will be which new technologies can be expected, andhow they might impact on rural development. We already can see the impactof modern information technology in some sectors of the rural economy, suchas in direct marketing and tourism, where they seem to open-up new chancesfor economic development. We have to analyze whether these trends are likelyto progress and what other sectors of rural life might be affected. For instance,rural areas in the fringe of big cities might see a new sub-urbanization due toan increase in tele-commuting.

There are no universally accepted approaches to rural development. It isa choice influenced by time, space and culture. The term rural developmentconnotes overall development of rural areas to improve the quality of life ofrural people. In this sense, it is a comprehensive and multidimensional concept,and encompasses the development of agriculture and allied activities, villageand cottage industries and crafts, socio-economic infrastructure, communityservices and facilities and, above all, human resources in rural areas. As aphenomenon, rural development is the end-result of interactions between variousphysical, technological, economic, social, cultural and institutional factors. Asa strategy, it is designed to improve the economic and social well-being of aspecific group of people – the rural poor. As a discipline, it is multi-disciplinary in nature, representing an intersection of agriculture, social,behavioural, engineering and management sciences.

In the Indian context rural development assumes greater significance as72.22 per cent (according to the 2001 census) of its population still live inrural areas. Most of the people living in rural areas draw their livelihood fromagriculture and allied sectors (60.41 % of total work force), and poverty mostlypersists here (27.1 % in 1999-2000). At the time of independence around 83per cent of the Indian population were living in rural areas. Accordingly, fromthe very beginning, our planned strategy emphasized rural development and willcontinue to do so in future. Strategically, the focus of our planning was to

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improve the economic and social conditions of the underprivileged sections ofrural society. Thus, economic growth with social justice became the proclaimedobjective of the planning process under rural development. It began with anemphasis on agricultural production and consequently expanded to promoteproductive employment opportunities for rural masses, especially the poor, byintegrating production, infrastructure, human resource and institutionaldevelopment measures.

Maximum people of thickly populated India live in villages. Majority ofthem are involved in agriculture. The cattle animal is correlated with agriculturein India as the old method of cultivation is still vogue here. Rearing of cattleanimal is also an additional source of income of the villagers in our country.We get from our ancient history that the domistication of the cow and thebuffalo dates back to nearly 4000 years. Scriptures of India refer to the wealththrough the word ‘Godhan’. Maximum proportion of cows and buffaloes of theworld are seen in India. But India produces only five percent of the total quantityof milk produced in the whole world. This amount is too inadequate to meetthe country’s demand. The supply of milk in some parts of India is higher thanthe local demand. On the other hand, supply of milk in the rest of the countryas well as in urban areas is much lower than the demand.

1.3 Cooperative

1.3.1 What is a cooperative?

“A cooperative is an autonomous association of persons united voluntarilyto meet their common economic, social and cultural needs and aspirationsthrough a jointly-owned and democratically controlled enterprise”.

They are business entities where people work together to solve commonproblems, seize exciting opportunities and provide themselves with goods andservices. A cooperative is managed on the basis that the customers of a businessare also the owners of the business. Each customer is entitled to become amember of the cooperative society, thereby receiving the benefit of successvia a dividend payout.

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1.3.2 History of Cooperatives

The beginning of this great movement is dated back to 1844, when agroup of men known as the ‘Rochdale Pioneers’ began trade in grocery producesin England, based on a ‘new’ principles of fair prices for reliable quality goods.These organizations are better recognized world wide, for their non-profitcharacter and root level social functioning on voluntary basis. Voluntary andopen membership, democratic member control, member economic participation,autonomy and independence, education, training and information, cooperationamong cooperatives and concern for community are the principles ofcooperatives.

Self help, self responsibility, democracy, equality, equity and solidarityare the values of cooperative organizations. In the tradition of its founders, themovement also follows such ethical values as honesty, openness, socialresponsibility and caring for others. Needless to say, it is a social movementand its growth will unanimously result in the wholesome growth of the society.

1.3.3 Dairy Cooperatives

Dairy cooperatives were among the first type of agricultural cooperativesorganized in the U.S. They have their beginning in the early 1800s. Dairycooperatives have played a very significant role in the procurement, processingand marketing of milk and dairy products and in representing farmers politicallyat both the state and national level. Dairy farmers have relied more heavilyupon dairy cooperatives to market their milk than have farmers of any othercommodity. Presented here is an over view of the early history of dairycooperatives, their developments over time, the roles dairy cooperatives play,and the current status of dairy cooperatives.1.4

1.3.4 Dairy Cooperatives in World

Just when the first dairy cooperative was established in the U.S. is surelya matter of conjecture. Associations that might be called cooperatives werestarted shortly after the beginning of the nineteenth century. Although theseorganizations may not properly qualify as cooperatives under modern cooperativelaw, nevertheless the spirit and practical operation of the organizations madethem distinctly cooperative in character.

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The physical characteristics of milk and the small production on individualfarms encouraged collective action by farmers. It took more milk than whatone farmer produced to make Swiss cheese of the wheel or drum style. Toobtain standardized quality, uniformity of grade, and large quantities of dairyproducts required cooperative action. A feature of the cooperative movementamong dairymen was the promotional effort that was made by manufacturersof creamery equipment to interest farmers in cooperative associations.

It is reported that the first U.S. cooperative was a creamery built atGoshen, Connecticut, in 1810. In 1841 Wisconsin farmers around Rock Lake,Jefferson County, made their cheese collectively at the home of a Mr. Pickett.In 1851 the so-called .American system. of associated manufacturers of cheesewas evolved at Rome, New York. In 1856 a butter factory was established atCampbell Hall, Orange County, New York. The early cheese rings inMassachusetts, dating back to 1835, were cooperative and quite typical of thecheese rings of the Jura Mountains of Europe, where the Swiss and Frenchpeasants made their well-known cheeses collectively.

Cheese, butter plants, and creameries proved popular and successful.Dairy farmers set examples in early cooperative activity and had establishedmore than 400 cooperative dairy processing plants by 1867. These wereorganized as local cooperatives. But in 1913 representatives of cheese factoriesin Sheboygan County, Wisconsin organized the first federation of cheesefactories. The organization of county creamery associations (1917-1920) innorthwestern Wisconsin and in Minnesota later federated into an interstate unit(1921). This federation preceded the Land O.Lakes Creameries , Inc., whichwas also initially organized as a federation in 1924.

Among the producers of fluid milk for city consumption purposes werethree main types of cooperative effort.) Cooperative retail distribution whichstarted around 1822. This was primarily carried on by farmers adjacent to smallcities who wished to sell their milk directly to consumers. Somewhat later,cooperative milk distributing companies with relatively limited membership wereoperating in large cities such as Cincinnati, Milwaukee, and Oklahoma City.)Cooperative wholesale distribution of milk which started about 1899.) Collective

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bargaining between farmers and private distributors which began in about 1909.The latter were of two types, those that merely bargained for a price and thosethat in addition to bargaining also operated processing plants where surplusmilk (milk not required for beverage consumption) was converted into butter,cheese, evaporated milk, or other manufactured dairy products.

The first important attempt by dairy farmers at bargaining for highermilk prices was in the Chicago market. The Milk Shippers Central Union ofthe Northwest, 1887-1891, proposed to monopolize milk supplies. The ChicagoMilk Shippers Union, 1891 - 1895, was organized to accomplish the objectivesof the proceeding organization, namely to insure payment by milk dealers, andto provide an adequate fund to reimburse producers selling outside the city atlower prices.

One of the largest operating cooperatives organized during the 1920swas Dairymen.s League Cooperative Association of New York.

It operated country plants and receiving stations, serving secondary aswell as primary markets. The League had 273 country plants in 1930, butreduced this number to 117 plants by 1936. In 1934-35, 110 dairy cooperativeswere bottling and distributing milk. They had about 5 percent of the fluid milksales by all commercial processors. There were 87 bargaining cooperatives with172,000 members that represented about half of all fluid grade milk.

Dairy cooperatives varied in number between 2,300 and 2,400 duringthe late 1920s and the 1930s6. In 1935, 2,270 dairy cooperatives represented16 percent of dairy farmers, but 45 percent of all milk delivered to plantsfrom farms.1.5

Trends in the 1940s through the 1970s:

The number of dairy cooperatives peaked prior to World War I and havebeen declining every since (Table 1). However, cooperative share of milkmarketed began a fairly steady climb after the war from 45 percent in 1936,to 51 percent by 1951, to 61 percent by 1961, to 73 percent by 1970. Thenumber of dairy cooperatives fell from 2,072 in 1950 to 971 by 1970, butrepresented about 60 percent of all dairy farmers by 1970 compared to about16 percent in 1950.

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Dairy cooperatives greatly increased their participation in milkprocurement and in disposal of surplus milk between 1955 and 1963. By 1960,dairy cooperatives had generally recognized the need for centralized managementof milk supplies and disposition of surplus milk. Bargaining cooperativesstruggled for years with ways of gaining control of their supplies to strengthentheir marketing position. As markets grew larger and the number of buyerssmaller, cooperatives increasingly found themselves in potentially toe-to-toecompetition with other cooperatives, and increasingly vulnerable to undercuttingon prices, services charges, delivery requirements, and other matters. Whilemaintaining their separate identities, cooperatives in the central part of thecountry (which marketed about a fourth of U.S. milk) began forming federationsin the early 1960s in an attempt to raise farmer incomes through higher milkprices, and to realize cost savings from better organized movement of milk.The large federated organizations served member cooperatives as a marketingagency in common, improved price alignment among markets, presented a unitedposition at Federal order hearings, operated a standby pool for reserve milksupplies, expanded promotion of dairy products, and more effectively presentedtheir views to legislative and executive branches.

Table 1.1No. of dairy cooperatives and market share, 1929-1970Year Number of Dairy Farm level share of

Cooperatives farmMarketings (percent)

1929-30 2.458 30

1935-36 2,270 45

1940-41 2,374 48

1945-46 2,210 50

1950-51 2,072 53

1960-61 1,609 61

1969-70 971 73

Source: Agricultural Cooperative Service, USDA

By the mid-sixties, Federal milk marketing orders began to reflect the

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increased need for more stable price alignment among markets. The federatedcooperative structure hampered bargaining efforts and could not deal adequatelywith problems of operational efficiency, equity among farmers, and greatermarket stability11. By 1970, many cooperatives of the major federatedorganizations had merged into four large regional cooperative centralized full-service cooperatives: Associated Milk Producers , Inc., Mid- America Dairymen,Inc., Associated Dairymen, Inc., and Milk Inc. (later named Milk Marketing,Inc.). In 1967, Associated Dairymen, Inc. had developed a highly significantstandby pool. In 1968, payments of 2 cents per hundredweight were being madeinto this pool by 18 cooperatives, including several large regional organizations,which had relatively high Class I utilization. A group of 11 supply plans inMinnesota and Wisconsin drew an average of 29 cents per hundredweight fromthe pool, thereby receiving prices that netted them larger returns than theywould have received by marketing the amounts committed to the standby poolin their nearest Federal order market. In return for these payments these plantscontracted to give Associated Dairymen control of the disposal of specifiedquantities of Grade A milk when it was needed. This arrangement made availablesupplementary supplies of Grade A milk at reasonable prices to markets needingsuch supplies, while compensating the surplus area cooperatives for carryingreserve supplies in periods when they had to be manufactured.

Regional cooperatives formed in the late 1960s, consolidatedmanufacturing facilities, especially milk drying and cheese plants, to improveoperational efficiency. In the West North Central Region, many small plantswere closed and replaced by larger and more efficient plants. Cooperativesconverted butter-powder plants to cheese and expanded some existing cheeseplants in response to cheese price fluctuations. As a result, a relatively largeportion of the larger manufacturing plants were regional cooperatives. By 1970,the four large regional dairy cooperatives represented about 33 percent of thefarm level milk supply.

Some dairy cooperatives also continued to organize and operate marketingagencies in common to bargain with milk handlers for premiums above minimumfederal order prices. For example, in 1968 leading cooperatives serving theChicago market organized Central Milk Producers Cooperative. At this time

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Central Milk Producers Cooperative represented 90 to 95 percent of the milkon the Chicago market.1.6

The 1970s to 2000

The trend toward fewer and larger dairy farms, and regional shifts inmilk production from traditional dairy regions of the Northeast and UpperMidwest to the Southwest and West, continued to forced structural changes ofdairy cooperatives. Mergers and consolidations among dairy cooperatives slowedfrom the mid-1970s to mid-1980s, but accelerated in the 1990s. Not onlywere there more mergers and consolidations in the 1990s, but joint venturesand strategic alliances among dairy cooperatives (even among dairy cooperativesand investor firms) became common. The four large regional cooperatives nolonger exist as they were initially structured. Associated Milk Producers Inc.,was split three ways with two regions, the Upper Midwest region and theSouthern Region becoming parts of other regional cooperatives, and the NorthCentral Region remaining as an independent cooperative. In 1998, the SouthernRegion of Associated Milk Producers Inc., and three of the other four regionals,Mid-America Dairymen, Inc., Milk Marketing Inc., and Associated Dairymen,Inc., along with others consolidated into Dairy Farmers of America (DFA). DFAnow has members in 47 of the 50 states and represents more than a fourth ofthe U.S. milk supply. Land O.Lakes, Inc. also expanded its geographic territoryin the 1990s with mergers of Altantic Dairy in the Northeast and Dairyman.sCooperative Creamery Association in California.

Dairy cooperatives also formed major significant joint ventures withinvestor owned firms. Examples, include Michigan Milk Producers Inc. withLeprino Foods in cheese production, and Dairy Farmers of America with SuizaFoods Corporation in fluid milk sales.

In addition to accelerated structural changes at the farm level, theconcentration in the food industry, and tight operating margins, contributed tothese structural changes among dairy cooperatives. There is a need to cut costout of the marketing system and be more efficient all the way from the farmto the final customers. Dairy cooperative found increased size of operationwas also deemed necessary to obtain necessary market clout when dealing withlarge wholesale and retail food customers.

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But not all dairy cooperatives are becoming larger as a means ofcompeting in the market place. Dairy farmers continue to operate and organizenew very successful smaller dairy cooperatives. These are mostly in .speciallycheese. markets that carry a higher value than commodity cheeses. Others havesuccessfully entered the niche market for organic dairy products. Coulee RegionOrganic Produce Producers (CROPP) at LaValle, Wisconsin, markets organiccheeses, butter, beverage milk products and other dairy products nationally. Itcontracts with existing milk plants to manufacture products according to theirspecifications. Sales reached about $25 million in 1999.

In 1997, there were only 226 dairy cooperatives compared to 971cooperatives in 1970 (Table 1.2). But cooperatives. share of milk sold byfarmers increased from 73 percent to 83 percent.1.7

Table 1.2No. of dairy cooperatives and market share 1970 to 1997

Year Number of Dairy Farm level share ofCooperatives farmMarketings (percent)

1969-70 971 73

1974-75 631 75

1985-86 394 78

1990-91 264 82

1997 226 83

Source: RBS-Cooperative Service, USDA

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1.3.5 Dairy Cooperatives in IndiaCooperative movement in India has celebrated its centenary year of service

recently. Indian cooperatives are unique as they were initiated and supportedby the government. Elsewhere it had always been organized only by volunteermembers with least or no government intervention. In India it was introducedin 1904, as the planners of the country firmly believed that it could serve fornational development and also could serve as a shied in protecting the vulnerablesection of populace, especially the farmers from certain social evils likeagricultural backwardness, poverty and rural indebtness.

Though they were initially organized only as the credit institutions, Indiancooperatives today, tirelessly serve in endless areas of services. They serve incredit and non credit areas. They deliver credits for agriculture as well as nonagriculture purposes. They operate their businesses in numerous non creditphases too. They work for milk producers, agricultural producers, weavers,consumers, fishermen, coir makers, employees, students of universities andcolleges, and for many others.

Important Segments of Indian Cooperatives

* Cooperative education and training

* Agricultural credit cooperatives (production)

* Agricultural credit cooperatives (investments)

* Non agricultural credit cooperatives (urban banks)

* Cooperative marketing

* Tribal cooperatives

* Fertilizer cooperatives

* Consumer cooperatives

* Weaver cooperatives

* Sugar cooperatives

* Cooperative spinning mills

* Industrial cooperatives (non weavers)

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* Dairy cooperatives

* Fisheries cooperatives

* Housing cooperatives

* Labour cooperatives

* Poultry cooperatives

1.3.6 History of Dairy Co-operative in India

The Co-operative movement started in India in the last decade of the19thCentury with two objects in view, i.e. to protect the farmers from the handsof the private money lenders and to improve their economic condition. Madrasprovince was the birth-place of this movement. With the setting up of anAgricultural Co-operative Banks there the movement took root in our Landand slowly gained strength. However, the growth of Co-operative movement inIndia during British rule was very slow and haphazard one. In most of thecases, the provincial governments took the lead. The foreign ruler had onlymade some committees or framed a few rules and regulations. But they didnot take any wide-ranging programme to spread the movement all over thecountry.

The golden era of Co-operative movement began after India had wonfreedom. Within two decades of independence the membership of primarysocieties had increased four times while the share capital and working capitalincreased 23 and 31 times respectively.

The history of Dairy Development Movement in India is a new one.During the pre-independence period this movement was limited to a few pocketsof Calcutta, Madras, Bangalore and Gujarat. The most notable of this venturewas Kaira District Co-operative Milk Producers’ Union Limited of Anand,Gujarat. But after independence the National Government took great initiativein setting up new Dairy Co-operatives in many parts of the country. TheNational Dairy Development Board was set up to make the ambitious project asuccess.

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National Dairy Development Board (N.D.D.B) was set up with the objectof meeting the increasing demand of milk specially in urban areas as well asdeveloping the rural economy through the enhancement of the milk productionof the country. In 1970 National Dairy Development Board took up OperationFlood Programme in order to organise Milk Producers’ Co-operative.

Progress of Operation Flood

The Operation Flood Programme was undertaken after the National DairyDevelopment Board had been formed in 1965. The programme aimed at bringingthe shortage of milk supply in the four Metropolitan cities of Calcutta, Bombay,Madras and Delhi into agreement with the abundance of milk production inadjoining villages of the cities. Simply speaking, it tried to achieve a two-foldobjective - increasing the production of milk and making equilibrium of supplyand demand in the milk market. It was then decided that the Milk Co-operativeformed on Anand pattern in all over the country should be reorganised, theexcess milk would be procured at a fair price and be supplied to the cities.The Anand pattern had been accepted as the model because the Kaira DistrictMilk Producers’ Co-operative Union Limited (AMUL) was then recognised asthe only ideal Milk Union of the country. In the initial stages of the programmeIndia received a huge amount of butter oil and milk powder as gift from theEuropean Economic Community (EEC).

The progress of the Operation Flood Programme all over India has beenquite commendable. Before the implementation of the programme both theproduction of milk as well as the per capita milk consumption was too low.The position at present, has undergone a distinctive change. Apart from theincrease of milk production and its per capita consumption a great number ofVillage Milk Co-operative Societies have come up. The trend of keeping milkanimals in a scientific method has registered an increase too. As a result,import of milk powder from foreign countries substantially dropped and after1976, its import on a commercial basis stopped totally. However the countrygot little amounts of milk powder after that as gift. This testified to the factthat, with the inception of the Operation Flood Programme, the Dairy

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Development Movement in India and also the Dairy Industry has maderemarkable progress. Despite that, the rate of progress has not been the samein different zones. While the Eastern zone is lagging far behind the other zonesin this respect, the Western Zone has gone far ahead of others.

Today, India is ‘The Oyster’ of the global dairy industry. It offersopportunities galore to entrepreneurs worldwide, who wish to capitalize on oneof the world’s largest and fastest growing markets for milk and milk products.A bagful of ‘pearls’ awaits the ternational dairy processor in India. The Indiandairy industry is rapidly growing, trying to keep pace with the galloping progressaround the world. As he expands his overseas operations to India many profitableoptions await him. He may transfer technology, sign joint ventures or use Indiaas a sourcing center for regional exports. The liberalization of the Indianeconomy beckons to MNC’s and foreign investors alike. India’s dairy sector isexpected to triple its production in the next 10 years in view of expandingpotential for export to Europe and the West. Moreover with WTO regulationsexpected to come into force in coming years all the developed countries whichare among big exporters today would have to withdraw the support and subsidyto their domestic milk products sector. Also India today is the lowest costproducer of per litre of milk in the world, at 27 cents, compared with theU.S’ 63 cents, and Japan’s $2.8 dollars. Also to take advantage of this lowestcost of milk production and increasing production in the country multinationalcompanies are planning to expand their activities here. Some of these milkproducers have already obtained quality standard certificates from the authorities.This will help them in marketing their products in foreign countries in processedform. The urban market for milk products is expected to grow at an acceleratedpace of around 33% per annum to around Rs.43,500 crores by year 2005. Thisgrowth is going to come from the greater emphasis on the processed foodssector and also by increase in the conversion of milk into milk products. By2005, the value of Indian dairy produce is expected to be Rs 10,00,000 million.Presently the market is valued at around Rs7,00,000mn India with 134mn cowsand 125mn buffaloes, has the largest population of cattle in the world. Totalcattle population in the country as on October’00 stood at 313mn. More thanfifty percent of the buffaloes and twenty percent of the cattle in the world are

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found in India and most of these are milch cows and milch buffaloes. Indiandairy sector contributes the large share in agricultural gross domestic products.

Presently there are around 70,000 village dairy cooperatives across thecountry. The cooperative societies are federated into 170 district milk producersunions, which is turn has 22-state cooperative dairy federation. Milk productiongives employment to more than 72mn dairy farmers. In terms of total production,India is the leading producer of milk in the world followed by USA. The milkproduction in 1999-00 is estimated at 78mn MT as compared to 74.5mn MT inthe previous year. This production is expected to increase to 81mn MT by 2000-01. Of this total produce of 78mn cows’ milk constitute 36mn MT while rest isfrom other cattle. While world milk production declined by 2 per cent in thelast three years, according to FAO estimates, Indian production has increased by4 per cent. The milk production in India accounts for more than 13% of thetotal world output and 57% of total Asia’s production. The top five milkproducing nations in the world are India ,USA, Russia, Germany and France.

Table 1.3Work of Operation Flood

1st Session 2nd Session 3rd SessionJuly April April

Sr. Particular 1970 to 1981 to 1985 toMarch March March1981 1985 1996

1. No. of District Co. operative Socities 39 136 1702. Primary Dudh Utpadak Co operative

Societies (in thousand) 13.3 34.5 72.73. Farmer Members (in Lakhs) 17.5 36.3 93.14. Daily Milk Collection( Lakh Kg) 25.6 57.8 1155. Rural Dairy Processing Capacity

(Lakh Liter/Days) 35.9 87.8 193.76. Metro Dairys Capacity

(Lakh Liter/Days) 29.0 35.0 72.407. Daily Milk market Metro Dairy

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(Lakh Liter/Days) 21.8 29.5 38.08. Milk market in other Cities

(Lakh Liter/Days) 6.1 20.6 62.09. Daily Dairy Capacity (In Lakh ton) 261 507.5 974.010*. Annual production of Milk Powder

(In thousand ton) 76.5 102.0 195.011. AI Center(In thousand) 4.9 7.5 16.5012. Complited AI (In Lakhs) 8.2 13.3 39.513. Cattelfield Capacity

(Daily in thousand ton) 1.7 3.3 5.014. Investment (In Crore Rs.) 116.54 227.17 1303.10

* Production with Government and other Dairys, Sorce : Dairy India – 1997

1.3.7 Dairy cooperative in Gujarat

Gujarat Cooperative Milk Marketing Federation (GCMMF) is India’slargest foodproducts marketing organisation. It is a state level apex body ofmilk cooperatives in Gujarat which aims to provide remunerative returns to thefarmers and also serve the interest of consumers by providing quality productswhich are good value for money Amul (Anand Milk-producers Union Limited),formed in 1946, is a dairy cooperative movement in India. The brand nameAmul, sourced from the Sanskrit word Amoolya, means priceless. It wassuggested by a quality control expert in Anand. It is a brand name managed byan apex cooperative organisation, Gujarat Co-operative Milk MarketingFederation Ltd. (GCMMF), which today is jointly owned by some 2.41 millionmilk producers in Gujarat, India

[1] It is based in Anand town of Gujarat and has been a sterling example ofa co-operative organization’s success in the long term. The Amul Patternhas established itself as a uniquely appropriate model for ruraldevelopment. Amul has spurred the White Revolution of India, which hasmade India the largest producer of milkand milk products in the world. Itis also the world’s biggest vegetarian cheese brand

[2] Amul’s product range includes milk powders, milk, butter, ghee, cheese,curd, chocolate, ice cream, cream, shrikhand, paneer, gulab jamuns, basundi,

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Nutramul brand and others. Situation of farmers Over five decades ago,the life of an average farmer in Kheda District was very much like thatof his/her counterpart anywhere else in India. His/her income was derivedalmost entirely from seasonal crops. The income from milk buffaloes wasundependable. Milk producers had to travel long distances to deliver milkto the only dairy, the Polson Dairy in Anand – often milk went sour,especially in the summer season, as producers had to physically carrymilk in individual containers. Private traders and middlemen controlledthe marketing and distribution system for the milk. These middlemendecided the prices and the off-take from the farmers by the season. Asmilk is perishable, farmers were compelled to sell it for whatever theywere offered. Often, they had to sell cream and ghee at throw-away prices.In this situation, the private trader made a killing. Moreover, thegovernment at that time had given monopoly rights to Polson Dairy (aroundthat time Polson was the most well known butter brand in the country)to collect milk from Anand and supply to Bombay city in turn (about400 kilometers away). India ranked now hereamongst milk producingcountries in the world in 1946. Gradually, the realization dawned on thefarmers with inspiration from then nationalist leaders Sardar VallabhbhaiPatel (who later became the first Home Minister of free India) andMorarji Desai (who later become the Prime Minister of India) and localfarmer, freedom fighter and social worker Tribhovandas Patel, that theexploitation by the trader could be checked only if they marketed theirmilk themselves. Amul was the result of the realization that they couldpool up their milk and work as a cooperative.Gujarat Cooperative MilkMarketing Federation Ltd. (GCMMF), is India’s largest food productmarketing organisation with annual turnover (2010-11) US$ 2.2 billion.Its daily milk procurement is approx 12 million lit (peak period) per dayfrom 15,712 village milk cooperative societies, 17 member unionscovering 24 districts, and 3 million milk producer members.

It is the Apex organisation of the Dairy Cooperatives of Gujarat,popularly known as ‘AMUL’, which aims to provide remunerative returns tothe farmers and also serve the interest of consumers by providing quality

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products which are good value for money. Its success has not only beenemulated in India but serves as a model for rest of the World. It is exclusivemarketing organisation of ‘Amul’ and ‘Sagar’ branded products. It operatesthrough 47 Sales Offices and has a dealer network of 5000 dealers and 10lakh retailers, one of the largest such networks in India. Its product rangecomprises milk, milk powder, health beverages, ghee, butter, cheese, Pizzacheese, Ice-cream, Paneer, chocolates, and traditional Indian sweets, etc

GCMMF is India’s largest exporter of Dairy Products. It has beenaccorded a “Trading House” status. Many of our products are available in USA,Gulf Countries, Singapore, The Philippines, Japan, China and Australia. GCMMFhas received the APEDA Award from Government of India for Excellence inDairy Product Exports for the last 13 years. For the year 2009-10, GCMMFhas been awarded “Golden Trophy’ for its outstanding export performanceand contribution in dairy products sector by APEDA.

For its consistent adherence to quality, customer focus and dependability,GCMMF has received numerous awards and accolades over the years. It receivedthe Rajiv Gandhi National Quality Award in1999 in Best of All Category. In2002 GCMMF bagged India’s Most Respected Company Award instituted byBusiness World. In 2003, it was awarded the The IMC Ramkrishna BajajNational Quality Award - 2003 for adopting noteworthy quality managementpractices for logistics and procurement. GCMMF is the first and only Indianorganisation to win topmost International Dairy Federation Marketing Award forprobiotic ice cream launch in 2007.

The Amul brand is not only a product, but also a movement. It is inone way, the representation of the economic freedom of farmers. It has givenfarmers the courage to dream. To hope. To live.1.8

Table 1.4Beginning of State Co-Operative Dairy

Sr. Name of Dairy District Opening Year

1 Amul Kheda 1946

2 Sumul Surat 1951

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3 Baroda Baroda 1957

4 Dudh-Dhara Bharuch 1959

5 Dudh-Sagar Mahesana 1960

6 Gopal Rajkot 1961

7 Sabar Sabarkantha 1964

8 Banas Banaskantha 1969

9 Madhur Gandinagar 1971

10 Vashudhara Valsad 1973

11 Panchamrut Panchmahal 1973

12 Utam Amdavad 1985

Source : G.C.M.M.F. - Anand

Table 1.5State Co-Operative Dairys and Members

Sr. Year Co-Operative Dairy Member (Thousand)

1 1961 + 308 52

2 1971 + 1936 330

3 1981 + 6742 968

4 1991 + 9652 1836

5 2001 * 11356 1922

6 2002 * 11288 2532

7 2003 * 11132 2276

8 2004 * 11400 2360

9 2005 * 11615 2415

10 2006 * 11962 2488

11 2007 * 12792 2605

12 2008 * 13141 2715

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13 2009 * 13328 2797

14 2010 * 15322 2910

15 2011 * 15712 3031

+ June Ended, * March Ended Source : G.C.M.M.F. – Annual Report (2001 to 2011)

Statical Abstract of Gujarat – 2004

Table 1.6Daily Milk Collection and market capacity(Lakh Liters) of State

Co-Operative Dairy Udyog

Sr. Year Milk Recovery Market Limit(Lakh Liter) (Lakh Liter)

1 1975-76 7.98 1.41

2 1980-81 13.44 2.10

3 1985-86 22.61 8.49

4 1990-91 31.02 10.52

5 1999-2000 44.64 17.51

6 2001-02 47.03 19.18

7 2002-03 52.25 19.41

8 2003-04 51.02 21.01

9 2004-05 58.57 22.26

10 2005-06 62.51 N.A

11 2006-07 65.33 N.A

12 2007-08 75.92 27.06

13 2008-09 83.91 29.31

14 2009-10 90.93 N.A

15 2010-11 92.93 N.A

Source : Annual reports on NDDB (1994 to 2004)

Annual reports on GCMMF (2004 to 2011)

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Table 1.7 GCMMF - An Overview

Year of Establishment 1973

Members 17 District Cooperative MilkProducers’ Unions (15 Members& 2 Nominal Members)

No. of Producer Members 3.03 Million

No. of Village Societies 15,712

Total Milk handling capacity per day 13.67 Million litres per day

Milk Collection (Total - 2010-11) 3.45 billion litres

Milk collection (Daily Average 2010-11) 9.2 million litres (peak 12 million)

Milk Drying Capacity 647 Mts. per day

Cattlefeed manufacturing Capacity 3690 Mts. per day

Sales Turnover -(2010-11) Rs. 9774 Crores (US $2.2 Billion)

CRISIL Rating for GCMMF

Our Member Unions1. Kaira District Cooperative Milk Producers’ Union Ltd., Anand2. Mehsana District Cooperative Milk Producers’ Union Ltd, Mehsana3. Sabarkantha District Cooperative Milk Producers’ Union Ltd., Himatnagar4. Banaskantha District Cooperative Milk Producers’ Union Ltd., Palanpur5. Surat District Cooperative Milk Producers’ Union Ltd., Surat6. Baroda District Cooperative Milk Producers’ Union Ltd., Vadodara7. Panchmahal District Cooperative Milk Producers’ Union Ltd., Godhra8. Valsad District Cooperative Milk Producers’ Union Ltd., Valsad9. Bharuch District Cooperative Milk Producers’ Union Ltd., Bharuch10. Ahmedabad District Cooperative Milk Producers’ Union Ltd., Ahmedabad11. Rajkot District Cooperative Milk Producers’ Union Ltd., Rajkot12. Gandhinagar District Cooperative Milk Producers’ Union Ltd., Gandhinagar13. Surendranagar District Cooperative Milk Producers’ Union Ltd.,

Surendranagar14. Amreli District Cooperative Milk Producers Union Ltd., Amreli15. Bhavnagar District Cooperative Milk Producers Union Ltd., Bhavnagar

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The Birth of Amul* It all began when milk became a symbol of protest* Founded in 1946 to stop the exploitation by middlemen* Inspired by the freedom movement

The seeds of this unusual saga were sown more than 65 years back inAnand, a small town in the state of Gujarat in western India. The exploitative tradepractices followed by the local trade cartel triggered off the cooperative movement.Angered by unfair and manipulative practices followed by the trade, the farmers ofthe district approached the great Indian patriot Sardar Vallabhbhai Patel for a solution.He advised them to get rid of middlemen and form their own co-operative, whichwould have procurement, processing and marketing under their control.

In 1946, the farmers of this area went on a milk strike refusing to becowed down by the cartel. Under the inspiration of Sardar Patel, and theguidance of leaders like Morarji Desai and Tribhuvandas Patel, they formedtheir own cooperative in 1946.

This co-operative, the Kaira District Co-operative Milk Producers UnionLtd. began with just two village dairy co-operative societies and 247 litres ofmilk and is today better known as Amul Dairy. Amul grew from strength tostrength thanks to the inspired leadership of Tribhuvandas Patel, the founderChairman and the committed professionalism of Dr Verghese Kurien,who wasentrusted the task of running the dairy from 1950.

The then Prime Minister of India, Lal Bahadur Shastri decided thatthe same approach should become the basis of a National Dairy Developmentpolicy. He understood that the success of Amul could be attributed to fourimportant factors. The farmers owned the dairy, their elected representativesmanaged the village societies and the district union, they employed professionalsto operate the dairy and manage its business. Most importantly, the co-operativeswere sensitive to the needs of farmers and responsive to their demands.

At his instance in 1965 the National Dairy Development Board was setup with the basic objective of replicating the Amul model. Dr. Kurien waschosen to head the institution as its Chairman and asked to replicate this modelthroughout the country.

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Figure 1.1 Three tier Structure Amul Model

The Amul Model of dairydevelopment is a three-tieredstructure with the dairycooperative societies at thevillage level federated under amilk union at the district leveland a federation of memberunions at the state level.

Establishment of a direct linkagebetween milk producers andconsumers by eliminatingmiddlemen· Milk Producers(farmers) control procurement,processing and marketing·Professional management

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Figure 1.2 The Amul Model

The Amul model has helped India to emerge as the largest milk producerin the world. More than 15 million milk producers pour their milk in 1,44,246dairy cooperative societies across the country. Their milk is processed in 177District Co-operative Unions and marketed by 22 State Marketing Federations,ensuring a better life for millions.1.9

1.3.8 Dairy Cooperative in Gandhinagar

“Gandhinagar District Co-operative Milk Producers Union Ltd. Madhur Dairy,Gandhinagar”.

Located in GIDC, Electronic Estate, Gandhinagar, Gujarat, GandhinagarDistrict Co-operative Milk Producers’ Union Ltd. Is a ISO 9001-2008 and foodsafety management system ISO 22000-2005 certified organization. Madhur Dairywas established in the year of 1999 producing various types of milk products.

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Madhur milk union is very small is idea in all over Gujarat. Madhurdairy paid price to milk producer in highest in Gujarat. Madhur dairy hasawarded to national and international awards.Madhur Dairy is famous as “Thetaste of Capital” and the name of Madhur Dairy is remembered at Nationallevel.

Madhur Dairy also branded as the “The Taste of the Capital” servesmaximum milk consumers in the City of the Gandhinagar which is the capitalof Gujarat. Madhur Dairy has launched various products under its umbrella whichincludes Milk, Buttermilk, Shirkhand, Lassi, Icecream, Cheese etc.

During the year 2010-11, the Union had Collected a total of 5, 07,30,011 kilo of milk from 41,350 members of 115 milk producing co-operativesocieties. Daily average of milk collection is 1, 38,986 kilo and average ofdaily collection per society is 1,209 kilo. This includes 62 percent buffalomilk and 38 per cent cow milk. The volume of sour milk is 0.78 percent.

The highest milk producer in the entire globe – India boasts of thatstatus. India is otherwise known as the ‘Oyster’ of the global dairy industry,with opportunities galore to the entrepreneurs globally. Anyone might want tocapitalize on the largest and fastest growing milk and milk products’ market.

The Gandhinagar District Co-operative Milk Producers’ Union Ltd. wasregistered on February 06, 1971 under the Gujarat State Co-operative Act, 1961by few prominent co-operators of Gandhinagar district with limited membersand limited societies. This Union has a daily procurement of around 3,000LPD. In 1992-93, the Union first began a movement of arranging village levelmeeting to convince primary milk producer at their door step and it was agreat moment. In 1996 existing plant was expanded capacity of 60000 LPD.The capacity was further expanded up to 2 lacs LPD in 2002-03..

During the year 2010-11, the Union had collected a total of 493 lacliters of milk from 41,350 members of 114 village Co-operative milk producingsocieties. Daily average of milk collection is 1.35 lac liters and average dailycollection per society is 1,175 liters. This includes 62 percent buffalo’s milkand 38 percent cow’s milk.

At present December 2011 milk produceing 1,45,000 LPD and selling1,19,000 LPD.1.10

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Figure 1.3 Dairy Co-operative in Village

The village milk co-operative is a society of primary producers formedunder the guidance of a supervisor or milk supply officer of the CooperativeDairy Union (district level Co-operative owning the processing plant). A milkproducer becomes a member by buying a share from the co-operative afteragreeing to sell milk only to it. Members elect a managing committee headedby a chairperson responsible for recruitment of staff in charge of day-to-dayoperations. Each society has a milk collection centre where farmers take theirmilk in the mornings and evenings. There are 1million farmers organised intovillage milk producers’ co-operative societies and daily procurement of milk is13 million litres per day.

Table 1.8Table Showing the Year of Establishment of Dairy

Sr No Year Frequency Percentage(%)

1 1950-1960 3 7.5

2 1961-1970 1 2.5

3 1971-1980 5 12.5

4 1981-1990 11 27.5

5 1991-2000 13 32.5

6 200-2010 7 17.5

7 TOTAL 40 100

1.3.9 Dairy Co-operative in Village

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Chart 1.1Chart Showing the Year of Establishment of Dairy

The GCMMF – Amul has taken the initiative of installing the AMCUS– Automatic Milk Collection Unit Systems at village societies to enhance thetransparency of transaction between the farmer and the Co-Operative Society.These systems not only ensured the transparency but also gave Co-Operativesocieties a unique advantage by reducing the processing time to 10 percent ofwhat it used to be prior to this. GCMMF indeed got the entire supplierinformation through the systems integration. The information related to members,fat content, volume of the milk procured and the amount payable to the memberare accessible to the Co-Operative Society in the form of a database. Thereare 10755 village co-operatives in Gujarat that are now able to collect 6.1million litres of milk from 2 million members. Thanks to the use of IT, bothtransparency and trust have been enhanced. The total producer membersclustered by the village societies.

The successful utilization of IT to bridge the Digital divide has aptlybeen described by Dr. M. V. Kurien, Chairman, GCMMF, “Computers were notcreated for poverty reduction hence it is futile to except that the world willbe a better place if we all had access to computers and internet but information

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is power and its stands to reason that if this power is shared equitably all willbenefit”. The scale of operations of Amul are very large and complex becauseof the huge supplier base the Gujarat Village cooperative society members.Amul makes about 10 millions payment daily amounting to transactions worthRs.170 million in cash. More than 500 trucks move the milk from villages to200 dairy processing plants twice a day. The IT initiatives of Amul started in1994 IT became the major thrust area of GCMMF as it can facilitateimprovements in operational efficiency. Since then GCMMF is marching in abig way starting from AMCUS to today’s DISK.

1.4 Technology

1.4.1 What is Technology ?

Technology is more than jets and computers; it is a combination ofknowledge, techniques and concepts; it is tools and machines, farms andfactories. It is organization, processes and people. The cultural and historicalcontext in which technology is developed and applied is the key to success orfailure. In short, it is the science and the art of getting things done - throughapplication of skills and knowledge. 1.11

1.4.2 What is Appropriate Technology?

Appropriate technology is being mindful of what we’re doing and awareof the consequences. Appropriate technology works from the bottom up; itis not an overlay to the situation; it is a genuine grassroots solution toeconomic needs. In the Industrial World small businesses account for moretechnological advances in their areas of expertise than government supportedresearchers or research departments in massive corporations. Third Worldcraftspeople, farmers and other villagers invent, create, and contribute to thetechnological process of their area much more than outside “experts” do.

The idea of appropriate technology is that local people, struggling on adaily basis with their needs, understand those needs better than anyone and cantherefore suggest or in fact, invent the technological innovations necessary tomeet those needs. Not only that, local people can prioritize solutions to saveprecious funding and labor. Planners and those who want to help others grapplewith food and energy problems are wise to include local people in the early

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stages of project vision. The result is consistency in the carry-through the workby locals and continued maintenance and interest in the well-being of the projectover the long haul.

While grassroots activity is vital in developing appropriate technology, alarger view is definitely called for in understanding how organizations cancombine funds and human resources to develop and market technologies.Communication among international aid agencies can greatly enhance efficientuse of funds for appropriate technology and a reduction of the “reinventing thewheel” syndrome.

The definition of “Appropriate Technology” changes with each situation.It’s not appropriate to install solar modules in a place with very little sun, awind generator in a place with little or no wind. What’s appropriate in a largeurban location is very different from what’s appropriate in a remote, isolatedenvironment. One quality that remains the same, however, is taking care ofthings. In each situaton, the essence of AT remains appreciating, helping, caring.Planned obsolescence, throw-away products, poor quality all go againstintelligent decision-making and the true spirit of appropriate technology. 1.12

This is an examination of the significance of Gandhi’s social philosophyfor development. It is argued that, when seen in light of Gandhi’s socialphilosophy, the concepts of appropriate technology (A.T.) and basic needs takeon new meaning. The Gandhian approach can be identified with the “basic needs”strategy for international development. Gandhi’s approach helps to provide greaterequity, or “distributive justice,” by promoting technology that is appropriate to“basic needs” (food, clothing, shelter, health and basic education). Gandhi’s socialphilosophy has been neglected by most development specialists, with only afew exceptions. This analysis attempts to draw out some aspects of M.K.Gandhi’s background and his thinking about swadeshi i.e. local self-relianceand use of local knowledge and abilities and swaraj i.e. independentdevelopment that leads to equity and justice. Gandhi’s ideas, which emergedout of an “Indic” meta-cultural background, are based on an emphasis on equity.

Development activities should be carried out in a phased manner thatdoes not disturb the beneficial aspects of dynamic equilibrium, but that does

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promote “positive development.” A.T. is particularly useful within the contextof a basic needs approach to international development because use of A.T. isprobably more likely to lead to equitable growth. The “economic growth”strategy, utilizing “advanced technology” (or even “high tech”) exclusively, hascaused unemployment and has not led to effective “trickle down,” much less“high mass consumption.” In many developing countries the poorest 20% ofthe population are worse off in 1990 than they were in 1980. By making useof the “advantage of backwardness” and viewing development in terms of long-term impacts, a basic needs approach using A.T. is more likely to lead to apositive impact on third world food systemsthan a pure “economic growth”strategy.1.13

Many people see technology as a solution to some of the problemsthat exist on our planet. It’s true that technology can be used for good, butwith new developments come new challenges issues. The digital device is onesuch issue, one that people are actively trying to overcome. Telecentres aimto bridge the digital device by providing people access and knowledge aboutinformation technologies. A global telecentre movement is growing right now.Unfortunately, even where computer facilities are readily available, the digitaldevice persists even in the world’s most wealthy countries, access to the latestand most beneficial technologies is limited for those in rural areas and peoplewith disabilities. There are many other issues to consider when talking aboutICTs and their role in our lives, beyond the digital device and universalaccessibility.

The internet has created new and innovative ways for people to shapeand share their identity, and express themselves. However, to some people, theinternet can appear to be a modern day “wild west,” or something to fear. Therise of online social networking, shopping, and other online interactions thatask people to share a large amount of personal information have led to anumber of risks that every internet user needs to bear in mind. However, theseare not the only observations to be made. Recently, many advances in mobilemedia and technology have been made, creating a new - both the existing andthe emerging - for good, and how to assure its access and use in the mostdemocratic way possible. world of possibilities. Our challenge is to figure out

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how to use technology in India. As India is a country of villages. Technologywhich supports the development of villages is appropriate technology. The ideaof appropriate technology is that local people, struggling on daily basis withtheir need understand those needsbetter than anyone and can therefore suggestor infact invent the technological innovations necessary to meet those needsconsidering all this concept the researcher has taken the work to see that howthis appropriate technology has impact in rural development.

There can be no development without peace and there will only be slowdevelopment without ICTs. Hence, the need to understand and use ICTsappropriately and meaningfully to meet the Millennium Development Goals andTargets.

1.4.3 What is ICT ?

In present era the integration of technological aspect with socio-economicplatform is necessary for sustainable development. In India, now a day theinformation communication technology is the central part of rural developmentprocess. It assists the common man to solve their various types of problems.It contributes to strengthen of productivity of the people in relative fields.This may add a mile-stone to achieve the goal of sustainable rural developmentif assure ICT system manage democratically with active participation of them.For the purpose the technology should have reliability and effectiveness in thesense of speed, accuracy, transparency, and auto-easy operational features. Sothe success and real usefulness of ICT is depending on acceptability and goodfeelings towards get desired benefit or appropriate solution of problems.

Historically, technology development for rural areas has followedtinkering approach or use of rudimentary technology. It is shown that verysophisticated science and technology is needed for producing devices for ruralapplications and that in this process very fundamental research can also result.Nevertheless availability of excellent devices for cooking, lighting and waterpurification on large scale in rural areas is a bottleneck. Various strategies areoutlined on how to overcome this barrier. A strong case is made for closercooperation between civil society and corporate world for rural development.

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About 60% of the rural population or almost 400 million people inIndia live in primitive conditions. This is a sad state of affairs even 60 yearsafter independence. They have no electricity and their lives are in darkness.They use inefficient kerosene lanterns for light and ancient biomass stoves forcooking. Modern technology somehow has not touched their lives.

In recent years, the milk co-operative movement initiated by India’sNational Dairy Development Board (NDDB) has led to a substantial increasein milk production in India. The two main reasons for this increase are moreefficient collection of milk and higher profits for producers, both of whichhave been influenced by IT. This case describes the automation of the milkbuying process at 2,500 rural milk collection societies. It also describes theextension of the co-op database through the creation of a Dairy InformationServices Kiosk (DISK). The Kiosk makes it possible for co-operatives andfarmers to manage a database of all milch cattle and access a dairy portal withinformation about valued services. The case demonstrates the willingness ofrural farmers to invest in technology, provided that it can deliver real value.

The use of Information Communication Technologies (ICT) in rural areasof Gujarat by GCMMFL (Gujarat Cooperative Milk Marketing Federation Ltd.)has made the operation of the dairy industry different. While it has alwaysbeen argued that investments related to ICT made in rural India are not effective,the case of Amul proves that, where there is a will there is a way. Amul hasbecome rural India’s flag bearer in the IT revolution. The researcher analysesthe use of ICT in the dairy industry by the Gujarat Cooperative Milk MarketingFederation Ltd. The system makes it easy for the farmers to get the cashpayment as soon as the milk is delivered. The Amul experience indicates thatif properly designed and implemented, the rural poor can benefit from ICTplatforms. Customization of IT platforms for use in rural communities isemerging as a major opportunity for change.

Milk production is important to India, as milk is one of the main sourcesof proteins and calcium for a largely vegetarian population. Dairying providesa livelihood for millions of Indian farmers and additional income for a largenumber of rural families as well as means for women to participate in the

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economic activity in rural areas. India became the largest producer of milk in1999 primarily due to the efforts of the co-operative movement initiated bythe National Dairy Development Board (NDDB).

The GCMMF – Amul has taken the initiative of installing the AMCS –Automatic Milk Collection Systems at village societies to enhance thetransparency of transaction between the farmer and the Co-Operative Society.These systems not only ensured the transparency but also gave Co-Operativesocieties a unique advantage by reducing the processing time to 10 percent ofwhat it used to be prior to this. GCMMF indeed got the entire supplierinformation through the systems integration. The information related to members,fat content, volume of the milk procured and the amount payable to the memberare accessible to the Co-Operative Society in the form of a database. Thereare 10755 village co-operatives in Gujarat that are now able to collect 6.1million litres of milk from 2 million members. Thanks to the use of IT, bothtransparency and trust have been enhanced.1.14

1.4.4 Automation in Milk Collection Societies

Milk is collected at the co-operative milk collection centres locatedwithin 5-10 km of the villages supplying the milk. The number of farmersselling milk to these centres varies from 100 to 1000 and the daily milkcollection varies from 1000 litres to 10,000 litres. Each farmer is given aplastic card as ID. At the counter he drops the card into a box that reads itelectronically and transmits the identification number to the PC. The milk isemptied into a steel trough kept over a weighbridge. Instantly the weight ofthe milk is displayed to the farmers and communicated to a PC. The trough isconnected by a pipe to a can, which transports milk to the dairy. One operatoris required to fill the cans. Another operator sitting next to the trough takes a5- ml. sample of milk and holds it up to a tube of an Electronic milkotester(a fat testing machine, which is a local adaptation of an expensive andsophisticated tester made by M/s.A/SN Foss Electric, Denmark.) A hand leverin the machine is moved three times for the milk sample to be tested for fatcontent. The whole operation takes a few seconds. The fat content is displayedto the farmer and communicated to the PC, which calculates the amount due

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the farmer based on the fat content of the milk. The total value of the milk isprinted on a payment slip and given to the farmer who collects the price fromthe adjoining window. The payment is automatically rounded to the nearest rupeeand the balance due to the farmer is stored so it can be added to the farmer’spayout for the next day.

In many centres the above transaction takes only 20 seconds. The systemcosts around Rs. 75,000 and is currently being supplied by at least two privatecompanies. Nearly 600 such systems are in operation in Kheda district inGujarat. There are 70,000 village societies in India, of which 2500 have beencomputerised.

The farmers benefit as payment is now based on an a quick and accuratemeasurement of fat content and weight and is not subject to the malpracticeand underpayment common with other systems in use. Traditional methodsrequire hours to calculate fat content, as the measurement process (theconventional Gerber method requires laboratory equipment and corrosivechemicals) is much more cumbersome, and payment to farmers was made everyten days due to the inability of the collection centres to calculate the paymentimmediately. The IT system enables prompt, accurate, and immediate payment.The queues at the centres are short despite the number of people selling theirmilk being quite large. As 2500 centres receive milk from 400,000 farmersdaily, a ten-minute savings per farmer each day amounts to a total savings of180,000 man-days per month.

The system also reduces the number of employees and increases theavailability of daily accounts immediately at the milk collection centre. Thesociety’s profit is calculated on the basis of data received from the dairyregarding the payment made by the dairy to the society for the previous day’scollection. These accounts can be kept over months to maintain an up-to-datebalance sheet and account of profit and loss. The software can incorporate therevenue from daily milk sales to the local villagers and expenditure incurredby the society. Since the accounts are kept accurate and up-to-date there isless likelihood of fraud and corrupt practices (e.g. temporary use of the fundsby individuals).

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The IIMA E-Governance Centre has built upon the existing applicationby expanding the database at the milk societies to include a complete historyof every milch cattle owned by the farmers. The basic details of breed and ahistory of disease, inoculations, artificial insemination and pregnancy aremaintained in the system. The data history on milk production by individualfarmers is also available in the database at the collection centres.

In India rural development project is concerned with technologicalaspects as social and economic aspects. Means for collective and soliddevelopment technical knowledge is important it is also help full. For peoplespartnership and establish democratic value, become progress by the people forthe people and of the people is only be success full when people get importantinformation on the time use it as helping to solve the problems informationtechnology is really “Bridge” which works for people and progress processpeople wants ,confident, swift and process.

After 1990 Information Technology being used in rural area indifferent fields, And it go positive impression rural society using thistechnology make its self capable and independent In this way InformationTechnology play important rule from national leaves to small village .1.15

The importance of speed of operations should be emphasized, because600 milk collection centers receive milk from 60,000 farmers daily. On anaverage, if the saving in time per farmer were 10 minutes every day, it wouldamount to a huge saving to the tune of 10,000 hours per day! The deploymentof technology was considered instrumental to realize such savings.

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Figure 1.4 Schematic of Automatic Milk Collection System

Components of AMCS :

1. Weighing Scale2. Electronic Milko Tester (FAT Machine)3. Display Units, both at the Farmer as well as the operator side4. Computer System5. Printer

6. Inverter/UPS

Figure 1.5 Weighing Scales

In manual measurement of milk it takes timeand also the measurement was not accurate, toover come this electronic weighing scale isused. The electronic weighing scale has astainless steel base, a milk receiving pail whichholds 10 kilograms, a large digital display, andload cells to compensate for temperaturevariation. It features an auto-zero capability(the scale is set to zero after each

measurement) and an interface to transfer weight data from the weighing scale

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to the PC. Scales are available in capacities of five to 5,000 kilograms.

Figure 1.6 Electronic Milko-Tester

The conventional Gerbermethod takes 2 to 3 hours toascertain the fat content of milk.This in turn leads to a delay in thepayment to the farmer as thepayment is made strictly on thequality of milk. To overcome this,Milko-tester was developed by aDanish firm that was later modifiedto Milko-tester Minor, a less

complicated version of the Milko-tester III. This model is not only economicalbut also simple to operate. Moreover, it is suited to village conditions. Thegreatest advantage of this tester is the accuracy coupled with the rapidity ofanalysis of fat content. It works on the principle of light scattering with manualhomogenization. It operates on AC-mains as well as on battery, with a built-inbattery charger and an automatic switch-over to the battery in case of powerfailure. Rajasthan Electronics and Instrumentation Ltd. (REIL), in collaborationwith M/s.A/SN Foss Electric, Denmark started the commercial production ofmilko-testers in 1981.

Figure 1.7 Display unit

Seven segment electronic display circuit is usedwhich display the weight of milk, % of FAT and totalamount to be paid in Rs. on both side at the Farmeras well as the operator side.

Computer System with Accounting andManagement Software

Latest computer system available in market isused. Software packages is user interfaces have beendeveloped in local languages and have localizationfeatures, which makes it easy to port to any one of

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India’s fourteen main languages. Rojmel software is targeted to meet theaccounting and management needs of village dairy cooperative societies.Functionality provided by Rojmel includes bookkeeping, user-defined reportgeneration, profit and loss calculation, and forecasting.

Figure 1.8 Printer

Connected with the system, this printergives instant print out of each member’s receiptof milk, quality of fat and kind of cattle (Cow orBuffalo). Also prints all the necessary reports,accounts, registers etc.

Figure 1.9 Inverter/UPS

Inverter/UPS is very useful instrumentfor the timely functioning of overall system.It stores and supplies electric power in caseof power-cuts. It is essential for Village co-operatives as chances of power cut-off aremore in villages.

1.4.5 The Micro-Processor-Based Milk Collection System

Milko-testers reduce the time taken to ascertain the quality and the fatcontent of milk which in turn helps in overcoming all associated problems ofthe traditional method of testing such as storage of samples, and handling ofcorrosive chemicals. However, the calculation and payment of bills remainedas cumbersome as ever since the bills were still being calculated manually.The NDDB, in 1988, took up a project to develop an integrated milk collectionsystem to effect immediate calculation and payment of bills to the farmer. Forthis REIL and M/s ATE Enterprisis Ltd. developed prototypes that were testedin two villages in Kheda district, namely Mogri and Bedwa.

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Figure 1.10 Micro-Processor-Based Milk Collection System

REIL-developed milk collection system: This system has been operationalin Mogri for the past several years. It consists of three pieces of equipment,as shown in above Figure, placed along side each other: (a) the ElectronicMilk Tester (EMT); (b) the Milk Weighing System (MWS); and (c) the DataProcessor (DP). The printer is a supplementary piece of equipment. The EMTand the MWS are interfaced with the Data Processor (DP). This system needsonly three operators. Under this system each farmer is given a plastic cardwith a code number as his or her identification. The DP reads the identificationon the card and the farmer pours his milk into a steel trough over a weigh-bridge. The weight of the milk gets displayed to the farmer and instantaneouslygets transferred to the DP in liters. One man is required to fill the cans afterthe milk has been weighed, while the second operator takes a 5ml. sample ofthe milk and holds it up to a tube of a fat testing machine. The hand lever ofa machine is then moved thrice and the fat content of the milk sample is

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displayed on the monitor and also transferred to the DP. A small printer attachedto the DP gives a slip that reads the farmer’s name, quantity of milk,percentage of fat and the amount of the payment to be made. The calculationsof the payment are made on the basis of a rate chart as the price of the milkdepends on its fat content. With this slip the farmer can collect his or hermoney from an adjoining window. The payment is rounded to the closest rupeevalue and the balance is credited to his account the next day. The entire processtakes about 20 seconds. The DP has the added advantage of storing thetransaction of milk collection of all farmers of the shift. At the end of theshift the machine prints out the individual transactions along with the grandtotals.

Other functions made possible by this system are:

* Entry of year, date, cow/buffalo milk fat rate, shift and membershipnumber into the DP at initialization;

* Erasing and rectifying any incorrect data that may have been fed ininadvertently;

* Independent displays of the weight and fat content by the MWS and theEMT on individual display ports;

* Storage of weight and fat content figures in the memory of the DP andimmediate printout of all the necessary details to each farmer;

* A memory capacity to hold the data for up to 1,000 farmers; and

* Data can be sent online to a PC via RS232C serial communication at theend of a shift.

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Figure 1.11 PC-based milk collection system

The micro-processor based milk collection system facilitates speedycollection of milk, an efficient and accurate measurement of fat content andquick payment to the farmer. The PC-based system not only enhances the speedof services at each cooperative, but also increases the efficiency and reliabilityof overall operations. Among other things, it :

* Stores individual milk collection details on a suitable storage device foryearly analysis;

* Facilitates the complete financial accounting of the cooperativesociety;

* Maintains records of cattle feed, ghee1 and other local milk sale of thesociety;

The benefit of information technology (IT) to the societies is manifold.The number of people required for the manual procedure has come down. Dailyaccounts can be obtained immediately. The computer can, within moments,calculate the profits of the society on the basis of the data received from thedairy regarding the payment made to the milk society for the previous day’scollection. The income and expenditure incurred by the society can also be

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incorporated. Perhaps most significantly, the farmers are now ensured of correctand honest payments.

Table 1.9

Table Showing the Year of Installation of Computer in Dairy

Sr No Year Frequency Percentage(%)

1 1995-2000 15 37.5

2 2001-2005 16 40

3 2006-2010 9 22.5

4 TOTAL 40 100

Chart 1.2

Chart Showing the Year of Installation of Computer in Dairy

1.5 Choice of the subject and description of the problems

To keep alive any live creation information communication is the basicrequirement. Informally also information communication is required to endurethe folk behavior. Thus, it also endures the established management of the folkbehavior. Information is the basic and inevitable tool to fulfill the needs ofthe concerned groups. If we don’t communicate information on time then itmight become useless as well as influence less. It will not truly help thecommon man the way it should be. Because of lack of transparency, clarity,

0

2

4

6

8

1 0

1 2

1 4

1 6

1 9 9 5 -2 0 0 0 2 0 0 1 -2 0 0 5 2 0 0 6 -2 0 1 0

1 51 6

9

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and purity in the working atmosphere (environment) we face the problem ofdistrust. Because of such working condition we envisage many difficultconsequences of this problem for example dissatisfaction of the populacetowards public administration and lack of public support in public developmentprojects.

To make information communication more vibrant technological set uphas been established in the city and developed areas. But we should not forgetthat India is a country of villages. Our national policy should be framed inview of the development of the villages. If we improve the basic problems ofvillages and try to bring qualitative improvement in the lifestyle of the villagersthen we can taste the real fruits of the investment of the people. It will alsoprove the usefulness of the technological advancement; it is a fact that invillages we find poverty, unemployment, social and economic imbalance, castediscrimination, illiteracy, imbalanced distribution of resources and misuse ofresources. Because of lack of information communication villagers becomevictim of the direct and indirect consequences of these problems. It alsobroadens the rift between the rich and the poor. For rural developmentgovernment and non -government efforts but they are still in the initial stage.Positively what the statement suggests that there is a wide scope of improvementin this rural development project so that it can become more effective andmore people friendly. The researcher has taken in to consideration this attitudein his area of research in his research; he has not only identified and definedthe problems but also how these problems can be improvised and its results inthe improvised situation in detail. It is a fact that non-government organizationare more attached and near with the common man in the context of the abovestatement, the researcher has primarily taken in to consideration for his researchthe Automatic Milk Collection System (AMCS) introduced by NDDB.

The effectiveness of the information communication technology isattached with the relativity between human being and humanism. Up to whichextent people has accepted this system and what is its future expectation inview of this system. Also the researcher has pointed out which are the technicaland human factors responsible for the future AMCS projects and how can oneimprove and justify these factors.

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This research is not only relevant in the present times but also it willfulfill the future needs. The analysis of the constituents of the managementof the AMCS are excellent in the sense that it contents how AMCS would bemore convenient to the needy people, how can we make the villagers self reliantand how it will help in the various areas of the rural development managementprogrammes.

Appropriate technology is not about defining a particular technology asappropriate for all situation, but about principles for choosing the appropriatetechnology for a given situation. The subject appropriate technology in ruraldevelopment is selected because in today’s world there are many technologieswho has pay major role in development. As India is a country of villages and85% of people leave in villages, the technology which helps them in theirsocial and economical development is Information technology. A computersystem is used in Dudh Utpadak Sahkari Mandali to collect the milk fromvillagers. This computerized system is known as Automatic Milk CollectionSystem ( AMCS). By using AMCS the villagers get a slip immediately statingthe quantity of milk(liters), percentage of fat and prise of milk.So the possibilityof malpracticing is very less.

So, the researcher is going to do the comparative study of the group ofcustomer giving their milk to Dudh Utpadak Sahkari Mandali. This mandaliesare using this technology and those who are not using this technology. He willalso study the social and economical growth of the customer due to thistechnology.

Second aspect that researcher will study the difference of average Fatmeasured by AMCS and the Fat measured from total collected milk at maincollection centre( Dairy).

He will also study the SNF ( Solid Non Fat) will effect the Fatmeasurment by AMCS.

I will try to show in this article how developing devices for ruralapplications can lead to fundamental research of highest order and will alsoexplore a possible strategy for their mass dissemination in rural areas.

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Problems in the Conventional System

1. Quality control was a major problem that confronted the cooperatives.The National Dairy Development Board (NDDB) worked to reduce qualityvariations among sellers by upgrading the technology of milk productionby improving cattle feed and the milk processing and deliveryinfrastructure.

2. Fair and efficient markets do not occur by accident, but are created. Thus,the cooperatives had difficulties to ensure accuracy in measuring quantityand fat content of milk and in making fair payments to the farmers.

3. Before automation, the farmer was paid only every 10 days. Therefore,even though at times he or she delivered milk each day the farmer wasnot sure of the reliability of the manual calculations of quality and quantityby cooperative society staff.

4. Milk for testing was stored in plastic bottles and tested only after themilk collection process was over. This led to unhygienic conditions andfear of contamination at the center.

5. The conventional Gerber method for testing the fat content of milk is acumbersome multi-step method. It has various disadvantages includingchances of human error, handling of corrosive chemicals, and use ofdifferent types of glassware. All these processes added to the cost andthe time taken to test the milk.

1.6 Objective of the Research

In the present era of technology and rapid growth, the need of commonman’s involvement in this growth has been felt. It is necessary to make thedialogue between government and non-government machinery more easy andfrequent. To achieve this goal, “NDDB” has established Automatic MilkCollection System (Known as a AMCS ) in many villages. Up to which extentthe system has been successful in its aims as well as expectations of the people,I have tried to know in this research. To achieve the aim of overall developmentof the village in view of the above discussed goal I have identified my aims

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which are enlisted as the following:

(1) The requirement of the ICT in order to achieve the goal of overalldevelopment of the village we should first study the functioning of DudhUtpadak Sahkari Mandalies of Gandhinagar district.

(2) Economical & social benefits of Villagers through Automatic MilkCollection System (AMCS).

(3) Views of milk producer (Member) of Village milk co-operative societyabout automatic milk collection system (AMCS).

(4) Views of functionaries of Village milk co-operative society aboutAutometic Milk Collection System (AMCS).

(5) In regard to the sustainable rural development which are the improvementsrequired in Automatic Milk Collection System used presently by user. Byadding this aim in research I want to improve its quality so that it canbecome more people friendly and more reliable.

(6) Creation of holistic ICT platform for Sustainable rural dairy development.

1.7 Hypothesis & Research Questions

(1) Dudh Utpadak Sahkari Mandalies of Village might be providing loan forpurchase of cattle, Vetarnary facilities for cattle, other items like Ghee,Khan-daan etc. other than milk procurement.

(2) Due to less education is milk producer of Village(member) will exceptautomatic milk collection system.

(3) Will Automatic Milk Collection System (AMCS) is benifited to milkproducer of Village.

(4) There is a saving of time and labour due to Automatic milk collectionsystem so functionaries will except this system easily.

(5) There is a benifit in future like ATM facilities, information send throughemail and SMS in mobile etc. by using ICT.

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1.8 Scope, Sample and Limitation of Research

(1) Scope of Research

To study the milk collection by Dudh Utpadak Sahkari Mandali of allvillages in Gandhinagar district, researcher has selected the Gandhinagar districtas a Universal scope of Research.

2) Sample of Research

Fourty (40) Dudh Utpadak Sahkari Mandali of different villages inGandhinagar district those who are using Automatic Milk Collection System(AMCS) will be selected randomly. They will be consider as experimentalgroup.

Five member from each Dudh Utpadak Sahkari Mandali is selecterandomly and also Secretary and Operator of this fourty selected dairy is takenas sample.

So total 200 member and 80 functionaries are taken as sample.

(3) Limitations

This research is limited only to Dudh Utpadak Sahkari Mandali ofGandhinagar dirstict.

This research is limited fourty Dudh Utpadak Sahkari Mandali whereAMCS is used.