CHAPTER

S OF SHIMUL
 CHAPTER

ECONOMICS OF SHIMUL

ROLE OF COOPERATIVE MARKETING

The state is an agency for ensuring welfare of the masses and

undertaking such activities, which are beneficial to the society on the whole.

Since the beginning of the economic planning in India, the role of the State

has increased in trade, industry and commerce. The Government has

started participating actively in dairying through cooperative dairying. For

curtailing the malpractice of the middle men in the marketing of milk and milk

products and ensuring a better deal and fair prices of the produce to the milk

producers, the effective and increased involvement has become the need of

the hour. The involvement of the Govemment as an entrepreneur will not

only be beneficial to the milk producers and the consumers but also to the

society as a whole. The Govemment should also provide adequate financial

assistance to the milk producers for purchasing high quality milch cattle and

also provide cross-bred animals to villagers and cattle breeders.^

Marketing is a socio-economic process. It is closely related to

economics. It may be called a distribution process. It centres on exchange

and distribution. It begins when production ends and ends when

consumption begins. Then, marketing is a connecting link between

187
producers and final consumers. Economics is connected with creation and

distribution of utility. Producing and marketing create this utility. Marketing

alone creates place, time, possession and information utilities. Marketing

gives economic, social and psychological satisfaction. It is a set of human

activities directed at facilitating and consuming exchanges. Prof. Malcoln Me

Nair develops his marketing definition into "the creation and delivery of a

standard of living". Paul Mazur is of the opinion that "Marketing is the

delivery of a standard of living to the society".^

The production policies of different institutions and organizations,

price-determination and payment terms etc, have a direct bearing on the

marketing techniques. It is the marketing that determines the way of

distribution with distributors, salesmen's contribution, training and placement

of salesmen. It takes care of advertising and promotion through the medium

of television, radio. It is also important because a desired product may be

had at right moment, at the right place and at a reasonable price. It is clear

that more advanced the techniques of marketing, more shall be the

production and sales opportunities.

In the early stages, production, financing and marketing were treated

as separate units of operation, but the modern trend of entrepreneurs has

changed and these three branches of operation are considered as

interdependent. The production may not yield high profits, if the products are

not marketed properly and to the places where they are most needed.'

188
 The present chapter tries to analyze the financial position of SHIMUL.

It also study the marketing strategies, progress of various programmes

adoption by taking into consideration balance sheet, profit and loss account

progress In the sale of milk and milk products since its inception as a

Govemment dairying in 1963 up to 2000-2001.

SHIMUL was registered on 25*^ November 1987. At that time the

societies registered were 60 in number. There were 85 societies as

members. The membership was 3829 in 1985-86, during 1986-87 and

1987-88,15 societies were registered and the membership was 7924 and in

1988-89 societies registered were 52 and the membership was 5903. The

number of societies increased to 55 in 1989-90 and during 1990-91 it was

55 and the membership was 9006 in 1989-90 and 5336 in 1990-91. During

1991 the societies membership stood at 287 as no society took back its

membership. In the beginning of 1990-91 there were 202 societies and 85

societies got new membership. The authorized share capita! was Rs. 1 crore

which contained 1 lakh shares of Rs. 100 face value. During the year 31®'

March, 1991, the paid up capital was Rs. 14,42,600. The paid up capital has

increased to a great extent. During the same period SHIMUL has taken a

loan of Rs. 1,88,87,829-66 from NDDB. Different loans came up to Rs.

28,94,543-55 and loans to be repaid remained at Rs. 2,17,82,373- 21. Steps

were taktfn to repay the loans and because of these Rs. 2,64,913-00 were

repaid. For the development of SHIMUL in the beginning of the year 1991 a

loan of Rs. 44,59,924-66 was taken and Rs. 2,62,036-00 was repaid. The

189
Silvi Pasteur grants were to the extent of Rs. 1,25,707-95 but Rs. 3,440-00

were invested and Rs. 1,22,267-95 remained undistributed as no beneficiary

came fonA/ard and the Gramavana amount was paid back on 27"^ February

1992.

During 31®' March 1991, Rs. 2,667-65 were cash on hand with

SHIMUL and on 31'* March, 1991, Rs. 4,14,687-33 cash was with different

banks. One point to be rememtjered during this period was that SHIMUL

received no cash loan from any financial institutions. During this period

SHIMUL had much finances to receive from various societies. SHIMUL was

under loss and no dividend was paid. During 1990-91 General Body Meeting

was not held but on 3'^ December, 1990, special General Body Meeting was

held. During 1990-91 Rs. 37.557-89 was the profit earned by SHIMUL and it

was transferred to reserve fund during 1989-90 SHIMUL suffered a loss to

the extent of Rs. 7,37,876-60. To overcome loss SHIMUL took grants from

the governmnet."* During 1990-91 the progress made by SHIMUL can be

explained with the help of the Table No. 1.23

190
 Table No. 1.23
SHIMUL's Progress: 1990 - 91
Details 1989-90 1990-91
1. Societies registered 267 322
2. Societies supplying milk 246 287
3. Milk supplied 1,24,69,244 kg. 1,40,74,611kg.
4. Cattle given emergency treatment 1,011 1,103
5.Cattle given treatment during 21,049 28,492
weekly visits.
6. Members o primary milk societies. 34,851 40,187
7. Population that comes under its 7,77,350 8,52,400
preview
8. Villages that come under SHIMUL 948 1175
9. Veterinary treatment expenditure 7,10,182-80 10.23,483-30
10. Milk procurement routes 10 21
11. Emergency treatment routes 4 5
12. First aid centres 143 155
13. Artificial Insemination centres 119 121
14. No. of cattle artificially 25,978 28,359
1 inseminated
Source: Annual Report 1990-91, SH IMUL, Shimoga, no page number.
During the year 1990-91 when compared to 1989-90 the progress

achieved by SHIMUL in various aspects like societies numbers, veterinary

services, veterinary expenditures, weekly treatment to cattle, the population

and villages covered etc, as shown in the Table No. 1.23. During 1®* August,

1991, Shimoga and Davanagere dairies were transferred to SHIMUL.*

The financial strength and weakness of any enterprise can be

assessed from the financial statements prepared by it. These financial

statements are prepared at the end of a period of time through financial

accounting techniques. These statements are store of information

condensed into figures. The establishment of proper relationships between

different items that are shown in the financial statements discloses the

191
concealed and camouflaged facts under the abstract figures of financial

statements. Through the analysis of financial statements it is possible to

ascertain the increment structural and functional charges, which are ultimate

result of policies and decisions of the management over a given period of

time.

Efficiency of any enterprise managed by professionals is dependent

on the managerial performance through their decision making and the result

effect is being reflected in qualitative terms through financial data.^

THE BALANCE SHEET OF SHIMl-L

1. The share capital has shown a steady increase from Rs. 14,42,600 in

1991 to Rs. 2,70,59,505 in 2001.

2. The investments made during 1991 were on shares of K.M.F and N.S.C

investments Rs. 72,000. The investments have shown fluctuations

since 1991 up to 2001 and during 2001 the investments stood at Rs.

6,24,33,284.

3. As per the decision of Administrative Board (Management Committee)

during 30*^ January 19GS, in order to increase the share capital for

every kg. of milk supplied by societies, 5 paise was deducted and the

amount was deposited in the name of societies to be invested in shares

in accordance with order number per procurement/7842/1995-96.

During the year 2001 the amount thus collected was Rs. 2,72,417.26.

4. Loans and advances which stood at Rs.59,84,069-38 in 1991 increased

to Rs. 2,72,25,066-31 in 2000-2001.

192
5. The fixed and variable assets of the union have shown a diminishing

trend. As on 1991 the fixed assets of the union were worth

Rs. 9,80,141-24. Since then up to 1993 the value of fixed and variable

assets increased to Rs. 5,61,12,343-90 in 1993. But after 1993 there

has been a diminishing trend and the value of assets decreased to

Rs. 5,16,88,666-95 in 1994 Rs. 4,91,40,232-65 in 1995

Rs. 4,67,14,526.02 in 1996 Rs. 3,96,62,723.43 in 1997,

Rs. 3,18,91,240.63 in 1998, Rs. 2,94,02,310.46 in 1999, Rs.

2,82,30,163.03 in 2000-2001.

6. During the year 1991-92 the deposit was Rs. 23,800-00. Shimoga and

Davanagere dairies were transferred to the union. So an amount of

Rs. 8,08,918-00 came from various deposits and by the year end the

deposits stood at Rs. 8,32,718-00.

7. The reserve and surplus in the liability side has shown a steady

increase from Rs. 4,037-80 in 1991 to Rs. 2,73,52,913.55 in

2000-2001.

8. The grants have shown fluctuations since 1991, SHIMUL received Zllla

Parishad grant of Rs. 4,73,233-00, S.C.P grant Rs. 39,600-00,

Chitradurga Zilla Parishad Grant Rs. 3,10,272-00, G.O.K. infrastructure

grant Rs. 18,90,000-00, NDDB grants worth Rs. 1,04,59,290-98. During

the year 2000-2001 the amount of grants received was

Rs. 11,81,618.87.

193
 The continuous increase in the share capital shows that the

membership is also increasing year after year. SHIMUL is inculcating the

spirit of cooperation among the dairy farmers and trying to increase cash

economy.

PROFIT AND LOSS ACCOUNT OF SHIMUL

1. The administrative expenses, which stood at Rs. 24,39,795-04 in 1991-

92, increased to Rs. 81,48,008.52 in 2000-2001.

2. Taxes, which amounted to Rs. 3,18,704-69 during 1991-92, increased

to Rs. 14,75,595.15 during 2000-2001. This shows that income

earned by SHIMUL has increased steadily since it became an

autonomous body. Thereby the taxable capacity has increased.

3. The staff expenses which stood at Rs. 63,82,507-06 during 1991-92

has increased to Rs. 3,58,18,202.26 in 2000-2001 due to the increase

in the number of workers as well as the benefits given to them.

During the period 1992-93 SHIMUL was considered first in the

progress achieved among all the unions established under

Ksheeradhara II and III programmes. During the period 1990-91 the

total expenditure made for salary, transfer allowance, Medical

expenses, provident fund contribution stood at Rs. 19.64,324-

80. The total number of staff working during that period was 65.

194
 SHIMUL could make a net profit of Rs. 37,557-89 during 1990-91 and

as per management board decision it was credited to reserve fund.

During the year 1991-92, there were 215 staff working in SHIMUL. It

included Shimoga, Davanagere and SHIMUL staff. Permanent

employees 215, consolidated salary basis 14, daily wages 7, deputed

from Government and veterinary department 9 and the total

expenditure made on staff was Rs. 63,39,232-39. When

compared to 1990-91 the staff expenses have come down by 4.89%.

When compared to the working capital of SHIMUL. During the period 1®*

August 1991 Davanagere and Shimoga dairies have contributed to

SHIMUL and this contributed for the increase in staff expenditure.

During the year 2000-2001, 241 staff members were there, out of

them 234 belonged to SHIMUL, 3 from KMF and 4 were deputed from

Government of Karnataka. The staff expenses when compared to sales

of Rs. 5,686.43 lakhs are 5.29%. When compared to the working capital

it is 35.15%.

4. Administrative expenses which stood at Rs. 24,39,795-04 in 1991-92

has shown a steady increase and it stood at Rs. 81,48,008.52 during

2000-2001. When compared to the working capital it was 7.99%

195
 5. Interest and bank commission which stood at Rs. 21,89,065-11, during

1991-92 it is fluctuating and increased to Rs. 45,06,445, 15 in 2000-

2001. It was fluctuating between 40 and 50 lakhs from 1991-92 to 2000-

2001. But during 1999-2000 it increased to Rs. 79,87,983.99.

6. The technical input services expenses, which stood at Rs. 3,63,865-71

increased to Rs. 15,77,651-50 during 2000-2001. This shows SHIMUL

is trying to improve its technical efficiency through various measures.

7. The depreciation allowance, which stood at Rs. 28,58,831-00 in

1991-92, increased to Rs. 61,93,315.06 in 2000-2001. It was maximum

in 1996-97, which stood at Rs. 91,69,703.00. It was Rs. 1,01,08,775.00

in 1997-98. In 1998-99 it was Rs. 76,28,165.00 and decreased to

Rs. 75,73,487.48 in 1999-2000. And decreased still further to

Rs. 61,93,315.06 in 2000-2001.

8. The interest on deposit and advances has shown a steady increase

from Rs. 2,44,805-95 in 1991-92 to Rs 68,27,660. 62 in 2000-2001.

During 1999-2000 it reached a peak of Rs. 7,46,748.24.^

SHIMUL could make a profit of Rs. 115.42 lakhs during 1994-95.

During 1995-96, it suffered a loss of Rs. 1.68 lakhs. But after 1995-96

SHIMUL has been earning profit continuously. During 1996-97 the profit

was Rs. 37.38 lakhs, in 1997-L)a it increased to Rs. 60.24 lakhs.

196
 During 1998-99 the profit was Rs. 66.94 lakhs. During 1999-2000 the

profit was Rs. 20 lakhs. During 2000-2001 the profit increased to Rs. 26.25

lakhs 8

The Table No. 1.24 shows the profit earnings of SHIMUL

Table No. 1.24.

Net Profit / Loss (In Rs. Lakhs )

160
115.42

100
66.94
60.24
37.38
50
20

^ 85-86 86-87 87-88 88-89 89-90 90-91 91-92 92-93 93-94

83-8C
94-95 'CD
95-96
UD
-60
D
36.01
26.21
17.08 19.72 ««»
—'
1.68
96-97 97-98 98-99 99-
2000

49.57
62.94
71.14
•100 86.53

Source : Sahyadri Tappalina Shivamogga Halu Okkuta, n.d.. Shimul, Shimoga,

no page number.

The Table No. 1.24 shows that except during 91-92, 93, 94 and 95-96

in all the other years up to 2001 SHIMUL has made profits. The losses

occurred during 1991, 1992, 1993, 1994 and 1995, 1996 can be attributed to

the following reasons *

1. Lack of efficient administration.

2. Lack of market for milk in different States.

197
 3. Lack of efficient marketing network namely lack of milk parlours,

efficient agents, etc.

4. Lack of competitive mind among the agents of milk procurement

and distribution routes.

5. Lack of efficient handling of milk.

6. High administrative cost due to appointment of surplus workers,

pa>'ment of high salary, house rent allowance, traveling allowance, free

supply of milk and Ghee to them. Even though SHIMUL had sufficient

security staff, it appointed contract security staff from private sector.

7. Milk was supplied only in the morning (Chitradurga District). Lack of

milk supply at all times. (Morning, Afternoon, Evening) etc.

8. Purchase of inefficient machineries.

9. Lack of trained Marketing personnel.^°

10. Especially during 1991-92 the loss was due to the following

reasons.

a) The milk supply in Chitradurga district was only during

morning.

b) The milk procurement routes were not decided scientifically

and therefore, there was delay in reaching of milk in SHIMUL

from collection centres."

Since 1996-97 SHIMUL is making good profits. During 1997-98 it

could make a profit of Rs. 46.49 lakhs. Compared to 96-97 the value of

198
transactions was Rs. 505,02 lakhs. During the year 1997-98 SHIMUL was

categorised into "C" grade. But it was categorised into "B" grade in 1998-99

and during 1999-2000 it was categorised into "A" grade. SHIMUL is

formulating new policies and programmes. For 2005 it has formulated its

own perspective plan for the overall development of the organization. During

the year 1998-99 the profits increased to Rs. 66.94 lakhs during the year

1999-2000. There was a decrease in the profits earned by SHIMUL. The

profits fell down to Rs. 20 lakhs. This can be attributed to the following

reasons.

1) Lack of efficient marketing wing.

2) Shortage of labour in the marketing wing.

3) Competition from other private milk companies.

4) During the year 1999-2000, the total milk procurement was 421.95
lakhs kg. milk and the transportation cost was Rs. 174.96 lakhs. The
transportation cost of milk routes like Kottur and Kundadri was very
high due to decrease in the milk procurement.

5) Decrease in the sale of milk and milk products when compared with
stocks.

6) During the year 1999-2000 out of the total milk procured 144532 kg.

of milk was sour. This was due to the mistake of societies and

contractors. The quantity of sour milk was high when compared with

the previous year.

199
7) During the year 1995-96, SHIMUL suffered a net loss of Rs. 1,68,174-

52 and total consolidated loss was Rs. 51,13,865-82. This loss was

due to the following reasons.

a). The societies were given incentive money worth Rs. 43.8 lakhs,

b). There was no coordination between the purchase rate and selling

rate of milk,

c). Keeping unwanted stocks

d). Excess expenses in SHIMUL.

e). Uncontrolled administrative expenses.

8) During the year 1999-2000 even though SHIMUL could make a profit,

it was less when compared with previous profit making years. One of

the reasons behind it was souring of milk."

200
 Tabic No. 1.25
The Quantity of Sour Milk From 1995 to 2001
SL Year Chilling Centre MUk Collected. Societies Contractors Dairy
Na (Lakhs kg.) Mistake. Mistake. Mistake
(Lakhs kg.) (Lakhs kg.) (Lakhs
kg-)
1 1995-96 Ilonnali - 40,283 2,711
Anandapura - 13,856 5,377 -
Davanagcrc - 4,856 1,526 41
Chitradurga - 694 514
Main Dairy - 30,515 1.147.5 — - :
2 1996-97 ITnnnali 85.49 43,943 4,113 909
Anandapura 40.09 22,183 4,442 1,000
Davanagcrc 70.38 19,237 ?0,()44
Chitradurga 9.74 29,23 1.410 _
Shimoga Main 82.34 39,564 130.50 14,803
Dairy
3 1997-98 Honnali 99.75 33,118 3,214
Anandapura 41.60 14,704 1 I4,y()2 -
1 >avanagcic 75.08 12,770 '),}V) -
Chitradurga 15.82 4,066 1,878 -
Shimoga Main 99.95 48,610 4,022 120
Dairy
4 1998-99 Ilonnali 1,12,75.331 23,972 2,999 -
AnaiKlapura 46,79,803 16,858 8,863 -
Davanagere 91,79,669 2,899 4,353 -
Chitradurga 20,70,417 5,152 5,978
Shimoga Main 1,06,73,532 35,722 8,658 246
Dairy
Tadagani 3,65,786 - - -
5 1999-2000 Honnali 1,20,32,323 19,784 5,649 -
Anandapura 16,07,179 14,190 2.269 -
Davanagcrc 8,87,170 10,778 6,443
Chitradurga 23,61,942 9.744 12,268 -
Shimoga Main 1,16,37,290 40.328 9,047
Dairy —
Tadagani 45,79,372 3,520 10521
Rirur 6,05.572 - - -
6 2000-2001 Ilonnali 1,06,68,958 18,459 4,580 -
Anandapura 16,42,395 21,162 4.774 -
Davanagere 1,60,28,862 16,990 23.114 -
Chitradurga 39,22,338 15,636 14,520 -
Shimoga Main 1,19,74,362 25.557 7,620 -
Dairy
Tadagani 54,90,504 5,062 14,474 -
Birur 9,23,336 - - -
Source: SIUMin/.s Annual Reports of Year 1996-97 to 2001-2002.TT

201
 The quantity of sour milk is increasing year after year and this is not a

good sign from the point of view of development of SHIMUL. The

Management committee should seriously think about this major problem and

take suitable measures to solve this problem. On /'^ August, 1991, out of

5,000.00 kg. of milk procured from Chitradurga Chilling Centre, 1,100.00 kg,

became sour due to dairy's mistake. The milk collected from

Anandapura Chilling Centre 7,250 kg. was sour. Out of 10,265.00 kg. of milk

collected from Honnali Chilling Centre, 9,649.00 kg. became sour on 14*^

September, 1991. On 15*^ September, 1991, the milk collected from

Chitradurga Chilling Centre 3,136 kg.-was sour. On 22"^^ September, 1991

the milk collected from Honnali Chilling Centre 7,400 kg. was sour. During

23"^ October, 1991 the milk supplied by Chitradurga Chilling Centre 3,140.00

kg. was sour. The milk amounting 29,101.00 kg. was sour transferred from

Davanagere, on 16*^ December, 1991. The milk supplied from Shimoga

Dairy on 10*^ Febmary 1992, 6,704.00 kg. was sour. The milk collected from

Birur Centre 3168 kg. was sour. On 6*^ January, 1992 milk from Honnali

Centre 4,510 kg. was sour. On 6*^ January, 1992 milk from Honnali Centre

4,510 kg. was sour. During 1993-94 the total milk that became sour was

9,453 kg. During the year 1994-95 there was no sufficient milk collection.^''

COST BENEFIT ANALYSIS OF SALE OF MILK BY SHIMUL

It is not easy to find out production cost of milk. Its various

components are of very complicated nature and for most of the cattle

breeders milk production is a side line incidental to the maintenance of cattle

202
for various considerations and motives having no relation with the

economics of cattle breeding. There is great divergence in the components

of milk production cost. To a great extent, it depends upon the availability of

various infrastructure facilities in a particular area and cluster and also upon

the Psychological bent and make of the breeders families as well as their

socio-economic background and outlook. There is also a great variation in

the cost of production in relation to the size of groups as well as to the

seasonal changes.

In the context of present study, the following components have been

taken into consideration, they are transport cost of procurement of milk,

production and processing cost^^

In order to understand the progress achieved by SHIMUL in marketing

of milk and milk products, it is necessary to make a cost benefit analysis of

milk collection and sales by SHIMUL. The present study tries to analyse the

procurement and processing cost of milk as well as the sales proceeds of

milk and milks products from 1991 to 2001. This is given in the Table No.

1.26

203
 Tabic No. 1.26
Cost of Milk Procurement and Sale of Milk and Milk Products
Transport Cost of Proceeds of sales of milk and
Year procurement of milk milk products
/ Production and Local sales To other
processing cost dairies
Rs. Paisc lis. Paisc l<s. Paisc
1991-92 44,27,500-50 9,54,36,909-87 3,67,050-55
93,19,926-47
1992-93 1,03,80,091-01 14,94,52,148-53 25,11,273-10
1,42,05,914-73
1993-94 1,04,30,110-42 18,08,24,471-17 11,50,995-80
1,63,90,478-05
1994-95 1,12,75,345-26 22,05,74,384-17 25,88,397-49
1,63,68,384-22
1995-96 1,26,07,835-97 22,84,30,503-03 2,35,42,670-41
1,96,18,728-98
1996-97 1,49,92,292-89 28,37,28,420-28 4.35,88,340-95
1,74,64,656-78
1997-98 1,61,66,787-26 33,94,10,318-54 3,84,07,737-03
2,08,92,286-86
1998-99 2,00,91,836-22 4,101,87,167-75 4,85,75,289-67
2,14,13,947-34
1999-2000 2,34,07,987-79 48,78,93,939-10 6,78,35,137-00
2,92,40,727-96
2000-2001 2,95,99,439-46 51,92,83,403-24 4,93,59,688-95
2,59,25,926-80
Source: SHIMlII.'s Annual Reports of Year fn)m 1991-92 to 2000-2001.'^

The procurement and also the costs have shown an increasing trend

since 1991. The sales proceeds are also increasing specially the milk sales

to other dairies except during 1995-96 and 1997-98. The local sales have

been continuously increasing. This shows that the dairy has maintained a

good quality in its milk and milk products.

204
 By analysing the working of SHIMUL it is understood that the number

of milk producers' societies since 1985-86 has been showing a continuous

increase. The procurement of milk since 1991 has shown that union is trying

to encourage the milk producers to increase the milk production along with

quality by giving them incentive money. During the year 1995-96 the rate

difference that was given was Rs. 43.78 lakhs. It decreased to Rs. 30.7

lakhs in 1997-98 and again during 2998-99 it increased to Rs. 89.55 lakhs

and Rs. 106 lakhs in 1999-2000.

It is very important to know the maximum rate that is given to milk

producers by SHIMUL during various years to understand how SHIMUL is

encouraging dairy farmers to produce and market quality milk and to

increase the milk yield. The Table No. 1.27 explains the same.

Tabic No. 1.27

Year Wise IMinimiim Rate Per Litre Given To The Milk Producers (In
Rs.)
10

8.15
7.6S
T37 rsr
6.34
6.S3 6.72
8:62-
4.74

3.86 3-96 3.95 3.36 3.36 3.74

85-86 86-87 87-88 38-89 89-90 90-91 91-92 92-93 93-94 94-95 95-96 96-97 97-98 98-99 99-00

Source: Sahyadri Tappalina Shivamogga Halu Okkuta. n.d, SI KMl )L. Shimoga.
no page number.
205
 During the year 1985-86 it was Rs. 3.85 and increased to Rs. 3.95 in

1986-87, 1987-88. It suddenly decreased to Rs 3.35 in 1988-89 and

1989-90. It improved in 1990-91 and was Rs. 3.74. Since 1991-92 the rate is

showing a continuous increase from Rs. 4.74 in 1991-92 to Rs. 8.15 in

1999-2000. The minimum rate that was given to milk producers during

2000-2001 was Rs. 8.85

The yearly transactions made by SHIMUL have shown a steady

increase since 1991. Before 1991 value of transactions done was Rs. 216

lakhs in 85-86, Rs. 383 lakhs in 1986-87, Rs. 582 lakhs in 1987-88, Rs. 382

lakhs in 1988-89 and Rs. 615 lakhs in 1989-90 and Rs. 867 lakhs in 1990-

91. Since then, there has been a continuous increase from Rs. 958 lakhs in

1991-92 to Rs. 6,064.58 lakhs in 2000-2001.^^

Since 1991, there has been an enormous increase in the daily milk

procurement of SHIMUL. This can be seen in the Table No. 1. 28.

206
 Table No. 1.28
Milk Procurement ( kg. per Day)

140000

115281
120000

100266
100000
89036
78618
80000

61002
67*26 68356
60000
49926
42926
40000 36862 38629
33348~
26669
18017

85-86 8^87 87-88 88-89 89-90 90-91 91-92 92-93 93-94 94-95 95-96 96-97 97-98 98-98 9»«0

Source: Sahyadri Tappalina Shivamogga Halu Okkuta, ad, SIIIMUL, no page

number.

During 1985-86 it was 3,914 kg, 1986-87 - 18,017 kg, 1987-88 -

26,569 kg, 1988-89 - 33,345 kg, 1989-90 - 36,853 kg, 1990-91 - 38,629

kg. During 1991-92 it was 42926 kg. and since then it has been steadiiy

increasing and in 2000-2001 it was 1,81,411 kg. (October 2001) and

1,28,070 kg. (April 2001). This shows that, SHIMUL is encouraging the milk

producers to sell their milk through cooperatives. Thereby encouraging the

cooperative spirit among the milk producers. ^^ The increase in the milk

procurement by SHIMUL can be attributed to the fact that the number of milk

producers cooperative societies as well as the membership has been

207
steadily increasing since its inception. This can be seen in the

Table No. 1.29

Table No. 1.29

Increasing Number of Dairy Cooperative Societies

700

S86
600

497
600

411
400 371 37* 37a
352
333 -trt
287
300
246
191
200
146
105
100 - -
i~48~
n
8 5 ^ 86-87 87-88 88-89 8»«> 90-91 91-92 92-93 93-94 94-95 95-96 96-97 97-98 98-99 9 M 0

Source: Sahyadri lappalina Shivamogga Halu Okkuta, n.d, SIIIMUL, Shimoga,

no page number.

The number of societies was just 48 in 1985-86. 105 in 1986-87, 146

in 1987-88, 191 in 1988-89, 246 in 1989-90, 287 in 1990-91, 333 in

1991-92, 327 in 1992-93, 352 in 1993-94, 371 in 1994-95, 373 in 1995-96,

378 in 1996-97, 411 in 1997-98, 497 in 1998-99, 586 in 1999-2000 and 608

in 2000-2001 19

208
 During the year 1990-91, there were 202 milk societies as members.

85 new societies joined the list and as no society withdraws its membership

and the number went up to 287. Since 1994 there has been a steady

increase in the membership. The details can be given in the Table No. 1.30,

Table No. 1.30

Continuous Increase of Membership In Cooperative Societies
Year In the Addition Membership Membership
beginning during the withdrawn at the end of
of the year reporting during the the year
year reporting
vear
1994 366 26 - 392
1995 392 28 - 420
1996 420 31 18 433
1997 433 12 1 444
1998 444 5 - 449
1999 449 116 36 529
2000 529 20 15 534
2001 534 17 - 551
Source : SHIMUL's Annual Reports of the yearfrom1997 - 98 to 2001-2002.^''

The actual working of SHIMUL can be understood by analysing the

number of societies that are functioning and the number of societies that

were registered during various time periods. The numbers of women

societies that are functioning have shown a steady increase and this shows

SHIMUL is helping for the empowerment of women in rural areas.

209
 Table No. 1.31
C'ontiiiuuiis Increase of Dairy C.'oopcral ivc Societies
Period Place Societies Functioni Societies Already ' Not Women
registered ng having ftinctioning ] I'unctioning Societies
Membership
1997 Shimoga 325 319 309 278 i 41 30
Chitradurga 142 137 135 99 { 38 6
1998 Shimoga 341 332 314 L 297 35 44
Chitradurga 215 203 135 114 89 09
1999 Shimoga 268 260 233 231 38 58
Chitradurga 122 122 84 62 64 12
Davanagere 239 238 248 204 ' 38 25
2000 Shimoga 298 259 255 - 20 67
Davanagere 298 248 240 - 48 34
Chitradurga 132 79 87 - 52 15
2001 Shimoga 299 268 279 - 21 61
Davanagere 303 247 249 - 53 35
Chitradurga 142 85 95 - 48 20
Sou]rce : SHIMIJIL's Annual Reports of The Years F r o m 1997 - 9 8 to 2 0 0 1 -- 2 0 0 2 / '

The progress of SHIMUL in terms of production and sale of various

products can be understood by analysing the products introduced during

various time periods. During 1991-92, it was selling Milk, Ghee, Peda,

Flavoured Milk, and Skimmed Milk Powder. Up to 1994-95 the same

products were sold locally and to other dairies. During 1995-96, it started

selling Butter and Casin. During 1996-97, it started selling Curds as well as

Butter Milk. Since then, it has been selling all these products and it has been

able to maintain a good quality for these products.

The profitable working of SHIMUL is reflected in the amount of bonus

that is paid to the workers and it has shown a steady increase since 1997-

98. The bonus paid can be explained in the Table No. 1.32

210
 Tabic No. 1.32
Bonus Paid to The Union's Staff ( Rs. In Lakhs)

20

16.83

14.92
15
13.03
11.91

9.23

4.68 4.1 4.09

3.34
2.12
1.64
0.73 0.83

0 c n n IJcn
—m^ 0.66

85-86 86-87 87-88 88-89 89-90 90^

nn 91-82 92-93 93-94 94-96 95-96 96-97 97-38 98-99 99-00

Source : Sahyadri Tappalina Shivamogga Halu Okkuta. n.d. SHIMDl,, Shimoga, no page
number.

During 1985-86, it was Rs. 0.73 lakh and 0.83 lakh in 1986-87. It

increased to Rs. 1.54 lakhs in 1987-88 but again came down to Rs. 0.66

lakh in 1988-89. Suddenly it rose to Rs. 3.34 lakhs in 1989-90. It was Rs.

2.12 lakhs in 1990-91 It decreased to 1.34 in 1991-92 when it became an

autonomous body. It was between 4 and 5 lakhs during 1992-95. In 1995-

96 it was Rs. 13.03 lakhs. In 1996-97 - 9.23 lakhs, 11.91 lakhs in 1997-98.

But the bonus paid was 14.92 lakhs in 1998-99 and 16.83 lakhs in 1999-

2000. During 2000-2001 the bonus paid was Rs. 7.64 lakhs. During 2000-

2001, it was decided to give 13.5 % bonus to the workers.^^

21
 SHIMUL has been working efficiently since 1991. It is reflected in the

number of societies registered, profit making societies, milk procurement,

sale of milk, sale of cattle feed, insemination, etc. The Table No. 1.33 has

proved the same.

212
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 It is noticed that there has been a steady increase in the number of

societies registered and also the societies that are functioning. The

membership has also shown a steady increase since 1986. The number of

profit making societies has also increased from 41 in 1985-86 to 496 in 2000.

The profit earned by societies has increased from Rs. 40,000 in 1985-86 to

18,33,000 in 1999-2000. There has been a steady fall in loss making societies

since 1993-94.^'

The average milk procurement per day has increased from 3,914 kg. in

1985-86 to 1,15,281 kg. in 1999-2000. Each society's procurement per day

has increased from 81 kg. in 1985-86 to 197 kg. per day in 1999-2000. The

procurement transportation cost per kg. has been decreasing since 1985-86.

It was Rs. 0.56 in 1985-86 and decreased to Rs. 0.40 in 1999-2000.

The average sale of milk per day was 10,462 litres in 1985-86 and increased

to 98,000 litres in 1999-2000. The net profit earned by SHIMUL was

Rs. 36 lakhs in 1985-86 and was Rs. 20 lakhs in 1999-2000. The profit was

maximum during 1994-95 which was 115 lakhs.^

SHIMUL has shown enormous improvement in the production of milk

products and the sale of milk products has also shown a steady increase.

SHIMUL started selling Ghee from 1985 itself. Peda was introduced during

1988, Butter - Milk sale started in 1997. Curds were released to the market

during 1997. Lussi came in during 1999. The pasteurising of milk started on

11*" May, 1998. Standard milk was introduced during 1993. At present

SHIMUL is selling 4 types of milk - Toned milk. Standard milk, Full cream milk

and Homogenised milk.

214
 Tabic No. 1.34
Sale of Milk and Milk Products From 1985 To 2000''
Year Milk (Avg. Ghee Peda Curd Buttermilk BMP
Litres per (Yearly (Yearly (Yearly (Avg. per
day) Total Total Total Day)
Sale) Sale) Sale)
1985-86 10,162 - - - - -
1986-87 16,397 - - - - -
1987-88 19,307 - - - - -
1988-89 24,528 54,611 1,244 7,618 - 19,141
1989-90 27,392 56,365 3,188 5.006 - 12,568
1990-91 34,643 84,692 6,570 3,318 - 6,739
1991-92 44,689 1,78,815 8,153 - - 4,705
1992-93 44,594 2,50,900 14,564 - 8,706
1993-94 51,047 2,93,996 34,398 - - 6,605
1994-95 61,270 2,92,987 41,804 15 - 8,944
1995-96 63,329 3,04,779 26,058 - - 2,859
1996-97 68,719 3,65,394 23,916 3,234 - 2,001
1997-98 79,612 3,74,119 21,891 1,50,722 27 -
1998-99 89,634 3,86,782 19,273 3,47,080 540 -
1999-00 98,000 - 20,411 5,81,445 1,090 -
2000-01 1,14,000 4,50,000 24,000 7,00,000 1,500 -

Source : Pamphlet, n.d. Published by SllIMlJI., Shimoga.

Since 1985-86, there has been a continuous increase in the sale of

milk. In 1985-86 it was 10,462 litres per day increased to 1,09,000 litres in

2000-2001. The sale of Ghee also has shown a steady increase since

1988-89. But the sale of Peda was increasing since 1988-89 up to 1994-95,

but it started decreasing since 1995-96. The sale of Curds was falling from

1988-89 up to 1996-97. But it increased from 1997-98. Butter milk which was

introduced in 1997-98, the sale has been steadily increasing. The sale of SMP

has been continuously decreasing since 1988-89.

215
 Table No. 1.35
Sale of Liquid Milk IrI T o w n s , F o r T h e M o n t h of A|)ril-2000 T o Jnne-2000
SI. Name of the Avg per Day Avg per Day Avg per Total Avg
No 1 own/City Day Month
Apl-2000 M^-2000 June-2000
SHIM OGA DIST.
1 SHIMOGA 31,332 31,334 31,292 93,958 31,319
2 BHADRAVATHI 8,587 8,957 8,760 26,304 8,768
3 SAGARA 5,881 6,043 5.913 17,837 5,946
4 THIRTHAHALLI 4,450 4,379 4,250 13,079 4,360
5 KUDUMAUGE 96 96 91 283 94
6 KONANDURU 300 312 295 907 302
7 SHIKARIPURA 850 860 855 2,565 855
8 SORABA 820 840 825 2,485 828
9 HOSANAGARA 698 772 796 2,266 755
10 MASTHIKATIE 409 410 409 1,228 409
11 NAGARA 259 283 284 826 275
12 ANANDAPURA 220 225 200 645 215
13 JOG 525 515 500 1,540 513
14 KARGAI. 602 610 570 1,782 594
15 LINGANAMAKKl 69 70 65 204 68
16 SIURA1.AKOPPA 550 501 465 1,515 505
17 RIPPENPFT 295 318 316 928 309
18 IIOLEIIONNIJR 367 467 460 1,294 431
19 OTHERS 1.724 20 26 1,770 590
DISI rOlAI 58,033 5.7,010 5<>,3 71 1,71,414 57,138
DAVANAGRRE.
1 DAVANAGERE 21,129 20,609 21,438 63,176 21,059
2 HARIHARA 3,648 3,610 3.645 10,903 3,634
3 CIIANNAGIRI 1,701 2,038 2,117 5,856 1,952
4 HONNALI 400 405 346 1,151 384
5 JAGALUR 382 353 314 1,049 350
6 DONNEHALLI 118 342 87 547 182
7 NYMATHI 106 116 118 340 113
8 MALUEBENNURU 98 117 132 347 116
9 HARAPANAHALLI 898 996 1,067 2,961 987
10 OTHERS 140 40 45 225 75
DIST. TOTAI, 28.619 2.8.626 29,308 86.554 28.851
CMTRADURCJA
1 HOLALKERE 1,124 1,173 1,122 3,419 1,140
2 CHTTRADURGA 13.058 13,147 13.238 39,443 13,148
3 CHAI.IAKFilE 4,147 4,111 4.150 12,408 4.136
4 IIOSADURGA 1,864 1,954 1.918 5.736 1,912
5 HIRIYUR 2,289 2,289 2,232 6,810 2,270
6 MAIADniAl.M 141 135 150 426 142
7 NAYAKANHATH 244 250 255 749 250
8 OJHHRS 100 0 0 100 100
DIS7. T O ! A L 22,968 23,059 23,065 69,092 23,097
GRAND TOTAI, 1,09,620 1,08.695 1.08,744 3,27,059 1,09,087

Source: Pamphlet, ad. Published by Shimul. Shimoga

216
 Here is a monthly statistics of milk sale in different places in three

districts. The sales have decreased in Shimoga district, where as in

Davanagere district it has increased even in case of Chitradurga district. The

liquid milk sales have shown an increase. This shows that the SHIMUL is

maintaining quality to satisfy the consumers 26

Tabic No. 1.36

Stock of SMP And Buitter as on 31"* October 2001
SI. No. Place of Storage SMP Butter
1 Dharwad Milk Union 76,240.0 kg. 27,378.0 kg.
2 Dempo Dairy 15,308.0 kg. 9,052.0 kg
3 Varana Dairy 25,030.0 kg. 15,766.0 kg.
4 Gokul Dairy 36,782.0 kg. 22,741.0 kg.
5 SHIMUL 7,250.0 kg.
Total 1,60,610.0 kg 74,937.0 kg
Source: Pamphlet, Stock of SMI> and Butter as on 31" October 2001, SI UMUL, Shimoga.

The Table No. 1.36 explains the stocks of SMP and Butter in various

centres like Dhanwad Milk Union, Dempo Dairy (Bijapur) Varana Dairy and

Gokul Dairy (aharastra) and Shimoga Union. Maximum stock of SMP and

butter is in Dharwad union. SHIMUL has no stock of butter at all."

217
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 Kolar milk union lias the maximum procurement of 5,80,000 litres, and

Belgaum union has only 58,000 litres but it is selling at Rs. 12, when all other

unions are selling only at Rs. 11. The agents' commission is almost the same

in all the unions, except SHIMUL (25 paise) and Hassan Milk unions

(20 paise). When all the unions are having excess milk, the Belgaum milk

union has no excess milk.^*

SOCIO-ECONOMIC IMPACT OF SHIMUL'S PROGRAMMES ON

DAIRY FARMERS
The present study gives much importance for the analysis of impact of

dairy farming on the socio - economic life of dairy farmers. There by it tries to

analyse the role of SHIMUL in bringing out awareness among farmers and

especially women to take up dairy farming on commercial lines for that it helps

to bring in improved cattle breed, fodder and clean milk through its Artificial

Insemination Centres and fodder development programmes. Since its

establishment till to day it is striving hard to satisfy the consumers by

distributing clean, good quality milk and to improve its efficiency. It has its own

plans and programmes to face the competition from other milk like Arogya.

It has adopted strategic Marketing plan, which in involves advertising through

wall paintings in various places of Shimoga, Bhadravathi, Davanagere,

Harihara, Chitradurga and other major towns. Appointment of new agents,

opening new parlours, face lift for milk parlours, incentives for retailers,

consumer contact meetings, conducting market surveys, consultancy in the

area of marketing and it was given to Kirloskar Institute of Advanced

Management Studies for enhancing sale of milk in Davanagere and Harihara.

220
The marketing consultants namely Catalyst Management Services,

Bangalore, Sun Rise Promotions, Mysore and Kirloskar Institute of Advanced

Management Studies, Harihara were invited and SHIMUL had detailed

discussion with them regarding consultancy proposal. SHIMUL participates in

Exhibitions and Melas. It has participated in Krishi Mela, Shimoga, Rural

Marketing fair, Harihara, Vishweshwaraiah Iron & Steel Founder's Day

Celebration, Bhadravathi, Tarala Balu Hunnime Mahotsava, Shimoga.^°

SHIMUL is also involving in improving the life standard of its milk

producers by supporting and implementing various developmental activities

for the benefit of the milk producers. Ministry of Non-Conventional Energy

Sources (MNES), New Delhi, in recognition of the contribution, the SHIMUL

has done in the efficient Implementation of the energy conservation

programme has awarded the Union as the t)est NGO during the year 1995-96

and 1996-97. The success of the Chulah programme was due to proper

identification of the villages, proper selection of the self employed workers,

successful training camps, close monitoring and regular follow up, selection of

the right family for the right Chulah. The achievements are in the

Table No. 1.39

221
 Table No. 1.39
Number of Chulahs Installed
Year Target Chulahs Villages % achieved
installed Covered
1989-90 400 125 4 31.25
1990-91 600 493 12 82.16
1991-92 1,000 1,008 17 100.80
1992-93 1,000 887 12 88.70
1993-94 1,000 775 15 77.50
1994-95 4,500 4,384 62 97.42
1995-96 6,000 5,815 81 96.93
1996-97 6,500 6,307 46 97.03
1997-98 7,000 6,550 46 93.57
Total 28,000 26,344 295 94.08
Source: A Note on the Implementation of Energy Conservation Programme, n.d, SHIMUL,
Shimoga, no page number.

It is dear from the Table No. 1. 39 that the number of Chulahs installed

has increased from 125 in 1989-90 to 6550 in 1997-98. At the same period,

villages covered was just four but it increased to 46 in 1997-98. In recognition

of its Chulahs programme, Ministry of Non-conventional Energy Sources has

awarded the best NGO award to it.^^

222
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 With the help SC/ST Corporation and BCIVI Development Corporations,

SHIMUL has been helping the farmers belonging to Backward Communities

as well as Scheduled Castes and Scheduled Tribes to buy cattle and improve

their standard of living, the implementation of Animal Loan scheme and its

progress.

During the year 1995-96 the loan sanctioned was Rs. 43,00,650 and

increased to Rs. 4,87,350 in 1997-98. The animals purchased were 338 in

1995-96 and 25 in 1997-98. The number of dairy cooperatives covered were

49 in 1995-96 and 12 in 1997-98.

The Table No. 1.40 and 1.41 explain the progress report of animal loan

scheme for SC/ST. The loan sanctioned during the year 1995-96 was

Rs. 98,07,600 and 46,40,000 in 1997-98. The animals purchased were 854 in

1995-96 and 443 in 1997-98. The number of dairy cooperatives covered

were 44 in 1995-96 and increased to 54 in 1997-98.

Milk Way of SHIMUL from 1985 to 2001. A Report

SHIMUL was registered on 25*^ November 1987 with a total share

capital of Rs. 1 crore. As on 31*^ March, 1991, there were 286 societies and

share capital was Rs. 14.42 lakhs. By the end of March 91, 322 societies

were registered and 300 started functioning. Out of 21 milk routes, total milk

procurement was 38,630 kg. per day. During this period, four veterinary and

emergency dispensaries in Shimoga (2) and Davanagere (2) were started.

203 societies have given treatment to dairy animals. By the end of 1997,

225
6,227 cattle were given emergency treatment and during weekly visits 58768

cattle were given treatment. By the end of 1991, there were 121 Artificial

Insemination centres, which have artificially inseminated 54,816 cows and

31,647 buffaloes and 7,326 female calves, and 6,929 male calves have taken

birth. During the period, 8,463 tonnes of general cattle feed and 536 tonnes of

special cattle feed have been sold out. 3,120.33 acres of land have been used

for grass cultivation. 381 interested producers were sent to Gujarat for training

in Amul's training tour. 605 executive board members, 81 women members

were given training in Bangalore and Dharward, training centres. Staff of 31

societies were given cattle health workers training. In the inter union training

programme, 129 farmers have participated. Secretaries of 121 societies and

milk testers were given training.

SHIMUL has come under Cooperation Development programme with

the help of grants from NDDB. On 10*^ April, 1990, 815 Men and 2,492

women and 56 executive board members were trained under this programme.

During the same period under the Infertility Removal Camps, 21,500 cattle

were treated, under the NDDBs tapering plan 1.11 lakhs cattle were given

precautionary inoculation.

During 1990-91, for infrastructure development of milk societies

Rs. 4.65 lakhs grants has been sanctioned from Shimoga Zilla Parishad and

Rs. 2.50 lakhs grants from Chitradurga Zilla Parishad. Out of these funds,

societies in concerned districts have been given funds to buy Milkotester,

226
Artificial insemination instmments, to develop fodder demonstration gardens

and to conduct urea treatment demonstration programmes.^

During the year 1991-92, Shimoga, Davanagere Dairies and Chilling

Centres were transferred from K.M.F. to Shimoga Union. In Shimoga Dairy,

the processing capacity was 1 lakh litres per day, Honnali Chilling Centre had

20,000 litres chilling capacity and Anandapuram Centre with 30,000 litres

chilling capcity. The union adopted Technology, Mission for Dairy

Development plan and under this, 83 societies from Shimoga District, 25

societies from Chitradurga District were included. For this plan, government

released Rs. 5.3 lakhs to Shimoga and Rs. 2.3 lakhs to Chitradurga District.

Table No. 1.42

SHIMUI/s Progress - A Report From 1985 to 1991
SI. Details 85-86 86-87 87-88 88 - 89 89 - 90 90-91
No
1. Societies roistered 85 60 15 52 55 55
2. Societies 64 44 40 46 59 47
fimctioning
3. Members 3,829 8,133 7,924 5,903 9,006 5,336
4, Milk Procurement 3,914 18,000 26,539 33,297 36,773 38,630
(kg) / day (2,400
cows)
5. Articifial 5 27 16 44 27 16
Insemination
Centres
6. No. of Artifical 289 5,749 10,453 15,635 25,978 28,359
Insemination
7. No. ofCattle 6 828 1,702 1,577 1,011 1,103
emergency
treatment
8. Sale of cattle feed 77.0 828.8 1,225.65 1,410 2,358 3,100
(in tonnes)
9. Fodder Cereals 65.30 74.33 225.18 193.32 139.20
Development (in 5.09 0.02 1.02 14.20 5.20 2.07
acres) Pulses - 327.0 540.05 533.30 605.25 340.0
Seasanal
36.20

Source: Shimul's Annual Reports of the year from 1985-1986 to 1990- 991.
227
 The cattle under emergency treatment were 6 in 1985-86 and

increased to 110.3 in 1990 - 91. Tiie sale of cattle feed was 77 tonnes in

1985-86 and increased to 3100 tonnes in 1990-91. The fodder development

has also increased to a great extent. This shows Shimul has made good

progress when it became an autonomous body.

In the beginning of the year 1985-86, the number of societies was 85

and during 1990-91 there were 55 societies. The societies functioning were

64 in 1985-86 where as, they were 47 in 1990-91. The membership which

was 3,829 in 1985 - 86 increased to 5336 in 1990-91. The average milk

procurement per day which was 3,914 kg.(240 days) in 1985-86 increased to

38,630 kg. in 1990-91. Artificial Insemination centres were 5 in 1985-86 and

increased to 16 in 1990-91 Artificially Inseminated Cattle were 289 in

1985-86 and increased to 28,359 in 1990-91.^^

It was on 29*" October, 1992 that the first elected Administrative Body

came into existence in SHIMUL. The share capital during March 1993, was

Rs. 15.44 lakhs number of registered societies were 384 and 373 were

actually functioning. Out of 26 milk routes, average daily milk procurement

was 49,089 kg. During boom period it was 60,330 kg. per day. During this

period, there were six veterinary dispensary routes. Through mobile

dispensaries 17,292 cattle have been given treatment. In Health check up

camps, 11,475 cattle have been given treatment. 1,355 cattle were given

emergency treatment. In 137 A. I. centres 20,163 cows and 9,527 buffaloes

228
have been inseminated. 3,358 female and 3,317 male calves have taken

birth. 3,959.46 tonnes of cattle feed and 1,190.52 tonnes of special feed have

been marketed, 1,078 acres of land have been brought under fodder

development. 46 producers were sent to Amul's observation and training tour.

134 executive board members 27 societies secretaries and 10 societies

testers and 20 veterinary health workers were trained. Staff members have

been sent to NDDB, Anand, Erode, Mehsana and KMF training institutes for

training, seminars and workshops. Under the Cooperative Development

Programme 1,315 Men memb)ers, 1,453 women members, 121 executive

board members have been trained. 1,765 high school students participated in

training on cooperative principle and Dairy societies functioning, union's

directors participated in 3 days seminar cum workshop organised by NDDB.

Under the NDDB tapering plan, 46383 cattle were given inoculation for

foot and mouth disease.

Technology Mission programme which was started in Shimoga District's

five talukas, was extended to Holalkere, Chitradurga and Challakere talukas

also. During 1993-94, this plan facility was given to 83 societies in five talukas

of Shimoga district and 93 societies in Chitradurga District. During 1992, the

milk procurement was less, when compared to demand. So milk powder was

purchased from Punjab, and Maharastra unions. During February 1993 more

milk was connected to products and there was no demand for products and

the unions was forced to face losses.

229
 During 1992-93 under the IRDP programme, Rs. 2.62 lakhs were

sanctioned by Shimoga Zilla Parishad and Rs. 62,000 were used for urea

straw treatment demonstrations. Rs 2.0 lal<hs for buying l\^ilkotester under 58

societies 227 urea straw treatment demonstrations have been conducted 880

portable and 887 fixed chulahs have been supplied. During 1992 FAO

representative Smt. Marus and the State Minister for dairy development were

visited the Union.^

During the year 1994, the share capital was Rs. 15.85 lakhs and 427

societies were registered and 408 were functioning. Out of 25 milk routes, the

total milk procurement per day was 58,000 kg. and during boom period, it was

76,000 kg. per day. During this period 15,839 cattle have been treated

through Mobile veterinary dispensaries. 554 cattle have been given

emergency treatment. 128 A.I. centres were functioning and 21,269 cows and

8,524 buffaloes were artificially inseminated, 4,052 female and 4,070 male

calves were bom.

3,000 tonnes of cattle feed and 665 tonnes of special cattle feed were

sold after getting the same from Gubbi and Dharwad's KMF's cattle feed

mixing factories. 1,013 acres were brought under fodder development

programme. Urea treatment was given to dry grass. Farmers were given Rs.

42,000 grants for this purpose. 42 producers were sent to AMUL's

observation and training centre. 170 executive board members, 25 societies

secretaries, 26 societies milk testers, 11 veterinary health wori<ers were given

230
training. Union's staff was sending to NDDB, Anand, Erode, Mehsana, KMF's

training institutes for seminars, workshops and training. Under the

Cooperation Development Programme 1693 Men members, 1880 Women

members, 147 executive board members were given training. 1722 high

school students participated. From 18*^ August, 1993 to 20"^ August, 1993

orientation programme was organised for procurement and technical wing

staff. 208 producers were given leadership training. 25 societies secretaries

were trained in accounting. Those societies, which got benefitted under

cooperative development programme, six women forums, and two youth

forums, were formed to undertake rural development programme. 20316

cattle were given foot and mouth disease vaccination. Technology mission

programme was extended to all the 94 societies of Chitradurga district and 83

societies in some talukas of Shimoga district like Thirthahalli, Hosanagara,

Sorab, Sagar and Shikaripur. During 1994-95, 36 societies in Channagiri

taluka were brought under this programme. During 1993-94, daily sale milk

was 51,047 litres (average) up to this period Chitradurga was getting milk

from Tumkur Dairy and thanks to KMF's effort from 16"" March, 1994 SHIMUL

is supplying milk to Chitradurga district. By consulting, Shimoga District

Collector and Sagar Municipal officers 10 new milk parlours were started.

As per Karnataka Government instructions from 19*'' November, 1993 to

31** March, 1994 in 3480 schools, 1,04,000 students were given milk to the

tune of 15,600 litres daily and the total quantity of milk distributed was

231
1,56,000 litres. Under SCP plan the government grant of Rs. 15,20,600 was

distributed to eligible candidates to buy high breed cows.

After analysing the working of SHIMUL from 1991 up to 1994, there has

been continuous loss and the reasons can be given as follows:

1. Lack of suitable market for dairy products and low prices.

2. Low price of butter and milk powder.

3. Lack of demand in other states.

4. Lack of competitive mind among procurement cum distribution agents.

5. Low procurement price of milk.

6. High cost of production for milk due to scarcity of green grass, rise in

cattle insurance rate, high interest rate etc.

SHIMUL has taken suitable steps to solve these problems. It has taken

steps to establish milk parlours in Davanagere, Harihara, Bhadravathi and

other towns. Free milk sale agencies have been given.

More milk agents have been appointed to extend the market and

undertake sale of stocks. Steps have been taken to increase the Peda

production in SHIMUL.'^

The first elected Administrative Body of SHIMUL came into existence

on 29*^ October, 1992. Since then, share capital has been a steady increase.

The SHIMUL has implemented many beneficial programmes like Green

Fodder Development Programme, Urea Treatment for Fodder Programme,

232
Chulah Programme, Cooperative Development Programme, Technology

Mission Programme, Leadership Development Programme, Mini Dairy

Scheme, STEP Programme, Cattle Loan Scheme to SC/ST, and BCM

members of the Dairy cooperative societies to buy cattle.

A brief report of the achievements of SHIMUL in the above mentioned

programmes can be given as follows:

1. The area under Green Fodder Development Programme, which was

1,012 acres in 1995, increased to 6270 acres in 2000-2001.

2. The urea treatment for dry grass was given and Rs. 1 lakh was given

as grant to farmers in 1995 and during 2000-2001, 113 urea

treatment for dry grass demonstrations were conducted.

3. Under the Cooperative Development Programme during 1995, 1947

Men, 1,848 women members, 137 executive board members were

given training.

4. The Technology Mission Programme was extended to all the 94

societies in Chitradurga district and 83 societies in Thirthahalli,

Hosanagara, Sorab, Sagar and Shikaripura Talukas of Shimoga

district.

5. During 1997, 6307 members in 34 societies were given 6,307 fixed

Chulahs. This increased to 4,761 Chulahs in 47 societies.

6. For the fodder development Programme 1,012 acres of land were

used during 1995. This increased to 3,619 acres during 2001.

233
 7. Under the Leadership Training Programme, which was adopted by

SHIMUL 402 producers were trained during 1995. During March

2001, women were trained in leadership development in 20 societies

with the help of NDDB.

8. For the empowerment of women, SHIMUL adopted a programme

called 'Strategic Training for Employment Programme' (STEP) was

adopted by SHIMUL in 1997, under that, eight women societies

were started. During March 2001, ten women societies were started

and by the end of the year 2001 there were 129 women societies

covered.

9. Institution Building Programme, which was adopted by SHIMUL and

during 2001 societies' level members, were trained and members of

administrative board of societies were sent to AMUL and their

number was 215.

10. In recognition of the SHIMUL's achievement in Chullah programme

during 1995-96 and 1996-97, SHIMUL was awarded by MNCER as

the best NGO. ^^

During the period 1999-2000, some awards were given to societies,

which were working efficiently. During 1997-98 the Koolambi Milk Society of

Honnali Taluka was given award for Maximum Milk Procurement, as the Best

Society.

234
 In every Taluka, two societies, which worked efficiently, were given

awards. There were 29 such societies. The producers who supplied maximum

milk were given awards, their names are as fallows.

1. Sri Hari, Kuntapalanahalli Milk Society, Davanagere Taluka.

2. A. N. Vignesh Udupa, Kargadi Milk Society, Hosanagara.

3. D. Murugendrappa, Koolambi Milk Society, Honnali Taluka

4. K. S. Vinayaka - The Best milk contractor award.

5. Totally 19 salesmen were given awards as Best Nandini Milk Sellers for

1997-98.^*

Since 1999 there has been a steady increase in the number of

societies registered, and also the functioning societies. The societies,

which were 728 in 1999-2000 increased to 757 in March 2002. The

societies that were functioning in 1999-2000 were 586 increased to 608 in

March 2002. The share capital, which was Rs. 120.27 lakhs, increased to

Rs. 297 lakhs. During 1999-2000 the milk producers were given incentive

price of 20 paise per kg. of milk. The number of Artificial Insemination

centres and the veterinary services given to the farmers have shown a

steady increase. Institution Building Programme was introduced at the

societies level during 2001 to improve the working of the societies by

giving training to the members. Women were trained in leadership

development in 20 societies with the help of NDDB. Under the STEP

programme 10 women societies were started. Totally by the end of the

235
 year 2001, there were 129 women societies. This shows the
40
encouragement given by Shimul for women empowerment.

During 1998-99 Koolambi society was declared as the Best Society

and was awarded the prize. Other societies that were awarded were as

follows:

Name of Societies Taluka

1. Jinahalli Honnali
2. Shyagale Davanagere
3. Marasanahalli Channagiri
4. Govinahal Harihara
5. Pallagatta Jagalur
6. Sriramnagar Bhadravathi
7. Haramgatte Shimoga
8. Kattehaklu Thirthahalli
9. Kargadi Hosanagara
10. Masoor Sagar
11. Kaginelli Shikaripura
12. Sorab Sorab
13. Hirekabbigere Chitradurga
14. Arabagatta Holalkere
15. V. V. Pura Hiriyur
16. Mallappanahalli Hosadurga
17. Gajjuganahalli Challakere.

The Beleyur society was given price for the best artificial insemination
41
centre.

236
 By March 2002, there were 757 societies registered, 608 were

functioning from 56 milk routes. The total milk procurement was 1,45,629 kg.

and in October 2001,1,81,411 kg.

Total milk procured in different chilling dairy centres.

1. Anandapura 6,631 kg.
2. Chitradurga 15,356 kg.
3. Tadagani 18,264 kg.
4. Honnali 30,553 kg.
5. Hosadurga 3,014 kg.
6. Davanagere 34,180 kg.
7. Shimoga 37,630 kg.

While fixing the purchase price of milk, the quantity of milk procured,

sales quantity, demand market rate and competition is taken into

consideration. During 1** April, 2001 to 11^ May, 2001 the procurement price

was Rs. 8.85.*^

During 2001-2002, on an average 1,10,335 litres of milk was sold and it

was 3% more than the previous year. Rs. 4.00 lakhs were distributed on

incentive money to milk distributors during this period. During 2000-2001

Koolambi in Honnali taluka was declared as the best society. Mallekatte

women society in Davanagere taluka was given the Best Women Society

award. Other societies that were given award as follows.

237
 Name of Societies Taliika
1. Kachagondanahalli Bhadravathi
2. Haramagatta Shimoga
3. Masoor Sagar
4. Kaginalhi Shikaripura
5. Kargadi Hosanagara
6. Nisarani Sorab
7. Jinahalli Honnali
8. Sangahalli Channagiri
9. Shyagale Davanagere
10. Jjgale Harihara
11. Hizekabbigere Chitradurga
12. H. Mallendahalli Holalkere
13. Mallappanahalli Hosadurga

SHIMUL has been running a canteen for the convenience of staffs the

members. The food items are charged very reasonably and the charges are

as follows:

Permanent Employees: Rate.

1 Meals Rs. 3
Tea/CofTee Rs. 1

Contract Employees Rate.

1 Meals Rs. 8
Tca/Coflfec Rs. 2

Guests / Visitors Rate.

1 Meals Kb. 12
Tea/Co flee Rs. 3

238
 One of the employees of SHIMUL is deputed for the supervision of the

canteen. In 2000-2001, Shimul has given Rs. 45 per month as grants to this

canteen per emploee. The canteen is managed out of the money spent by

visitors and guests who visit Shimul for food items from the canteen. Shimul

has paid a total of Rs. 1,90,870.05 as grant to this canteen during

2000-2001.*^

The year 2002 has been lucky year for SHIMUL, because it has got the

NDDB symbol for its quality milk. There has been a steady increase in the

milk and Ghee sales since 1995-96. The sale of Peda has maintained almost

a status quo. The sale of curds also has been continuousiy increasing. The

sale of flavored milk has shown a steady increase, SHIMUL has been selling

some milk products like Butter, Ghee, Skimmed Milk Powder to other dairies

and this also has shown a steady increase.

The symbol that is given for those cooperative institutions that maintain

quality and hygienic standards is called 'National Cooperative Symbol'.

National Dairy Development Board gives this by confirming the quality of milk.

This symbol has been given to SHIMUL and this is a prestigious issue.

This symbol is a 'drop' symbol. Earlier this symbol stood for Operation Flood,

which has made the White Revolution a grand success at the rural level in

India and helped India to get first place in milk production.

239
 Mnemonic symbol a cooperation national brand for dairy cooperatives

that would stand for stiff quality and hygienic standards by subscribing milk

unions who adhere to the quality parameters and other specifications. NDDB

has selected a few metros/citles throughout the country for this exercise,

which include Bangalore, Kolar, Tumkur, Mandya, Mysore and Dakshina

Kannada for launching mnemonic symbol in Kamataka in the first stage. The

common pack design under mnemonic symbol would help the brand in

1. Being looked upon as a distinct brand from the numerous other players

who have entered the market.

2. Be a part of the National Movement along with other cooperative

brands catering to the standards laid down by NDDB.

3. Cooperative milk unions catering milk in metro cities/towns would be

required to adhere to quality and other specifications as a prelude to

subscribing to the mnemonic symbol.**

The importance of the cooperative National Symbol can be explained in

the following way:

1. NDDB recognition for the high quality of Nandini Milk.

2. Acceptance for all India level National Dairy industry's Cooperative

symbol adoption.

3. The milk with the national cooperative symbol will be the same in

quality and freshness when purchased from Kashmir to Kanyakumari.

4. The national dairy industry's symbol reflects quality, hygienic standards

and freshness.**
240
 SHIMUL at present is selling three types of milk with fats and SNF as

follows.'*®

Fat SNF
Toned milk 3.0% 8.5%
Standard Milk 4.5 % 8.5 %
Full cream milk 6.0 % 9.0 %

Recently SHIMUL has faced stiff competition from other milks like

Arogya, which was appreciated for its thickness and long life. But SHIMUL

has taken severe steps to improve its quality by proving its hygienic and

health standards. This is reflected in the symbol given to it recently. To

capture the market, SHIMUL has enhanced its marketing channels by

establishing more and more milk parlours and advertisement and also door to

door campaign. SHIMUL has strictly adhered to the parameters set by NDDB

for good quality and hygienic standards.

241
 NOTES AND REFERENCES
1. Agarwal. V. K., 1990. Economics of Milk Industry in India, New Delhi.
Commonwealth Publihsers, pp. 86 and 87.
2. Ibid, pp. 1 and 2.
3. Ibid, p. 81.
4. Annual Report, 1998 - 89, 1989 - 90, 1990 - 91, 1991 - 92. Shimul,
Shimoga, no page number.
5. Annual Report 1991 - 9 1 , Shimul, Shimoga, no page number.
6. Bandyopadhyay. K. Manob., 1999, Dairy Co-operative and Rural
Development in India, New Delhi: Uppal Publishing House,
pp. 118 and 119.
7. Balance Sheet from 1991 to 2001, Shimul, Shimoga, no page number.
8. Annual Reports from 1988 to 2001, Shimul, Shimoga, no page number.
9. Sahyadri Tappalina Shivamogga Haalu Okkuta, n.d, Shimul, Shimoga,
no page number.
lO.Annual Report 1 9 9 7 - 9 8 , Shimul, Shimoga. p. 154.
11. Annual Report 1 9 9 3 - 9 4 , 1 9 9 4 - 9 5 . Shimul, Shimoga, pp. 92 and 93.
12.Annual Report 1997-98, Shimul, Shimoga, p. 154.
13.Annual Report 1996 - 97, Annual Report 1997 - 98, Annual Report
1998 - 99, Annual Report 1999 - 2000, Annual Report 2000 - 2001,
Annual Report 2001 - 2 0 0 2 , Shimul, Shimoga, p. 122.
14.Annual Report 1993-94 and 1994-95, Shimul, Shimoga, p. 87.
15.Jain. J. L Awadh Prasad, and Gopinath Gupta, 1982. Organised Milk
Marketing in India Socio - Economic Impact, Jaipur: Kumarappa
Institute of Gram Swaraj, p. 55.
16. Annual Report 1993 - 94, 1994 - 95, p. 21.
Annual Report 1996 - 97, p. 34, 65 and 107.
Annual Report 1 9 9 7 - 9 8 , p. 71 and 179.
Annual Report 1998 - 99, p. 131.
Annual Report 1999 - 2000, p. 21.
Annual Report 2 0 0 0 - 2 0 0 1 , p. 27, Shimul, Shimoga.
242
17.Annual Report 2001 - 2 0 0 2 , Shimul, Shimoga, p. 122.
IS.Sahyadri Tappalina Shivamogga Halu Okkuta, Shimul, Shimoga, no
page numer.
19, Ibid, Shimul, Shimoga, no page number.
20.Annual Report 1997-98, p. 94.
Annual Report 1998 - 99, p. 61.
Annual Report 1999-2000, p. 59.
Annual Report 2000 - 2001, p. 63.
Annual Report 2000 - 2002, p. 76, Shimul, Shimoga.
21.Annual Report 1997-98, p. 202.
Annual Report 1998 - 99, p. 62.
Annual Report 1999-2000, p. 59.
Annual Report 2000 - 2001, p. 64.
Annual Report 2001 - 2 0 0 2 , p. 76, Shimul, Shimoga.
22.Sahyadri Tappalina Shivamogga Halu Okkuta, Shimul, Shimoga, no
page number.
23. Ibid, no page number.
24. Ibid, no page number.
25. Pamphlet, n.d. Milk and Milk Products Sales from 1985 to 2000,
Shimul, Shimoga.
26. Pamphlet, n.d. Liquid Milk Sales in Towns for the Month of April 2000 to
June 2000, Shimul, Shimoga.
27. Pamphlet, n.d. Stock of SMP and Butter as on 3 1 " November 2001,
Shimul, Shimoga.
28.Pamphlet, n.d, Published by Shimul, Shimoga, no page number.
29.Pamphlet n.d.. Published by Shimul, Shimoga, no page number.
30. Strategic Marketing Plan 2000 - 2001, Shimul, Shimoga.
31.A Note on the Implementation of Energy Conservation Programme,
n.d., Shimul, Shimoga, no page number.
32. Progress Report for the Month of April 1999, Animal loan scheme for
BCM, Shimul, Shimoga.
M3
33. Progress Report for the month of April 1999, Animal Loan Scheme for
SC/ST, Shimul, Shimoga.
34. Annual Report 1988-89, 1989-90, 1990-91, Shimul, Shimoga.
pp. 1 to 3.
35.Annual Reports of 1988-89, 1989-90, 1990-91, 1991-92, 1992-93,
1993-94, 1994-95, 1995-96, 1996-97, 1997-98, 1998-99, 1999-
2000, 2000-2001, Shimul, Shimoga.
36.Annual Report 1993-94, Shimul, Shimoga, pp. 7 to 11.
37.Annual Report 1993-94, Shimul, Shimoga, pp. 10 to 13.
38.Annual Report 1993-94, 1994-95, 1995-96, Shimul, Shimoga,
pp. 1 to 4,
Annual Reporti996-97, Shimul, Shimoga, pp. 23 to 26,
Annual Report 1997-98, Shimul, Shimoga, pp. 9 and 10.
39.Annual Report 1996-97, Shimul, Shimoga, pp. 18 and 19.
40.Annual Report 1999-2000, Shimul, Shimoga, pp. 9 and 10.
41.Annual Report 2000 - 2001, Shimul, Shimoga, pp. 12 and 13.
42. Annual Report 2001 - 2 0 0 2 , Shimul, Shimoga, pp. 21.
43. Ibid, pp. 19 to 23.
44. The various News papers.
a) "Shimul Nandinige Raastriya Manyathe", Prajavani, Bangalore,
24"^ December 2002.
b) "Shimul released Milk under NDDB Brand", The Indian Express,
Bangalore, 24"" December 2002.
c) "Nandini Milk in New Sachet", The Hindu, 24*^ December 2002.
d) "Raastriya Lanchanadedege Shivamogga Haaiu Okkuta",
Vijaya Karnataka, Shimoga.
e) "Shivamogga Haalu Okkutakke Raastriya Chihne", Udayavani,
Managalore, 24"" December 2002.
f) "Shimul Dairiy gets National Brand" Vijaya Times, Shimoga,
24*^ December 2002.

2-M
 g) "Shreshtatheya Lanchanadalli Nandini Haalu", Kranthideepa,
Shimoga, 23'"* December 2002.
h) "Raastriya Chihneyalli Nandini Haalu Bidugade", Shimoga Telex,
23'^^ December 2002.
i) "Shimul Na Full Cream Haalu Packet Bidugade", Namma Nadu,
Shimoga, 23'^^ December 2002.
45. Pamphlet, n.d. Launching, Nandini Milk under Co-operative National
Brand for Dairy Cooperatives, Shimul, Shimoga.
46. Pamphlet, n.d, 'Amantrana', Shimul, Shimoga, 23''' December 2002.

245