Introduction

Dairying has become an important secondary source of income for

millions of rural families and has assumed the most important role in
providing employment and income generating opportunities particularly for
marginal and women farmers.
Punjab is one of the biggest milk producing state in India. Its contribution
towards milk production is 12.45% of the total milk production in India.
Also per capita availability of milk is 944 grams, which ranks highest in
India.
Data related to dairy sector in Punjab from 2009-10 onwards is provided in
the Table-1 below. The data shows stagnation in milk output and related
factors. It calls for action to improve productivity of the sector right from
output per animal, procurement, production and distribution with improved
quality of output

Description

2009-10

2010-11

2011-12

2012-13

2013-14

Milk production (000 ton)

9389

9423

9551

9741

9344

Per capita milk available in gms

944

937

945

944

944

Artificial Insemination (000)

3445

3576

3707

3834

3963

Milch animal available in Punjab (000

nos)

3773

3812

3851

3888

3927

Table 1: Dairy Sector Progress in Punjab from year 2009-10 to

2013-14.
Figures for the year 2014-15 are not available at any source .
1.2 Background Note- Present Status of Milk Union, Sangrur.
The Sangrur Distt. Coop. Milk Producers Union Ltd. Sangrur (M.U
Sangrur) was registered under Coop. Societies Act. 1961 of Punjab on
dated 24.03.1973 Registration No.931 under three tier system i.e.

Milk producers societies at village level.

Distt. Coop. Milk Union at District level.

Milkfed Punjab as apex body at State level.

2014

M.U Sangrur worked under the guidelines of Milkfed Punjab, Registrar

Coop. Societies Punjab & Punjab Govt. from time to time.
The milk procurement work in District Sangrur was started in the year
1974
The main objectives of the M.U, Sangrur are as under.

To provide remunerative milk prices to milk producers at their door

steps by organizing milk producers Coop. Societies of Milk
Producers at village level. Arranging milk lifting of milk from milk
producers Coop. societies to Milk Chilling Centers/BMCs and
dispatching it to Milk Plant for further processing.

To enhance milk production at village level by providing them

following technical input services.

Providing Cattle Feed & Mineral Mixture.

A.I. Services for breed improvement.

Quality Fodder Seed for green fodder.

Awareness Camps for CMP and Animal Health.

Arranging awareness tour to cattle-feed plant

To provide good quality milk and milk products to the consumers at

genuine rates.

1.2.1

At Present M.U Sangrur has 380 Milk Producers Societies and 135
Progressive Dairy Farmers who supply milk to M.U Sangrur where as
total numbers of potential villages are 575.So there is an urgent need to
organize societies in all the potential villages to provided above
benefits/facilities to all the milk producers of the Milk shed area.
The Milk shed area of Milk Union has four Milk Chilling Centers. The Union
has also installed 19 BMCs, 86 AMCUs & 120 Milk Analyzers at different
MPCS.
Milk Union is providing A.I Facilities to 184 Societies through 30 clusters
centers & 34 single A.I. Centre.
The Main Milk Products manufactured by the M.U Sangrur are Pouch Milk,
Ghee, SMP, Curd, Lassi, Paneer & Panjiri, etc.
This Plant has also adopted Quality Management System requirements as
per the international standard ISO 22000/2005 & Food Safety
management System Hazard Analysis & Critical Control Points (HACCP)
to ensure highest quality products with build in food safety to the
consumers.
Milk Procurement
The main objective of procurement wing is to increase milk procurement

by motivating milk producers towards cooperative system explaining its

benefits to them. Milk Union is also providing remunerative milk prices to
the milk producer along with technical support i.e. installation Bulk Milk
Coolers, Automatic Milk Collection Unit etc.
Year wise Procurement by M.U Sangrur since 2010-11 to 2014-15 is
tabulated below (Table-2).
YEAR
2010-11
2011-12
2012-13
2013-14
2014-15

PROCUREMENT PER DAY (000 KGS)

50024
57425
70811
66302
71339

Table 2:Year wise procurement figure-M.U Sangrur

Present Milk Procurement of Milk Union Sangrur is 71339 LPD on an average.
The procurement however touches 100000 LPD average in flush season. Many
a times it crosses 1 lac LPD. The minimum procurement on average is 45000
LPD in lean season. Processing capacity of Milk Plant is 1.00 lac LPD.
At Present Milk Procurement infrastructure is not sufficient if compared with the
processing capacity of the milk plant. And it is found lagging behind to meet the
demand of city supply and other milk products.
Village level cooperative societies are financially weak & lack basic
necessity to enhance the milk procurement i.e. Building / Bulk Milk Coolers /
Automatic Milk Collection Units / Analysers / A.I. equipments. So there is an
urgent need to provide them with the latest technology equipments such as Bulk
Milk Coolers, Automatic Milk Collection Units DPMCUs/Milk Analysers etc. So
that milk procurement system could be modernized and be make more
transparent in addition to improving bacteriological quality of milk by chilling at
village level.

Milk Processing
The Capacity utilization of the plant is continuously increasing as we are
receiving milk from the sister unions also during the flush season & we
are also supplying packed milk as well as loose milk to our sister unions
as per their demand.
The data of Capacity utilization for last five years is tabulated below
(Table-3).
Year
2010-11
2011-12

Plant Capacity
(Kg/day)
100000
100000

Average Milk handled

(Kgs/day)
69600
79210

Capacity utiliza
(%)
69.60
79.21

2012-13
2013-14
2014-15
Table-3: Capacity utilization of
2014-15.

100000
87688
100000
80022
100000
81746
M.U Sangrur from the year 2010-11 to

87.69
80.02
81.74

Further, demand of packed milk and milk products like Lassi, Curd,
Paneer,Panjiri& Ghee in our own milkshed area is also increasing as
people are now getting aware about the quality of packed & labelled food
after implementation of Food Safety act. The existing infrastructure for
meeting increasing demand of products and to manufacture the same as
per fixed quality standards is not sufficient, So there is an urgent need to
up-grade & renovate the same.
1.2.3 Marketing of milk & milk products.
Primarily we are marketing milk & milk products in Sangrur, Barnala,
Malerkotla, Sunam & Dhuri. Beside marketing products like Panjiri to
government agencies, we are marketing products like Flavoured Milk,
Ghee and Milk Powder all over Punjab and adjoining areas of states of
Rajasthan and Haryana.
We are also supplying packed milk to our sister union Milk union Ropar to
meet their market demand of packed milk in the mohali city, in addition to
this we are also supplying concentrated milk & mixed milk to our sister
unions Mohali &Jallandhar as per their demand
We have 193 agencies for selling milk and fresh milk products in the
market on daily basis.
Product wise sale performance of MU Sangrur from 2010-11 to 2014-15
is given below (Table-4)
Product
Milk (ltr /day)
Milk Supply to Mohali (Ltrs. P/day)
Curd(kg /day)
Panner (kg /day)
Lassi(ltr /day)
Kheer(kg /day)
Ghee (kg /day)
Panjiri(kg /day)

10-11
6975
14978
369
242
84
21
493
1717

11-12
7703
14481
432
283
324
27
645
1180

Year
12-13
7438
15301
535
563
769
31
648
1704

Table 4: Product wise sale performance of MU Sangrur from 201011 to 2014-15

13-14
7001
15637
726
285
1091
35
785
1002

14-15
7029
15720
805
216
803
45
454
1298

Sale of MU Sangrur to other Milk unions/Branches from 2010-11

to 2014-15

Ghee (kg /day)

10-11
419

11-12
799

Year
12-13
924

SMP (kg /day)

1167

2356

3986

Product

Marketing
Proper marketing of the milk and milk products is must for sale of the
product and profitability of the organization. Milk and milk products must
reach the consumers with quality remaining intact. Milk and most of the
milk products are very sensitive products and need to be preserved and
handled at 6o C. For this a good permanent system of cold chain for
transporting milk products in insulated and refrigerated vehicles and their
storage at selling point must be an integral part of marketing. This will
help prevent deterioration of products during distribution and financial
loss arising there from.
For maintaining cold chain in market, requirement of deep freezer and
refrigerators is a must. Present number of such equipment available
being low, it is essential to increase their number to meet requirement of
expanding market. Also required will be additional milk & milk products
parlours to improve availability. Market can further be expanded through
provision and expansion of these facilities.

2. Profile of the Participating Agencies

2.1 State Implementing Agency

13-14
674

14-15
528

1638

3032

The Punjab State Cooperative Milk Producers Federation Limited (Milkfed)

is the State Implementing Agency. It is one of the major organizations in
cooperative sector in India with more than 7300 village level Milk
Producers Societies and 4.10 lac members under it.
Details are provided under Appendix 1

Profile of the End Implementing Agency

The Sangrur District Coop. Milk Producers Union Limited Sangrur is the
End Implementing Agency.
The Sangrur District Coop. Milk Producers Union Limited, Sangrur was
registered under Cooperative Societies Act. 24.03.1973 (Regd.No.931),
prior to the existence of of MU Sangrur,Milk Plant Sangrur which was
commissioned in 1979 was owned by Punjab Dairy Development
Corporation. But it was decided by Punab Government in the year 1980 to
cover this union under Operation Flood-1 Programme. In this way milk
plant was handed over to milk union in the year 1980-81. As on date it has
under it 415 Societies with 23700 pourer members.
Now the plant is regularly supplying of milk & Milk Products in Punjab & is
also supplier of Milk & Milk Products to Indian Army. The Turnover of the
plant was 93.50 crores during 2014-15.The MAIN products manufactured
are Pouch Milk, Ghee, Milk Powder, Curd, Paneer, Milk cake, Panjiri, Lassi
etc..
Similarly marketing set-up of the organization is capable to penetrate the
market and increase its share from present 9% to14%.

Consumption of Ghee for panjiri at MU Sangrur

Product
Ghee (kg /day) @ 10%

10-11
171

11-12
118

Year
12-13
170

As milk procured and after meeting the requirements of milk in

packet milk & fresh milk products, surplus Fat & SNF is being
converted into Ghee & SMP respectively and which is being sold
in
our local market as well as to other sister unions &
branches.

13-14
100

14-15
130

Ghee is also used in the production of Panjiri & the panjiri is

supplied to the CDPO"s as per the guidelines of State Govt.