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Table of Contents
The District..........................................................................................................................1
Facts about the District (Statistics of milk procurement)....................................................3
Introduction..........................................................................................................................3
Objectives of Study..............................................................................................................3
Methodology of Study.........................................................................................................4
Scope of Study.....................................................................................................................5
Limitations of Study............................................................................................................5
What is a BMCU..................................................................................................................6
Why a BMCU......................................................................................................................8
Series of Events and the Rationale for BMCUs...................................................................9
The Current System...........................................................................................................12
Sustainability Issues for a BMCU......................................................................................13
SWOT Analysis.................................................................................................................22
Recommendations and Suggestions...................................................................................24
Issues for expansion...........................................................................................................27
Conclusion.........................................................................................................................28
ANNEXURE 1...................................................................................................................30
ANNEXURE 2...................................................................................................................33
The District
Chittoor is the southernmost district in Andhra Pradesh with boundaries of Ananthapur,
Cuddapah and Nellore districts of Andhra Pradesh on the Northern side, Dharmapuri,
Vellore and Tiruvallur districts of Tamilnadu on the southern and Eastern sides and Kolar
district of Karnataka on the western side. Constituted on 1st April, 1911 and spread over
15151 Sq.Kms, it has a population of about 3735200 as per the 2001 census. Only 22
percent of the district is urbanized. It is divided into 65 mandals with a population of
around thirty-seven lakhs. It is one of the dry districts in the state facing continuous
drought for the past five years. Owing to the drought conditions, the livelihoods of the
people have been changing with increased propensity towards livestock based
livelihoods. The livestock population of the district currently is around 22.06 lakhs thus
making it one of the important milk shed districts of Andhra Pradesh.
The government has taken up a number of anti poverty and development programmes in
this district since independence. Still the number of people below poverty continues to be
very high even today. It is estimated that there are more than 3,000 BPL families in every
mandal of this district (Source: DPIP BPL survey) thus making it obvious that the poverty
elevation programmes in the district has only met with limited success leaving a lot of
scope for a more effective and efficient programmes for rural development.
The Government of Andhra Pradesh keeping with the development commitment of the
state and as envisaged in Swarnandhra Pradesh Vision 2020 policy document has initiated
the `Rural Poverty Elimination Program' under the project Velugu (literally `light' in
Telugu) with the help of SERP (Society for Elimination of Rural poverty), an
independent, non-government society implementing the project through out the state.
Chittoor is one such district that has been identified in the first phase of implementation.
Meanwhile, DRDA was already into such rural development from a long time with its
own staff implementing the various other developmental programmes in the district. The
aim of both the DRDA and DPIP being the same, and thus in a direction to effectively
fight against poverty, both DRDA and DPIP were united to synchronize their efforts in
the district in the year 2000.
Introduction
The Bulk Milk Cooling Units (BMCUs) were installed in the district by the District Rural
Development Agency (DRDA), Chittoor. They are organized and supervised by the Balaji
Dairy, Tirupati, which is managed by NDDB. The Chittoor Co-operative Dairy, owned by
the Government of Andhra Pradesh was closed in the year 2002 due to financial crisis
and owed an amount of about 100 Crores to NDDB. Balaji Dairy was started a year ago
as a unit of the Chittoor Dairy, in Tirupati with the help of NDDB. The management was
initially agreed to be under NDDB for a period of one year ending in September 2005.
Owing to the non-clearance of the debt, on 17th July, 2005 it was decided to extend this
period to another year. The milk from Balaji Dairy in Tirupati is marketed in Delhi with
the help of NDDB.
The Bulk Milk Cooling Units were started by DPIP with the help of NDDB. This is taken
up as a pilot project and hence started in two mandals only. The investments were made
by the project and the management is done by the Mandal Samakhyas in the respective
Mandals. (Mandal Samakhyas are federated structures of the Self-Help Groups).
Objectives of Study
1. To understand the operation of the BMCU under the various heads of that of an
organization
2. To study current problems in order to understand the sustainability of the unit
Methodology of Study
1. Data Requirements: In order to understand the functioning of the enterprise, its
structure in every detail in context of the villagers, the project and the Dairy that
procures milk from the BMCUs is studied. That is, data from both the supply and
demand sides of the product involved (Raw Milk) and also from the intermediary
involved i.e., staff of DRDA is obtained. The Financial, Administrative and
Monitoring details are obtained in order to understand the system in every angle
possible.
2. The sources of data: The aim of the data collection being directly linked to
reliability, data from both primary and secondary sources has been collected. Not
exhaustive though, but the data has been crosschecked wherever required.
Primary Sources
In order to understand the operations and problems of the unit and the difference
it is making to the beneficiaries, the following sources of study were adopted. The
beneficiaries i.e., the milk producers, the project staff involved and the General
Manager, Balaji Dairy and other staff of Balaji Dairy were the major sources of
information.
1. Qualitative and Quantitative data was obtained from the villagers involved in
selling milk to the dairy.
2. Random sampling was made and unstructured interviews were conducted for
obtaining information from the milk producers and their family members in
order to assess the impact.
3. An exhaustive study of all the staff involved in the running of the BMCU is
done through unstructured interviews. The interviews included questions
regarding the –
a. Operation and Maintenance of the units – What is the procedure of
maintenance of the unit and what is being done and other operational
issues.
b. Financial issues of the unit – Investments made till now by the
project as well as the Mandal Federations, the monthly operating
Secondary Sources
1. All the records of milk procurement, Quality and Quantity of milk procured
from members individually that are maintained at the BMCU are verified.
2. Records of other operational issues like electricity meter readings, Generator,
diesel used, water purchase records, etc., and all other records concerning the
unit maintained at the DPIP Office, MS-office and the BMCU are verified.
Limitations of Study
• Authenticity of information collected
• Constraint of time
What is a BMCU
A Bulk Milk Cooling Unit is a system of cooling milk before it is transported to the dairy
for further processing. The components of a BMC Unit are –
A. Automatic Milk Collection Unit
B. 3000Liters Per Day Cooling Unit and its accessories consisting of :
a. Milk Tank, Capacity: 3000L
b. Twin Condensing Unit with Compressor
c. Refrigeration Control Panel
d. Milk Tank Control Panel
e. Tool Box & Operation Manual
C. Diesel Generator Set and other accessories
D. Geyser
E. Furniture & Fixtures
F. Milk Cans
The Bulk Coolers consist of a Stainless Steel tank with a jacket to keep the contents cool
to the required temperature and adjustable legs. The cooling is effected by circulating
coolant. Internal cleaning facility is provided in every Closed – type Cooling Unit. A
temperature indicator cum controller is provided for effective control of the temperature
(4 Degree Celsius which is an accepted safe temperature for keeping the bacterial growth
in milk under control). It is also provided with a Stainless steel dipstick with calibration
chart to measure the milk quantity. Also, an Agitator is provided to keep the contents
homogenous and for diffusion of fat in equally throughout the volume of milk. It als`o
helps in maintaining uniform temperature throughout the volume of milk. In some Units,
an alternative power supply by Solar equipment is provided as optional equipment. A
Temperature Controller manages the following functions:
BMC Units come in different capacities ranging from 500 liters per day to 29000 liter per
day capacity and in two types – Open and Closed. An open type unit is one which is
provided with a lid to open while the closed one does not have any lid for opening. They
also come in different shapes like semi-cylindrical, circular as shown below. The type of
the cooler, open or closed, and the capacity is chosen as per the requirement in terms of
quantity of milk procured everyday, the maintenance capacities of the organization, the
financial capacities, etc. The closed type cooler has certain advantages over the open type
which is explained in the later part of this report.
Horizontal semi Cylindrical open type tank Cylindrical closed type tank
Why a BMCU
By installing these milk chillers the transportation cost of the milk is halved as the milk
can be transported once in a day in place of twice in a day. The advantages of installing
BMCUs are explained in detail –
1. Increase in the shelf-life – Through chilling the milk immediately after milking,
spoilage of milk is avoided to a large extent. Milk can be stored in the cooler at
4degree C temperature for more than 15 days (Under tested conditions – Source:
IDMC). Thus the shelf life of milk is increased to a considerable extent and is a
case of time utility.
2. Avoiding Adulteration and Spillage from Cans – Adulteration of milk and
Spillage from cans while transporting milk from procurement area to the dairy can
be minimized as milk travels in cans only for a smaller distance – from the village
to the BMCU. Rest of the travel distance i.e., from the BMCU to the dairy is
covered by the insulated milk tanker (to maintain the existing temperature of 4
degree Celsius), hence reducing scope for dilution and adulteration.
3. Improved bacteriological quality of milk – Failure to cool milk adequately and
quickly, immediately after milking provides favorable conditions to “Strep non-ag
bacteria” (found in most cases of spoilt milk) to grow. They are known to
originate from sources outside the udder. Immediate chilling of milk after it is out
of the udder helps in controlling the growth of these bacteria hence improving the
quality of the milk being sent to the dairy.
4. Ready for Processing – Milk received at any dairy is first chilled to the required
temperature (4 deg. C) and then processed to avoid bacterial growth, as mentioned
above. With the BMCU intervention, milk reaches the dairy in chilled condition
and hence will reduce the chilling cost of the dairy, receiving the milk.
5. Transportation cost is halved by transporting once in a day instead of twice –
morning and evening.
6. Bargaining power – This gives bargaining power to the milk procurers (more so
for the poorer lot), as against the dairy, because this method would, (1)reduce the
cost of the dairy (2)is also assured good quality milk and (3)on a regular basis.
gifted blouse pieces to women every Monday. Thus not only did the local dairies lure the
farmers through gifts but also paid them the prevailing market prices. The milk in the
district was hence diverted towards the private dairies. This situation led to the decrease
in the supply of milk to the co-operative dairy and gradually the supply came down to
such low level that running the dairy was no more economical. As a result the dairy was
closed down with accumulated losses and so the whole purpose of setting up Balaji Dairy
was lost.
A survey of the milk producers currently pouring milk to private dairies revealed that
when the Chittoor Dairy ceased paying money to the farmers, the private dairy owners
had spread rumors that the Chittoor Dairy would never pay the farmers as it is neck-deep
in losses and waiting for the dairy is not commendable. The farmers were assured that the
private dairies were a viable option and they are the only source of selling milk for the
farmers. The gift system of luring stopped after a month. None of the private dairy
owners kept up their word of giving good prices. Prices were slowly reduced as months
rolled on and they would also accept milk of lower quality (diluted). If one dairy does not
accept poor quality milk, some other dairy would and hence the dairy would lose a
customer, which is not desirable. Thus the practice of accepting diluted milk came into
practice. With the decreasing prices the farmers had to find a way out. The local dairies
accepted diluted milk and paid around Rs.7/- to Rs.8/- for good milk and Rs.6/- for
diluted milk of any intensity. The private dairies do not test the milk for fat or SNF
because it would cost them huge amounts and with their small scale of operations this
would not be feasible. So the farmers diluted milk in a 50:50 ratio and sold 2 liters of
diluted milk where there would have been 1 liter of pure milk. They would thus get Rs.12
for the diluted milk instead if Rs.8 for pure milk. This practice still goes on though it is
against the Food Adulteration Act, 1952 which states that milk which has less than 3%
Fat or less than 8% SNF should not be accepted by any dairy. Adding to this the private
dairy agents offered credits to the farmers without any surety. Credits were available
whenever the farmers needed them unlike the banks. The condition was that the farmer
taking the loan has to pour milk to that dairy at whatever price it buys for, thus binding
him to that dairy. Despite the high interest rates of 8-10% per month farmers would prefer
these dairies as their necessities are being gratified even if at a higher cost. This would
not happen with either a bank or the Co-operative Dairy.
On the other side, as the Chittoor Dairy was in deep financial crisis, NDDB had to take
up the management of the Balaji Dairy. While NDDB stated that during their
management of the dairy, all losses arising would be borne by it whereas all profits would
be transferred to the Chittoor Dairy, it also stated that the complete debt amount has to be
repaid back to NDDB by September 2005, failing which would lead to handing over of
ownership of Balaji Dairy to NDDB. As the period is now coming to an end, the Ministry
of Animal Husbandry considered the situation arising out of closure of the dairy, which
would cause distrust and invite opposition from the farmers. This led to discussions
between the government and NDDB and the period of five years is now extended to one
more year, which means that the Balaji Dairy would buy milk from the farmers for
another year to go.
In order to regain remunerative prices to the farmers, the DPIP intended to start Bulk
Milk Coolers in the district. And as a pilot project, two of them were installed in two
mandals of the district under the guidance of NDDB.
The BMCUs are run by the Mandal Federations through the SHG women groups. The
hierarchy of the Mandal Federations is given below –
government. The MS monitors the VO working. Also the funds granted to the MS
from the government will be revolved through the MS.
ZS (Zilla Samakhya) at the District level:
All the above-mentioned MSs federate at the Mandal level to form the ZS.
Given the above hierarchy, all these organizations carry out businesses convenient to
operate in the respective areas. Therefore, the MSs of VKota and Gangavaram are
operating the BMCUs in their respective mandals.
Milk Procurement
The Federation procures milk from villages with the help of self help groups / collection
centers / societies. This is done by a “Paalamitra” who is a member of the SHG. The milk
is tested through a Lactometer and the Federation shall ensure that only GOOD quality
milk is procured from the milk producers. It is the responsibility of Federation to
maintain quality as per the quality standards laid down by the Diary, until the milk is
transferred from the bulk cooler to the Diary. The milk thus collected at the villages is
delivered it to the Bulk Milk Cooler operated by them through Auto Rickshaws. The
transport cost is borne by the Dairy. On receipt of milk at the Bulk Cooler, Federation
shall arrange to weigh, test and immediate chilling & storage of milk in the cooler, for
subsequent movement of the milk to its main Diary Plant. The movement schedule of the
milk is as per the quantity of milk procured, quality parameters etc., which shall be
decided and communicated by the Diary from time to time. The Federation makes
payment to the self help groups / collections centers / societies as per the milk
procurement chart / rates declared by the diary and as per the milk quantity & quality
received. As per the MOU signed, the Federation shall ensure to sell the entire quantity of
milk procured by them to the Diary only. In case of violation of this requirement, the
Diary would be free to terminate this milk purchase agreement and to take other
necessary action. The Federation sells the sample milk, which is tested, locally.
Payment System
The diary releases payments to the Federation towards the milk purchased every fortnight
(on 5th and 20th of every month), as per the quantity & quality acknowledged. It
reimburses @ Rs.2 per Kg total solids in the milk received by the Diary from Mandal
Federation towards operation & maintenance cost for the bulk milk cooler.
1. Domain Centrality
Domain Centrality of an enterprise states as to how central / important is the setup in
its area of operation. That is to say that the enterprise should have a substantial share
in the total income generated in the area of operation i.e., the domain area.
Andhra Pradesh stands fourth in India in terms of milk production as can be seen –
Milk Production
INDIA 880 Lakh Tonnes
Uttar Pradesh 160 Lakh Tonnes
Punjab 84 Lakh Tonnes
Rajasthan 80 Lakh Tonnes
Andhra Pradesh 70 Lakh Tonnes
Gujrat 64 Lakh Tonnes
(Source: Basic Animal Husbandry Statistics 2004, Dept. of Animal Husbandry &
Dairying, Ministry of Agriculture, Govt. of India.)
Twenty percent of the total milk production in Andhra Pradesh is from the district of
Chittoor. With a total live stock population of 22.06 lakhs, around 14 lakh liters is the
total milk production per day in the district. Being a dry state, livestock based
livelihoods have become major sources of income for the people in the district and
this explains the centrality / importance of milk production and its trading in the
district. Therefore, any intervention in this area would make a substantial change in
the economic status of the district.
2. Member Centrality
An enterprise if being setup has to be relevant to the stakeholders and of importance
to them if it has to run properly. It should make a major difference in the lives of the
stakeholders in terms of their income. In the sense, the income generated through the
intervention of the enterprise should be substantial enough for the stakeholder to take
interest in the enterprise and maximize his / her contribution for ensuring its success.
Otherwise, the performance of the enterprise would not be sustainable over a period
of time.
Chittoor is one of the dry districts in the state facing continuous drought for the past
five years. Owing to the drought conditions, the livelihoods of the people have been
changing with increased propensity towards livestock based livelihoods. Major parts
of the district are based on livestock and income generated through milk production
thus increasing the importance of milk trading. A survey (See Annexure), done in the
year 2004, by DRDA in the district for estimating the marketable surplus of milk in
the area has shown that more than sixty percent of the population own milch animals
and are producing surplus milk for sale to the dairy thus earning their livelihoods.
With continuing drought, the amount of loans disbursed for buying milch animals
have gone up and so have the numbers of the cattle.
Therefore, milk production can be said to be central to the people and the enterprise
of Cooling Milk has a major role to play in the district and therefore is assured of the
risks against sustainability of the enterprise over a period of time.
A. Finance
The Milk Coolers were financed by the Project (DPIP). They are given to the
Mandal Federations to maintain with the help of NDDB. While the Capital costs
are borne by the Project, the operating costs are also borne by it for an initial
period of 3-4 months. The Mandal Federations would bear the costs initially and
the Project office would reimburse them. As stated earlier, the transportation costs
are all borne by the dairy and therefore the economies of transportation could not
be made as a part of this study. Although, an analysis of the costs currently being
borne by the BMCU (details in Annexure), are analyzed –
1. Salaries of the employees: There are four women working in the unit. The work
of the operator would be for around 14 hours in a day for both the shifts and is
paid Rs.3000 a month. So would it be for the woman who does the cleaning and
testing of milk and she earns a salary of Rs.1500 per month. The other women for
weighing and cleaning, work for around 12 hours a day and are paid Rs.1200 a
month (details in Annexure). The salaries are reasonable for the amount of work
being put in and for the strain involved in it. The opportunity cost of working
elsewhere is also lower for the women and hence the women are complacent too.
2. Electricity and Diesel (for generator) charges: Although, the electricity costs
can be reduced if the unit is run economically for which the operator needs to
have a technical minimum knowledge about the equipment which suggests a
qualified candidate for the post. The current operators can be given certain formal
training so as to equip her with proper knowledge as regards the operation of the
equipment of the BMCU and hence optimize the power charges and make it
economical.
3. Water charges: The district is drought prone and hence suffers from scarcity of
water. Water is, therefore, bought for drinking purposes. The Unit too buys water
on a regular basis for everyday maintenance of the equipment. Hence this is a
regular and inevitable cost for the BMCU.
4. Chemicals & Detergents: Chemicals, soap oils and detergents are needed for
cleaning the milk cans, sample bottles, the cooling unit, etc. These are bought
from the dairy.
The above stated are the monthly expenses. Although, there are certain issues
identified to be improper in the administration of financial issues –
1. All records concerning the BMCU are supposed to be maintained by the
Computer Operator in the unit, which is not being done in one of the unit. The
records are maintained by the Master Book Keeper of the Federation Office.
This is not desirable because, (1) He is not an employee in the center (2)
There would be dependency on the MBK for every small issue and when one
is speaking of sustainability, this dependency on personnel external to the unit
is not desirable (3) Complete knowledge of the financial position of the unit is
not known to the operator (4) Manipulation of the records by the MBK would
not be known to her and she is answerable to the women in the federation for
it. Therefore, there is a need for maintenance of all records by the BMCU staff
themselves for transparency. If the Computer Operator in the Unit is given
proper training and instructions as regards the maintenance of the accounts,
this issue can very well be rectified.
2. Improper recording of transactions lead to misunderstanding of accounts and
hence a wrong projection of the existing situation. Standardized and complete
documentation of the processes in the units is necessary.
3. Scrutiny of the records at one of the BMCUs and MS Office reveal that the
certain financial figures are not authentic. Some figures are missing while
some figures do not have vouchers to support them. Also there are cases
where bills show a different figure while the records show a different one.
This is an issue requiring immediate correction.
6. While, the women working in the units have to work for prolonged hours
(around 13 to 14 hours a day) there are chances that they would try and finish
the cleaning the cans and sample bottles as early as possible during the second
shift (nights), which might in turn result in compromising on the quality
standards. This has to be hence scrutinized by the monitoring authority to
avoid improper cleaning of cans and hence result in damage of the milk.
C. Administration
1. Roles and responsibilities of the staff involved are to be defined properly and
clearly while recruiting the staff and compromises should not be permitted. To
quote an example, the Operator in Gangavaram unit does not maintain
accounts of the unit completely while, actually, she has to. She is unable to
handle the administrative issues alone, like, sending print outs of the milk
details to the collection centers, recording of the diesel use, the electricity
readings, etc. She takes the help of the MBK and the supervisor.
Clear definition of roles while recruiting, or at least giving training to the
employee regarding the administration of the unit would solve this issue.
2. The women at the federation level have a need to involve themselves actively
in the issues of the BMCU, access and scrutinize the records and documents
of the unit, as they have a collective ownership towards it. They should, in
fact, act as monitoring authority to the BMCU and make the staff there
answerable to them, to ensure proper running of the unit in the long run.
3. Stringent review and audit practices have to be put in place at the Units. No
comment is being made on the external audit but internal audit done by the
DMG (the trainer of the MBK) is not stringent and needs to be acted upon.
The DMG can be made responsible for the actions of MBK and the monthly
reviews taken seriously because monitoring of the activities at the unit is
equally important when one is talking about the sustainability of the unit over
a period of time.
4. There is a need for clear definition of a monitoring authority. There is no one
person responsible for the monitoring of the unit. While this is said, it can also
be said that there are too many people interfering into the affairs of the unit.
The MBK, the CCs (Community Coordinators), the APM (Assistant Project
Manager), the supervisor, the APO(Assistant Project Officer), the Additional
Director (Animal Husbandry), the consultant are all looking into the issues but
no one person is completely responsible for the Unit. If the responsibility is
fixed to an individual, he/she would look into the issues of the unit more
carefully and take complete charge of it no matter what, as he solely
answerable for the issues in the unit.
5. Reviews are to be done by DRDA to keep the unit under check. The General
Manager, Balaji Dairy conducts review meetings to check if there are any
problems in the maintenance of the unit. Talks with the Manager revealed that
the Dairy is looking after the issues because DRDA is not doing it. The dairy
also holds some stakes in the system and hence is bothered about the proper
running of the unit. But, this has to be done by the DRDA/DPIP authorities.
D. Human Resources
All the staff in both the Units is women. This all women staff situation is created
purposefully due to various reasons –
i. To Empower rural poor women
ii. To Empower the Mandal Federations
iii. To reduce any possible ambiguity in the running of the Units, as
women are considered more honest than men.
Although, the following issues in any BMCU are to be considered –
1. Proper training of the women is necessary for a complete understanding of the
maintenance of the unit.
2. An all women staff situation is created purposefully due to various reasons.
One of them is to reduce any possible ambiguity in the running of the Units,
as women are considered more honest than men. Facilitation of this
understanding is to be made to the women as they would be operating the unit
the long run, long after the project is completed too.
SWOT Analysis
For a better understanding of the situation and for a bird’s – eye view of the system
working, a Strength, Weakness, Opportunity and Threat Analysis is done.
Strengths
• Good-Quality milk supply is also ensured as the farmers are realizing after their
encounters with the private dairy management
• There is good support infrastructure granted from the government
• Honesty of the women working is a major strength
• Value addition is done to milk, as it need not be chilled again at the dairy. Clean
and fresh milk is sold to the dairy thus increasing the bargaining power
• Increase in shelf-life of milk
Weaknesses
• The Illiteracy of the women is the major weakness for the unit. This leads to
problems of lack of proper monitoring, misappropriation of funds, etc.
• Lack of proper documentation of happenings by the staff neither at the BMCU
nor at the MS Office.
• Management of the Unit in terms of overseeing the processes and monitoring is a
major weakness. There is no proper monitoring authority for the unit. No one in
the system takes the responsibility and the unit now is no one’s baby.
• Lack of technical support is a major weakness as operating the unit has to be done
economically and properly and can be done only with proper technical knowledge
• Lack of authenticity of information due to improper documentation.
Opportunities
• There is a permanent demand for the product, raw milk, from Balaji Dairy. This is
an opportunity that can be cashed through proper planning.
• There is also ready supply of raw milk from the women of the district.
• There is good Financial support – Operational and Capital, from the government
for
all issues of the BMCU.
Threats
• A major threat for the project is the uneducation of the women in the MS. The
women are incapable of questioning the staff as they are not educated and hence
not empowered.
• Lack of technical knowledge for Maintenance and Operations of the operating
staff might prove disastrous in the long run.
• Lack of proper Monitoring Mechanism for every process in the system is also a
threat as this is the major cause of all the problems involving the irresponsibility
of employees of the unit.
Finance
As the Computer Operator at Gangavaram is unable to perform the duties of the BMCU
completely, she can either be trained and the dependence kept under check or she can be
replaced by a better candidate. A suitable candidate who can maintain the unit better
without depending on the MBK should be recruited. It has to be noted that the
performance of the Computer Operator at VKota is performing better because she is
better qualified, can understand things better and act according to the situation without
depending too much on anybody. These are the criteria for a person to be selected for that
post. Till then there can be a cut in the salary of the operator to reduce costs. The
deduction would be in proportion to the work not done by her (done by the MBK and the
supervisor).
This would not only help in regularization of the work at the unit but also reduce costs for
the BMCU.
There should also be a monitoring mechanism to check the issues of finance of the Unit
regularly.
Also, the quality of the equipment has to be checked while installing, and this can be
done with the help of a qualified personnel who can be hired.
Some infrastructure is still unavailable at the BMCUs. Nylon Strainers are to be provided
to ensure proper filtering as the current ones are damaged. Gloves for the cleaners are to
be provided to ensure better and safer cleaning of the equipment. A support stool for
tilting the milk cans has to be installed to control pests and flies at the BMCUs as the
milk cans are too heavy for the women.
Some operating suggestions were provided for aiding the operating and maintenance of
the BMCU in a better way, the details are given in the Annexure. Some of them are in
practice, while some are not. It has to be ensured by the authorities that the
implementation is being done appropriately.
For safety considerations, it is recommended that the installation and the maintenance of
the units be performed by qualified engineer/personnel only.
Administration
1. A proper – one person Monitoring mechanism has to be put in place in order to set
things right in any sphere of the unit. With too many heads involved and none being
responsible, it would lead the enterprise nowhere. A stringent monitoring mechanism
is a dire necessity here so put things into place. This would also solve the problem of
information asymmetry, as one person would be responsible and hence he would be
the authentic source of data. The person monitoring has to oversee the administrative,
financial and other HR issues relating to the personnel working in the unit. The
person should
• Be appointed as a Monitoring authority than the MS itself because the MS is
not empowered enough to question.
• Be held responsible for all issues in relation to the BMCU.
• All the employees would be answerable to this person. And, he/she would be
answerable to the MS and the PD as well.
2. It has to be understood here that there is no residual claimant. So, the operating loss
should not be borne by the DRDA but should be attributed to MS.
This would make them feel responsible, as it would be their money involved.
3. Roles and responsibilities of the staff in the BMCU are to be defined clearly and they
have to be made accountable for their duties. Any compromise whatsoever is not to
be tolerated. Stringent measures are needed to ensure proper alignment of the
working of the system. The working of the staff has to be checked at regular intervals
and any deviance from the defined system of working should result in punitive action
by the monitoring authority. Only then can a huge network of BMCUs be sustainable
over a period of time. Once given lenience, it is taken as a loophole and mistakes
would continue. Proper exposure about the BMCU has to be given to the staff
involved so as to ensure a better understanding of the process and hence any problem
can be identified and rectified easily.
4. Formal Training is necessary for both the Computer Operator and the Cleaners so that
they need not depend on the supervisor for administrative issues.
5. Reviews and Audits are to be made more stringent. It has to be ensured that the
review matters are implemented well and audits are stricter. They have to be done by
DPIP and NOT Balaji Dairy.
Human Resources
1. As the women have problems with working for long hours, they can spilt the work
with two more women and share the salary too so that this would not cause any hike
in costs for the unit. They can work in shift system and spend more time with
themselves and their family. One concern here is the cut in salary, which is not
appealing for the women but it has to be noted that they can look at alternative
employments during the rest of the day.
2. As said earlier, ambiguity and lack of understanding is largely existent with the
women. They should be made more aware and educated about the process. If proper
understanding of matters were combined with honesty and sincerity, the programme
would definitely be sustainable over a period of time.
3. The recruitment process has to be proper and select only those candidates suitable for
the post and not compromise like the case of Gangavaram. The present Recruitment
process is to be refined.
• A minimum qualification has to be defined and this should be substantial
enough for the person to read understand issues clearly
• She should be able to think logically
• She should be smart and quick to deal with unfavorable situations
4. Proper facilities for work have to be provided for the women workers in terms of the
infrastructure as mentioned earlier.
2. Also, a service engineer has to be recruited for over seeing the issues of the
BMCU all over the district. Dependence on the supplier for services is not
advisable with the expansion. As mentioned in the suggestions above, for safety
considerations, it is recommended that the installation and the maintenance of the
units be performed by qualified engineer/personnel only.
4. Closed type Cooling Units are more desirable over Open type Cooling Units as
the lid of the Open type Cooling tank would not be insulated and would cause a
loss of temperature and also every time the lid is lifted up, the loss of temperature
is higher than otherwise. Whereas in a closed type cooler, the cooling tank has a
small opening and hence the temperature loss is controlled to a large extent, thus
resulting in reduction of electricity costs.
Conclusion
Chittoor is the southernmost district in Andhra Pradesh. Owing to the drought conditions,
the livelihoods of the people have been changing with increased propensity towards
livestock based livelihoods. In the year 2005, the Bulk Milk Cooling Units were started
by DPIP with the help of NDDB. This is taken up as a pilot project and hence started in
two mandals only. The investments were made by the project and the management is
done by the Mandal Federations in the respective Mandals (Mandal Federations are
federated structures of the Self-Help Groups).
A Bulk Milk Cooling Unit is a system of cooling milk before it is transported to the dairy
for further processing. There are certain advantages of installing BMCUs like, increase in
the shelf-life of milk, avoiding adulteration and spillage from cans, improved
bacteriological quality of milk, milk is ready for processing, transportation cost is halved,
bargaining power of the farmers is enhanced, penetration into remote and low milk
production areas is possible assuring good returns to the farmers, flexibility in milk
collection time, avoiding economic losses to farmers due to spillage/sourage of milk, etc.
Certain sustainability issues are highlighted in the study. Being a dry state, livestock
based livelihoods have become major sources of income for majority of the people in the
district and this explains the domain centrality and member centrality of milk production
and its trading in the district. With the private players paying meager prices, the BMCU
intervention would ensure good prices to the farmers and hence the BMCU is ensured of
good supply of milk. Also, with the dairy procuring almost half of its capacity from the
neighboring state, this volume if available in Chittoor itself, that too chilled would reduce
the Dairy’s cost of procurement to a large extent, thus BMCU is assured of demand for its
milk too. The dairy has also conceived a plan to extend the plant for doubling the present
capacity. These issues hence explain that the intervention of setting up cooling units
would achieve success and also assures its sustainability.
For efficiency in the intervention, standardized and complete documentation of the
processes in the units is necessary. The Quality of the Cooling Unit has to be checked
while installation for efficiency in operations. Though the BMCU is designed to be user –
friendly, a certain amount of technical knowledge is required and inappropriate
knowledge as regards the maintenance of the equipment might lead to improper handling
and hence there is a need for technical training to the operating personnel. Certain
infrastructure is needed for safe handling of equipment and efficient maintenance of the
unit, like, Nylon Strainers, Gloves for better and safer cleaning and a balance stand for
resting the milk cans.
Proper definition of roles and responsibilities of the staff involved while recruiting the
staff would help in enhancing efficiency of performance, necessary in the long run for
sustainability. Also, the women at the federation level of the SHGs have a need to involve
themselves actively in the issues of the BMCU, access and scrutinize the records and
documents of the unit, as they have a collective ownership towards it as minimal
interference by the Federation staff is always preferred to avoid ambiguity. They should,
in fact, act as monitoring authority to the BMCU and make the staff answerable to them
for efficiency of operations. Stringent review and audit practices can be put in place. An
all women staff situation is created to empower rural poor women, to empower the
Mandal Federations and to reduce any possible ambiguity in the running of the Units, as
women are considered more honest than men. The enterprise should qualify in the above
said manner with these qualifications in order to achieve success in the long run i.e., for
sustainability.
Finally, when we talk of monitoring agent we should also consider monitoring of the
monitoring agent. If this condition of no one responsible continues, the Unit shall remain
forever as a no man’s baby. Today, if the BMCU fails there is no body who can take the
responsibility for it. This is a situation most dangerous for an organization. And hence has
to be treated as urgently as possible. When the organization intends to hand over these
assets to the women in the SHGs, the women should first be empowered through
education. When the BMCUs are being maintained as individual organizations, involving
huge investments and a most perishable commodity, MILK, the management has to be
done in a very professional way. Given the positive sustainable indicators for the
enterprise what remains is the maintenance of the units which has to be very careful and
every detail to be checked carefully. Given the (economic) incapacity to hire
professionals, managing the system with the available resources in a professional way is
the necessity of the day.
ANNEXURE 1
RECOMMENDATION
ANNEXURE 2
(Directions for Operating and Maintenance)
1. The milk tank must be cleaned immediately after removal of milk. Cleaning
should be done with fresh water.
2. The tank should be brushed with dairy detergent and hot water along with a soft
nylon Tank Cleaning Brush. A hard wire brush should never be used as it might
cause scratches.
3. All traces of milk left over dipstick, agitator blade should be removed with soft
nylon brush.
4. The tank has to be rinsed again with plenty of fresh water for complete removal of
detergent.
5. While cleaning it has to be ensured that the refrigeration unit, agitator, etc. are in
“OFF” position.
6. After completion of each milking, it has to be ensured that the connecting pipeline
along with unions and bends are cleaned properly.
7. Every 10-12 days, dust from the condenser fan has to be blown up with the help
of an Air Blower.
8. It has to be checked that the insulation of return line is maintained properly. Also
it has to be seen that the position of Bulb of Expansion valve is not changed. If the
same is not in contact the function of Expansion valve is affected.
9. It has to be always noted that the area under the Bulk Cooler Tank is cleaned
properly.
10. The tank has to be cleaned properly from outside to maintain the circle polishing
finish and proper look.
MAINTENANCE
1. The suction and discharge pressure of the system are to be checked at regular
intervals.
2. It has to be ensured that all parameters are in line with the application and in all
cases within the compressor application limit.
3. Condenser coil is to be cleaned at regular interval.
4. Oil level is to be checked through the compressor oil sight glass.
5. It has to be checked that the fans are running free and without vibration.
6. The set point of the pressure has to be checked often.
7. Never disturb the setting of the Expansion valve. Only the service engineer should
do it.
8. The area nearby the junction box provided on condensing unit is to be cleaned.
But it should be noted that the box is not cleaned with water.
9. All the electrical connections are to be properly tightened to avoid occurrence of
any fault.
10. Any type of abnormal noise anywhere from the system has to be checked and
reported immediately to the service engineer.
11. The insulation on the suction line has to be checked if it is in place and it should
not be tampered or removed as this may affect the performance of the system.
12. Do not use adjustable spanners. Only proper spanners/keys are to be used for
operating various valves.
13. Never run the compressor while under vacuum or in nitrogen pressure as it may
cause motor compressor burnt out.
14. Do not by pass the safety and protective devices.
15. It has to be made sure that the refrigerant charge is adequate for winter as well as
summer run conditions.
SAFETY PRECAUTIONS
1. Check the chloride contents in water, which is to be used. The contents should be
within 80 PPM.
2. After conducting cooling trials on the tank, drain out all the water from the milk
tank as well as from the pipeline.
3. Add chemical / alkali to soften water.
4. Remove all dust from the tank.
5. Confirm that the milk tank is dry from inside. In case the tank is not to be used for
cooling milk for a long period, drain out water from the tank.
6. Cover the tank properly to protect from direct water, sunlight and dust.
7. Avoid entering of water in control panel while cleaning tank.
For safety considerations, it is recommended that the installation and the maintenance