Friday, September 1, 2017

Let us make Indian dairying Future ready under PPP mode (44th, 16th to 31 Aug, 2017)

Dear friends,

So finally we are slightly more than a fortnight away from the festival times. This is a time of highest consumption of indigenous milk products like ghee, khoa, paneer and other sweets. Even Chocolates are being sold and consumed in large quantities. Almost 30 % of the total ghee sales in the country happens during this period. 

Fssai new norms for Milk and Milk products are being appreciated well by the industry and from both farming and processing sector. The food regulator has also launched 9 mobile testing laboratories which would not only be sampling and testing but also be developing awareness about safe and nutritious food. It is a very good initiative at the onset of festival times. 

This fortnight , I have chosen a news from East India and I would like to link it with a very important area which is till date missing in Indian dairy industry. We have raised our voice for the same issue time and again in our publications and in this newsletter also. The issue deals with having investments in PPP mode in Indian dairy sector. 

One of the largest dairy in West Bengal i.e Metro Dairy started was the first dairy project under PPPP ( Producer Public Private Partnership)in 1990s. It was a tripartite venture having  West Bengal Milk Producers federation, NDDB and Keventer Agro as partners. The dairy did a very good job and NDDB passed on their share to Keventer  Agro. Now Government of West Bengal which is a major stakeholder in West Bengal Milk producers Federation has also decided to pass on their share also to Keventer Agro. 

This case is a very good case study to start multiple dairy initiative under PPP using funds available under various schemes like National Dairy Plan, National Livestock Mission, Rashtriya Gokul Mission, DEDS by NABARD, PM Sampada Yojana and many more. Till date most of these funds are being utilized through state milk federations under the guidance of NDDB. Our suggestion is that private sector may also be given an opportunity to work with public sector enterprise under the guidance of NDDB with such funds, to speed up the whole process of dairy development in the country as well as making use of , ailing infrastructure of most of the state federations, in almost all parts of the country. Some of the suggested areas where government could prepare and call for an EOI ,with some fund support under PPP may be as follows :

In Dairy Farming

a. Setting up Hay block making units 

b. Setting up Silage making units

c. Setting up Cattle feed and Mineral Mixture Plants at small capacities ( May be from 500 Kgs to 5 MTPD)

d. Setting up Semen Station

e. Setting up ETT centers

f. Setting up Community Bio gas plant etc

g. Setting up Cow hostel for unproductive cows and male calves

h. Establishing mobile animal vet clinics for providing health check ups, vaccination, AI services etc

i. Setting up Panchgavya products in toiletries, cosmetics, nutraceuticals, health and nutrition etc.

In Milk processing

a. Setting up network of Village level collection centers with Bulk Milk Coolers or Chilling Centers

b. Handing over closed chilling centers of state federations for revival.( depending upon their state) or allowing private sector to make use of that location/land/building etc.

c. Handing over closed or sick milk processing Plants of state federations for revival ( depending upon their state) or allowing private sector to make use of that location/land/building etc.

d. Allowing Private sector also to use existing network of sales booth in certain states for better competition and growth in sales from those booths with complimentary products.

e. Establishing mobile milk testing laboratory for surveillance and creating awareness about safe milk delivery in the country.

In Dairy Services for making the sector Future Ready

a.. Setting up Product Development and R&D center for the sake of industry

b. Setting up skill development and training centers for both farming and processing

c. Setting up R&D centers to study environmental impact of dairying in India from farming to packaging   and developing solutions to reduce the same.

d. Setting up R&D Institutions on better quality of feed and fodder and other nutritional additives and     ingredients using latest technologies of enzymes, nanotechnology, rumen microbiota studies, etc.

My reason for suggesting such service based institutions using those funds is to make our industry future ready in an inclusive manner. I feel that India should have independent think tank institutions on Research and Development for dairy industry . These center of excellence must run in partnership of Private and Public dairies with support from relevant government departments. 

It was so painful to read a news a few weeks back that a couple of the Indian large dairy players are looking out of India for getting products developed for Indian markets.

I think Metro Dairy case is a full circle journey of success and pride of a private sector dairy making the whole model sustainable in collaboration with farmers and policy makers.

I wish a happy and prosperous Eid to everyone and your near and dear ones.

Happy E learning on this rainy weekend

with best regards

Kuldeep Sharma
Chief Thinking Officer
Suruchi Consultants (ISO 9001:2008 Company)
C-49 Sector-65
Noida 201307

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