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INTRODUCTION
Financial management is that managerial activity which concerned with planning and controlling of the firm’s financial resources. Though it was a branch of economics till 1890 as a separate activity or discipline, it is of recent origin. It has no unique body of knowledge of its own and draws heavily on economic for its theoretical concepts even today. The subject of financial management is of immense interest to both academicians and practicing managers. It is of great interest to academicians because the subject is still developing and there are still certain areas where controversies exist for which no unanimous solutions have been reached as yet. Practicing managers are interested in this subject because among the most crucial decisions of the firm are those which relate to finance them with conceptual and analytical insights to make those decisions successfully.
DEFINITION OF FINANCIAL MANAGEMENT
“Financial Management may be defined as that area or set of administrative functions in an organization which relate with arrangement of cash and credit so that the organization may have the means to carry out its objective as satisfactorily possible".
HOWARD & OPTION
“Financial Management deals with procurement of funds and their objective utilization in the business”.
S.C. KUCHHAL
WORKING CAPITAL MANAGEMENT
INTRODUCTION:
Working capital refers to the excess of current assets over current liabilities. The management of working capital is there fore, concerned with the problem that arise in administering of both current assets and current liabilities. In other words, the working capital management involves deciding upon the amount and composition of current assets and how to finance these assets.
Working capital management is the process of planning and controlling the level and mix of current assets of the firm as well as financing these assets. Specially, working capital management requires financial manager to decide what quantities of cash, other liquid assets. Accounts receivables, and inventories the firm will hold at any pint of time. In addition financial managers must decide how their current assets are to be financed. Financing choices include the mix of current as well as long term liabilities.
By balancing the savings in carrying costs against the cost of shortage and of more frequently procurement, the management of a firm will generally find it profitable to maintain its working capital at level higher than the needed to meet its immediate needs. However the relationship among carrying costs, shortage coasts and procurement costs are such that most firms will find that the economic level of working capital is no more than a few months supply.
The basic objective of working capital management, i.e., it is neither inadequate nor redundant. This is so because both the excess as well as shortage of working capital positions are bad for any concern. Thus the working capital management policies of a firm have a great impact on its profitability, liquidity, and structural management of the organization The financial management of the business firm involves the management of long term assets the management of short term assets and the liabilities. The first of t he tree functions is the capital budgeting. The second is the management of capital structure and the final is working capital management. The management of the working capital is concerned with the management of the assets such as cash, marketable securities, accounts receivable, investors and the prepaid.
DEFINITION OF WORKING CAPITAL:
“Study of working capital is of major importance to internal and external analysis because of its close relationship with the current day to day operations of business”
- RALPH KENNEDY & STEWARD MC MULLER.
“Working capital is the amount of funds necessary to cover the cost of operating the enterprise” - SHUBIN
NATURE OF WORKING CAPITAL:
The term working capital refers to current assets which may b defined as those which are required to meat day to day operations.
The fixed assets as well as the current assets both require investment of funds. So the management of working capital and of fixed assets apparently seem to involve same types of considerations but it is not so. The management of working capita involvement different concepts and methodology than management.
TYPES OF WORKING CAPITAL
Working capital can be classified into two ways:
1. On the basis of concept
2. On the basis of time
1. ON THE BASIS OF CONCEPT:
Working capital is classified as gross working capital and net working capital. On the basis of time, it may be classified as permanent working capital and temporary working capital.
GROSS WORKING CAPITAL:
Gross working capital refers to the firm’s investment in current assets. Current assets are the assets, which can be converted into cash within an operating cycle time or within an accounting year i.e., within 12 months. This includes cash, short term securities, debtors, bills receivable and inventory. This gross working capital concept is also called “Economic Concept”. The gross working capital concept focuses attention on two aspects of current assets management.
a) Optimum investment in current assets and
b) Financing of current assets.
NET WORKING CAPITAL:
Net working capital refers to the difference between current assets and current liabilities. Net working capital can be positive or negative. A positive net working capital will arise when current assets exceeds current liabilities. It indicates permanent sources of funds.
Net working capital concept also covers the question of the liquidity position of the firm and suggests the extent to which working capital needs may be financed by permanent source of funds.
Net working capital concept also covers the question of judicious mix of long term and short term funds for financing current assets. The level of NWC has a bearing on the company’s profitability as well as the risk in the sense that it affects the ability or otherwise of the firm to meet its obligations as and when they become due. Therefore, a trade off between profitability and risk is an important, element in evaluation of the level of NWC. In general, the higher the NWC, the lower the risk and profitability and vice versa.
Net working capital = Current assets – Current liabilities
PERMANENT WORKING CAPITAL:
Permanent working capital is the amount invested in all current assets which is required at all time to carry our minimum level of business activities. It grows with the size of the business. It is permanently needed for the business and therefore is financed out of long-term funds.
VARIABLE WORKING CAPITAL:
“Variable working capital is the excessive amount over permanent working capital. This keeps on fluctuating from time on the business activities. It is further divided into
a) Seasonal Working Capital
b) Special Working Capital
Seasonal working capital is required to meet the seasonal demands of busy periods occurring at stated intervals. Whereas special working capital is required to meet extraordinary needs for contingencies
APPROACHES FOR FINANCING WORKING CAPITAL:
There are two sources of financing working capital requirements
1) Long term sources such as share capital, debentures, public deposits, loans from financial institutions, and
2) Short term sources such as commercial banks, indigenous bankers, trade credits, installment credit, advances, and accounts.
OBJECTIVES OF THE STUDY:
PRIMARY OBJECTIVES:
To study the adequacy of working capital in the organization.
SECONDARY OBJECTIVES:
To study the various elements of the working capital namely inventory, receivables, cash.
To know the Liquidity position of the firm.
To know how to implement cash management techniques in Vijaya Dairy Ltd.
To ascertain various problems faced in working capital management.
To give appropriate suggestions for the better performance of the company if necessary.
NEED FOR THE STUDY:
Vijaya Dairy is big manufacturing unit with varying milk based products are being produced. The requirement of capital for each department is very high in an organization like Vijaya Dairy. Therefore, I have under taken my study is this organization to understand the requirement of capital and its effective allocation of resources in working capital management.
SOME IMPORTANT POINTS ARETAKEN INTO CONSIDERATION:
To study the adequacy of working capital in this organization.
The duration of the work-in-progress state depends on length of the manufacturing cycle, consistency in capacity utilization in different stages and efficient co-ordination of various inputs.
The duration of raw material stage depends on the regularity of supply transactions time, degree of perishable ability, price fluctuations and economic of bulk purchases.
Having this detailed study on working capital management, identify the shortage of working capital and suggest improving the working capital management in the company.
METHODOLOGY OF THE STUDY:
Research methodology is the way to systematically solve the research problems. It may be understand as a science of studying how research is done scientifically.
This involves exploring all possible methods of solving the research problem examine the alternating methods one by one the resources at the disposal of the researcher.
RESEARCH DESIGN:
A research design is the arrangement of conditions for collection and analysis of data in a manner that aims it combine relevance to the research purpose with the economy in procedure. It constitutes the blue print for collection, measurement and analysis of data. This study is exploratory design in nature and also descriptive in nature.
PRIMARY DATA:
It is the information collected directly without any references. In this study, the information is gathered through interviews with concerned officers and staff, individually or collectively, some of the information were verified and supplemented through personal observation.
SECONDARY DATA:
The secondary data was collected from already published sources such as pamphlets and of annual reports, returns and internal records and company journals.
LIMITATIONS OF THE STUDY:
Any study is having its own advantages and certain disadvantages. Among such, few of the limitations are expressed below such as:
The reliability of the study depends upon the information furnished by the officials.
Due to time constraints, it is difficult to go into details of the whole organization.
The study is purely base in the form of company report of Vijaya Dairy Ltd., Vijayawada.
The present study is restricted to lonely for a period of 6 years from 2008-09 to 2013-14.
INDUSTRY PROFILE
MARKET SIZE AND GROWTH:
Market size for milk (sold in loose / package form) is estimated to be 33m tons valued at Rs 429bn. The market is currently growing at round 4.5% pa in volume terms. It is one of the single segments among food products.
Milk production is largely concentrated in few states namely Uttar Pradesh, Gujarat, Punjab, Rajasthan and Haryana. Milk production grew by under operation flood, production growth increased significantly averaging a mere 1% pa. Between 1947 and 1970. Since the early 70’s over 5% pa.
About 75% of milk is consumed at the household level which is not a part of commercial dairy industry. Milk demand in four large metros is estimated to be 6m it’s per day, about 40% of which is supplied by the traditional unorganized sector. Loose milk has a larger market in India as it is perceived to be fresh by most consumers. In reality however, it poses a higher risk of adulteration and contamination.
MAJOR PLAYERS:
The packed segment milk segment milk segment is
dominated by the dairy co-operatives. Gujarat co-operative milk
marketing federation (GCMMF) is the largest player. All other local
dairy co-operatives have their local brands (for E.g.. Gokul, warana
in Maharashtra, Saras in Rajasthan, Verka in Punjab, Vjaya in
Andhra Pradesh, Aavin in Tamilnadu etc.). Other privative players
include J K dairy, heritage foods, Indiana dairy, dairy specialties
etc. am rut industries, once a leading player in the sector has turned bankrupt and is facing liquidation.
The dairy industry was deli censed in 1991 with a view to encourage private investment and flow of capital and new technology in the segment. Although deli censing attracted large number of players, concerns on issues like excess capacity, sale of contaminated / substandard quality of milk products etc. induced the government to promulgate the MMPO (Milk and Milk Products Order) in 1992 MMPO prescribes state registration to plants producing between 10000 to 75000 liters of milk per day or manufacturing milk products containing between 500 to 3750 tons of milk solids per year. Plants producing over 75000 liters per day or more that 3750 tons per year on milk solids have to be registered with the central government. The stringent regulation, government controls and licensing requirements for new capacities have restricted large Indian and MNC players from making significant investment in this product category. Most of the private sector players have restricted themselves to manufacture of value added milk products like baby food, dairy whiteners, condensed milk etc.
The dairy industry was deli censed in 1991 with a view to encourage private investment and flow of capital and new technology in the segment. Although deli censing attracted large number of players, concerns on issues like excess capacity, sale of contaminated / substandard quality of milk products etc. induced the government to promulgate the MMPO (Milk and Milk Products Order) in 1992 MMPO prescribes state registration to plants producing between 10000 to 75000 liters of milk per day or manufacturing milk products containing between 500 to 3750 tons of milk solids per year. Plants producing over 75000 liters per day or more that 3750 tons per year on milk solids have to be registered with the central government. The stringent regulation, government controls and licensing requirements for new capacities have restricted large Indian and MNC players from making significant investment in this product category. Most of the private sector players have restricted themselves to manufacture of value added milk products like baby food, dairy whiteners, condensed milk etc.
INDIA WORLD’S LARGEST MILK PRODUCER:
India has become the world’s No.1 milk producing country, with output in 1999-2000 (marketing year ending March 2000) forecasting at 78 million tones. United States, where the milk production is anticipated to grow only marginally at 71 million tones, occupied the top slot till 1997. In the year 1997, India’s milk production was on par with the U.S. at 71 million tones. The world milk production in 1998 at 557 million tons would continue the steady progress in recent years (see Table 1). Further more; the annual rate of growth in milk production in India is between 5-6 percent, against the worlds at 1 percent. The steep rise in the growth pattern has been attributed to a sustained expansion in domestic demand, although per capita consumption is modest at 70 kg of milk equivalent.
ANNUAL MILK PRODUCTION HAS TREBLED:
India’s annual milk production has more than trebled in the last 30 years, rising from 21 million tons in 1968 to an anticipated 80 million tons in 2001. This raped growth and modernization is largely credited to the contribution of dairy co-operatives, under the Operation Flood (OF) Project, assisted by many multilateral agencies, including the European Union, the World Bank, FAO and WFP (World Food Program). In the Indian context of poverty and malnutrition. Milk has a special role to play for its many nutritional advantages as well as providing supplementary income to some 70 million farmers in over 500, 000 remote villages.
INDIAN DAIRY: EXPANDING DAILY:
India’s modern dairy sector has expanded rapidly. From an insignificant 200, 000 liters per day (1pd) of milk being processed in 19511, the organized sector is presently handling some 20 million 1pd in over 400 dairy plants. Already, one of the world’s largest liquid milk plants is located in Delhi, handling over 800, 000 liters of milk per day (Mother Dairy, Delhi). India’s first automated dairy (capacity: 1 million 1pd) – Mother Dairy, Gandhi agar has been established at Gandhinagar near Ahmadabad, Gujarat, in Western India. It is owned by India’s biggest dairy co-operative group, Gujarat co-operative Milk Marketing Federation (FCMMF) in Anand, with an annual turnover in excess of Rs. 23 billion (US$500 million). Amul – III with its satellite dairies, with total installed capacity of 1.5 million 1pd has also been commissioned. India’s first vertical dairy (capacity: 400, 000 1pd), owned by the pradeshik co-operative Dairy federation (PCDF) has been commissioned at Noida, outside Delhi.
THE WINNING EDGE:
A vast market for dairy products is being built as disposal incomes increase. It focus is the increasingly affluent middle class, numbering some 300 million almost the population of the United States – which is confined to well – define urban pockets and is easily accessible. Milk occupies pride of place as the most converted food in the Indian diet, after wheat and rice. Milk based sweets are a culinary delight in all homes throughout the year.
The milk production is pre-dominantly rooted in the co-operative system. Its focus is on the small rural farmer having one or two cows / buffaloes, yielding 2-3 liters of milk per animal. This system is the basis of operation Flood, the world’s largest dairy development program.
The preferred dairy animal is the buffalo. Some 65 percent of the world buffalo milk is produced in produced in India. It has 30 per cent higher total solids compared to cow milk – an average of 16% vs. 12% for cow milk. Valued for its high fat content (7% vs. 3.5%), it is also high in calcium, phosphorus, lactose and proteins, buffalo milk is the delight of the milk processor for its more profitable handling.
EXPORT POTENTIAL:
India has the potential to become one of the leading players in milk product exports. Location advantages: India is located admit major milk deficit countries in Asia and Africa. Major importers of milk and milk products are Bangladesh, China, Hongkong, Singapore, Thailand, Malaysia, Philippines, Japan, UAE, Oman and other Gulf countries, all located close to India.
Low cost production: Milk production is scale insensitive and labor intensive. Due to low labor cost, cost of production off milk is significantly lower in India.
CONCERNS IN EXPORT COMPETITIVENESS ARE:
QUALITY:
Significant investment has to be made in milk procurement, equipment, and chilling and refrigeration facilities. Also, training has to be imparted to improve the quality to bring it up to international standards.
PRODUCTIVITY:
To have an exportable surplus in the long – term and also to maintain cost competitiveness, it is imperative to improve productivity of Indian cattle. There is a vast market for the export of traditional milk products such as ghee, shrikhand, rasgolas and other ethnic sweets to the large number of Indians.
SWOT ANALYSIS
A. STRENGTHS :
High level of productions and global standings in most of the agro products.
High level of employment generations both direct and indirect.
High level of skill development through various institutes for agriculture productions and technology management.
Lower level of production costs even with poor productivity and yields due to lower overheads.
Indian dairy farmers are very cost effective even after working in a very low subsidized environment irrespective of their European counterparts.
Cheap labor force.
Higher customer base.
B. WEAKNESS :
Poor productivity and yield.
Poor quality management at the production levels.
Not much of technology penetration in the rural hinterland.
Existence of technology penetration in the rural hinterland.
Existence of any processing facilities at the farm level like Food parks etc.
Poor quality orientation and consciousness at the farm level.
Higher costs for food processing and thus costlier processed food.
Lack of scale in food processing because of too much of fragmentation in the production as well as lack of proper supply chain management and refrigerated chains.
Quality standard management execution more obligatory than mandatory and enforcement not too stringent for both domestic as well as exports markets.
Poor per capita income thus restricting most of the consumers to live life happily with un processed food products only as the processed food is very costly due to cost inefficiencies arising out of poor scales and lack of Horizontal integration.
C. OPPORTUNITIES:
More orientation towards mechanized, organic and large scale farming due to intervention of multinationals or better exposure of select Indian farmers to the international environment. The growth of so Called Rural Crorepati is found to be more than their urban counterparts in most of the regions in the country.
Few large conglomerated (ITC, Reliance) shifting towards farming as backward integration to pro
Better accountability consciousness in various research institutes related to agriculture for developing better varieties, breeds with higher productivity and yields and also major industrial houses (Nicholas Primal) providing support to these institutes for a sustainable growth by investing heavily new frontiers of technology like biotechnology.
Increasing share of Indian food products in the international markets due of increasing Indians population outside the country as well as large exports by Indian companies in last few years with the benefits extended by the Indian Government to exports income.
D. THREATS:
Neighboring countries which are trying to become more competitive in labor and more productive with their land use.
More penetration and branding in the international markets by comparatively very small nations both in size and production but with very high levels of food processing more than 60-70% against that of our country at around 2% for fruits and vegetables and 18% for milk.
Lack of infrastructure at the rural level makes it a curse to be a part of rural India. Till now out of around 6.5 lakhs villages only 20% can be considered as the one with amenities to provide a satisfactory lifestyle. In rest even the basic amenities are still to be provided and forget about any structured mannerism for reverse logistics.
The marginal farmer participation in any form is not remunerated well and most of the cream is enjoyed by the middleman.
In certain cases the middle man is earning more than both the farmer as well as the processor put together.
INDIAN TRADITIONAL MILK PRODUCTS:
There are a large variety of traditional Indian milk products such as makkhann unsalted butter.
GHEE – Butter oil prepared by heat clarification, for longer shelf – life.
KHEER - A sweet mix of boiled milk, sugar and rice.
BASUNDI – Milk and sugar boiled down till it thickness.
DAHI – A type of curd.
LASSI – Curd mixed with water and sugar / salt.
CHANNA / PANNEER – Milk mixed with lactic acid to coagulate.
KHOA – Evaporated milk, used as a base to produce sweet meats.
The market for indigenous based milk food products is difficult to estimate as most of these products are manufactured at home or in small cottage industries catering to local areas.Customers while purchasing dairy products look for freshness, quality, taste and texture, variety and convenience. Products like Dahi and sweets like kheer, Basundi, and Rabri are perishable products with shelf life of less than a day.
These are several such small shops within the vicinity of residential areas. Consistent quality, taste and freshness build consumer loyalty, there are several sweetmeat shops, which have built a strong brand franchise, and have several branches located in various parts of a city.
Major Dairy Product Manufactures in India and their brands are explained here under
India had the potential to become a leading exported of milk and milk products due to how labor cost, the cost of milk production is significantly low here to boost exports, the dairy industry needs to focus on quality and productivity.
GUJARAT MILK MARKETING CO-OPERATIVE FEDERATION (GMMCF)
GMMCF was the first co-operative to the set-up under operation flood. GMMCF’S dairy plant, commissioned in 1994, is one of the most modern and largest plants. It can handle up to 1m liter of milk per day. The plant also has facilities for pasteurizing and packaging. The plant has employed only the 187 people. It was funded by NDDB. GMMCF’S milk is sold under its flagship brand Amul.
GMMCG sales turnover grew by 21% pa from Rs. 15.5 billion including consignment sales of Rs. 3.7 billion sales to Amul milk in Gujarat and Maharashtra increased by 11 percent and 16 percent respectively. Dairy product turnover registered a robust 19% value growth. Amul butter registered 18% value growth. The sales also recorded a spectacular 60% value growth.
GMMCG’S Sales to the defense service were Rs. 233m in FDY98. Exports of Rs. 260m during the year were mainly to Myanmar, Uganda and West Africa. The company plans to expand its export markets in Saudi Arabia and other Middle East countries.
During FY98 the Amul ice cream brad launching it eight states and two union territories extended Franchise. Amul ice cream has become India’s second largest brand; with new products launched during the year were Amul pizza cheese and Amul slice cheese, Amul pannier and Amul Mithaee range. Safal mango drink has been launched strategic alliance with the Safal group (a unit of NDDB). The product rang to be launched under the Safal brand with fruit drinks, squashes, pickles, jams, and ketchup and mango pulp. Amul ice cream brand franchise was extended with launch in eight states and two union territories.
Amul ice cream has become the second largest brand in the country and has garnered major share in its existing markets in a short time span of three years. Amul’s main ice-cream manufacturing facility is located Gandhinagar, which is Asia’s largest and most modern integrated ice cream manufacturing plant and uses world renowned refrigeration units and an efficient cold chain. For the regional markets, GMMCG has collaborated with the various regional dairy (Delhi) got her northern Market, mother dairy (Bangalore) for the southern market and the Patna dairy project which commenced production from April 1998 for the eastern market.
THE DAIRY CO-OPERATIVE NETWORK (AS ON MARCH 2008)
Includes 170 milk unions.
Operates in over 346 districts.
Covers around 1, 17,575 village level societies.
Is owned by around 12.4 million farmer members of whom 3.2 million were women.
MILK PRODUCTION
India’s milk production increased from 21.2 million MT in 1968-69 to 97.1 million MT in 2007-08.
Per capita availability of milk was 241 grams per day in 2007-08, up from 112 grams per day in 1968-69.
India’s 3.9 percent annual growth between 1995 – 96 and 2007-08 surpasses the 2 per cent growth in population; the net increase in availability is around 2 percent per year.
MARKETING:
In 2007-08 average daily cooperative milk marketing stood at 168.06 lakh liters; annual growth has averaged about 5.8 per cent compounded over the last five years.
Dairy cooperatives now market milk in all metros, major cities and more than 800 towns/ cities.
During the last decade, the daily milk supply to each 1000 urban consumers has increased from 17.5 to 58.5 liters.
INNOVATION:
Bulk – vending – saving money and the environment
.Milk travels as far as 2,200 kilometers to deficit areas, carried by innovative rail and road milk tankers.
Automatic Milk Collection Unit (AMCU) and Bulk Milk Cooler (BMC) at grass root level – preserve quality and reduce post – procurement losses.
Macro Impact.
The annual value of India’s milk production amounts to about Rs. 1,020 billion in 2007-08.
Dairy cooperatives generate employment opportunities for around 12.4 million farm families.
Livestock contribute about 27 per cent to the GDP from agriculture.
DAIRY COOPERATIVES
Dairy cooperatives account for the major share of processed liquid milk marketed in the country. Milk is processed and marketed by 170 Milk producers cooperative Unions, which federate into 15 State cooperative Milk Marketing Federations.
The dairy Board’s programmers and activities seek to strengthen the functioning of Dairy cooperatives. As producer-owned and controlled organization. NDDB supports the development of dairy cooperatives by providing them financial assistance and technical expertise, ensuring a better future for India’s farmers.
Over the years, brands created by cooperative have become synonymous with quality and value. Brands like Amul (GCMMF), Vijaya (AP), Verka (Punjab), Saras ((Rajasthan). Nadine (Karnataka), Milma (Kerala) and Gokul (Kolhapur) are among those that have earned customer confidence.
SOME OF THE MAJOR DAIRY COOPERATIVE FEDERATIONS INCLUDE:
Andhra Pradesh Dairy Development cooperative Federation Ltd (APPDDCF)
Bihar State Cooperative Milk Producers Federation Ltd., (COMPFED)
Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF)
Haryana Dairy Development Cooperative Federation Ltd (HDDCF)
Himachal Pradesh State Cooperative milk producers Federation Ltd (HPSCMPF)
Karnataka cooperative Milk Producers Federation Ltd (KMF)
Kerala State cooperative Milk marketing Federation Ltd (KCMMF)
Madhya Pradesh State cooperative Dairy Federation Ltd (MPCDF)
Maharashtra Rajya Sahakri Maryadit Durgdh Mahasangh (Mahasangh)
Orissa State Cooperative Milk Producers Federation Ltd (MILKFED)
Prakeshik Cooperative Dairy Federation Ltd (UP) (PCDF)
Punjab State Cooperative Milk Producers Federation Ltd (MILKFED)
Rajasthan Cooperative Dairy Federation Ltd (RCDF)
Tamilnadu Cooperative Milk Producers Federation Ltd (TCMPF)
West Bengal Cooperative Milk Producers Federation Ltd (WBCMPF)
ANDHRA PRADESH DAIRY DEVELOPMENT CO-OPERATIVE FEDERATION
A State – wide enterprise of co-operative for dairy development, the Andhra Pradesh Dairy Development Co-Operative Federation (APDDCF) had its genesis in 1981, with a three-tier structure. It had primary societies at village level, Unions at the district level and the Federation as an apex body at the state level. The organizational objectives which guide APDDCF to this day are:
Organize co-operatives of Milk Producers at village and district levels. Proved essential inputs to enhance milk production, feed and fodder production, cross breeding program, veterinary aid, and take up development programs to provide effective leadership and management skills to the milk producers to help them their own 9,200 Co-operatives.
Develop infrastructure for procession of milk and manufacture of dairy products and market wholesome and quality of liquid milk products in the state.
Fulfill the consumer needs of liquid milk and milk products in the state.
Develop new products and packaging lines in tune with the changing scenario of consumer market and needs.
Integrate dairy development with overall rural development efforts and provide greater employment to the rural poor.
Today, there are 7,000 Co-operatives with 300 All – Women Co-operatives and a membership of over 8 lakh people across the state.
DAIRY DEVELOPMENT
In 1960, a pilot milk supply scheme was started in our state for the dairy development; its initial milk collection capacity was 100 liters a day at the time of starting. Now it’s dairy milk collection increased to 11 lakhs liters per day. It is also working as a laisen between milk producers of villagers and consumers of the town by providing reasonable price to the producers to maintain stable markets.
Operation Flood:
In our state operation Flood was divide into three based as “Anand Level”
1. Village level
2. District level
3. State level
Operation Flood Program:
Indian dairy development Co-operation owns the responsibility of implementation of operation flood program, which provides money assistance up to 70% towards loan and 30% as subsidy. National Dairy Development Co-operation selected Districts of the state for implementation of operation flood. It divided the districts into 10 milk collection mandals.