CHAPTER - I11

DAIRY PROFILE OF CHITTOOR DISTRICT

1. Introduction

The dairy profile of Chittoor district is provided in this chapter. The issues
discussed in this chapter include: infrastructure created for the growth of livestock
population; institutional set up; trend in the growth of dairy population; establishment
of milk dairies including mini ones; number of bulk milk chilling units (BMCU),milk
procurement institutions (MPIs) and thousands of milk pourers; trend in the quantum
of milk production and procurement in aggregate and p a day. These are presented at
aggregate, revenue division-wise, mandal-wise and plant levels in the district. This
serves as a backdrop to the ensuing chapters of the study i.e. empowerment of women
through dairying.

In India, Chittoor, the second largest milk producing district after Anand in
Gujarath state, is the fountainhead of the white revolution in Andhra Pradesh (AP).
The district is known for its impressive livestock population and milk yield. The rural
population is largely dependent on dtiir)' sector since apiculture has increasingly
proved unremunerative. The gross cropped area has declined owing to acute drought
conditions in consecutive years. The area under paddy, groundnut and sugarcane fell
substantially. Small and marginaI farmers turned to dairying since it ensures decent
income periodically and, thereby, stable livelihood. Fodder production, which does
not require large quantity of water, rose as farmers began to cultivate jowadmaize
during the rainy season. With increased fodder availability, milk production has
jumped. The number of milch animals rose due to the initiatives of the District Rural
Development Agency (DRDA) and the District Poverty Initiatives Programme
(DPIP). A number of jersey crossbred cows and graded Murrah buffaloes were
brought to Chittoor district. This has helped to achieve mile stones in the production
of milk. More than 70 per cent of cattle are crossbred. There is plenty of grass in
grazing lands due to high moisture retention in the'soil in the western parts and above
average rainfall in the eastern parts of the district. The rise in milk production may be
attributed to cool climate, existence of extensive grazing lands, crossbreeding animals
and fodder production initiatives.

The Chittoor Cooperative Milk Producers Union is the largest dairy in the
cooperative sector in Asia. It remained a jewel in the district's crown for a long time.
Established in 1969 with an output of 6,000 liters per a day, it reached a phenomenal
capacity. The huge surplus milk was converted into milk powder, which, however,
could not be sold owing to slump in prices. This sealed the fate of the dairy, which
was closed down. Private dairies have come up to fill the vacuum, but their operations
took an ugly turn when they formed a syndicate to exploit the milk producers. The
Timpati-based Balaji Dairy, an offshoot of the National Dairy Development Board
(NDDB), procures milk from farmers. The DRDA jumped into the fray by
establishing two BMCUs on a pilot basis at Gangavaram and Venkatagiri Kota with a
capacity of 3,000 liters per a day. The BMCUs collect milk from nearby villages.
Women's Self Help Groups (SHG's) maintain the BMCUs, Subsequently, the
BMCUs were established in 50 out of 66 mandals in the district. There are 87 BMCUs
with a network of 2,12l(MPIs) and 19,586 pourers. The milk procurement per day is
2.90 lakh liters. The MPIs in every cluster of village collect milk in stainless steel
cans in small caniage vehicles. Samples are collected and tested at the BMCUs.
Payment is made based on the fat and solid not fat (SNF) levels.
 The novel initiative put dairying in a win-win situation in the district. The
livestock-raisers get remunerative p'ricqs. The SHG members earn additional income
per month. The dairies in the cooperative and private sectors including mini ones have
increased their supply manifold so much so that they even began to supply milk in rail
wagons to Mother Dairy, New Delhi. All the BMCUs in the district are spread over
not only the dairy-rich but in the poverty-stricken mmdals. The intervention of the
government served as a rude jolt to private dairies, which now offer prices on par with
cooperative dairies. In south India, dairying has put the Chittoor district at the
forefront of white revolution. It has alsq promoted empowerment of women in several
spheres of life. Therefore, an attempt is made to study the progress of dairying in
Chittoor district in this chapter.

2. Infrastructure for livestock development:

To promote dairying in the district, the government has initiated certain

measures for the growth of livestock population. This is the backbone for the growth
of dairy. The institutional infrastructure revenue division-wise in Chittoor district for
the progress of livestock population is provided in Table 3.1. A look at the Table
reveals that there is one veterinary polyclinic in Chittoor. There are 15 veterinary
hospitals, with four in each of Chittoor and Madanapalli revenue divisions
while seven are in Tirupati revenue division. Of the 135 veterinary dispensaries, the

Table3.1: Revenue Division -wise Livestock Infrastructure in Chittoor District

during 2012 '
I
Tirupati I
Chittoor I
Madanapalli I
Type of infrastructure revenue revenue revenue Total
division division division
Veterinary Policlinics 01 01
.
Veterinarv hos~itals
A I
07 04 04 15
Veterinary dispensaries 1 66 1 38 31 1 135
Rural livestock units 67 59 45 171
Gopda mitra centers 157 152 102 412

Source: Collected from the records of Animal Husbandry Department, Chittoor.

highest number 66, exist in Tirupati revenue division followed by Chittoor (38) and
Madanapalli (31) revenue divisions. In the case of rural livestock units, 67 are located
in Tirupati revenue division, 59 in Chittoor revenue division and 45 in Madanapalli
revenue division. Of the total gopala mitra centers, 157 are located in Tirupati revenue
division, 152 in Chittoor revenue diviSion and 102 in Madanapalli revenue division.
It may be concluded that, in terms of livestock infrastructure in the district, Tirupati
revenue division ranks first followed by Ghittoor and Madanapalli revenue divisions.

3. Schemes1 Programmes:

In Cliittor district, many schemes were introduced under Animal Husbandry

and DRDA. A brief account of these is presented below.

3.1 Animal husbandry:

TO develop livestock, increase milk production, create employment, enhance
income, reduce poverty and empower the poorest of the poor in the district, several
schemes were introduced such as Kamadhenu, Rashtriya Krishi Vikas Yojana
(RKVY), Pasukranti Patham, Chief Minister's package (CMP) and Prime Minister's
Package (PMP) and mini dairies were set up over the years. In addition, centrally
sponsored schemes were also launched in the district.

In Chittoor district, for the development of dairying, the specific initiatives of

government were categorized into three groups. The RKVY was started during 2008-
09, while CMP as well as PMP were taken up during 2007-08. The objectives of these
schemes are to provide economic support to rural people; create employment; bring
rural women who are below the poverty line above the poverty line; increase milk
production; and provide subsidiary income in addition to agriculture and, thereby,
reduce suicides of farmers in the district. Besides, there are schemes which not only
cover activities under dairying but also other vocations in the district. These include
Centrally Sponsored Schemes and Integrated Water Shed Programmes. These
schemes cover not only dairying but also others. The activities under the aforesaid
programmes are presented in Table. 3.2.

3.1.1 Kama Denu Scheme:

This scheme is meant for the economic development of rual women. The
beneficiary should invariably be a member of SHG. In this group, 5 - 8 members form
into samakya's. The members are called Joint Liability Group (JLG). The main aim of
the scheme is to provide economic ahd financial support to nual women. Under this
scheme, every woman gets two cattle worth of Rs.65,000. The Government provides
subsidy at 33 per cent for SC'st ST'S and 25 per cent for BC'slOC's. Banks provide
loan for construction of shed. The members become pourers to government BMCUs.

3.1.2 Rasthriya Krishi Vikas Yojana : '

In Chittoor district, RKVY scheme was launched during 2008-09. This
scheme provides financial assistance to rural farmers. Under this scheme, funds are
made available to SC's and ST"s. National Mission for Protein Supplement is a
sub-scheme under RKVY. In this scheme, milch animals are provided at 50 per cent
subsidy. The benefits include supply of milch animals and fodder seed; establishment
of mini dairies; distribution of c h k cutters; A d diagnostics kits. Camps are
conducted to detect the programmes and educate the eligible people to take up the
activities included in it.

3.1.3 Chief Minister's Package:

This scheme was introduced during 2007-08. The main objectives of
the package are to : provide economic support to rural people; create stable income to
women; and protect cattle from diseases. To uplift the families under BPL, milch
animals are provided. Insurance and subsidy is also provided to beneficiaries. The
latter is available for feed supply, calf rearing, health care and water shed activities.
Assistance is provided to organise training programmes. The aim is to create
awareness and exposure among the public.

3.1.4 Prime Minister's Package:

Under this programme, assistance is provided to rehabilitate families in which
suicides occurred and a s o to families which are vulnerable to economic distress.

3.1.5 Pala Pragathi Kendralu 1 mini dairies:

The Animal Husbandry Department has introduced mini dairy programme in
Chittoor district during 2005. For the same purpose, the DRDA has launched a
scheme with another name such as pala prgathi kendralu (PPK). Under this scheme,
every farmer is made available with 5 - 8 cattle. Assistance is provided through
mainly dairies. It enhances earning capacity. The main objectives of this scheme are
to: promote entrepreneurship among the nual unemployed youth; provide full time
employment to all types of beneficiaries; promote commercial enterprises on large
scale basis; establish model dairy farms; increase milk production; and empower
women dairy entrepreneurs. Further, subsidy is provided so as to create earning
capacity to rural people.

3.1.6 Centrally sponsored schemes:

The primary aim of these schemes is to promote grass land development,
which includes grass reserves like silage making units, dry grass protect sheds and
azolla production units. It makes available sufficient fodder to cattle during summer
and drought periods.

Financial assistance is provided to restructure breeding operations in cattle

under National Project for Cattle and Buffalo Breeding (NPCBB). The aims of the
programme include to: improve the productivity of cattle through genetic
improvement; provide artificial insemination (A.1) service at door-steps to foster
genetic improvements; promote research for the development of livestock; identify,
train and position A.1 technicians to provide quality breeding services; and build data
bank and disseminate information relating to breeding operations, disease
incidence/cattle development including progeny evaluation.

Scheme-wise details of cattle provided and the amount incurred there on in

Chittoor district under RKVY, CMP, PMP and Mini diaries is shown in Table 3.2. A
look at the Table reveals that under RKVY 300 cattle were provided at a cost of Rs.
42.40 lakhs during 2009 as against Rs.65.75 lakhs spread over 248 animals. In the
case of PMP, the number of animals made available were worth 478,2098 and 917 at
a cost of Rs.109.24 lakhs, Rs.555.37 lakhs and Rs. 244.20 lakhs during 2008, 2009
and 2010 respectively. It may be noted that the animals were provided under CMP in
Table 3.2: Scheme - wise Number of Cattle provided and amount Incurred on
them in Chittoor District during
- 2008-12
(Rs. lakhs
I Mini dairies /
I I CMP 1 PMP 1 RKW I pala pragathi (
Year kendralu
No. of
animals I Of
animals
I Amount 1
No;of Amount
animals tL::s 1 Amount

I I I I

Source: Collected from the ~ o r d ofs Animal Husbandry Department, Chittoor.

all the five years without any exception. The numbers of animals distributed were 262
in 2012 as against 3,413 in 2008.similarly, the cost incurred was Rs.68.40lakhs and
818.53 lakhs in the former and the latter respectively. Under this programme, animals
were provided to mini dairies during 201.2 only. It may be concluded that the cattle
were provided under these programmes with interruptions except CMP. Of the three
schemes, PMP ranks first in terms of number of cattle provided and the amount of
expenditure incurred thereon.

3.2 DRDA:
For the development of d a i j specific initiatives of government were
categorized into three groups. Indira kranthi patham (IKP) is a women oriented
programme. The name of erstwhile velugu scheme has been changed as IKP.The IKP
members maintain BMCUs. There is a specific scheme to develop BMCUs. Pala
Pragati Kendralu(PPK) is a small dairy. Four - five SHG members run it with a bank
credit of Rs. 5lakhs. The objectives of the scheme include creation of employment,
generation of additional income, increasing the production of milk by scientific
methods, provision of nutritious milk etc.. at affordable price to consumers and
remunerative price to milk producers at the same time.

4,Dairy Population:
Quinquennial livestock census in Chittoor district during 1999- 2012 is
furnished in Table 3.3. The cow population has increased from 8.56lakhs in 1999 to
9.25 lakhs in 2012.The year 2007 recorded the highest number of cows at 11.04 lakhs
in 2007.The buffalo population was 1.44 lakhs in 1999 as against 0.83 lakhs in 2012.

Table 33: Quinquennial Livestock Census in Chittoor District during 1999-2012

(population lakhs)
Name of specie 1999 2003 2007 2012
8.56 8.36 11.04 9.25
Cows (85.40) (88.75) (91.70)
(85.60)
1.44 1.42 1.40 0.83
Buffaloes (14.60) (1 1.25) (8.30)
(14.40)
10.00 9.78 12.44 10.08
Total
- (100) , (loo) (1 00) (100)

Note: Figures in brackets indicate &percentage to total.

Source: Relevant Annual Reports of Animal Husbandry Department, Chittoor.
The total number of cows and buffaloes put together was 10 lakhs in 1999 while it
was 10.08 lakhs in 2012. The share of cows in the total livestock population varied
between 85.40 per cent and 91.70 per cent during 1999 and 2012 respectively. The
rest, 14.40 per cent, 8.30 per cent in the former and the latter, are buffaloes. It may be
concluded that, the growth in the quinquennial livestock census in Chittoor district is
not an impressive one. There is no gradual growth. Besides, cows account for more
than 85 pex cent of livestock and the remaining are buffaloes in the district.

Revenue division-wise livestock'census in dhittoor district at the end of 2012

is provided in Table 3.4. A look at the Table shows that, in the total livestock census,
Tirupati revenue division ranks first with a share of 43.25 per cent followed by
Chittoor revenue division (33.43) per cent and Mandanapalli revenue division. In the
case of cattle population, these have formed 38.92 per cent, 35.13 per cent and 25.95
per cent respectively. With regard to buffaloes, Tirupati revenue division occupies the
first place with the highest share as in the case of cattle but Madanapalli revenue
division is relegated to the third place after Chittoor revenue division. In other

Table 3.4: Revenue- Division- wise Livestock Census in Chittoor District at

the end of 2012

Madana Palli

Tirupati

Chitoor
I
Note :Figures in brackets indicate the percentage to total.
Source: Animal Husbandry Department, Annual Report 2012, Chittoor.

words, Madanapalli revenue division comes after Chittoor revenue division. It may be
said that, out of the revenue divisions in Chittoor district, T i p a t i ranks first in both
cattle and buffalo population.
5. Milk Production:
The year-wise and category- wise production and per capita availability of
milk in Chittoor district fbr the period'2001-12 is provided in Table 3.5. The milk
produced in aggregate was 5.34 thousimd MTs in 2001 vis-a-vis 9.38 thousand
MTs in 2012. Meanwhile, there are wide fluctuations. The years 2002 and 2006 have

Table 3.5:Year -wise and Category -wise Production and Per Capita availability
of Milk in Chittoor District during 2001-12
(000' MTs'

Source: Government of Andhra Pradesh, Integrated Sample Survey Report on

Estimates of Major Livestock Products for the years 2008-09 and 2009-10
(Provisional) and Veterinary Infrastructure Facilities, Animal Husbandry
Department, Hyderabad, pp. 120-25.

registered a decrease. Of the total milk production, the share of cattle is higher than
that of buffaloes throughout the period. The share of cattle was in the range of
80.31 - 97.77 per cent and the rest is accounted for by buffaloes. The per capita
availability of milk per day was 398 grams in 200.1 as compared to 612 grams in
2012. The year 2002 reported the lowest per capita availability of milk at 336 grams
per day. It may be said that, in the total production of milk, cattle account for a lions'
share in all the 10 years without any exception. Further, there is an upward trend in
the per capita availability of milk. .
 The specie-wise and category-wise production of milk in Chittoor district
during 2001-12 is given in Table 316. .A glance at the Table shows that, of the total
cattle milk, the share of milk fiom crossbreed cattle is more than that of the milk fiom
indigenous cattle during the period. The indigenous cattle milk never exceeded one
MT leaving the recent two years i.e. 201 1 and 2012. In the case of buffalo milk, the
proportion of graded murrah is more than that of the descriptive ones during the
period. The latter was less than one MT throughout the period. It may be summed up

Table 3.6: Specie- wise and Category-wise Milk Production in Chittoor District
durihg 2001-12

2008 0.79 4.35 0.92 0.34

2009 0.84 4.88 0.82 0.16
2010 0.96 5.83 . 0.86 0.18
201 1 1.04 6.36 0.95 0.14
2012 1.12 6.80 1.02 0.44

Source: Government of AP, Integrated Sample Survey Report on Estimates of Major

Livestock Products for the years 2008-09 and 2009-10 (Provisional) and
Veterinary Mkistructure Facilities, Animal Husbandry Department,
Hyderabad, pp.120-25 and relevant Annual Reports of Animal Husbandry
Department, Chittoor.

that there is a shift in cattle milk fiom indigenous to crossbreed. The progress in the
former is more than in the latter during the period referred to. In the milk from
buffaloes, the shift is fiom descriptive to graded murrah. But the shift is not that much
in the case of cattle milk.
6. Dairies:

The Particulars of milk of dairies in terms of year of commencement

of production, capacity and procurement during 2012 is made available in Table 3.7.

Table 3.7: Details of Dairies in Chittoor District during 2012

Source: Animal Husbandry Department, Annual Report2012, Chittoor.

There are four dairies in the cooperative sector which have commenced production
between 1989 and 2007. Their capacity varied between 10,000 - 1,50,000 liters and
procurement in the range of 6,000 - 1,40,000 liters per day. In the case of private
sector, Heritage dairy is the oldest dairy, whose capacity and procurement are
4,12,000 and 1,30,900 liters per day respectively. It is located in Kasipentla with
branches at Chittoor, MadanaPalli, Piler, Santhipuram, Palamaner, Vepanapalli,
Kalahasthi and Kalikiri. Balamuragan dairies came into existence during 1998 with a
capacity of 1,50,000 liters per day. The procurement per day is 34,000 liters. It has
one branch at BireddyPalli. Three dairies such as Dodla, Sivasakthi and Sri
Venkateswara came into existence during 1999. Dodla dairy is spread over Penumur,
Palamaner, Pallipattu, Kalikiri and Piler. The genesis of Avin Foods Ltd., was at
Pichattur during 2001. Five dairies were started during 2002, two each during 2004,
2007and 2009, one in 2006 and three in 2010. The capacity of each of these dairies is
in the range of 10,000 - 1,50,000 liters per day. The procurement of these dairies
varied between 5,000 liters and 1,43,100 liters per day. Of these dairies, Jercy Cream
Line has seven branches, Tirumala dairy has five branches etc. The procurement
capacity of all the dairies put together is over nearly 15 lakh liters per day. It may be
said that, there are four dairies in cooperative sector while there are twenty two in
private sector with varying licensed and procurement capacities of milk per day.

7. Milk Procurement:
In Chittoor district, for the first time, two bulk milk chilling units were
established during the year 2005-06.(see Table3.8 ) It has gradually increased to 86
during 2012. The milk procured by the BMCUs during 2006 was 0.34 lakh liters.
From then onwards, milk procurement has gradually risen to 1332.25 lakh liters in
2012. The rate of increase ranged between52.81 per cent and 266. 29 per cent. The
turnover was Rs. 3.29 lakhs in 2006 vis-a-vis Rs. 14653.42 lakhs during 2012. The
rise in 2007over 2006 is very surprising. It has gone up to Rs. 1213.27 lakhs in 2012
from Rs.3.25 lakhs in 2007. This may be attributable to the increase in the number of
BMCUs from 2- 19 in the same period. It may be inferred that there is a tremendous
 Table.3.8: Year-wise Milk Procurement by BMCU's in Chittoor District
I
during 2006-12

Source: Collected from the records of District ~ u r Development

i Agency (DRDA),
Chittoor.

growth in the organization of BMCUs, milk procurement and turnover due to

initiatives of the govenunent and change in the occupation from agriculture; to dairy.
This is a welcome trend in the recent past.

Mandal- wise particulars of milk procurement in Chittoor district during 2012

are furnished in Table 3.9.It can be observed from the table that, among the mandals,

Table 3.9: Mandal - wise Details of Milk Procurement in Chittoor District

during 2012
(liters)
- No. of BMCUs Procurement
Name of mandal
Pourers MPl's No Capacity Per day Per day
(1) (2) (3) (4) (5) (6)
Chittoor 481 35 2 5000 3882
Note: NA not available
Source: Collected from the records of District Rural Development Agency, Chittoor.

number of pourers are the highest at 1884 in Madanapalli followed by Bangarupalem

(1631), G.D.Nellore(863) etc., and theleast at 293 in Vijayapuram. Of the mmdals in
the district, (MPIs) are the highest at 170 in Madanapalli followed by Bangarupalem
(98), Nimmanapalli(84) and so on and Thottambedu (03) comes last in the order.
The number of BMCUs are three each of six mandals, two in each of twenty six
mandals and one each in the remaining. mandals. With regard to installed capacity,
V.Kota ranks first followed by Piler, ' Madanapalli etc., In the case of milk
procurement per day, Madanapalli came first with 16,712 liters, Bangarupalem
(12,023 liters) second, V.Kota (1 1,722 liters) third and so on. Thottambedu came last
in the order with a procurement of 665 liters per day. It may be concluded that, out of
the mandals in the district, Madanapalli occupied the first place in terms of pourers
and procurement per day. However, it may be noted that, in terms of capacity, Piler
dairy ranked first.

The details of BMCUs in terms of year of establishment, number of MPI's and

pourers, capacity and procurement of milk per day are furnished in Table.3.10.

Tabld.10: BMCUs -wise Procurement of Milk, per day, in Chittoor District

during 2012
(liters)
Year of No. of Procurement
Name Of BMCU
establishment I
~ p h pouren
Capacity
Per day

(1) (2) 1 (3) 1 (4) 1 (5) (6)

Gudipalli 2008 1 36 1 308 1 3000 4254

V.Kota
Reddygunta
2005
2008
30
23 449
356 1 W
l: : 1 3375
2682
Source: Collected from the records of District Rural Development Agency (DRDA),
Chittoor.
The BMCUs were started during 2005 and 2012. It can be observed that 3 BMCUs
were established in 2005, 17 B M C U ~2006,
. ~ ~ 8 in 2007, 21 in 2008,4 in 2009, 8 in
2010,16 in 201 1 and the rest in 2012. The number of MPIs varied between 8 and 80
and pourers between 26 and 947. The procurement capacity per day is in the range of
2000- 5000 liters. The milk actually procured was more than the installed capacity in
44 BMCUs. The variation may be on account of non-availability of milk in certain
seasons in the year. The excess procurement is possible since the collected milk was
directly transported to dairies. It may be said that the tempo of organizing BMCUs
widely varied in the district. This may be attributed to availability of funds under
different schemes and coupled with the growth of SHG in the district. As usual
pourers far exceeded the MPIs. Further, the variation between installed capacity and
actual procurement of milk per day is significant across the BMCUs in the district.
The procurement per day surpassed a little over 50 per cent of capacity in BMCUs.
Thus the growth of dairy industry in chittoor district progressive during the period.