Amritsar milk plants want more milk

Most milk plants in Amritsar are not running at capacity.

Entrepreneurs say although it is the leading district in milk production, with the onset of many milk plants in the state and with milk plant owners from districts like Patiala and Derabassi approaching Amritsar for milk, a milk shortage has taken place.

But experts in the industry say the potential is not being utilised because there is a demand-supply gap of more than 500 million litres per year.

Milk production in Punjab has been estimated at 9,323.333 million litres per annum. The district of Amritsar, with an annual production of 1,377.778 million litres, comes first. Dairy farming occupies a prominent position in the district, next only to crop production. It is carried out on a commercial basis (but very few) and also as a supplementary activity in almost every rural household.

There is the Verka milk-processing plant (owned by the Punjab State Cooperative Milk Producers' Federation) with a 100,000-litre capacity per day, but utilising only 55 per cent of the capacity. Similarly, there is a milk plant in the private sector also, having a 100,000-litre capacity per day. Besides this, seven milk plants (each having a capacity of less than 100,000 litres per day) have been set up in the private sector in the district, with a daily capacity of 355,000 litres of milk. Most of them face the same problem.

Talking to Business Standard, a highly-placed official at the Verka plant said, "Earlier, only the milk plant in Amritsar used to procure the local milk, but now, plants from Patiala and Derabassi have entered the district for procurement, leading to shortages of milk."

He said in the summer milk production went down, whence the problem. A private entrepreneur expressed a similar opinion.

But experts say still there is a large opportunity for milk processing in the district.

Talking to Business Standard, Nabard Assistant General Manager J S Kalra said, "Projecting a marketable surplus at 50 per cent of the production, which is 1,377.778 million litres per annum, there is still a gap for more than 500 million litres per year. Now, the installed infrastructure (milk plants) can handle 178.850 million litres per annum only), and so still there is huge potential.

Commenting upon entrepreneurs' complaints, he added, "Dairy production is not organised in the district, and so milk is not being collected from each individual. Also, the district has 17 blocks but there are only six chillers for storage; so collection is not done properly.

Moreover, the practice of milk production is not carried on a commercial basis. So the need of the hour is create proper collection centres and infrastructure."

"With the establishment of a venture capital fund by the department of animal husbandry and dairy, and with the Centre providing relief in interest payment, the processing sector is likely to get a major boost in the district, especially the marketing outlets. Also, with the implementation of the capital subsidy scheme for the creation of marketing infrastructure in Punjab, farmers will be able to benefit from 25 per cent subsidy on milk collection centres, bulk coolers and milk parlours, which can boost this sector," he said.