Unorganised Dairy Products Manufacturing Enterprises: Need to Strengthen Backward and Forward Linkages Saxena Raka, Sirohi Smita, Singh A.K., Pal Kavita National Dairy Research Institute, Karnal, Haryana Online published on 9 October, 2012. Abstract Based on the NSS 62nd round (2005–06) unit record data on unorganised manufacturing and the case study of Anmol Women Milk Cooperative (AWMC), Karnal, the study has examined backward and forward linkages of small dairy processing units at the macro and micro levels, respectively. The private individuals, households and enterprises are the major suppliers of raw material (primarily milk) to the processing units, while the supplies of cooperative and marketing societies are limited to larger-sized units. The study has revealed that due to constraints in input/service delivery, output supply and infrastructural availability (especially electric power), 81 per cent of enterprises, operational for more than 3 years, are either stagnating or contracting as per the owner's perception. The gross value addition can be enhanced by strengthening the backward and forward linkages. The case study of the women self-help group, AWMC, has provided useful lessons in this direction. This seven member group started with capital of  107000 (loan 50,000) and technical support from National Dairy Research Institute, processes about 7500 litres milk on monthly basis. While strong backward linkages have been developed with dairy farmers within and in the nearby villages, attempts are underway to develop forward linkages with educational institutions, hospitals and consumers for supply of milk, and milk products. By spending only 3–4 hours per day, each member is able to earn about 4500/- per month, a 15-fold increase since its inception two years ago. Top Keywords Dairy sector, unorganized manufacturing, women self-help group. Top |