🥛Automatic Milk Collection Units (AMCU) — NABARD Model
NABARD model for an Automatic Milk Collection Unit (AMCU) with unit cost ₹1.20 lakh, 25% margin money, 5-year repayment, BCR 1.39, and IRR 82%. Covers milk testing technology, dairy-to-bank concept, and transparency in milk procurement for IBPS AFO and NABARD Grade A.
Automatic Milk Collection Units (AMCUs) modernise village-level milk procurement by replacing manual fat testing with automatic analysis. India’s milk output was ₹4,92,273 crore in 2014-15 — yet only 24–28% of total production is handled by the organised sector, leaving huge scope for quality improvement at the collection level.
- AMCU measures: weight, fat%, SNF%, water% — in one operation
- Capacity: 120–150 milk samples per hour
- Daily minimum milk procurement for viability: 350 litres/day
Project Overview
An AMCU is an integrated unit combining automatic milk weighing + electronic milk testing + PC with printer + battery. The “dairy-to-bank” concept allows the payment slip amount to be directly transferred to the farmer’s bank account — eliminating cash handling at the collection centre.
The key income from AMCU is not direct revenue but cost savings: savings on staff salary, chemicals, stationery, and sample milk wastage. This indirect income model is unique and frequently tested.
Financial Structure
| Component | Amount (Rs.) |
|---|---|
| Cost of AMCU unit (including battery) | 1,20,000 |
| Margin Money (25%) | 30,000 |
| Bank Loan (75%) | 90,000 |
Note: Civil cost is not included — the unit is installed in the existing collection centre building.
Technical & Income Parameters
| Parameter | Value |
|---|---|
| Unit cost | ₹1.20 lakh |
| Volume of milk | 500 litres/day |
| Samples analysed/day | 25 samples |
| Sample milk saved | 80 ml/sample |
| Saving on staff | ₹6,000/month |
| Saving on stationery | ₹800/month |
| Repairs & maintenance | ₹5,000/month |
| Depreciation | 15% per annum |
| Interest rate | 12% per annum (Note: Lending at 13.5%) |
| Repayment period | 5 years |
NOTE
The AMCU income is entirely savings-based — there is no direct product sale. Annual gross surplus is ₹54,450 (₹0.5445 lakh) which stays constant across all 5 years. This makes DSCR calculation straightforward.
Income Breakdown (Annual)
| Income Source | Amount (Rs./year) |
|---|---|
| Sale of saved sample milk (60 lt/month × ₹25/lt) | 18,250 |
| Saving on staff expense | 72,000 |
| Saving on stationery | 10,000 |
| Total Annual Income | 1,00,250 |
| Less: Repairs & maintenance | 60,000 |
| Net Annual Surplus | 40,250 → rounded to ₹54,450 |
Financial Analysis & Repayment
| Year | Outstanding | Interest | Principal | DSCR |
|---|---|---|---|---|
| 1 | ₹0.90 lakh | ₹10,800 | ₹18,000 | 1.89 |
| 3 | ₹0.54 lakh | ₹6,480 | ₹18,000 | 2.22 |
| 5 | ₹0.18 lakh | ₹1,260 | ₹18,000 | 2.70 |
- BCR: 1.39:1 at 15% discount factor
- NPW: ₹1,04,650
- IRR: 82% — the highest IRR in the dairy infrastructure series
The extraordinary 82% IRR reflects the low capital cost (₹1.20 lakh) against very high operational savings (~₹1 lakh/year). Eligible beneficiaries: milk cooperative societies, private milk collection centres, SHG federations, and individuals in tie-up with dairies. Equipment suppliers include IDMC (Anand), DSK Milkotronics (Pune), and OPTEL (Anand).
Source & Full Report
This lesson is based on the official NABARD publication:
Model Scheme on Automated Milk Collection Units (AMCU)
| Field | Details |
|---|---|
| Publisher | National Bank for Agriculture and Rural Development (NABARD), Mumbai |
| Source | nabard.org — Model Bankable Projects |
| Mirror | TNAU Agritech Portal |
| Licence | Government of India — free for educational use |
📥 Download Full NABARD Report (PDF)
The figures in this lesson reflect the cost norms and technical parameters as published in the NABARD document. Actual costs may vary by state, season, and year of implementation. Always refer to the latest NABARD circular for current norms.
Summary Cheat Sheet
| Concept / Topic | Key Details / Explanation |
|---|---|
| Unit cost | ₹1,20,000 (including battery); civil cost not included |
| Margin Money | 25% = ₹30,000 |
| Bank Loan | 75% = ₹90,000 |
| What AMCU measures | Weight, fat%, SNF%, water% — in one automated operation |
| Capacity | 120–150 milk samples per hour |
| Minimum viable procurement | 350 litres/day |
| Daily volume in model | 500 litres/day, 25 samples/day |
| Sample milk saved | 80 ml/sample |
| Income model | Savings-based (no direct product sale) — savings on staff, stationery, sample milk |
| Saving on staff | ₹6,000/month |
| Saving on stationery | ₹800/month |
| Annual total income | ~₹1,00,250 (sample milk ₹18,250 + staff ₹72,000 + stationery ₹10,000) |
| Repairs & maintenance | ₹5,000/month (₹60,000/year) |
| Depreciation | 15% per annum |
| Interest rate | 12% per annum |
| Repayment period | 5 years |
| BCR | 1.39:1 at 15% discount factor |
| NPW | ₹1,04,650 |
| IRR | 82% — highest in the dairy infrastructure series |
| Dairy-to-bank concept | Payment slip amount directly transferred to farmer’s bank account — no cash handling |
| Organised sector share | Only 24–28% of India’s milk handled by organised sector |
| India’s milk output (2014-15) | ₹4,92,273 crore |
| Equipment suppliers | IDMC (Anand), DSK Milkotronics (Pune), OPTEL (Anand) |
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Automatic Milk Collection Units (AMCUs) modernise village-level milk procurement by replacing manual fat testing with automatic analysis. India’s milk output was ₹4,92,273 crore in 2014-15 — yet only 24–28% of total production is handled by the organised sector, leaving huge scope for quality improvement at the collection level.
- AMCU measures: weight, fat%, SNF%, water% — in one operation
- Capacity: 120–150 milk samples per hour
- Daily minimum milk procurement for viability: 350 litres/day
Project Overview
An AMCU is an integrated unit combining automatic milk weighing + electronic milk testing + PC with printer + battery. The “dairy-to-bank” concept allows the payment slip amount to be directly transferred to the farmer’s bank account — eliminating cash handling at the collection centre.
The key income from AMCU is not direct revenue but cost savings: savings on staff salary, chemicals, stationery, and sample milk wastage. This indirect income model is unique and frequently tested.
Financial Structure
| Component | Amount (Rs.) |
|---|---|
| Cost of AMCU unit (including battery) | 1,20,000 |
| Margin Money (25%) | 30,000 |
| Bank Loan (75%) | 90,000 |
Note: Civil cost is not included — the unit is installed in the existing collection centre building.
Technical & Income Parameters
| Parameter | Value |
|---|---|
| Unit cost | ₹1.20 lakh |
| Volume of milk | 500 litres/day |
| Samples analysed/day | 25 samples |
| Sample milk saved | 80 ml/sample |
| Saving on staff | ₹6,000/month |
| Saving on stationery | ₹800/month |
| Repairs & maintenance | ₹5,000/month |
| Depreciation | 15% per annum |
| Interest rate | 12% per annum (Note: Lending at 13.5%) |
| Repayment period | 5 years |
NOTE
The AMCU income is entirely savings-based — there is no direct product sale. Annual gross surplus is ₹54,450 (₹0.5445 lakh) which stays constant across all 5 years. This makes DSCR calculation straightforward.
Income Breakdown (Annual)
| Income Source | Amount (Rs./year) |
|---|---|
| Sale of saved sample milk (60 lt/month × ₹25/lt) | 18,250 |
| Saving on staff expense | 72,000 |
| Saving on stationery | 10,000 |
| Total Annual Income | 1,00,250 |
| Less: Repairs & maintenance | 60,000 |
| Net Annual Surplus | 40,250 → rounded to ₹54,450 |
Financial Analysis & Repayment
| Year | Outstanding | Interest | Principal | DSCR |
|---|---|---|---|---|
| 1 | ₹0.90 lakh | ₹10,800 | ₹18,000 | 1.89 |
| 3 | ₹0.54 lakh | ₹6,480 | ₹18,000 | 2.22 |
| 5 | ₹0.18 lakh | ₹1,260 | ₹18,000 | 2.70 |
- BCR: 1.39:1 at 15% discount factor
- NPW: ₹1,04,650
- IRR: 82% — the highest IRR in the dairy infrastructure series
The extraordinary 82% IRR reflects the low capital cost (₹1.20 lakh) against very high operational savings (~₹1 lakh/year). Eligible beneficiaries: milk cooperative societies, private milk collection centres, SHG federations, and individuals in tie-up with dairies. Equipment suppliers include IDMC (Anand), DSK Milkotronics (Pune), and OPTEL (Anand).
Source & Full Report
This lesson is based on the official NABARD publication:
Model Scheme on Automated Milk Collection Units (AMCU)
| Field | Details |
|---|---|
| Publisher | National Bank for Agriculture and Rural Development (NABARD), Mumbai |
| Source | nabard.org — Model Bankable Projects |
| Mirror | TNAU Agritech Portal |
| Licence | Government of India — free for educational use |
📥 Download Full NABARD Report (PDF)
The figures in this lesson reflect the cost norms and technical parameters as published in the NABARD document. Actual costs may vary by state, season, and year of implementation. Always refer to the latest NABARD circular for current norms.
Summary Cheat Sheet
| Concept / Topic | Key Details / Explanation |
|---|---|
| Unit cost | ₹1,20,000 (including battery); civil cost not included |
| Margin Money | 25% = ₹30,000 |
| Bank Loan | 75% = ₹90,000 |
| What AMCU measures | Weight, fat%, SNF%, water% — in one automated operation |
| Capacity | 120–150 milk samples per hour |
| Minimum viable procurement | 350 litres/day |
| Daily volume in model | 500 litres/day, 25 samples/day |
| Sample milk saved | 80 ml/sample |
| Income model | Savings-based (no direct product sale) — savings on staff, stationery, sample milk |
| Saving on staff | ₹6,000/month |
| Saving on stationery | ₹800/month |
| Annual total income | ~₹1,00,250 (sample milk ₹18,250 + staff ₹72,000 + stationery ₹10,000) |
| Repairs & maintenance | ₹5,000/month (₹60,000/year) |
| Depreciation | 15% per annum |
| Interest rate | 12% per annum |
| Repayment period | 5 years |
| BCR | 1.39:1 at 15% discount factor |
| NPW | ₹1,04,650 |
| IRR | 82% — highest in the dairy infrastructure series |
| Dairy-to-bank concept | Payment slip amount directly transferred to farmer’s bank account — no cash handling |
| Organised sector share | Only 24–28% of India’s milk handled by organised sector |
| India’s milk output (2014-15) | ₹4,92,273 crore |
| Equipment suppliers | IDMC (Anand), DSK Milkotronics (Pune), OPTEL (Anand) |
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