India’s cooperative-based rural economy is being reinforced through large-scale, multi-sector interventions covering dairy, fisheries and agriculture. These initiatives focus on market access, infrastructure, liquidity, training and institutional strengthening.
Government Schemes and Interventions
I. Dairy Cooperative Strengthening Schemes
1. National Programme for Dairy Development (NPDD)
Objective:
To strengthen Dairy Cooperative Societies (DCS) in rural areas by improving procurement, processing, marketing and institutional capacity.
NPDD Component B (Implemented in 9 States)
Key focus areas:
- Expansion of organised milk markets
- Upgradation of processing and manufacturing facilities
- Strengthening producer-owned institutions (POIs)
Financial & Technical Support Includes:
- Village-level milk procurement infrastructure
- Milk processing and manufacturing facilities
- Marketing and ICT infrastructure
- Productivity enhancement
- Training and capacity building for:
- Farmers
- Staff and officers
- Board of Directors of milk unions
Total Project Outlay: ₹1,568.28 crore
- JICA (ODA Loan): ₹924.56 crore
- Government of India Grant: ₹475.54 crore
- State/Participating Institutions: ₹168.18 crore
2. White Revolution 2.0 (WR 2.0)
Launch Date: 25 December 2024
Lead Ministry: Ministry of Cooperation (with DAHD)
Vision:
A cooperative-led dairy expansion model focusing on coverage, employment, and women’s participation.
Key Targets (2024-25 to 2028-29):
- Establishment of 75,000 new Multi-purpose Dairy Cooperative Societies (M-DCS)
- Strengthening of 46,000 existing DCS
- Milk procurement target: 1,000 lakh kg/day by Year 5
Funding Mechanism:
Implemented under Revised NPDD, aligned with WR 2.0 objectives.
Support Components:
- Village-level milk procurement systems
- Milk chilling facilities
- Training and capacity building
3. AHIDF / erstwhile DIDF
Purpose:
Infrastructure development across dairy value chains.
- DIDF (2018–19 to 2022–23)
- Interest subvention: 2.5%
- Merged into AHIDF
- Interest subvention increased to 3%
Beneficiaries:
Dairy cooperatives, milk unions, FPOs and private dairy enterprises.
4. Interest Subvention on Working Capital Loans
(SDC&FPO Scheme – Component B)
Introduced: FY 2020-21
Objective: Address liquidity stress of dairy cooperatives.
Read More: Mothers’ Milk and Food Allergies: What This Study Really Shows
Benefits:
- 2% interest subvention on working capital loans
- Additional 2% incentive for prompt repayment
Eligible Institutions:
- Milk Federations
- Milk Unions
- Farmer-owned Milk Producer Organisations (MPOs)
II. Fisheries Cooperative Development
1. Pradhan Mantri Matsya Sampada Yojana (PMMSY)
Implementing Agency: NFDB
Target: Formation of 6,000 new Fisheries Cooperative Societies (2024-25 to 2028-29)
Financial Support:
- ₹3.00 lakh per newly formed FCS
- Covers:
- Establishment
- Maintenance
- Member training
Progress Achieved:
- 1,225 new FCS supported
- Coverage: 34 States/UTs
Other Eligible Schemes:
- Fisheries Infrastructure Development Fund (FIDF)
- PMMSY
- PMMKSSY
III. Institutional Finance & Training Support
National Cooperative Development Corporation (NCDC)
- Cumulative disbursement (as of 25.11.2025):
₹4,67,455.66 crore
Training & Capacity Building
- Conducted by:
- National Council for Cooperative Training (NCCT)
- NCDC’s National Training Academy (LINAC)
IV. Expansion of Multipurpose Cooperatives (PACS / Dairy / Fisheries)
National Goal:
Cover all panchayats and villages with multipurpose cooperatives within five years.
Supporting Institutions:
- NABARD
- NDDB
- NFDB
- State & UT Governments
Progress (as of 15.11.2025)
- 30,083 new PACS / Dairy / Fishery cooperatives registered
- 15,793 Dairy & Fisheries cooperatives strengthened
Support Measures Provided:
- Capacity building for members, secretaries and boards (NCCT, NABARD)
- PACS computerisation and digital training
- NDDB support:
- Animal health
- Breeding
- Feed & fodder
- Cold-chain
- Digital tools
- NFDB support:
- Cage culture
- Biofloc systems
- Infrastructure grants
- Wetland cluster management
V. Policy Significance (Straight Talk)
- This is not incremental reform—it’s structural re-engineering of rural cooperatives.
- Dairy and fisheries are being positioned as income-stabilising anchors, not side activities.
- The emphasis on women participation, liquidity support and digitalisation shows policy maturity.
- Execution quality will decide outcomes—but the policy architecture is solid.
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Disclaimer
I do my best to share reliable and well-researched market insights but occasional errors or omissions may slip through. Please view all content as informational.
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