PATNA : Bihar is accelerating efforts to expand its organised dairy network, increase milk procurement and raise farmer incomes, with the state targeting 10,000 dairy cooperative societies during the current year.
Shirshat Kapil Ashok, Chairman-cum-Managing Director of the Bihar State Cooperative Milk Producers’ Federation (COMFED) and Secretary of the Department of Dairy, Fisheries and Animal Husbandry, said the state is focusing on village-level cooperative expansion, animal productivity, processing infrastructure and digital systems to strengthen its dairy economy.
3,000 Dairy Societies Added in Three Months
Under the ‘Sahkar Se Samriddhi’ initiative and Saat Nischay-3, Bihar is working towards establishing dairy cooperative societies in every village.
According to Ashok, approximately 3,000 societies have been established in just three months, bringing more than 2 lakh farmers into the cooperative network.
Milk procurement has also increased by around 3 lakh litres per day compared with the previous year.
The state is now looking to increase the average membership of a cooperative society from around 45 members to 125 members.
The strategy is straightforward: expanding the number of participating farmers should increase the quantity of milk entering the organised procurement system.
Focus Shifts to Productivity at Farm Level
Increasing procurement alone is not enough to sustainably expand Bihar’s dairy sector. The state is also focusing on raising milk productivity per animal.
Key interventions include:
- Breed improvement
- Better animal nutrition
- Deworming
- Basic veterinary healthcare
- Improved feeding practices
- Expanded animal-health services
Ashok said better breeds and improved feeding can increase milk production while improving the incomes of milk producer members.
This approach could become particularly important as Bihar expands its formal dairy procurement network and seeks a more reliable supply of quality milk.
Chilling and Processing Capacity Being Expanded
Bihar currently has eight milk unions, with infrastructure being developed according to procurement and market requirements.
Milk collected through village-level cooperative societies is initially moved to Bulk Milk Coolers (BMCs) and subsequently transported to chilling centres or processing plants depending on the distance and logistics involved.
The model is designed to reduce the time between milk collection and chilling, helping preserve raw-milk quality while connecting village producers with organised processing facilities.
Cooperative Model Aims to Maximise Farmer Returns
Ashok said the price of milk sold under the Sudha brand is influenced by market demand and supply.
According to him, COMFED and its unions retain only a nominal margin, with the objective of passing the maximum possible benefit back to milk producers.
He also said that when consumer milk prices increase, the price paid to farmers is also increased.
This farmer-centric model is central to Bihar’s strategy of using dairy cooperatives not only as procurement and marketing organisations but also as instruments for improving rural incomes.
Sudha Expands Beyond Traditional Retail
Bihar’s dairy cooperative is also exploring new retail channels for Sudha products.
One Sudha parlour has already been established at an Indian Oil Corporation (IOCL) petrol pump, while oil companies have indicated that additional suitable locations could be made available for more outlets.
The expansion could give Sudha access to high-footfall locations and diversify its consumer-facing retail network.
COMFED is also developing Sudha cafeterias, with one planned at Nalanda, further expanding the brand beyond conventional milk booths and parlours.
Goat Milk Products Under Exploration
Bihar is also examining opportunities in the emerging goat-milk segment.
Ashok said COMFED is exploring the commercial potential of goat milk in collaboration with the Goat Research Institute in Mathura.
One area under investigation is whether goat milk can be sterilised and preserved for approximately three months.
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If technical and commercial evaluations are successful, the first products could potentially reach the market within one-and-a-half to two months, according to the interview.
The initiative could open a new value-added segment for Bihar’s livestock economy, although product safety, shelf-life validation, processing technology and consumer acceptance will be critical before commercial expansion.
Digital Dairy Network Expands
Technology is becoming another major component of Bihar’s cooperative expansion.
Around 4,700 dairy societies, representing more than 50,000 milk producer members, have been connected to systems enabling direct bank-account transfers.
The state’s target is to reach 10,000 societies during the current year.
The cooperative network is also exploring chatbot-based services and digital tracking systems.
These systems could allow farmers and officials to monitor parameters such as:
Milk collection → Fat % → SNF % → Payments → Procurement data
Greater digitisation could improve transparency in milk procurement while allowing farmers to better understand the quality parameters influencing milk payments.
Bihar’s Dairy Strategy Is Moving Beyond Milk Collection
The developments indicate that Bihar’s dairy strategy is increasingly focused on building an integrated ecosystem rather than simply increasing procurement.
The emerging model combines:
Village Cooperatives + Breed Improvement + Nutrition + Veterinary Care + BMCs + Processing + Digital Payments + Retail Expansion + Value Addition
This integration is particularly important because increasing milk production without adequate chilling, processing and marketing capacity can create supply-chain bottlenecks.
Conversely, expanding processing capacity without strengthening farm-level productivity and procurement can leave plants underutilised.
Inter-State Dairy Trade Remains Important
Ashok also rejected the idea that Bihar’s dairy economy should be viewed simply through the lens of dependence on other states.
He pointed out that India’s dairy economy is inherently interdependent, with states both buying and supplying dairy products through cooperative and other organised channels.
While products enter Bihar from other states, Bihar also supplies dairy products to markets including Jharkhand and Assam.
The broader opportunity, therefore, lies in strengthening Bihar’s position within the inter-state dairy value chain rather than attempting to operate as a completely isolated dairy market.
What This Means for Bihar’s Dairy Sector
Bihar has a large livestock base and a significant rural population, giving it substantial potential for dairy expansion. The key challenge is converting that potential into higher productivity, formal procurement, better quality and stronger farmer returns.
The rapid addition of cooperative societies could bring a larger share of milk into organised channels, while investments in breed improvement, animal nutrition and veterinary services could increase productivity at the farm level.
At the same time, digital procurement and direct payments can improve transparency, while Sudha’s expansion into petrol pumps and cafeterias can create additional consumer touchpoints.
The proposed goat-milk initiative could eventually add another dimension to Bihar’s value-added dairy portfolio.
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