New Delhi: Amid evolving competition among dairy cooperatives, the Union Government has initiated steps to strengthen farmer-led institutions and ensure better returns for milk producers across India.
According to a statement presented in the Rajya Sabha by Union Minister Amit Shah, most District Cooperative Milk Unions and State Milk Federations continue to procure milk within their respective states. However, some cooperatives have expanded operations beyond state boundaries, increasing inter-state competition.
Data Gaps and Policy Focus
The National Dairy Development Board (NDDB) currently collects data on total milk procurement by cooperatives but does not maintain records on inter-state expansion. The government also clarified that no formal assessment has yet been conducted on how such competition impacts financial viability or procurement capacity of local cooperatives.
Strengthening Cooperative Framework
To promote cooperative federalism and protect farmer interests, the Ministry of Cooperation has launched a major initiative to integrate milk procurement systems under a unified cooperative structure.
Under this effort:
- Milk Collection Centres (MCCs) in 22 states
- Milk Pooling Points (MPPs) in 9 states
operated by Gujarat Cooperative Milk Marketing Federation and National Dairy Development Board are being brought under a cooperative framework.
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Conversion to Village Cooperative Societies
Around 45,000 MCCs and MPPs are proposed to be converted into Multi-Purpose Village Cooperative Societies (M-VCS). These will be affiliated with:
- Sardar Patel Cooperative Dairy Federation Limited (SPCDF)
- National Cooperative Milk Producer Organisation Ltd
Both are multi-state cooperative institutions aimed at strengthening the dairy ecosystem.
Benefits for Farmers
The initiative is expected to provide multiple advantages to dairy farmers, including:
- Assured market access for milk
- Remunerative pricing
- Patronage bonus and dividends
- Access to input services such as cattle feed
- Improved veterinary support
Way Forward
The move is seen as a significant step toward enhancing farmer income, institutional strength, and cooperative integration in India’s dairy sector. While inter-state competition continues to evolve, the government’s focus remains on ensuring that the benefits of milk procurement directly reach grassroots producers.
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