In the recently concluded 51st DIC at Patna, the Union Minister for Dairying has urged the private dairy sector to share data to facilitate better policymaking. While this may seem like a step towards inclusivity, it raises concerns about fairness and transparency. For the first time, on a national platform, I have seen the government officially acknowledge that the private sector processes 12% of the total milk produced in the country. This recognition is a welcome and much-needed step towards a more inclusive dairy policy. It reflects a shift towards a holistic approach that values the contributions of both cooperative and private players in strengthening India’s dairy sector. Yet, historically, government policies have primarily focused on supporting the cooperative sector, often at the expense of private players at state level.
Selective attention
For decades, the government has selectively highlighted the achievements of the cooperative dairy sector while downplaying the significant contributions of private dairies. Discussions around India’s dairy growth have often revolved around milk handled by cooperatives, conveniently ignoring the private sector’s rising share. Even during COVID-19, this bias was evident—while state-led cooperatives received interest subvention and financial aid, private dairies, which kept supply chains running without state support, were left to fend for themselves.
The government has access to extensive data on the cooperative sector through NDDB, including milk prices, procurement volumes, and commodity stocks. NDDB also plays a dual role—supporting cooperatives while competing with private dairies. Meanwhile, state governments provide subsidies to their respective dairy federations, creating an uneven playing field. If the government truly seeks comprehensive industry data, it must first ensure transparency by sharing cooperative sector data and establishing a national platform where all stakeholders, including private dairies, can contribute and access information.
Inclusion of private sector in AHIDF : A welcome move
It is encouraging that the government has now started extending support to the private sector under AHIDF. However, with private dairies now handling nearly equal volumes of milk—without the subsidies and state-backed infrastructure that cooperatives enjoy—it is time for the government to recognize their role and open up resources for them as well. The private sector should not be treated as a competitor to cooperatives but as an equal collaborator in India’s dairy development. A National Dairy Data Center, ensuring transparency and fair policy decisions, could be the first step in fostering this much-needed synergy.
Instead of seeking data from private players under a potential conflict of interest, the government already has multiple avenues to gather necessary insights. Installed capacities are documented through FSSAI, revenue figures are available via ROC filings, and sales data is captured under GST. These channels offer a robust mechanism to assess industry trends without placing an undue burden on private enterprises.
To foster trust, the government must go beyond merely collecting data. It should ensure that NDDB’s expertise and services are accessible to all dairy players—cooperative and private alike. The exclusionary policies of the past, originally designed to protect farmers from exploitative private firms in Dr. Kurien’s time, no longer hold the same relevance. Today’s private dairy sector has emerged as a key contributor to farmer prosperity, quality assurance, and supply chain efficiency.
National Dairy Data Center
The Indian dairy sector is operating under a stark asymmetry of information—cooperatives lack private sector data, and vice versa—creating an uneven playing field that demands immediate correction for a more transparent and balanced industry.
A truly inclusive approach would mean treating both sectors as equal pillars of India’s dairy industry. Transparency, data sharing, and equitable access to government resources can help build a dairy ecosystem where cooperatives and private players complement rather than compete with each other. The creation of a National Dairy Data Center could be the first step toward achieving this long-overdue balance. The same centre could also regulate buffer stocks of SMP and Butter in the country so that our farmers keep on getting reasonable farmgate prices for their produce.
Taking on global markets with confidence
The government is encouraging exports of agri-produce and at all the forums exports of dairy products is discussed in order to double the farmers income. In order to compete at a global level, our cooperative and private dairy sectors must come together as partners rather than rivals and take on the world. The government must act as the right anchor, ensuring a level playing field and fostering an ecosystem where both sectors complement each other’s strengths. Only by enabling equal opportunities can India establish itself as a dominant force in the global dairy industry, driving innovation, efficiency, and farmer prosperity.
Read More: Dairy Based Industries in India: Expansion Schemes by DAHD
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