In a major push to transform India's dairy cooperative sector, Ministry of Cooperation launched Standard Operating Procedure for ‘White Revolution 2.0.’

Key Objectives of White Revolution 2.0

An infographic showing India’s status in Dairy Sector. 25% to world’s total milk output is from India making (ranks 1st in the production of milk globally). 5% of the country's GDP comes from Dairy sector. ~8 crore families are provided livelihood by dairy industry. More than 70% participation in the Dairying sector is by women.

Increase milk procurement by dairy cooperative societies: Aim is to increase the procurement by 50% over the next five years increasing the milk procurement to 1,000 lakh kilograms per day by 2029.
Strengthen women Farmer: To make women self-reliant and empoweredin rural areas through employment, and fight against malnutrition etc.
Strengthen Dairy Infrastructure: The targets of White Revolution 2.0 have been subsumed under the Central Sector Scheme National Programme for Dairy Development (NPDD) 2.0.
- Financial assistance under NPDD is provided for setting up of village level milk procurement system, milk chilling facilities for quality milk procurement to strengthen dairy infrastructure
Boost Dairy Exports: Through indigenous production of testing equipment, bulk milk collection and dairy infrastructure.
Financial Inclusion: Announcement of nationwide expansion of the ‘Cooperation among Cooperatives’ Initiative, was also done which has been successfully piloted in Gujarat.
- The programme will provide interest-free cash credit to dairy farmers through RuPay-Kisan Credit Cards and distribute micro-ATMs to dairy cooperative societies, bringing banking services to farmers’ doorsteps.

About White Revolution

"White Revolution" in India refers to the successful implementation of operation flood, a dairy development program launched in 1970 to make India self-dependent in milk production.
Spearheaded by India's National Dairy Development Board (NDDB), It is the most extensive dairy development initiative globally.
The movement was led by visionary Dr. Verghese Kurien, father of India’s White Revolution.
- Every year, on November 26th, India observes National Milk Day in commemoration of the birth anniversary of Dr. Verghese Kurien.
Operation Flood was implemented in three phases:
- Phase I (1970-80): Linked 18 milksheds to 4 major cities (Delhi, Mumbai, Kolkata, Chennai).
- Phase II (1981-1985): Established 43,000 village cooperatives, boosting milk powder production from 22,000 to 140,000 tons.
- Phase III (1985-1996): Added 30,000 new cooperatives emphasised on research and development in animal health etc.

An infographic showing Achievements of the White Revolution. Dairy sector- Made India the largest milk producer, boosting self-sufficiency; Established a cooperative framework, improving farmers' socio-economic status; Created a national milk grid for efficient distribution; Improved milch animal quality through crossbreeding; Minimized price variations by eliminating middlemen; Modernized the dairy sector, making 10 million farmers self-reliant

Importance of Cooperatives in Dairy Sector

Promoting Economic Empowerment of Farmers: Cooperative societies like Amul and Nandini have provided equitable wealth distribution, reducing economic inequality among farmers.
Market Access: Cooperatives facilitate market access for small farmers, enhancing their collective bargaining power and enabling them to reach consumers more effectively.
Supporting Women’s Empowerment: By increasing women's representation in the dairy sector, cooperatives contribute to their economic independence. 35% of participants in dairy cooperatives are women.
Facilitating Financial Inclusion: Cooperative banks offer low-interest loans, improving access to credit for farmers and members.
Crisis resilience and risk mitigation: Cooperatives offer crisis resilience and risk mitigation by providing a support network during economic downturns and reducing vulnerability to market fluctuations.

Challenges Faced by India's Dairy Cooperatives

Successful cooperative models are primarily found in Maharashtra, Gujarat, and parts of Kerala. Other regions have struggled to replicate this success. Some of the key reasons for this are as follows

Financing: Huge constraints are faced by cooperatives in alluring investments since cooperatives rely upon member contributions or loan capital, unlike firms/corporations that primarily rely on equity capital.
Hurdles in creating milk grid: Domestic milk production units are scattered and partitioned by uneven terrain, constraining the development of a grand superstructure for a milk grid. The procurement price received by rural producers is further eroded by inefficiencies and diseconomies of scale. The cost of transportation and processing too is higher
Challenges faced by dairy farmers: low milk prices, high feed costs, unstable markets, inadequate veterinary services, equipment for milking, cow dung management, and tracking and storing of records.
- Farmers who have tracts of irrigated land possessed greater comparative advantages, to the many disadvantages of the landless.
Consumer preference and market dynamics: Changing consumer needs, increased regulation, competition in the market, and volatile weather are some other challenges faced by milk cooperatives.

Initiatives taken to strengthen Dairy Sector

Rashtriya Gokul Mission: It is being implemented for development and conservation of indigenous bovine breeds
National Programme for Dairy Development: It aims to enhance quality of milk and milk products and increase share of organized milk procurement by strengthening of infrastructure.
Livestock Health & Disease Control Programme (LHDCP): To improve the animal health sector by way of implementation of prophylactic vaccination programmes
Animal Husbandry Infrastructure Development Fund: It incentivizes investments by entrepreneurs, private companies etc. to establish dairy processing and value addition infrastructure.
Kisan Credit Cards (KCC): Available to livestock and dairy farmers for enabling easy and increased access of institutionalized credit facility.

Way ahead

Following initiatives could make India's dairy cooperatives more efficient and competitive

Technological Integration: Milk cooperatives should integrate with information and communication technologies (ICT) for smoother operations.
- Establish cyber stores at key locations and create customer databases to segment the market and improve sales targeting.
- Introduce a web-based business-to-business system for rural cooperatives, enabling easier transactions with dealers and stockists.
Efficient Milk Processing
- Focus on Quality & Safety: Ensure quality milk procurement while maintaining high food safety and quality standards.
- Cold Chain Infrastructure: Develop a robust cold chain infrastructure to maintain milk quality and ensure smooth transportation.
- Brand Building & Promotion: Improve brand recognition through online promotion strategies, interactive websites, and creative marketing, such as food preparation guides or quizzes to capture consumer interest.
Boosting Exports
- Competitiveness: Build confidence in domestic dairy brands by improving their competitiveness against international brands.
- Business Approach: Farmers should manage dairy cooperatives with a business mindset, focusing on profitability and sustainability.
- Exclusion from FTAs: Advocate for the exclusion of dairy from free trade agreements (FTAs) to protect domestic producers from international competition.

Conclusion

By leveraging the cooperative model, India’s dairy sector can transform its potential into reality, positioning the nation as a leading exporter of dairy products on the global stage.