National Dairy Development Board A Successful Indian Dairy Co-operative Movement

INTRODUCTION
The case examines the modern dairy development efforts undertaken in India. Which helped the country emerge as the world's second largest milk producer by the end of the 20th century. It describes in detail the Anand Model of dairy cooperatives and examines the rationale for establishment of the National Dairy Development Board (NDDB). It then talks about the initiatives taken by NDDB as part of its 'Operation Flood,' program. The achievements of the 'Operation Flood' program are analyzed and the other initiatives taken by NDDB to build on the program's success are discussed. Finally, the case discusses the future of the co-operative movement in India.

ISSUES
Understand the nature of the dairy industry in India .

the need for modernizing dairy development in the country .

Understand the need for dairy co-operatives .

The benefits that these cooperatives are provide to the milk producers

OPERATION FLOOD
In 1970, the government approved the Operation Flood programme proposed by Kurien. This programme aimed to create a 'flood of milk' across the country, to augment rural incomes and to empower milk producers so that they would become self dependent and earn profits from marketing their produce. It mainly aimed at replicating the Anand Model across India by establishing dairy cooperatives in villages and making modern dairy development technology available to all the milk producers.

Objectives of Operation Flood

To enable each city's liquid milk scheme to capture a commendable share of its market. To identify the needs of consumers and milk producers, and help fulfill those needs to reduce the cost of milk for consumers and increase the share of milk price obtained by producers. To facilitate a long-term investment in dairying and cattle and cattle development. To ensure availability of efficiency personal to manage and control every facet of the programme.

The Operation Flood was divided into three phases.

Phase I (1970-1978):
Under this phase, NDDB, with assistance of the World Food Program (WFP), obtained food aid from European Economic Community (EEC) countries. The funds generated from the sale of these commodities were used to build 27 rural milk sheds across 10 states and to establish daries in rural areas and the fours major metro cities. Milk production increased by 60 per cent from 20 mts in 1070 to over 32 mts in 1978. The sale of milk in major urban milk centers rose by 140 per cent. In, 1974, NDDB introduced the Mother Dairy Project in Delhi.

Phase II (1981-1985):
Aimed at building a National Milk Grid, linking 136 rural milk sheds with urban milk centers across 22 states and union territories in the country. Was implemented with World Bank credit 150 million US dollars and food aid from ECC. By 1985, a self-sustaining system of 43,000 village cooperatives was established.

 Phase III (1987-1996):

Aimed at consolidating the gains of earlier two phases that were linked to over 290 urban milk markets with a population over 75 million. Focused on enabling the unions and state federations to achieve financial self-sustainability. Aim to adopt the salient features of the Anand Model. Focused on intensive R&D activities in animal husbandry.

Co-operative Initiatives of NDDB in Other Industry Sectors

Edible Oils and Oil seeds: Launched as the Restructuring Edible Oil and Oilseed Production and Marketing (REOOPM) Project in 1979. Aimed at encouraging farmers to join farmer-owned oilseeds growers' cooperative society and the increasing farmers' investment in the oilseeds sector. Forestry: The primary object was to create self-sustaining institutions to restore the productivity in wastelands and marginal productive lands.

Salt Farming: Aimed at reducing the dependence of salt farmers on middlemen and helping them to receive a better price for their produce. Aimed at improving the quality of life of salt farmers, who till then had been highly exploited. Fruits and Vegetables: Aimed at creating a direct link between fruit and vegetables growers and consumers. Designed to handle up to 1,20,000 mts of fruits and vegetables annually in Delhi.

Achievements:
India's milk production had increased to over 60 mts from 20 mts in 1970. By the end of Phase III, NDDB succeeded in establishing a network of multi-tier producers' cooperatives. By 1990s, there were over 13,377 artificial insemination centers and 787 mobile veterinary clinics across India run by NDDB.

Building On Success
NDDB has primarily focused on building on the success of Operation Flood. In 2000, NDDB announced a 10 year plan-Perspective 2010-aimed at strengthening the cooperative movement in the dairy sector. NDDB identified four trust areas that included strengthening the cooperative framework, quality and plant management, productivity enhancement and national information network. NDDB established a new company, Mother Dairy Fruit and Vegetable Ltd (MDFL).

PROBLEMS
Contractors and middlemen People cant bring milk directly to cooperatives . Loss to cooperatives. Financial aid not work as expected. Exploitation of various schemes. Cattle colonies in urban areas. Cheap import. Less support from government departments.

Alternatives
Create committees on village basis. Create government body . Proper action. Fix rate of milk. Subsidies. Encouragement.

Best Alternative
Encourage and set a platform, where anybody can sell there product to organization like NDDB.

One village one committee.

Spread knowledge and awareness.