Ministry of Cooperation

Presentation on
Establishment of Cooperatives in the Dairy Sector in every
Panchayat of the country

Pratik Jain
Assistant Secretary
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 Structure of Presentation

1. History of Dairy Cooperative Movement

2. Dairy Sector in India- Brief

3. Need for establishment of primary cooperatives in every Panchayat.

4. The National Cooperative Establishment Plan – Dairy Sector

5. Benefits

6. Major Roadblocks
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 Beginning of the Cooperative dairy sector

• https://www.youtube.com/watch?v=ctyiG0IrwBM&t=153s

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 Dairy Sector in India - Brief

• India is the world’s largest producer of milk . Total Production of milk is 198.44 MMT. (More than 50cr litre
of milk daily)

• Top 5 milk producing states are Uttar Pradesh (16.06%), Rajasthan (12.89%), Madhya Pradesh (8.62%),
Gujarat (7.71%) and Andhra Pradesh (7.69%).

• India’s average milk consumption is at 406 gm per day which is higher than world average of 305 gm per
day (Source: Dairy and Products Annual Report, USDA)

• Cooperatives account for 54% milk production in the country. Rest of the milk production still remains
unorganized.

• India has a lot of milk production potential due to its huge population of cattle (193.46 Million in 2019 as
per Livestock Census).
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 Milk Production Statistics (MMT)
250

198.4
200
187.7
176.3
165.4
155.5
150 146.3
137.7
Million Metric Tonnes

132.4
127.9
121.8

100

50

0
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20

Year

Source: Basic Animal Husbandry Statistics, DAHD&F, GoI7

 Per Capita Availability of Milk (gms/day)
450

406
400 394
375
355
350 337
322
307
299
300 290
281

250
(gms/day)

200

150

100

50

0
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20

Year

Source: Basic Animal Husbandry Statistics, DAHD&F, GoI8

 Need for establishment of Cooperatives in Dairy Sector in Every
Panchayat
• To replicate the success of cooperative model like Amul(Gujarat), Nandini(Karnataka), Saras(Rajasthan),
etc. in other states of the country, so that the milk producers get competitive market rates with low
marketing cost and assurance of quality to consumer.

• Doubling Farmers Income - It has been seen that farmers get back almost 80% of the price of milk sold
through cooperatives.

• To meet the growing demand for milk and milk products - The demand of milk is growing at a rate of
almost 6% every year.

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Cooperative coverage in the
milk sector is very weak in
many parts of the country like
Eastern UP, North-East,
Jharkhand, Chhattisgarh, J&K,
Uttarakhand, Himachal,
Madhya Pradesh and
Maharashtra.

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 National Dairy Cooperative Establishment Plan- Dairy Sector

• Identify Panchayats where Milk cooperatives have not yet been established. This may be done through a

field survey at state level.

• Principle of 1 society per Panchayat to be followed to ensure viability.

• Out of the above Panchayats, identify panchayats with a good cattle population. This data can be taken

through Animal Census Report.

Survey at field level to identify number of farmers willing to pour milk in the cooperative on a daily basis.

• The cooperative to be established only of the amount of milk collected exceeds 250 liters per day.

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 National Dairy Cooperative Establishment Plan-Dairy Sector

• Identification of leaders to act as promoters for establishment of the society.

• Minimum contribution to be collected in the form of shares from all members.

• Support for establishment of minimum infrastructure (Automatic Milk Collection Units, Milk Cans,

Weighing Machine, Computers, etc.) from NCDC/NDDB or Sahkar-Se-Samriddhi Fund. (Rs. 2 lakh)

• Payment based on Fat and SNF criteria established by FSSAI.

• Route chart to be made for collection of milk from societies. The milk collected to be deposited at bulk

milk cooling centers.

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 National Dairy Cooperative Establishment Plan- Dairy Sector

• Bulk Milk Coolers of suitable capacity with finance from NCDC/NDDB or Sahkar-Se-Samriddhi Fund.

• After collection, milk to be sent to District Milk Unions for processing of milk.

• District Milk Unions to be established/strengthened using support of State Milk Federation through

finance from NCDC/NDDB or Sahkar se Samriddhi funds.

• Milk Unions to ensure milk collection of a minimum level as per processing capabilities.

• All Milk and products to be marketed under a common brand name.

• Establishment of community milk parlors.

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Benefits of Establishing cooperatives in the dairy sector

Increased income
Perennial flow of cash to results in a higher
the village economy expenditure on
education.
Benefits

Women Empowerment Breaks barriers of caste

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 Major Roadblocks

• Cattle feed comprises almost 70% input cost of the farmer. Ensure availability of nutritious cattle feed at

reasonable prices need to be done.

• Breed improvement Artificial insemination to be undertaken to improve productivity.

• Income Tax exemption for income from milk and milk products – treating them at par with agricultural

income.

• GST exemption for commission earned by the societies for supply of milk to milk unions.

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 Way Ahead

• Innovation – Establishing decentralized household biogas plants and vermicompost generation to utilize

GobarDhan generated

• Expansion into processing of Organic Products (Indian Market size is 23,000 crores with scope of

expansion up to 1.5 lakh crores). Higher return of 10-15% over conventional farming.

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THANK YOU

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