Dairy Cooperatives as engines of Sustainable rural development
Madhusudhan Rao
M.Sc.DT,
General Manager (P&I),
TGDDCF, Hyderabad, Telangana.
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Abstract:
Dairy cooperatives are essential to the rural development of India, empowering millions of farmers by establishing strong supply chains, ensuring equitable pricing, providing access to credit and inputs, encouraging technological advancements in milk testing, and enhancing incomes through the “White Revolution” Evidence indicates a steady growth of dairy cooperatives across all Indian states. The United Nations has designated 2025 as the International Year of Cooperatives (IYC 2025) under the theme “Cooperatives Build a Better World,” aimed at underscoring their vital role in sustainable development and celebrating the cooperative model as an innovative business approach that promotes inclusive economies, reduces poverty, creates employment opportunities, and strengthens communities. In India— a nation where progress resonates through its agricultural landscapes—- cooperatives represent a significant yet often unnoticed force. Dairy cooperatives serve as the foundation for rural prosperity and contribute to a self-sufficient Vikasit Bharat. Supported by Government initiatives such as White Revolution 2.0, these cooperatives strive to broaden their reach, enhance productivity, and increase the organized sector’s share in milk procurement. They have ensured that dairying remains an appealing livelihood option while continuously providing farmers with a reliable income stream.
Introduction:
India’s dairy sector has experienced significant transformation over recent years largely due to the rise of dairy cooperatives. These entities have been instrumental in empowering small-scale farmers by improving production methods and ensuring fair marketing practices. The country primarily relies on smallholder systems for milk production; indeed, the dairy and animal husbandry sectors contribute approximately 4.2% to India’s GDP and serve as a primary income source for about 70 million rural households. Despite this potential, milk marketing remains largely traditional, fragmented, and unorganized: around 34% of total milk produced is sold through unorganized channels while only 20% is managed by organized sectors: an additional 46% is consumed locally.
Over the past three years, India’s cooperative sector has expanded into one of the largest organized economic networks globally. Maharashtra stands out with more than 221 thousand cooperatives involving nearly 58 million members. Karnataka and Kerala also boast high membership relative to their number of registered societies. Meanwhile, Gujarat, Telangana (60,112 members), Uttar Pradesh(UP), Bihar, and West Bengal collectively account for several crore members, India represents approximately 27% of global cooperatives; with White Revolution 2.0 underway, the goal is to achieve daily milk procurement level of one billion kilograms by 2028-29.
This initiative empowers women and youth while improving governance structures within a high-quality dairy ecosystem nationwide. Currently covering around 35% of villages in India’s cooperative network— the organized dairy industry expands at a rate nearing 10-12% annually (AMUL 2019). However, uniform coverage among dairy cooperatives remains elusive on a national scale.
A study by Kale et al.(2016) identifies Gujarat, Goa, Maharashtra, Karnataka, and Tamil Nadu as states with robust cooperative marketing frameworks while Himachal Pradesh exhibits weaker structures followed closely by Haryana, Bihar, Madhya Pradesh (MP), and Punjab. The variations in cooperative coverage can be attributed to various internal and external factors influencing both cooperative development and the broader dairy industry.
In Telangana specifically, the organized sector operates through four key cooperatives: TGDDCF—commonly known as Vijaya Telangana—–with its two-tier structure comprising village-level Milk Producer Cooperative Societies (MPCS) alongside an apex federation; Karimnagar Milk Producers Union Ltd., founded in 1996 before becoming incorporated as Karimnagar Milk Producers Company Ltd., in 2012; NARMAC- Nalgonda Ranga Reddy Mutually Aided Milk Producers Union Ltd.,established in 1986; and Mulknoor Dairy—-a women-operated enterprise.
The resolutions targeting Dairy Cooperatives for 2025 focus on reinforcing “ White Revolution 2.0 “ within India, a venture aligning with the Ministry of Cooperation’s deirective “ sahakar se Samriddhi.” This initiative aims to strengthen grassroots cooperation while enhancing employment opportunities and promoting women’s empowerment within the sector.
Challenges & Opportunities for Cooperative Dairy Sector in India:
Challenges:
To counter challenges effectively requires adopting sustainable development strategies that bolster all aspects of India dairy sector. Addressing issues related to veterinary services management alongside scientific feed processing will be critical for maximizing benefits from this industry segment dominated by unorganized sectors managing about 60% of milk production.
Promoting cooperative societies is widely regarded as crucial for stimulating advancements within dairy development frameworks yet marginalized communities often experience inadequate representation leading to limited awareness affecting operational effectiveness among many cooperatives—–particularly those catering to poorer demographics——that face difficulties securing loans due lack collateral or insufficient documentation.
Opportunites:
Economic Empowerment: Establishing two lakh new Model Dairy Cooperaives (MDCS) presents significant economic prospects especially targeted towards rural populations engaged primarily in agriculture. Increased Global Presence: The formation of National Cooperative Export Ltd.,(NCEL) along with newly opened export markets may elevate recognition among international circles potentially boosting foreign exchange revenues. Job Creation: Given their substantial contributions across agriculture-related domains—including dairying—the National Cooperative Policy (NCP) set forth under NCP2025 could facilitate millions more job openings thus tackling unemployment challenges prevalent throughout rural settings. Improve Governance: Leveraging digital platforms can streamline financial reporting processes ensuring regular audits while fostering active member participation further enhances governance overall.
Way Forward:
Gandhiji recognized considerable merit within Cooperation serving as an instrument aiding rural advancement advocating particular roles tied directly towards agricultural co-operativism preventing land holding fragmentation whilst supporting diverse types including credit unions or weaver associations alongside dairying efforts promoted equally amongst varied demographic groups alike.
Sardar Vallabhbhai Patel displayed unwavering faith regarding cooperation fundamentally benefitting farmer welfare acting pivotal support behind Kheda District Co-operative Milk Producers Union Limited—-known popularly today simply AMUL—-that eventually emerged into defining models representing successful co-operative endeavours throughout India’s burgeoning landscape.
The acknowledgement enshrined constitutionally granting rights facilitating establishment cooperative societies coupled now with formation distinct Ministry Cooperation heralds renewed epochs towards collective progressiveness.
Cooperatives transcend mere institutional constructs—– they embody movements reflective grassroots-induced transformations steering futures ahead rooted solidly emboldened discussions surrounding trust-building paramount bridging relationship spanning farmers workers women depositors entrepreneurs alike.
With three million global co-operating entities generating turnover exceeding USD $ 2 trillion, the necessity persists requiring implementing sustainable approaches addressing prevailing obstacles fortifying entire domestic industries focused on delivering high-value-added products garnering premium pricing avenues meanwhile aligning efforts assisting farmers derive equitable valuation whilst simultaneously uplifting female actors entrepreneurial endeavours embedding resilience amongst community fabrics throughout nations woven towards achieving objectives sustaining cooperation intertwined prosperity earthbound aspirations realized collectively together.
