Revitalising the Dairy Sector

The plight of India’s rural dairy farmers, as highlighted by Union Minister Amit Shah, reflects an urgent need for reform within the agricultural cooperative sector. With 6.5 crore rural families still outside the cooperative fold, the systemic exploitation they endure, including receiving unfair prices for their milk, remains a stark issue. The cooperative sector, epitomised by success stories like Amul, has empowered millions of farmers, yet a vast majority are still left out of this progress. Shah’s call to bring all 8 crore rural families engaged in dairy farming under the cooperative sector is a step in the right direction. Cooperatives have proven their ability to transform lives by ensuring fair prices, economic stability, and access to organised markets. The dairy sector, which largely depends on small and marginal farmers, is ripe for expansion under the cooperative umbrella. The 6.5 crore families currently outside this sector often face exploitation by middlemen, volatile markets, and subpar infrastructure, which stymies their progress and the sector’s potential.
The National Dairy Development Board, whose Diamond Jubilee was celebrated, has historically been instrumental in India’s White Revolution and must now spearhead this renewed push for inclusive growth. All credit to Tribhuvandas Patel, the visionary founder of Amul, whose model turned smallholder farmers, especially women, into empowered stakeholders. Patel’s legacy serves as a reminder that a well-organised, transparent cooperative movement can address the multifaceted challenges faced by rural communities. The success of cooperatives like Amul, which are owned by farmers and focus on their welfare, should be a blueprint for scaling similar models across India. Cooperatives offer more than just financial gains; they build trust, foster social empowerment, and promote gender equity, particularly benefiting women dairy farmers. The Government’s ambitious plans to establish 2 lakh new cooperatives and bolster the existing 65,000 primary agricultural cooperative societies could be a game-changer, not just for dairying but for the entire agricultural sector. To achieve this vision, NDDB and other cooperative bodies must act decisively to bring the remaining rural families into the fold.