Dairy-Defence Partnership Strengthens Supply Chains, Farmer Incomes: Meenesh Shah

The NCDFI and Indian Army have renewed their four-decade partnership to strengthen dairy cooperative networks, local milk procurement and cold-chain systems for Defence supplies. The initiative aims to expand fresh milk availability, support border and Northeast dairy cooperatives, create local livelihoods and provide farmers with assured markets and regular income.

The four-decade-old partnership between India’s dairy cooperatives and the Defence establishment is helping ensure reliable milk supplies to troops while creating assured markets and regular income opportunities for dairy farmers, National Cooperative Dairy Federation of India Ltd. (NCDFI) Chairman Dr Meenesh Shah said.

Speaking at the “Cooperative Conclave on Dairy-Defence Partnership,” Shah said the partnership has created benefits across the dairy value chain. Defence establishments get dependable supplies and resilient local supply chains, dairy cooperatives gain assured institutional markets and better utilisation of infrastructure, while farmers gain access to wider markets and more stable incomes.

NCDFI and the Indian Army reiterated their commitment to strengthening cooperation in local milk procurement, processing and cold-chain management through the dairy cooperative network, particularly in border and North-Eastern regions.

Shah, who also heads the National Dairy Development Board (NDDB), commended dairy cooperatives for strengthening procurement, processing, cold storage and supply-chain infrastructure in difficult and remote areas.

“Every additional litre supplied brings dairy farmers and personnel serving the nation closer together,” Shah said, highlighting the broader economic and social significance of the partnership.

Lt General Mukesh Chadha, Director General of Supplies and Transport (DGST), Indian Army, appreciated NCDFI and its member cooperatives for ensuring reliable supplies to troops operating in difficult terrains. He also commended NDDB’s efforts to organise, promote and strengthen dairy cooperatives in border areas and support local milk production.

Chadha said a stronger dairy cooperative presence in border regions could create sustainable markets, generate employment and livelihood opportunities and help address reverse migration. He called for greater supplies of fresh milk and closer coordination between the Army and NCDFI to assess requirements and develop suitable local capacities.

He also stressed the need to maintain adequate capacity for long-life milk products wherever operational requirements make them essential.

Focus on Fresh Milk Supply

The conclave brought together senior Army officials, representatives of the Indo-Tibetan Border Police (ITBP) and Assam Rifles, and managing directors of dairy cooperatives from border and North-Eastern states. Discussions focused on operational experiences, emerging requirements and opportunities to strengthen cooperative supplies to the armed forces and other Defence establishments.

The meeting highlighted the scope for expanding fresh milk supplies wherever local procurement, processing, cold-chain and logistics infrastructure can support them. Such expansion could reduce dependence on UHT milk while retaining long-life products for locations where they remain operationally necessary.

At present, UHT milk supplies account for 4.11 crore litres. The conclave called for better demand visibility, product-wise capacity mapping, stronger alternative supply arrangements, improved quality and cold-chain systems, digital coordination, product diversification and sustainable logistics.

Partnership Covers 117 Dairy Cooperatives

NCDFI’s association with the Ministry of Defence dates back to 1984. Over the past four decades, the partnership has expanded to cover 117 dairy cooperatives, with a contract value of Rs 1,627 crore in 2025-26.

Fresh milk supplies to Defence establishments increased to 18.48 crore litres in 2025-26, while combined supplies of fresh and UHT milk reached 22.60 crore litres during the year.

Dairy cooperatives in border and North-Eastern regions have also emerged as important suppliers. Ten such cooperatives supplied 6.44 crore litres of fresh milk to 196 Army units in 2025-26, underscoring the growing role of local dairy networks in supporting Defence supply chains.

The conclave concluded with a renewed commitment from NCDFI and the Defence establishment to strengthen the dairy cooperative network, expand local procurement and build more resilient and efficient supply systems in strategically important regions.