Lakhs of farmers collectively revolutionizing organized dairy sector; MPCs set to triple revenue to over Rs 18,000cr in 5 years: NDDB Chairman

Greater Noida

Meenesh Shah, the Chairman of the National Dairy Development Board (NDDB), said today that the milk procurement by milk-producing organizations, owned by farmers, is set to triple to reach a value of over Rs 18,000 crores from Rs 5575 crores now, with daily volumes going up to over 100 lakh litres.

He also assured that NDDB through its arm NDDB Dairy Services will facilitate more such organizations like what is being done on the request of the Uttar Pradesh Government, adding that Chief Minister Yogi Adityanath had once again raised the subject when he came to address the IDF World Dairy Summit 2022.

After the inauguration of the four-day long summit by Prime Minister Narendra Modi, the Chief Minister had said that not only the state would have 5 more MPCs (taking the total number to 10) but he was also seeking support from NDDB in proper management and running of the nine upcoming milk processing plants that he intended to make operational in a year or two.

“We will expand the milk producers’ organizations in every aspiring district and request from the concerned authorities,” he said, adding that the cooperatives and MPCs would cover the entire length and breadth of the nation.

“The start-up concept may have come recently but the MPCs are the real start-ups working for long,” he quipped.

Shah said, about 750,000 farmers, including over 70 per cent women, have created about 20 producer-owned entities (MPCs) imbibing cooperative principles in heart and mind, and numbers are set to grow further with a liberal and conducive legal framework. These entities did a business of about Rs 5,600 crore last year to be counted among the top dairy players in the country.

“Ever since the inception of the first farmer’s organization, the number as of now has swelled to 20. Altogether the farmer members have been paid about a staggering Rs 27,500 crore till last fiscal (2021-2022) in lieu of the milk procured from them,” Shah said on the occasion of the unveiling of value-added dairy products by the six MPCs, including four all women organizations.

Balinee from the backward region of Bundelkhand, which was hailed as an example of women empowerment towards development by Adityanath, is amongst those unveiling cow ghee to cover the markets in Uttar Pradesh and Madhya Pradesh.  

“They are taking forward the legacy of White Revolution created by the National Dairy Development Board, which has conceptualized the creation of these farmers’ organization, and a wholly-owned company NDDB Dairy Services (NDS) for facilitation and technical and organizational assistance,” Shah said.

18 of these 20 farmer-owned organizations have become operational and procured over 40 lakh litres of milk per day at the end of the last fiscal.

These farmers have pooled in over Rs 175 crore in the last ten years and have collectively over Rs 400 crore as reserves and surplus, Shah said, emphasizing that the government through policy mechanisms and various schemes like the National Dairy Plan and the National Rural Livelihood Mission was providing financial support to the farmers for organizing themselves – a move to achieve the national goal of doubling the farmers’ income in the coming years.

These farmer organizations plough back up to 85 per cent of sales proceeds to members, including over 5 lakh females, thus reflecting the empowerment of women as bread earners of the family and lifting their social and economic status in the true sense.

It may be worth mentioning that ownership of 12 of these 18 operational entities is fully with women members. Shreeja Milk Producer Company has the distinction of being the first and world’s largest all-women farmer organization at the foothills of the holy Balaji temple in Tirupati. Names denoting women-centricity like Sakhi and Asha have been adopted by such all-women entities.