NDDB-backed cooperative plans to link 20,000 dairy societies
The Cooperative Milk Producers’ Organization Multi-State Limited is being developed as a national apex cooperative under the institutional guidance of the National Dairy Development Board (NDDB) in Anand, Gujarat. It operates within the Union Ministry of Cooperation’s “Sahkar Se Samriddhi” framework and is designed to connect village-level milk collection societies across Andhra Pradesh, Bihar, Gujarat, Maharashtra, Madhya Pradesh, Punjab, Rajasthan, Uttar Pradesh and West Bengal.
The proposed network would federate about 20,000 multipurpose Village Cooperative Societies. Its stated purpose is to bring small dairy producers into a formal procurement system with direct access to markets and clearer payment mechanisms, reducing their reliance on village-level traders and other informal buyers.
Union Home and Cooperation Minister Amit Shah cited a difference between the prices commonly received by unorganized producers and the amounts available through cooperative channels. Farmers selling liquid milk to informal traders may receive around ₹35 per litre, while cooperative payments, including component-based dividends, can reach up to ₹55 per litre. The final amount depends on laboratory measurements of fat and solids-not-fat content.
The scheme also links village collection points with cold-chain and processing infrastructure. Milk is intended to move into automated bulk milk coolers and insulated tankers, reaching a temperature of 4°C within hours of milking. The reported aim is to supply regional dairies with more consistent raw material for products including cheese, paneer and skimmed-milk powder, as well as for bottling operations.
Procurement procedures are expected to include automated milk testing, computerized weighing and direct transfers to producers’ bank accounts. The system is also intended to standardize records and audits across participating societies. The source says that NDDB’s institutional backing could help member organizations obtain credit for bulk feed purchases and artificial-insemination services.
The cooperatives are intended to provide regular payment arrangements for landless, marginal and female dairy farmers who depend on milk income for feed, veterinary expenses and household costs. The rollout of the 20,000 societies is scheduled to continue towards 2027. The initiative was reported by Indian Cooperative on October 26, 2026.
