Syllabus: GS-III & V: Infrastructure

Why in the News?

The Gopal Milk Producers’ Cooperative Society Limited of Bajali district celebrated its foundation day on December 11, highlighting how a small, farmer-led cooperative has steadily strengthened rural livelihoods and the local dairy economy over the last five years.

The Cooperative Model: A Lifeline for Rural Farmers

The story of the Gopal Cooperative is a micro-level reflection of the success of India’s White Revolution (Operation Flood), which championed the three-tier cooperative structure (Village Society—District Union—State Federation).

• Unifying Market Access:
  • Cooperatives like this one act as a unifying milk supply centre, guaranteeing daily procurement for small and marginal dairy farmers who would otherwise struggle with fragmented supply and volatile local markets.
  • By aggregating milk, the cooperative gains collective bargaining power, ensuring farmers receive a fair and transparent price, thereby uplifting rural prosperity.
• Key Role in the Value Chain:
  • The cooperative’s supply of milk to the West Assam Milk Producers’ Union (WAMUL) (which operates under the brand name Purabi Dairy) is critical. 
  • WAMUL, established under the Operation Flood Programme of the National Dairy Development Board (NDDB), processes this raw milk in its Guwahati plant (currently expanding its capacity from 1.5 Lakh Litres Per Day (LLPD) to 3 LLPD) and markets it, connecting the village farmer directly to the urban consumer.
  • This arrangement provides the farmers with a stable and assured income source.
• Empowerment and Inclusion:
  • Cooperatives strengthen financial inclusion by providing a structured platform for monetary transactions and often offering support for credit access or livestock insurance, making dairying a more remunerative activity.
  • Nationally, nearly 70% of the dairy workforce is women, and cooperatives empower them by facilitating their participation in income generation and decision-making roles.

Government Frameworks and Schemes

The cooperative’s success is bolstered by supportive state and central schemes designed to promote dairy sector growth, especially in the North East:

• Assam Government Milk Subsidy Scheme: The state has recently rolled out a direct benefit scheme offering ₹5 per litre of milk as a subsidy to farmers affiliated with cooperatives. 
  • This initiative is designed to directly boost production, encourage more farmers to join the organised sector, and drive the goal of state-level self-sufficiency in milk.
• National Programme for Dairy Development (NPDD): This central scheme focuses on strengthening dairy infrastructure, including milk procurement, processing, and marketing systems at the grassroots level, which is directly relevant to small societies like the Gopal Cooperative.
• Rashtriya Gokul Mission (RGM): This Union Government scheme focuses on the development and conservation of indigenous bovine breeds through scientific methods like Artificial Insemination (AI), aiming to enhance the overall productivity and genetic quality of the bovine population. 
  • RGM supports the farmers by making high-quality breeding services available at their doorstep, which increases milk yield and reduces the disease burden.

Key Challenges and the Road Ahead

• The cooperative still faces challenges such as limited chilling and storage facilities, which affect milk quality during summer.
• There is a need for training in clean milk production, animal health management, and cooperative governance.
• Expansion into value-added dairy products can significantly increase farmer income and local employment.
• Strengthening women’s participation in dairy cooperatives can further enhance household incomes and social empowerment.

The Way Forward: Value Addition

A significant focus for future growth, as highlighted by the Deputy Registrar of the Barpeta cooperation department, is for the cooperative to move beyond raw milk supply into value-added milk products (like curd, paneer, ghee, etc.).

• Benefits of Value Addition: Processing offers higher returns than selling raw milk, which enhances the profitability and long-term sustainability of the cooperative society and the incomes of its members. The government’s assurance of support in this endeavor is crucial.
• Self-Reliance (Atmanirbharta): By strengthening its local cooperative network and investing in processing capabilities, Assam is progressing towards its target under the Assam Dairy Development Plan (ADDP) to achieve self-reliance in the dairy sector, ensuring nutritional security for its population.

Exam Hook: Key Takeaways

The growth of the Gopal Milk Producers’ Cooperative demonstrates the efficacy of the cooperative model in achieving inclusive rural growth and addressing regional economic disparity. Its link with WAMUL/Purabi Dairy exemplifies successful vertical integration and market linkage from the village to the consumer. The key is sustained government support through financial incentives and infrastructure strengthening.

Mains Question: Examine the role of the cooperative structure in driving the ‘White Revolution’ in India. Using the example of regional dairy development, critically analyze the opportunities and challenges for village-level Milk Producers’ Cooperatives in transitioning from raw milk supply to value-added processing. (250 words)

One Line Wrap: The success of the Gopal Milk Cooperative underscores that for inclusive national development, the cooperative model remains the most potent tool for translating government policy into direct, sustainable economic empowerment for grassroots dairy farmers.

Source