White Revolution 2.0: Expanding India's Dairy Sector for Future Growth

What’s in today’s article?

• Why in News?
• White Revolution 2.0
• Status of Dairy Cooperatives in India
• Milk scenario in India

Why in News?

Operation Flood, launched in 1970, ushered in the White Revolution and transformed the dairy sector in India. In order to give further boost to this sector, the government has announced plans for “White Revolution 2.0”. 

White Revolution 2.0

• About
  • White Revolution 2.0 aims to boost milk procurement by dairy cooperatives from 660 lakh kg per day in 2023-24 to 1,007 lakh kg by 2028-29. 
  • The Ministry of Cooperation's strategy focuses on expanding cooperative reach to new areas and increasing their share in the organized dairy sector. 
  • This initiative, building on the legacy of Operation Flood, will enhance market access for dairy farmers, generate employment, and empower women.
• Target
  • White Revolution 2.0 will increase milk procurement of dairy cooperatives by 50%, over the next five years.
  • It will do so by providing market access to dairy farmers in uncovered areas and increasing the share of dairy cooperatives in the organised sector.
• NDDB's Action Plan for White Revolution 2.0
  • To drive the White Revolution 2.0, the National Dairy Development Board (NDDB) plans to establish 56,000 new multipurpose dairy cooperative societies (DCSs) over the next five years and strengthen 46,000 existing ones. 
    • The strengthening will be done by providing more advanced milk procurement and testing infrastructure.
  • Key states for new DCSs include Uttar Pradesh, Odisha, Rajasthan, and Andhra Pradesh.
• Funding
  • The National Programme for Dairy Development (NPDD) 2.0 will provide the bulk of the funding for White Revolution 2.0. 
  • The scheme will offer financial aid to set up milk procurement systems, chilling facilities, and capacity-building programs at the village level. 
  • Additionally, Rs 40,000 will be provided to 1,000 Multipurpose Primary Agricultural Credit Cooperative Societies (MPACSs) to support the infrastructure of dairy cooperatives.
• Pilot project
  • In February 2023, NDDB launched a Rs 3.8 crore pilot project to set up dairy cooperatives in uncovered gram panchayats in Haryana, Madhya Pradesh, and Karnataka. 
  • The 79 DCSs established through this pilot now procure 15,000 liters of milk per day from around 2,500 farmers.

Status of Dairy Cooperatives in India

• Since its creation, in 2021, the Ministry of Cooperation has focused on expanding the network of cooperatives, in particular dairy cooperatives.
• Currently, dairy cooperatives cover around 70% of India's districts, with about 1.7 lakh cooperative societies operating in 2 lakh villages (30% of the total number of villages in the country). 
• These cooperative societies procure about 10% of the country’s milk production and 16% of the marketable surplus.
• However, regional disparities exist, with higher coverage in states like Gujarat, Kerala, and Sikkim, while regions such as West Bengal and the Northeast lag behind with less than 10% coverage. 
• The government aims to bridge these gaps to expand dairy cooperative networks across India.

Milk scenario in India

• World’s top milk producer
  • India is the world’s top milk producer, with production having reached 230.58 million tonnes during 2022-23. 
    • Total milk production increased from 187.75 million tonnes in 2018-19 to 230.58 million tonnes in 2022-23.
    • However, the annual growth rate of production came down from 6.47% to 3.83% during this period.
  • About 63% of the total milk production comes to the market; the remaining is kept by producers for their own consumption. 
• About two-thirds of the marketable milk is in the unorganised sector. 
  • In the organised sector, cooperatives account for the major share.
• Average yield
  • The average yield is, only 8.55 kg per animal per day for exotic/ crossbred animals, and 3.44 kg/ animal/ day for indigenous/ nondescript animals. 
  • The yield in Punjab is 13.49 kg/ animal/ day (exotic/ crossbreed), but only 6.30 kg/ animal/ day in West Bengal.
• Per capita availability of milk 
  • The national per capita availability of milk is 459 grams/ day, which is higher than the global average of 323 g/ day.
  • This number, however, varies from 329 g in Maharashtra to 1,283 g in Punjab.
• The top five milk producing states
  • The top five milk producing states are UP (15.72%), Rajasthan (14.44%), Madhya Pradesh (8.73%), Gujarat (7.49%), and Andhra Pradesh (6.70%), which together contribute 53.08% of the country’s total milk production.
• Contribution of milk group in the agriculture, livestock, forestry, and fishing sector
  • The milk group contributed almost 40% (Rs 11.16 lakh crore) of the value of output from the agriculture, livestock, forestry, and fishing sector in 2022-23 — much higher than cereals. 
    • Milk group comprises milk consumed or sold in liquid form, ghee, butter, and lassi produced by producer households.
  • The dairy sector provides livelihoods to more than 8.5 crore people directly or indirectly, of whom the majority are women.

Q.1. What is Operation Flood?

Operation Flood, launched in 1970, was a dairy development program that revolutionized India's dairy industry. Spearheaded by the National Dairy Development Board (NDDB), it transformed India into the world's largest milk producer by creating a nationwide milk grid, increasing milk production, and empowering dairy farmers through cooperatives.

Q.2. How does White Revolution 2.0 impact India's dairy sector?

The initiative targets improving milk procurement infrastructure, establishing 56,000 new cooperative societies, and creating employment. With funding from NPDD 2.0, it aims to increase milk production and address regional disparities in cooperative coverage.

Source: A new White Revolution: where India stands, where it aims to be