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NATIONAL DAIRYDEVELOPMENT BOARDROHIT THARWANI

9819204554

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INTRODUCTION

From chronic shortages of milk, India has emerged today as the largest producer of milk in the world

crossing 97 million tonnes. It is The Oyster of the global dairy industry. It offers opportunities galore to

entrepreneurs worldwide, who wish to capitalize on one of the worlds fastest and largest markets formilk and milk products. A bagful of pearls awaits the international dairy processor in India. The Indian

diary industry is rapidly growing, trying to keep pace with the galloping progress around the world. The

effective milk market is largely confined to urban areas, inhabited by over 25 per cent of the country's

population. An estimated 50 per cent of the total milk produced is consumed here. By the end of 2007,

the urban population is expected to increase by more than 100 million to touch 864 million in 2007

a growth of about 40 per cent. The expected rise in urban population would be a boon to Indian dairying.

Presently, the organized sector both cooperative and private and the traditional sector cater to this

market.1

INDIAN DAIRY INDUSTRY AND BACKGROUND

Indias dairy sector is expected to triple its production in the next 10 years in view of expanding

potential for export to Europe and the West. Moreover with WTO regulations expected to come into

force in coming years all the developed countries which are among big exporters today would have to

withdraw the support and subsidy to their domestic milk products sector. Also, India today is the lowest

cost producer of per litre of milk in the world, at 27 cents, compared with the U.S 63 cent. To take

advantage of this lowest cost of milk production and increasing production in the country,multinational companies are planning to expand their activities here. Some of these milk producers

have already obtained quality standard certificates from the authorities. This will help them in marketing

their products in foreign countries in processed form.

The urban market for milk products is expected to grow at an accelerated pace of around 33% per

annum to around Rs.83500 crore by year 2010. This growth is going to come from the greater

emphasis on the processed foods sector and also by increase in the conversion of milk into milk

products. India with 194 million cows and 155 million buffaloes has the largest population of cattle in the

world. Total cattle population in the country as on October'06 stood at 473mn. More than fifty percent of

the buffaloes and twenty percent of the cattle in the world are found in India and most of these aremilch cows and milch buffaloes. Indian dairy sector contributes the large share in agricultural gross

domestic products.

Presently there are around 70,000 village dairy cooperatives across the country. The co-operative

societies are federated into 170 district milk producers unions, which is turn has 22-state cooperative

dairy federations. Milk production gives employment to more than 72 million dairy farmers. In terms of

1

EMERGING TRENDS IN BUSINESS STRATEGYA SUCCESS STORY OF MOTHER DAIRY BY Rajeev Ranjan andRahul Bangabash page 4

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total production, India is the leading producer of milk in the world followed by USA. The top five milk

producing nations in the world are India, USA, Russia, Germany and France.

Although milk production has grown at a fast pace during the last three decades (courtesy:Operation Flood), milk yield per animal is very low. The main reasons for the low yield are:

Lack of use of scientific practices in milching. Inadequate availability of fodder in all seasons. Unavailability of veterinary health services.2

NATIONAL DAIRY DEVELOPMENT BOARD HISTORY (from Green Black)

The Indian Economy has been dominated by the traditional sectors of production and manufacturing.

But economic liberalization and modern technology in recent times have provided greater strength to

these sectors of the Indian economy. With governmental help and co-operative efforts traditional

technology and methods of production are being modernized. The role of the National Dairy

Development Board (NDDB) in this regard has been commendable. Through a cooperative system

of development and governance, NDDB has been highly successful in the development and

application of modern technology in traditional sectors of production.

The Board's creation was routed in the conviction that nation's socio-economic progress lies largely on

the development of rural India. And at the stem the Philosophy that all beneficiaries, belonging to thesocio-economically backward particularly women and the less privileged must be involved in

cooperative management and decision making.

The National Dairy Development Board (NDDB) was created to promote, finance and support producer

owned and controlled organizations. NDDBs programmes and activities seek to strengthen farmer

cooperatives and support national policies that are favourable to the growth of such institutions.

Fundamental to NDDBs efforts are cooperative principles and the Anand Pattern of Cooperation.3

The National Dairy Development Board (NDDB) was set up as a registered society in 1964. The earliest

reason behind it being set up was because the late Prime Minister Lal Bahadur Shastri visited a villageto see a dairy cooperative society and wanted the good work done in Anand i.e. AMUL Anand MilkUnion Limited, to be replicated all over the country. The board was set up due to the administrativeefforts of Dr Vergese Kurien and Mr Tribhuvandas Patel The first chairman of the Board was Dr Kurienand presided over the post for 30 years. He imbued NDDB with the values and work culture it is knownfor. In 1987, the society, NDDB, was merged with the Indian Dairy Corporation, a Government of IndiaUndertaking incorporated to receive and monetize commodities from abroad. The National Dairy

2EMERGING TRENDS IN BUSINESS STRATEGY A SUCCESS STORY OF MOTHER DAIRY BY Rajeev Ranjan and

Rahul Bangabash pages 4-5

3RURAL DEVELOPMENT THROUGH TECHNOLOGY - SPECIAL FEATURE: INTEGRATION OF TRADITIONAL AND

MODERN TECHNOLOGIESTECH MONITOR - A NDDB publication by Green Black Publishers page 37

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Development Board -- initially registered as a society under the Societies Act 1860 -- was merged withthe erstwhile Indian Dairy Corporation, a company formed and registered under the Companies Act1956, by an Act of India's Parliament - the NDDB Act 1987 (37 of 1987), with effect from 12 October,1987. The new body corporate was declared an institution of national importance by the Act.

Some of the key provisions of the NDDB Act are as under:

Recognition of NDDBs status as an Institution of National Importance Continuation of the freedom and flexibility that NDDB hitherto had Vesting the superintendence, direction and control of NDDB with the Board of Directors of the

NDDB.

The significant functions entrusted to the NDDB have been enlisted below:

To promote, plan and organise programmes for development of dairy and other agricultureallied industries and veterinary biologicals on a nation-wide basis.

Promote and set up dairy industries. Finance any scheme in the cooperative or public sector to stimulate production and marketing

of milk.

Develop and preserve high yielding cattle. Adopt the cooperative strategy in an effective manner. Cooperate with international organizations.

Conduct research and development.

NDDB has its headquarters at Anand, Gujarat. It consists of 11 technical and 6 administrative groups.

There are four regional offices and sixteen state offices. NDDB has about 500 officer specialists in

Projects / Engineering, Cooperative Business Development, National Information Network, Finance and

Animal Husbandry which includes Breeding, Feeding and Animal Health. Product Development and

Research and Development are other important areas of work.

Since its inception, the Dairy Board has planned and spearheaded Indias dairy programmes by placing

dairy development in the hands of milk producers and the professionals they employ to manage theircooperatives. In addition,

The Dairy Boards strength lies in leveraging the capabilities of milk marketing federations and milk

producers cooperative unions to bring high quality services and modern technology to th e service of

Rural India.

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NDDB has four wholly owned direct subsidiaries:

Indian Dairy Machinery Company which deals in dairy and food processing equipment. Indian Immunologicals Limited which deals in veterinary biologicals, drugs and human vaccines. Mother Dairy Fruit and Vegetables Limited which deals in processing and marketing of milk, milk

products, fruits and vegetables.

Dhara Vegetable Oil and Foods Company Ltd. which deals with processing and marketing ofedible oils.4

OPERATION FLOOD WHERE IT ALL STARTED

NDDB began its operations with the mission of making dairying a vehicle to a better future for millions

of grassroots milk producers. The mission achieved thrust and direction with the launching of

Operation Flood (OF), a programme extending over 26 years and which was financed by the WorldBank and marked Indias emergence as the worlds largest milk producing nation. Operation Floods

third phase was completed in 1996 and has to its credit a number of significant achievements.

The Operation Flood Programme was the most comprehensive dairy development project undertaken

it was executed in three phases between 1970 and 1986. It was financed through commodity and aid

loans from the World Bank. In all, about $ US 1 billion was spent. About 50% of these funds were on

loan, which is now being repaid by the NDDB. Of the remaining, about 40% was as commodity aid and

10% was invested by the NDDB from its own resources. Under Operation Flood, a large dairying

infrastructure has been set up in India about 175 dairy plants, 45 cattle feed plants and about 15000

Artificial Insemination centres. More than 100000 village level dairy cooperatives were set up during

the period with about 11 million farmer members these village level societies are federated into

about 170 district cooperative unions and 17 state cooperative federations.

Impact of the Operation Flood (OF) programme:

Indias milk production increased from 22 to 66 million tonnes. At present, it stands at about 88million tonnes.

Average annual growth rate of 4%. The population increase in India during the same period was about 2.1%. Because of the

relatively higher rate of increase in milk production, the per capita availability of milk increased

from 40kgs a year to about 75kgs a year.

Among agricultural commodities in India, milk is now the largest contributor to the GrossNational Product even larger than rice and wheat the principal agricultural crops.

The value realised by farmers from milk is estimated at about Indian Rupees 950 billion ($ US22 billion)5

4INDIAN DAIRY SECTOR AND NATIONAL DAIRY DEVELOPMENT BOARD: AN OVERVIEW ADDRESS BY MR

DEEPAK TIKKU (MANAGING DIRECTOR, NDDB) pages 21-225INDIAN DAIRY SECTOR AND NATIONAL DAIRY DEVELOPMENT BOARD: AN OVERVIEW ADDRESS BY MR

DEEPAK TIKKU (MANAGING DIRECTOR, NDDB) pages 22-23

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FUNCTIONAL AREAS OF THE NATIONAL DAIRY DEVELOPMENT BOARD6

1. ANIMAL BREEDINGRaising the genetic potential of the national milch herd is an essential element in increasing milk

production, improving the productivity of cattle and buffaloes, and enhancing farmer incomes. Genetic

improvement of buffaloes and crossbred cattle is a specialized field involving skilled manpower and

considerable expenditure. To ensure that farmers needs are met, NDDB initiated advanced

programmes like Progeny Testing (PT), Embryo Transfer (ET) and Open Nucleus Breeding System

(ONBS) to support ongoing cattle and buffalo breeding activities throughout the country.

Beginning in 1985, the Dairy Board worked with and through the network of Cooperative Milk Unions to

implement these advanced programmes. The goal has been to extend the reach and volume of these

programmes, making their benefits available to farmers across the nation. NDDBs specialized animal

breeding services are available to co-operative milk unions, government agencies and others.

2. ENGINEERINGIn pursuit of its larger objective of strengthening the dairy cooperative movement, NDDBs Engineering

Services Group executes dairy and allied projects that meet international quality standards.

The Engineering Services Group provides technical assistance and engineering inputs for the

execution of projects, on either turnkey or consultancy basis. Clients include milk producers andoilseed growers cooperative unions and federations, the central and state governments as well as

organizations abroad. Services include setting up dairy plants, chilling centres; cattle feed plants and

infrastructure facilities for allied and agro-based industries. NDDB has also exhibited its engineering

and project management expertise in execution of turnkey projects in other areas, such as a fruit and

vegetable project, an automatic bulk milk vending system, an FMD vaccine plant, and a high security

animal disease research laboratory.

Engineering services strives to add value to the projects it undertakes by blending the latest technology

with indigenously designed, standard dairy equipment. Vendor development and standardization of

specifications for equipment for dairy and allied projects are undertaken by the Boards qualified

engineers. A singular contribution is the design of the road and rail milk tankers that form the heart of

Indias National Milk Grid (NMG).

6RURAL DEVELOPMENT THROUGH TECHNOLOGY - SPECIAL FEATURE: INTEGRATION OF TRADITIONAL AND

MODERN TECHNOLOGIES A NDDB publication by Green Black Publishers pages 37-40

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3. COOPERATIVE DEVELOPMENT AND GOVERNANCEThe Dairy Board implements cooperative development and governance programmes across the

country. The aim is to help create self-reliant and professionally managed cooperative institutions,

responsive to the economic and social expectations of their members.

In addition to helping build self-sustaining cooperatives, NDDB is com-mitted to serve its rural

constituency by including Womens Development and Leadership Development Programmes as a

central part of its activities. Need-based consultancy is provided to help evolve strategies to strengthen

dairy cooperatives as well as to increase milk procurement.

NDDB assists in institution building (IB), enhancing womens involvement in cooperatives (EWIC) and

strengthening procurement systems(SPS).In addition to its client organizations - state cooperative milk

marketing federations and milk producers co-operative unions - NDDBs Cooperative Development

and Governance services are available to non-government organizations and developmental

agencies involved in working with dairy and allied cooperatives and with womens empowerment.

4. PRODUCT AND PROCESS TECHNOLOGYAs a part of its effort to add value to the business of dairy cooperatives, the Dairy Board identifies,

develops, tests and transfers product and process technologies. Regional preferences are an important

basis for developing products and their manufacturing processes. In addition, equipment has been

designed and commercialized for manufacturing milk products, like shrikhand, paneer, lassi, curd as

well as popular western products, like ice creams and cheeses.

In developing process, product and equipment technology, emphasis is placed on maintaining high

quality standards. Test kits have been developed to check milk quality. NDDB also provides services for

analysis of daily product samples.

5. RESEARCH AND DEVELOPMENT IN BIOTECHNOLOGYNDDB carries out extensive research and development activities in Biotechnology aimed at developing

formulations and technologies useful for improving the productivity of milch animals. In 1979, the DairyBoard set up an Animal Disease Diagnostic Laboratory at Anand to undertake scientific research

activities. NDDB has expanded its research activities to include animal genetics, animal health and

animal nutrition for supporting its Productivity Enhancement Programme for dairy cooperatives.

Equipped with in-house research facilities and managed by qualified scientists, the Animal Health

section of the laboratory is recognized as a centre of excellence for research on foot and mouth

disease and bovine tropical theileriosis.

In addition to its ongoing R&D activities, NDDB offers consultancy services and training programmes to

breeding organizations, cattle feed plants, disease diagnostic laboratories and vaccine manufacturingunits; as well as to national and international governmental and non-governmental organizations.

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Training is offered in the areas of cytogenetics, molecular genetics, embryo transfer, animal feed

formulations, clinical diagnosis, and control of parasitic diseases and other related areas of

biotechnology.

6. ANIMAL HEALTHThe Animal Health wing of NDDBS Biotechnology Laboratory is internationally recognized for its

contribution to the development of biologicals. Research focuses on the development of diagnostics

and vaccines for identification and prevention of infectious diseases as well as on drug delivery devices

for control of worms in ruminants.

Significant among the laboratorys contributions is the development of an attenuated vaccine against

Tropical Theileriosis, now commercially available to farmers. Beginning in 1986, the laboratory has

implemented a foot and mouth disease (FMD) Virus Cataloguing and Strain Differentiation Project. Thishas made it possible to select and incorporate appropriate strains of viruses, as well as to monitor the

quality of FMD vaccines produced in the country.

DIAGNOSTIC SERVICES VACCINE DEVELOPMENT CONTROL OF WORMS

Infectious diseases Mastitis Clinical pathology

Tropical Theileriosis FMD (Foot and MouthDisease) Haemorrhagic septicaemia Brucellosis

Medicated feed pellets Biological control

7. ANIMAL NUTRITIONThe Animal Nutrition wing of NDDBs Biotechnology Laboratory has developed feed formulations and

supplements, including a urea molasses mineral block and bypass protein feed, which improve the

ration of dairy animals. In addition, the laboratory analyses the composition of cattle feed samples formacro and micro nutrients. The wing undertakes mineral surveys to identify area specific deficiencies

and to suggest mineral formulations to meet the requirements of dairy animals in the respective

regions.

8. ANIMAL GENETICSThe NDDB Biotechnology Laboratorys Animal Genetics wing undertakes research in the disciplines of

cytogenetics and molecular genetics. This research is directed towards selection of genetically superiordairy animals for breeding programmes being implemented in various milk sheds of the country.

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9. TRAINING AND CONSULTANCYIn todays increasingly competitive environment, the success of dairy cooperatives depends on their

people. Boards, chief executives, managers, field staff and workers must all match or exceed the

competence and commitment of their counterparts in investor-owned organizations. Supporting

cooperatives with technical training and professional expertise has long been an NDDB priority. Over

the years, the Dairy Board has developed the physical infrastructure, the experience, the methods and

the training skills necessary to fulfil this responsibility.

NDDB offers a variety of training programmes as well as on-demand consultancy in various technical

and functional areas. The scope of training and consultancy ranges from cooperative institution building

to market studies and development and dairy plant management to feasibility and impact studies.

Training programmes are designed in-house and are conducted by the NDDB personnel who are

specialists in the field. Most training programmes are designed exclusively for cooperative

organizations. Some consultancy services and selected training programmes are also offered to otherorganizations.

IMPACT AND PERFORMANCE OF THE NATIONAL DAIRY DEVELOPMENT

BOARD

In the pre-NDDB period, milk production in India was scattered. The average farmer, illiterate and poor,

had no access to the organized market and was exploited by middlemen. The dairy cooperativenetwork has provided a reliable and regular source of income to more than 10.7 million landless

labourers and marginal or small farmers. This has helped to improve the quality of life of the poor

farmers. More than Rs 50 billion of (US$ 10.8 million) revenue from milk sales went back to the

producer-members in 19992000. The dairy cooperative network includes 170 milk unions, operating in

285 districts, covering nearly 96,000 villages. During 20002001, milk procurement by these

cooperatives reached a peak of 18.9 million litres per day, with average daily procurement at 16.5

million litres. These cooperatives marketed an average of 13.4 million litres of liquid milk per day.

The computerization of 3,500 milk collection centres has resulted in the immediate measurement of fat

content, instead of the traditional method (Gerber method), which would require many hours to

calculate fat content. Therefore, milk producers are paid immediately, instead of on a 10-day basis. As

daily computerized accounts are maintained, chances of errors and fraud are reduced. The

modernization and expansion of the dairy industry and its infrastructure has created a national milk grid.

A fleet of insulated rail milk tankers operates throughout India. There is a primary group of 140 rail milk

tankers, each with a capacity of 40,000 litres, which is supplemented by another 25 rail tankers of

21,000-liter capacity.

Over the years, brands created by cooperatives have become synonymous with quality and value.

Brands such as Amul (GCMMF), Vijaya (AP), Verka (Punjab), Saras (Rajasthan). Nandini (Karnataka),Milma (Kerala) and Gokul (Kolhapur) are among those that have earned customer confidence.

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SRNO

STATES / UNIONTERRITORIES

MILKPRODUCTION IN

1997-98 (000

TONNES)

MILKPRODUCTION

IN 2009-10

((000 TONNES)

PER CAPITAAVAILABILITY BYSTATE IN 1997-98

IN GRAMS

PER CAPITAAVAILABILITY BYSTATE IN 2009-10

IN GRAMS

01 ANDHRA PRADESH 4473 10429 167 342

02 ARUNACHALPRADESH

43 26 109 59

03 ASSAM 719 756 78 69

04 BIHAR 3420 6124 98 175

05 GOA 38 59 71 96

06 GUJARAT 4913 8844 290 418

07 HARYANA 4373 6006 630 662

08 HIMACHALPRADESH

714 836 314 342

09 JAMMU & KASHMIR 1167 1604 345 382

10 KARNATAKA 3970 4822 216 226

11 KERALA 2343 2537 204 203

12 MADHYA PRADESH 5377 7167 194 278

13 MAHARASHTRA 5193 7679 161 190

14 MANIPUR 62 78 74 88

15 MEGHALAYA 59 78 73 83

16 MIZORAM 17 11 53 29

17 NAGALAND 46 78 82 96

18 ORISSA 672 1651 53 112

19 PUNJAB 7165 9389 861 944

20 RAJASTHAN 6487 9548 348 395

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21 SIKKIM 35 46 188 210

22 TAMIL NADU 4061 5778 185 237

23 TRIPURA 57 100 45 77

24 UTTAR PRADESH 12934 20203 221 283

25 WEST BENGAL 3415 4300 123 133

26 ANDAMAN ANDNICOBAR ISLANDS

22 24 169 137

27 CHANDIGARH 43 46 147 95

28 DADRA & NAGARHAVELI

04 10 86 86

29 DAMAN AND DIU 01 01 `17 15

30 DELHI 267 466 59 72

31 LAKSHWADEEP 01 02 97 84

32 PONDICHERRY 36 46 43 96

33 CHATTISGARH - 956 - 110

34 UTTARANCHAL - 1377 - 387

35 CHATTISGARH-

1463-

130

ALL INDIA TOTAL 72128 112540 207 263

Data source: National Dairy Development Board website (http://www.nddb.org/statistics.html)

The cooperatives marketing network now reaches 200 Class I towns and 550 Class II towns in India.

The Gujarat Cooperative Milk Marketing Federation (GCMMF) is the largest milk marketing federation

in India, with 2.23 million producers who have a handling capacity of 6.7 million litres a day.

Class I town: Population greater than 100,000.

Class II town: Population between 50,000 -100,000.

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A secure market, financial security for milk producers, technical inputs (including artificial insemination),

and veterinary health services have jointly contributed to the sustainability of the milk industry.

Dependence on commercial imports of milk products has ended, with positive impacts on local

producers. The dairy equipment industry, the packaging industry, the electronic quality control

equipment industry, and the milk testing industry all have grown with the development of the dairyindustry. Currently, 95 percent of Indias dairy equipment in use is produced i n India. A network of

research institutions, focused on various aspects of dairy development, animal sciences, and rural

development, has been established. In order to improve animal nutrition, various innovative methods

that improve the digestibility and palatability of cattle feed have been developed, along with the

establishment of cattle feed plants and quality control laboratories.7

NATIONAL DAIRY DEVELOPMENT BOARD AND WOMEN EMPOWEREMENTSTRATEGIES

8

Activities pertaining to enhancing womens involvement in cooperatives intended to increase womens

participation in cooperatives, as members, leaders and employees and specific activities to focus on

enhancing womens leadership skills, promoting thrift and credit groups as well as health, educati on

and economic activities that contribute to women empowerment. NDDB initiated programmes to

address the following questions:

Why is gender integration in cooperatives important and what are the benefits of promotingwomens participation in cooperatives?

What can be done to integrate women in cooperative development and to enhance theirparticipation in decision-making processes?

The NDDB implements programmes for cooperative development and governance programmes

throughout the country. The aim is to help create self-reliant and professionally managed cooperative

institutions, responsive to the economic and social expectations of their members.

In addition to helping build self-sustaining cooperatives, the NDDB is committed to serve its rural

constituency by including Womens Development and Leadership Development Programmes as a

central part of its activities. Need based consultancy is provided to help evolve strategies to strengthen

dairy cooperatives as well as to increase milk procurement. It is understood that involving more

women in dairy cooperatives, it strengthens the cooperatives, makes cooperatives self-sustaining,

and hence consultancy also includes how to promote women participation in dairy cooperatives.

7EMPOWERMENT CASE STUDIESNATIONAL DAIRY DEVELOPMENT BOARD: Case study prepared by a team

comprising Prof. Subhash Bhatnagar and Ankita Dewan at the Indian Institute of Management (Ahmedabad) and

Magi Moreno Torres and Parameeta Kanungo at the World Bank (Washington DC). Pages 2-48ROLE OF A WOMAN LEADER IN COOPERATIVE DAIRY MOVEMENT: STORY OF NDDB WOMAN EMPOWERING

WOMEN By Dr Vrajilal Sapovadia AND Dr Sarla Achuthan

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In 1995, the Dairy Board initiated the Womens Dairy Cooperative Leadership Programme (WDCLP) on

a pilot basis in Valsad, Kolhapur, Wynad and Goa in Western India. The success of this programme

has led to its replication in other unions throughout the country. Other interventions include

organizing all Women's Dairy Cooperative Societies (WDCS) and Womens Thrift Groups (WTG).

These activities are organized to raise womens awareness both of their rights and responsibilities as

cooperative members, to encourage involvement in social and economic activities, leadership

development, and increased participation of women in the membership, governance and empowerment

of women.

NDDB provides assistance to milk producers cooperative unions in conducting several activities to

achieve WLDCP objectives. Some key activities include:

Awareness generation among villagers and farmers Socio economic activities Organization of Mahila Mandals (womens clubs) Womens literacy programmes Organization of thrift and credit groups Leadership development Training programmes and exposure visits for potential leaders Training of village resource persons Cooperative governance Education programmes on District Cooperative Society (DCS) activities Member responsibilities and rights Managing committee member duties and tasks

NDDB carries out health and sanitation camps, campaigns and education programmes for women

focusing on maternal and child health and disease prevention. Improved animal husbandry practices,

demonstrations, field visits and other programmes are undertaken to inform women of appropriate

feeding, breeding, calf rearing and milch animal management practices.

The WDCLP encourages cooperative milk producers union to identify women staff to participate intraining designed to develop their latent potential. In the village, a key strategy is training and

positioning a local woman as a resource person to encourage and support womens involvement in

their dairy cooperative.

NDDB recognizes the importance of Support to Training and Employment Programme (STEP) as a

way to encourage increased women participation in their dairy cooperatives. Whether eligible for STEP

funding, or otherwise, milk unions are encouraged to organize all Women Dairy Cooperatives. As on

June 2011, there are 10492 all Women Dairy Cooperatives.

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WOMEN THRIFT GROUPS

An important component of the Womens Dairy Cooperative Leadership Programme is organization of

thrift groups. Thrift groups mobilize member savings, making them available either directly, or as loans,

both for maintaining milch animals during the lean season as well as for the purchase of new livestock.

As important, it provides a place where women can save their earnings from the sale of milk to theircooperative.

An additional benefit of thrift groups is the experience women gain in managing their own institutions,

experience which prepares them to assume greater responsibilities in managing their DCS and Union.

NDDB has also undertaken promoting womens thrift cooperatives on a pilot scale.

NDDBs Women Thrift Cooperative- WTC Pilot project continued to make progress. In Shajapur / Ujjain

in Madhya Pradesh and Tirupati in Andhra Pradesh, thrift cooperatives have shown an increase in

membership and loan utilisation. By March 2005, there were 138 WTCs with a membership of 8839.

With total savings of Rs 8.22 million, member loan exceeded Rs 11.037 million. In Tirupati, 21 WTCshave federated into two associations of WTCs (AWTCs). These Associations have initiated activities to

utilize idle funds and assist the WTCs in accounts, audit and legal formalities. During the year, NDDB

conducted a quick impact study of the WTC projects. The findings indicate that a majority of the

members used WTC loans for medical treatment of family members and for income generation

activities. Some members borrowed to purchase agricultural inputs and for their childrens education.

The study also revealed that the women members had started contributing to the financial support of

their families and took great pride in this.

ISSUES AND LESSONS SURROUNDING THE NATIONAL DAIRY

DEVELOPMENT BOARD9

Historically, villagers had blind faith in the middlemen, and were accustomed to selling milk only to

them. Because middlemen had a personalized relationship with the villagers, one of the biggest

challenges for the NDDB was to convince the dairy farmers to sell milk to the cooperatives. An

important institutional innovation that helped NDDB in this was the establishment of a supply chain

between the producers and the consumers. This was achieved by organizing a mechanism for milkcollection, setting up milk processing plants, and establishing a marketing unit to sell the products. In

the flush season (when milk production is at its peak), the middleman used to collect only a part of the

total output and pay lower prices. NDDB was able to accept all the milk that was produced without

significantly lowering prices, because NDDB could convert the excess milk into storable marketable

products such as butter and cheese.

9

EMPOWERMENT CASE STUDIESNATIONAL DAIRY DEVELOPMENT BOARD: Case study prepared by a teamcomprising Prof. Subhash Bhatnagar and Ankita Dewan at the Indian Institute of Management (Ahmedabad) and

Magi Moreno Torres and Parameeta Kanungo at the World Bank (Washington DC). Pages 5-7

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In addition, some of the successful district units chose to work on broader issues of peop les poverty,

health, and hygiene while promoting good dairying practices. Enlarging its scope of activities helped

NDDB to build rapport and trust between farmers and dairy functionaries.

Another daunting task was to organize and educate the illiterate and vulnerable farmers to form a large

scale cooperative network. Because milk was supplied from a large number of small producers, qualitymaintenance was a major issue due to the highly perishable nature of milk. Measures had to be taken

to ensure improved hygiene and sanitation. Quality variations among the sellers had to be removed by

improving the cattle breed (through artificial insemination), cattle feed, milk processing and the delivery

infrastructure.

With the removal of the quantitative restrictions (beginning April 2001) on dairy products under the

agreement between the World Trade Organization and the government of India, the dairy industry of

India has been facing a threat of increased imports in the form of milk and milk products from other

developed nations of the world. The quality level of milk, low yields, animal health and corruption has

been recognized as the major challenges facing the Indian Dairy Industry.

Some attempts have been made to connect the computerized milk collection centres to the Internet and

to provide access to an indigenously developed dairy Web portal, covering greater use of information

technology in processing plants, delivery of breeding and veterinary services, and milk collection

centres. This was done with the aim of improving animal health and yields, and of reducing corruption.

However, the experiments have not been successful so far because of poor Internet connectivity in

rural areas.

Amul, one of the district milk marketing federations of NDDB, has been a pioneer in building an e-

commerce platform to sell its products. A big challenge is to use electronic media and Internet to

educate consumers on assessing the quality of milk.

Adapting the Operation Flood program experience to other developing countries will require

assessment of the social, technical, and organizational aspects of milk production and processing. The

national governments and international institutions for which dairying is a major concern should

formulate policies to stimulate the growth of cooperative movements within the dairy sector.

NDDB has enabled the participation of more than 10.7 million farmers in forming a dairy cooperative

that is national in scope. Positive impacts in terms of access to information and increased accountability

are evident from training sessions and workshops, as well as from the computerized centres. However,the organization of millions of small milk producers to form a dairy cooperative of this magnitude is,

perhaps, the greatest strength of NDDB.

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FUTURE PLANS OF THE BOARD PERSPECTIVE 2010 AND BEYOND

The journey of cooperative movement gave new heights on economic and social fronts. Role of the

NDDB in creating a successful cooperative movement is exemplary worldwide. The leadership of

NDDB realized that cooperatives would become a stronger economic and more influential political forceif more women (the invisible workforce) were actively involved. One able and visionary woman, Ms

Amrita Patel, shared part of the leadership. She asserted that involving more women in cooperatives

would broaden the scope of the cooperatives and improve their social role. Currently, Dr (Ms) Amrita

Patel serves as the chairman of the NDDB and was recently the first Indian to become a member of the

International Dairy Federation (IDF). Dr Verghese Kurien was the founder chairman of the National

Dairy Development Board.10

To keep up with the overall success of the board, NDDB along with the dairy cooperatives have

evolved Perspective 2010. The Perspective 2010 plan of the NDDB maps the future of dairying in

India, setting realistic goals for strengthening cooperatives business, enhancing production, assuringquality, and creating an information and development research. The plan was realized with the

successful completion of the Operation Flood programme and was developed by the State Milk

Marketing Federations and the Milk Producers Cooperative Unions in consultation with the Dairy

Board. The Perspective 2010 goals and strategies to meet them were drawn by its actual implementers

Federation Unions and supported by the NDDB.11

The Operation Flood programme has put a dairy cooperative framework in place. The challenge is now

to build on this strong foundation, both in quantitative as well as qualitative terms. To set goals for the

next decade, dairy cooperatives have worked with NDDB to evolve perspective plans. These plans

cover four main thrust areas:

a) Cooperatives Business: which includes procurement and marketing of milkb) Productivity enhancement: which includes feeding, breeding and animal healthc) Quality assuranced) National Information Network

In the area of Cooperatives Business, it is envisaged that cooperatives in the country will procure,

process and market a major share of rural marketable surplus of milk. NDDB hopes to triple both, the

quantum of milk that is being procured from the farmers and the quantity of milk being marketed from

their levels in 2000. The NDDB also envisages a 50% increase in total membership, and doubling of

women membership from their levels in 2000.

NDDBs plans for productivity enhancement of dairy animals focus on improving access to breeding,

feeding and health services for the majority of the dairy farmers in India. For this to be achieved, they

expect to quadruple both the number of artificial inseminations per annum as well as the number of

10ROLE OF A WOMAN LEADER IN COOPERATIVE DAIRY MOVEMENT: STORY OF NDDB WOMAN EMPOWERING

WOMEN By Dr Vrajilal Sapovadia AND Dr Sarla Achuthan11RURAL DEVELOPMENT THROUGH TECHNOLOGY - SPECIAL FEATURE: INTEGRATION OF TRADITIONAL AND

MODERN TECHNOLOGIESTECH MONITOR - A NDDB publication by Green Black Publishers page 40

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dairy cooperative societies delivering vaccination and first aid services. One of the important aspects of

the productivity programme would also be the preservation of indigenous breeds.

In ensuring quality of liquid milk and milk products, cooperatives will strive to meet increasingly

demanding quality requirements. The plan is to make sure than sooner than later, most of the milk

delivered to consumers from cooperative plants will be from ISO certified plants. Clean milk productionregimes managed by farmer members will be in place in all the participating unions.

A national dairy industry database is being developed which will attempt to serve information needs at

all levels. All participating cooperative milk unions will be linked through an Internet Dairy Information

System. Further, many participating unions will use Geographical Information System to monitor their

field activities.

To undertake these activities under the Perspective 2010, NDDB will finance dairy cooperatives on

relatively soft terms. For setting up dairy plants, the current interest rate for such loans is 8.5% per

annum. Further, for activities like Quality Assurance, Productivity Enhancement and Marketing SupportNDDB provides interest free loans. NDDB will also provide grants, up to 50% of the cost, for activities

such as Training and Leadership Development Programmes and Womens Education Programmes,

with the cooperatives bearing the remaining 50% of the cost. The effective cost of financing Perspective

Plans would work out to an average rate of interest of about four to five percent. Till now, Perspective

Plans have been approved for about 80 unions at an estimated outlay of about Rs 8000 million.

NDDBs R&D division is currently pursuing research programmes that include molecular

characterisation of dairy breeds and their conservation; DNA maker based selection of dairy animals,

development of extra vaccines, and development of appropriate feeding solutions including briquetting

of crop residues to reduce the costs in handling.

Enhancing the role of women in cooperatives is an important goal the NDDB seeks to achieve. NDDB

hopes to increase the women membership of the cooperatives to 50% of the total membership. Their

plans also include education and training of women for empowering them to ensure their greater

participation and leadership in governance of cooperatives.

Reform of cooperative laws is an important agenda of the NDDB that they have been pursuing for quite

some time, as the cooperative system in India has been weakened considerably due to political and

bureaucratic interference. The Government of India has now brought about an institutional innovation

for rural producers through the amendment in the Companies Act 1956 that provides for the formationof a Producer Company. This will hopefully combine the institutional strength of mutual assistance and

cooperative principles prevalent in the cooperative framework, with the liberal regulatory framework of

the Company Law. Institutions registered as Producer Company would retain the cooperative principle

of one man one vote with membership restricted only to producers.12

12INDIAN DAIRY SECTOR AND NATIONAL DAIRY DEVELOPMENT BOARD: AN OVERVIEW ADDRESS BY MR

DEEPAK TIKKU (MANAGING DIRECTOR, NDDB) pages 23-25

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NATIONAL DAIRY DEVELOPMENT BOARD IN THE NEWS

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CONCLUSION

The National Dairy Development Board has pioneered the dairy farming revolution in India. With its

major success in the form of the Operation Flood (OF) Programme and promising future avenues in the

form of its Perspective Plans, it is imperative that the Board is kept free from any form of undue

interference or bureaucratic control of any kind. Women have gained a stronger foothold in the rural

areas and this is a huge positive. States such as Andhra Pradesh, Bihar, Gujarat and Orissa have

benefited due to the reforms brought about by the NDDB. All appropriate measures must be taken in

order to ensure the smooth functioning of the NDDB and reap future benefits.