“A cooperative is an organization established for the purpose of purchasing and marketing the products of its members, i.e., shareholders, and/or procuring supplies for resale to the members, whose profits are distributed to the members (in the form of patronage dividends), not on the basis of the members’ equity investment in the cooperative, but in proportion to their patronage of it, i.e., the amount of business that each member transacts with it”.
Need to setup cooperatives for women farmers in dairy industry:
- Cooperatives enhance backward and forward linkages in the dairy value chain, paving the way for freeing small farmers from the clutches of middlemen, and guaranteed minimum procurement price for milk.
- A study by the International Development Research Centre (IDRC) indicates that 93% of women farmers who receive training alongside financial support succeed in their ventures, compared to the 57% success rate of those who receive financial aid alone.
- According to latest data, there are more than 1,90,000 dairy cooperative societies across the country, with approximately 6 million women members.
- Increased Income: A study conducted on Women Dairy Cooperative Society (WDCS) members across Rajasthan showed that with the income generated through dairying, 31% of the women had converted their mud houses to cement structures, while 39% had constructed concrete sheds for their cattle.
- Provides Leadership lessons: Importantly, women-led cooperatives also provide fertile ground for grooming women from rural areas for leadership positions.
- Breaks barriers: In many instances, this becomes the first step for women in breaking free from traditional practices.
- Defeats Information Asymmetry: The presence of collectives in the form of cooperatives and milk unions plays a significant role in enhancing the knowledge and bargaining power of women
Measures needed
- The National Dairy Development Board (NDDB) now organises farmer’s orientation programmes across the country, under which women farmers are trained in scientific best practices on animal health, fodder quality, clean milk production, and accounts management. This must be further pushed with vigour to all states.
- NDDB has played a proactive role in setting up women-led producer enterprises like Shreeja Mahila Milk Producer Company, which was started with 24 women and now has more than 90,000 members, with an annual turnover of approximately ₹450 crore. Such cooperatives must be emulated across the breadth and width of the country.
- This is a great opportunity for the State governments to promote dairy business in those districts where milk production and milk availability are less than the national average. They can facilitate the promotion of the cooperative model in these regions, to channelise and formalise milk procurement, which will help millions of people to be gainfully employed.
- The Finance Minister recently announced an outlay ₹15,000 crore for Animal Husbandry Infrastructure Development Fund, which will be used for supporting private investments in dairy processing and value addition, and cattle feed infrastructure. This will not only give a boost to local manufacturing and consumption of locally produced goods but will also help the national consumer become “vocal for local”; thus taking India forward on the path of self-reliance.
The dairy sector plays a vital role in achieving the Sustainable Development Goals (SDGs) — especially SDG 1-No poverty, SDG 3-Good health, SDG 5-Gender equality, SDG 8-Good jobs and economic growth, and SDG 10-Reduced inequalities — and it helps in improving lives and transforming the global economy.
Strengthening cooperative milk business across these regions will help generate alternative employment opportunities, especially for women and economically disadvantaged communities. A flourishing dairy sector will help rural India become self-reliant and will also contribute to doubling farmers’ income.
