Strengthening Procurement Systems

While the growth of dairy is deeply embedded in procurement system, it was not really producer friendly in the earlier times. Milk was mostly procured on per litre basis and not as per the quality of the same. So, the quality of milk did not matter much. It was like the “dudhia” system where in the contractors made money and producers were absorbed in the vicious relationship with the contractors.

As the nation witnessed growth of dairy cooperatives as a result of Operation Flood led by NDDB, it was observed that producer members did not get their due because of the per litre method. Hence, the single axis (fat only), double axis (fat and SNF), total solids and equivalent fat methods were devised. NDDB advised Milk Unions to adopt any of these methods that best suited to them.

The Dairy Board was established to build strong cooperative institutions that would organise rural poor into Dairy Cooperative Societies and eventually help in development of rural India.

Procurement Enhancement Strategies

NDDB also helps Milk Unions to address specific issues affecting procurement of milk, and help evolve strategies to enhance procurement:

  • The concept of ‘Depth’ and ‘Spread’ (OR Breadth) - Milk route organisation and optimisation
  • Fair and transparent milk procurement systems to ensure member loyalty
  • Creating and enhancing member awareness
  • Advising unions to maintain transparency by use of AMCU/DPMCU/EMT at village level.
  • Installation of BMC is advised in order to maintain milk quality.  

VBMPS under NDP-I is to strengthen the milk procurement systems at village level and provide access to organized market to milk producers. It envisages to establish a fair and transparent milk procurement system and improve quality of milk by installation of Bulk Milk Coolers (BMC), Automatic Milk Collection Unit (AMCU), Data Processor and Milk Collection Unit (DPMCU).

NDDB emphasizes on capacity building of milk producers and various functionaries of dairy cooperatives under NDP-I