State expands village-level procurement, farmer membership, technology and dairy infrastructure
Patna, August 28, 2026: Bihar is accelerating efforts to expand its dairy cooperative network across the state, with the government targeting the establishment of dairy cooperative societies in every village to increase milk procurement, strengthen rural livelihoods and improve farmers’ incomes.
Shirshat Kapil Ashok, chairman-cum-managing director of COMFED and secretary of Bihar’s Dairy, Fisheries and Animal Husbandry Department, said the expansion is being pursued under the ‘Sahkar Se Samriddhi’ initiative and the third component of the state’s Saat Nischay programme.
3,000 societies established in three months
According to Ashok, around 3,000 dairy cooperative societies have been established within three months, bringing more than two lakh farmers into the cooperative network.
The state aims to expand the reach of dairy cooperatives further, with village-level participation seen as an important mechanism for increasing milk procurement and connecting farmers with organised dairy markets.
Milk procurement has already increased by approximately three lakh litres compared with the previous year. The administration is also seeking to increase the average membership of cooperative societies from around 45 farmers to approximately 125.
A larger membership base is expected to increase the volume of milk collected through the organised cooperative system.
Focus on productivity at farm level
Alongside expanding procurement, Bihar is focusing on increasing milk production at the farm level.
The state’s strategy includes breed improvement, better animal nutrition and expanded veterinary services. Measures such as deworming and basic animal healthcare are also being emphasised.
Improved genetics combined with better feeding practices can raise milk yields while potentially improving returns for farmers. The government sees productivity improvement as a key part of strengthening the dairy economy rather than relying solely on increasing the number of farmers supplying milk.
Chilling and processing infrastructure expands
Bihar is also developing its milk collection and processing infrastructure.
Milk collected through village-level cooperative societies is transferred to Bulk Milk Coolers (BMCs) soon after collection. Depending on the distance involved, milk is subsequently transported to chilling centres or processing plants.
The state currently has eight dairy unions, with infrastructure development being undertaken according to regional demand and milk procurement requirements.
This network is intended to improve the handling of milk between collection points and processing facilities while supporting the expansion of organised procurement.
Cooperative model aims to maximise farmer returns
Ashok said the cooperative model is designed to ensure that farmers receive the maximum possible benefit from milk sales.
Milk prices are influenced by market demand and supply, while the union or COMFED retains only a nominal margin. When market prices increase, the price paid to farmers also rises.
The approach is intended to maintain a direct economic link between dairy market performance and farmer returns.
Sudha expands retail presence
Bihar’s dairy brand Sudha is also exploring additional retail channels. One Sudha counter has already been established at an Indian Oil Corporation fuel station.
According to Ashok, oil companies have indicated that suitable locations could be used for additional Sudha outlets. The organisation is also developing Sudha cafeterias, including a planned outlet in Nalanda.
The expansion could provide Sudha with additional consumer touchpoints while creating new channels for marketing cooperative dairy products.
Goat milk products under consideration
Bihar is also examining opportunities in the goat milk segment.
The department is working with the Goat Research Institute in Mathura to explore the commercial potential of goat milk products. One area being examined is whether goat milk can be sterilised and preserved for approximately three months.
If development work progresses as planned, commercial goat milk products could potentially be introduced within the next one-and-a-half to two months.
Digital technology enters cooperative operations
Technology is becoming another component of Bihar’s dairy expansion strategy.
Around 4,700 cooperative societies, representing more than 50,000 farmers, have been connected to systems enabling direct payments into farmers’ bank accounts. The state has set a target of reaching 10,000 societies during the current year.
Officials are also exploring chatbot-based services and expanded digital monitoring. Such systems could enable farmers and officials to track milk collection as well as parameters including fat and SNF (solids-not-fat) content.
Building a wider organised dairy network
Bihar’s approach combines village-level cooperative expansion with improvements in animal productivity, cold-chain infrastructure, processing capacity, retail distribution and digital systems.
With thousands of new societies already established and plans to reach more villages, the state is seeking to bring a larger share of dairy farmers into the organised cooperative network while strengthening procurement and improving access to markets.
The expansion could play an important role in increasing Bihar’s organised milk collection capacity and creating stronger links between rural producers, dairy unions and consumers.
