Patna: Bihar’s dairy cooperatives have emerged among the country’s better-performing cooperative networks in implementing the Direct Benefit Transfer (DBT) system for milk procurement payments and meeting targets under the Dairy Through Cooperatives (DTC-JICA) project, according to state dairy, fisheries and animal resources department secretary Shirshat Kapil Ashok.
Speaking at a regional workshop on cooperative-led dairy development in eastern India, Ashok highlighted the importance of trust, transparency and direct payments in strengthening the long-term sustainability of dairy cooperatives.
Direct Payments Strengthen Farmer Confidence
Bihar’s dairy cooperative network, led by Comfed and its affiliated milk unions, has been directly transferring milk procurement payments into beneficiaries’ bank accounts through the DBT system.
The direct-payment mechanism provides dairy farmers with greater transparency in the procurement-payment process and reduces dependence on intermediaries.
For rural milk producers, timely and transparent payments are particularly important because milk sales provide a regular source of income for farming households.
The adoption of DBT therefore represents an important step towards improving financial transparency within the cooperative dairy system.
Bihar Performs Strongly Under DTC-JICA
According to Ashok, a review of the first phase of the Dairy Through Cooperatives (DTC-JICA) project found that Bihar’s milk unions were among the leading performers nationally.
The state’s cooperatives reportedly performed strongly against targets related to milk procurement, marketing and processing infrastructure.
The assessment highlights the progress made by Bihar’s dairy cooperative network in developing the infrastructure required to collect, process and market milk more efficiently.
Improving these systems is important as the state’s dairy sector seeks to increase procurement while creating stronger market access for farmers.
Focus on Milk Procurement and Processing
The DTC-JICA programme focuses on strengthening cooperative-led dairy development and improving the overall dairy value chain.
For Bihar, progress under the programme includes improvements in milk procurement systems as well as investments connected to marketing and processing infrastructure.
Better infrastructure can help cooperatives handle larger volumes of milk while maintaining quality during collection, transportation and processing.
This becomes increasingly important as dairy production expands and more farmers enter organised milk procurement networks.
Animal Productivity Also Improves
Bihar’s dairy cooperatives have also received recognition for their efforts to improve animal productivity.
Higher productivity per animal can have a direct impact on farmer incomes by enabling producers to generate more milk without necessarily increasing herd sizes substantially.
Improving animal productivity can involve better breeding practices, nutrition, veterinary services, animal health management and access to technical support.
For small and marginal dairy farmers, these improvements can contribute to more stable and sustainable dairy incomes.
Transparency as a Foundation for Cooperatives
Ashok emphasised that trust and transparency are central to the sustainable growth of dairy cooperatives.
Cooperative models depend on strong relationships between milk producers, collection societies, unions and processing organisations.
Transparent procurement systems and direct payments can strengthen farmers’ confidence in the cooperative structure.
When producers have greater clarity about how their milk is measured, procured and paid for, participation in organised dairy networks can become more attractive.
Regional Cooperation in Eastern India
The workshop brought together senior representatives from dairy federations and milk unions across Bihar, West Bengal, Jharkhand, Odisha and Chhattisgarh.
The regional nature of the event provided an opportunity for participating states to discuss cooperative-led approaches to dairy development and share experiences.
Eastern India has significant potential for dairy-sector expansion due to its large rural population and substantial base of smallholder livestock farmers.
Strengthening cooperative networks across the region could improve access to formal milk markets, processing facilities, technology and reliable payments.
Supported by NDDB and JICA
The workshop was organised under the Centre’s National Dairy Development Programme as part of the Japan International Cooperation Agency-supported Dairy Through Cooperatives project.
The programme was jointly hosted by the National Dairy Development Board (NDDB) and the Department of Animal Husbandry and Dairying.
International development support through initiatives such as DTC-JICA can help strengthen cooperative infrastructure, improve technical capabilities and encourage more efficient dairy value chains.
Building a Stronger Dairy Ecosystem
Bihar’s performance under the DTC-JICA programme highlights the importance of combining digital payment systems, infrastructure development, animal productivity improvements and cooperative participation.
The expansion of these systems could help dairy farmers gain better access to organised markets while improving the efficiency of milk collection and processing.
As Bihar continues to develop its dairy sector, stronger cooperative institutions and transparent payment mechanisms could play an important role in increasing farmer participation and strengthening rural livelihoods.
The state’s recognition under the DTC-JICA programme also demonstrates how cooperative-led development can support the broader transformation of India’s dairy industry.
