In a landmark announcement coinciding with Ambedkar Jayanti, Union Home and Cooperation Minister Amit Shah, alongside Madhya Pradesh Chief Minister Mohan Yadav, unveiled a comprehensive roadmap to rejuvenate the state’s dairy sector through a strategic partnership with the National Dairy Development Board (NDDB). The initiative aims to revitalize cooperative institutions, expand milk processing capacity, and usher in a new era of rural prosperity.
Addressing a packed gathering in Bhopal on Sunday, Shah criticized previous regimes for allowing cooperative networks to wither through years of neglect. He stressed that the dormant cooperative sector must be reawakened, especially in a state that produces a staggering 3.3 crore litres of milk daily, yet channels only 2.5% of it through cooperative frameworks.
“While 17% of villages currently have milk cooperative access, our goal is to extend this to over 83% within five years,” said Shah. “This is not just about milk—this is about building farmer prosperity from the ground up.”
🧭 NDDB Deal: A Rs 1,447-Crore Turnaround Blueprint
The newly inked agreement between the Madhya Pradesh government and NDDB marks a strategic inflection point. With an allocation of ₹1,447 crore, the MoU will support infrastructure development, cold chain enhancements, training programs, and technology integration to uplift rural milk economies. The partnership has an initial tenure of five years, with the possibility of extension based on performance metrics.
CM Mohan Yadav called the MoU “a historic leap forward,” announcing a new milk production policy to be launched on Ambedkar Jayanti, April 14, to accelerate progress.
“We’re committed to doubling the state’s milk processing capacity, raising Madhya Pradesh’s share in India’s milk production from 9% to 20%,” Yadav stated.
The state currently manages over 7,000 milk cooperatives, but only a fraction operate at full capacity. Under the new framework, efforts will focus on functionalizing defunct cooperatives, modernizing operations, and integrating them with digital payment systems and logistics platforms.
🛠️ Structural Reform: From Bylaws to Bottom Lines
Shah highlighted that until recently, India’s cooperative landscape lacked a dedicated governance framework. “For 75 years, cooperatives were left without institutional support. That changed when the Ministry of Cooperation was created under Prime Minister Modi’s leadership,” he said.
He pointed to the nationwide rollout of Model Bylaws, which have enabled cooperatives to expand beyond agriculture into services like healthcare, banking, and utility payments, while also enabling PACS (Primary Agricultural Credit Societies) to diversify operations and digitize transactions. Madhya Pradesh leads the nation in computerizing PACS and linking them with NABARD and other financial bodies.
🧀 From Fluid Milk to Value Addition
A core pillar of the NDDB collaboration is value addition. Shah urged Madhya Pradesh to channel its surplus milk into processed dairy products such as cheese, paneer, curd, and flavored milk, thereby enhancing rural incomes and tapping into India’s rising demand for high-protein, packaged dairy.
The state’s urban milk demand stands at 1.2 crore litres per day, while rural production far exceeds this. Yet, most dairy farmers receive suboptimal prices due to fragmented collection systems and lack of access to markets.
“We have the production, we have the people, and now we have the policy. The cooperative model can convert this potential into prosperity,” Shah declared.
🌱 A Dairy Sector at a Turning Point
The convergence of political will, cooperative reform, and institutional partnership has positioned Madhya Pradesh to emerge as a dairy powerhouse in the next five years. The initiative not only seeks to modernize the supply chain but also to democratize access to fair pricing and institutional support for over a million rural households.
Dairy industry watchers note that the real test will lie in execution at the grassroots level—from organizing milk producer groups to building reliable cold chains and ensuring timely payments.
Still, with strong alignment between the state and central governments, and the backing of NDDB’s technical expertise, Madhya Pradesh’s cooperative renaissance is poised to set a national precedent.
🧾 Quick Facts: MP Dairy Revamp Plan
- Milk Production: 3.3 crore litres/day
- Cooperative Access: 17% of villages currently; target 83%
- Processing Target: Double existing capacity in 5 years
- Budget: ₹1,447 crore (initial allocation)
- Policy Launch: April 14, Ambedkar Jayanti
- NDDB Agreement Term: 5 years (extendable)