Centre-backed schemes aim to deepen farmer participation, strengthen milk procurement infrastructure

The Government of India is intensifying efforts to strengthen dairy cooperatives in Odisha through a suite of targeted schemes led by the Department of Animal Husbandry and Dairying (DAHD), as part of its broader White Revolution 2.0 agenda.

At the core of the expansion is the National Programme for Dairy Development (NPDD), designed to modernize milk procurement systems, expand cooperative coverage, and improve transparency in payments. While NPDD’s Component A—implemented by the National Dairy Development Board (NDDB)—supports Milk Producer Organisations and Farmer Producer Organisations, no projects have yet been sanctioned to such entities in Odisha. Component B (DTC-JICA) is also not currently operational in the state.

White Revolution 2.0 Sets Ambitious Cooperative Targets

Under White Revolution 2.0, Odisha has been assigned an ambitious target to establish 8,547 new dairy cooperative societies and strengthen 1,140 existing societies between 2024–25 and 2028–29, with financial backing routed through NPDD.

Early progress suggests incremental momentum. As of January 13, 2026, the state has established 494 new dairy cooperatives. Additionally, 466 existing cooperatives had been strengthened by September 30, 2025. The programme seeks not only to expand cooperative coverage but also to enhance women’s participation, generate rural employment, and build village-level milk procurement and chilling infrastructure.

The initiative is structured to deepen grassroots aggregation capacity—an essential step in stabilizing farmer incomes and integrating smallholders into formal dairy value chains.

Liquidity Support and Direct Payments Strengthen Farmer Confidence

To address liquidity challenges faced during the pandemic period, the Centre introduced an interest subvention component under the scheme “Supporting Dairy Cooperatives and Farmer Producer Organizations engaged in dairy activities (SDC&FPO).” Implemented through NDDB, the scheme provides working capital relief to Producer Owned Institutions, ensuring timely milk payments to farmers even during adverse conditions.

Under this mechanism, Rs 0.29 crore in interest subvention was released to Odisha State Cooperative Milk Producers’ Federation (OMFED) in FY 2023–24.

Meanwhile, 80 percent of milk producers in Odisha now receive payments directly into their bank accounts through OMFED and its affiliated milk unions, reinforcing transparency and reducing leakages. In December 2025 alone, OMFED disbursed Rs 57.07 crore in milk payments to producer members associated with Dairy Cooperative Societies (DCS).

Union-Wise Footprint Reflects Expanding Cooperative Base

Odisha’s dairy cooperative architecture spans 11 milk unions, collectively supporting thousands of rural producers. The Cuttack Milk Union leads in scale with 1,481 functional Dairy Cooperative Societies covering four districts and enrolling 74,783 producer members. Samaleswari Milk Union operates 845 societies with over 42,000 producers, while Balasore-Bhadrak Milk Union supports 547 societies and more than 40,000 members.

Other significant contributors include Bolangir-Kalahandi-Nuapada Milk Union with 399 societies, and Puri Milk Union with 290 societies serving nearly 22,000 producers. Smaller but regionally vital unions such as Koraput-Malkangiri-Nabarangpur-Rayagada and Keonjhar Milk Union extend cooperative access into tribal and interior districts, reflecting the network’s geographic inclusivity.

Infrastructure Funds Await State Participation

Despite central financing windows such as the Animal Husbandry Infrastructure Development Fund (AHIDF) and the erstwhile Dairy Processing Infrastructure Development Fund (DIDF), no proposals have yet been received from eligible dairy cooperatives in Odisha under these schemes. This suggests untapped potential for scaling processing and value-addition capacity in the state.

Market-Linked Pricing and Cooperative Stability

Milk procurement prices in Odisha are determined by dairy cooperatives based on production costs and prevailing market dynamics. Cooperative structures enable periodic revisions in procurement prices to offset input cost pressures, thereby ensuring stable and remunerative returns for member farmers.

Through NPDD and White Revolution 2.0, the Centre is emphasizing fair and transparent milk procurement systems, aiming to bring more dairy farmers under cooperative networks. The strategy aligns with a broader push to formalize rural dairy markets, enhance productivity, and secure predictable income streams for smallholders.

A Strategic Growth Lever for Rural Odisha

Dairy remains one of Odisha’s most inclusive agricultural sub-sectors, providing regular cash flow to small and marginal farmers. As cooperative expansion accelerates and digital payment systems deepen financial inclusion, the state’s dairy ecosystem is positioned to become a stronger pillar of rural livelihoods.

While implementation challenges and infrastructure gaps remain, the combined thrust of NPDD, White Revolution 2.0, and liquidity support schemes signals a sustained policy focus on transforming Odisha’s dairy cooperatives into scalable, farmer-centric growth engines.