Dr. Meenesh Shah, Chairman, NCDFI (National Cooperative Dairy Federation of India Ltd ) & NDDB (National Dairy Development Board ) shares how the NCDFI–Assam Rifles collaboration is moving beyond procurement to create resilient dairy value chains, generate rural employment, and empower smallholder farmers across the Northeast

Institutional procurement is often viewed through the lens of logistics and contracts, but this conversation reveals its far greater potential as a catalyst for rural transformation. In this exclusive interview, Dr. Meenesh Shah explains how the NCDFI–Assam Rifles partnership could unlock a Rs 44 crore annual opportunity while strengthening dairy cooperatives, empowering smallholder farmers, and accelerating fresh milk production across the Northeast. He also outlines why defence procurement can serve as a stable demand engine for India’s dairy sector and a model for inclusive agricultural development. Beyond milk supply, the discussion explores investments in infrastructure, women’s participation, and cooperative integration that could reshape the region’s dairy ecosystem.

The MoA with Assam Rifles is being positioned as more than a procurement arrangement. How does NCDFI view this partnership in the broader context of dairy-led rural development in the North Eastern region?

NCDFI views the MoA with Assam Rifles as a strategic partnership that goes beyond routine procurement. While it ensures regular supply of quality milk and milk products to Assam Rifles personnel, it also creates a meaningful opportunity to strengthen the rural dairy economy of the North Eastern Region. By linking local and regional dairy cooperatives with a dependable institutional buyer, the arrangement improves market access for milk producers and encourages greater participation in organised dairying. This is particularly important in the Northeast, where dairy farming is largely undertaken by small and marginal farmers, including women.

The partnership is expected to support higher milk production, improve cooperative participation, create livelihood opportunities, and contribute to local economic development. In that sense, it aligns well with the broader objective of building a self-reliant and farmer-centric dairy ecosystem in the region.

With supplies now reaching 72 Assam Rifles units across challenging geographies, what role has NCDFI played in building a reliable cooperative-led dairy supply chain for remote and border areas?

Assam Rifles has provided NCDFI and its member cooperatives an opportunity to serve units located across remote and strategically important areas. NCDFI’s key role has been to coordinate supplies through a cooperative-led framework by bringing together dairies from different states and aligning them with the requirements of Assam Rifles.

NCDFI is coordinating supplies through a network of participating dairy cooperatives across the country. Milk products are being supplied by Amul, Gujarat; Nandini, Karnataka; and Warana, Maharashtra, while the Milk Unions of Assam, Manipur, Mizoram, Nagaland and Tripura are meeting the fresh milk requirements of Assam Rifles units across the seven North Eastern States. In addition, Alwar Milk Union, Rajasthan, and Bhagirathi Milk Union, West Bengal, are catering to the requirements of Assam Rifles offices at Delhi and Kolkata, respectively. This collective participation has enabled Assam Rifles to receive fresh milk, UHT milk, whole milk powder, butter, cheese and malt-based food in a reliable and coordinated manner, as per operational requirements.

Supplying to border and far-flung locations involves several operational challenges, including difficult terrain, limited infrastructure, long transportation routes, and strict delivery schedules. Drawing upon its long experience of supplying to institutions such as the Indian Army and ITBP, NCDFI has helped establish a coordinated system for timely supply, product availability, and quality assurance. The product basket now includes fresh milk, butter, UHT milk, whole milk powder, cheese, and malt-based food. The satisfactory performance of participating cooperatives during earlier supply periods has strengthened confidence in the cooperative model and enabled expansion to more units in the North East, as well as offices in Delhi and Kolkata.

The agreement is expected to generate approximately Rs.44 crore in annual business for participating cooperatives. How will this translate into tangible benefits for dairy farmers, particularly smallholders in the Northeast?

The estimated annual business of around Rs.44 crore will provide participating cooperatives with a regular and predictable revenue stream. This, in turn, will enable them to plan milk procurement, processing, transportation, and farmer services more effectively. For smallholder farmers in the Northeast, such institutional linkage can translate into better procurement opportunities, improved income confidence, and stronger motivation to invest in dairy as a regular livelihood activity. As milk collection expands, more farmers can be brought into the organised cooperative network.

Over time, increased dairy activity can also support improvements in animal productivity, veterinary services, feed availability, milk testing, and farmer training. Therefore, the economic benefit is not limited to the supply contract alone; it can gradually strengthen the entire local dairy value chain.

Historically, NCDFI has facilitated dairy supplies to institutions such as the Indian Army and ITBP. What lessons from these long-standing partnerships have shaped the Assam Rifles model?

Ans. NCDFI’s experience of more than four decades in facilitating supplies to large institutions such as the Indian Army and ITBP has provided valuable learnings for the Assam Rifles arrangement. The foremost lesson is that institutional supplies require consistency, reliability, quality assurance, and strong coordination. These requirements become even more important when supplies are made to remote locations and operationally sensitive areas. NCDFI has also learnt that long-term institutional partnerships are built on trust, timely delivery, and the ability of cooperatives to respond collectively. The cooperative network has demonstrated resilience even during difficult periods, including Covid-19 and Operation Sindoor.

The Assam Rifles model has therefore been shaped around coordinated planning, multi-dairy participation, product reliability, and continuous engagement with both the buyer and participating cooperatives.

How important are institutional buyers such as defence and paramilitary forces in creating stable demand and reducing market volatility for dairy cooperatives and their farmer members?

Ans. Institutional buyers such as defence and paramilitary forces play a very important role in strengthening the dairy cooperative sector. Their procurement requirements are regular, structured, and relatively predictable, unlike open markets which may be affected by seasonal fluctuations and price volatility.

For dairy cooperatives, such demand helps in better planning of milk procurement, processing capacity, inventory, logistics, and infrastructure use. For farmers, it provides confidence that milk supplied through cooperatives will have a dependable market. This stability helps cooperatives maintain stronger linkages with producer members and encourages farmers to remain invested in dairying. Institutional procurement therefore acts as an important anchor for the dairy value chain and supports both farmer welfare and reliable supply to national institutions.

The Northeast has traditionally depended heavily on UHT milk and milk powder. Do you see this initiative accelerating the transition toward a more localised fresh milk economy in the region?

Yes. This initiative can support the gradual development of a more localised fresh milk economy in the North Eastern Region. Many parts of the region have traditionally depended on UHT milk and milk powder due to limited local production, scattered milk collection, and infrastructure constraints. However, the increasing participation of regional cooperatives in supplying fresh milk indicates that local dairy capacity is improving. A good example is West Assam Milk Union Ltd. (WAMUL) in Assam, which is managed by NDDB and is now procuring average 2.1 lakh litres of milk per day from locals of the state and marketing it within the State. This demonstrates that, with organised milk procurement, processing and distribution support, local dairy cooperatives in the Northeast can successfully build a fresh milk market. Such examples can gradually help change milk consumption habits from dependence on UHT milk and milk powder towards locally produced fresh milk.

The procurement requirement of Assam Rifles can encourage dairies to strengthen milk collection, expand farmer coverage, and improve logistics. At the same time, the Government and NDDB are supporting organised dairying in the region through investments in collection, chilling, transportation, processing, and distribution infrastructure. Together, these efforts can help increase the availability of locally produced fresh milk, benefiting Assam Rifles personnel as well as civilian consumers. In the long run, this can contribute to dairy self-reliance and reduce dependence on supplies from outside the region.

What investments in milk collection, chilling infrastructure, transportation, and cooperative capacity-building will be required to sustain and expand supplies under this arrangement?

To sustain and expand supplies, investments will be required across the dairy value chain, particularly at the village and district levels. The priority areas include expansion of village-level milk collection centres, installation of bulk milk coolers, strengthening of chilling centres, quality testing facilities, insulated transportation, and cold-chain systems. These requirements are especially important in the North Eastern Region, where terrain, distance, and infrastructure gaps add to logistical complexity. The Government and NDDB have already been playing an important role in promoting organised dairying by supporting dairy cooperative development, milk collection systems, chilling and processing infrastructure, veterinary services, and farmer development programmes. Continued support from these institutions will be essential for enabling regional dairies to scale up.

In addition, cooperative personnel will need training in quality control, route planning, supply coordination, digital monitoring, and institutional supply management. At the farmer level, support for animal health, breed improvement, feed and fodder management, and scientific dairy practices will be equally important. The Assam Rifles arrangement gives a practical demand base around which such investments can be planned and justified.

As dairy cooperatives from multiple states collaborate under a common framework, how is NCDFI fostering greater integration and efficiency within India’s cooperative dairy ecosystem?

NCDFI acts as a national coordinating platform for India’s dairy cooperatives. At present, NCDFI has 29 State Apex Cooperative Dairy Federations as members, covering 241 district cooperative milk unions. Of these, 117 dairies are actively participating in institutional supplies. Through supplies to the Indian Army, ITBP, and Assam Rifles, NCDFI enables cooperatives from different states to work together under a common institutional framework. This helps match procurement requirements with the strengths and capacities of different dairies.

Such coordination promotes better resource utilisation, wider market access, standardised processes, and sharing of operational experience. It also allows cooperatives to participate in large institutional supply opportunities that may be difficult to serve individually. By facilitating market linkage, coordination, and collective participation, NCDFI strengthens the integration and efficiency of the cooperative dairy ecosystem at the national level.

Beyond commercial outcomes, what impact could this partnership have on farmer empowerment, women’s participation in dairying, and rural employment generation across the North Eastern states?

The partnership can create important social and developmental benefits beyond business turnover. By increasing demand for locally sourced milk, it can strengthen the role of dairy farming as a regular income activity for rural households. The role of regional dairy cooperatives in North East is important from a rural development perspective. As these cooperatives expand procurement and supply operations, they can create additional opportunities for farmers, women dairy producers, transporters, milk collection personnel and other rural service providers in the North Eastern States.

Women play a major role in animal care, feeding, milking, and household-level dairy management. As cooperative milk procurement expands, their participation in income-generating activity and cooperative institutions can also increase. This can contribute to greater financial inclusion and stronger recognition of women’s role in the rural dairy economy. The arrangement can also generate employment across related activities such as milk collection, transportation, chilling, processing, quality testing, input supply, veterinary support, and cooperative operations. Overall, the initiative can help make dairying a more viable livelihood option in the North Eastern states and contribute to inclusive rural development.

Looking ahead, does NCDFI see similar institutional procurement models emerging with other government agencies, public institutions, or strategic sectors as part of India’s broader dairy development strategy?

Yes. NCDFI believes that institutional procurement models have strong potential to support India’s dairy development strategy. The successful experience with the Indian Army, ITBP, and Assam Rifles shows that dairy cooperatives are capable of meeting the requirements of large and strategically important institutions. These arrangements provide reliable markets for cooperatives, strengthen supply chains, and create long-term value for farmer members. Similar models can be explored with other defence establishments, paramilitary forces, government departments, public sector undertakings, educational institutions, hospitals, and other public institutions requiring quality milk and milk products.

Such partnerships serve a dual purpose. They meet the nutritional and supply requirements of public institutions while also advancing farmer welfare, cooperative development, rural livelihoods, food security, and self-reliance. NCDFI will continue to facilitate such linkages and expand the role of dairy cooperatives in serving national institutions.

— Suchetana Choudhury (suchetana.choudhuri@agrospectrumindia.com)