The Cooperative Services Group of the National Dairy Development Board (NDDB) focuses on strengthening dairy cooperatives across India. It provides technical and managerial support to enhance governance, financial management, and operational efficiency in cooperative societies. The group works on capacity building, policy advocacy, and institutional development to ensure sustainable growth and self-reliance of dairy cooperatives, ultimately benefiting millions of farmers.
Cooperative Services Group primarily involves itself in promoting and nurturing village dairy cooperative societies, district cooperative milk unions and state cooperative dairy federations. At the same time, it has also expanded its horizons and is now trying to leverage the countrywide network of dairy cooperatives in creating additional livelihood opportunities and better quality of life in villages by suitable interventions in beekeeping, fodder, fruits and vegetables etc by creating altogether a new set of cooperative institutions.
Objective:
- To create self-reliant, jointly owned, democratically controlled and professionally managed cooperative institutions, responsive to the socio-economic and cultural expectations of their members.
- Enhancing livelihood security of milk producers for improved quality of life.
- Strengthening dairying as a viable economic enterprise through farmer owned collective.
- Promoting good governance in cooperatives- enhanced fairness and transparency in milk procurement operations.
- Promoting enabling legal environment
- Enhancing women participation in the affairs of the dairy cooperatives.
- Capitalising the field outreach of producer collectives for the well being of milk producers through initiatives of (NDDB Foundation for Nutrition)
On-Going Projects:
- Revitalising Promising Producers’ Owned Institution (RPPOI) Scheme
- White Revolution 2.0
- NDDB Scheme to support MDCS/MPACS to initiate milk procurement activities
- Formation and Promotion of 10,000 Farmer Producer Organisations (FPOs)
- Implementation of NBHM Scheme
- NDDB Foundation for Nutrition (NFN)
- Marketing Support
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- Revitalising Promising Producers’ Owned Institution (RPPOI) Scheme
RPPOI scheme of NDDB provides financial assistance in the form of grant in aid (maximum up to Rs. 3 crore per POI) and interest free secured loan (maximum up to Rs. 5 crore per POI) to strengthen the overall business operations of promising and eligible POIs. Assistance under the scheme will be provided for a maximum period of 5 years 2022-23 to 2026-27. This assistance is to be utilized by the eligible POIs to strengthen their milk procurement, processing and marketing operations, ICT and Training & Capacity building etc.
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- White Revolution 2.0
The cooperative led “White Revolution 2.0” is aimed at expanding cooperative coverage, employment generation and women’s empowerment with an objective “To increase the milk procurement of dairy cooperatives by 50% from the present level over the next five years by providing market access to dairy farmers in uncovered areas and increasing the share of dairy cooperatives in organized sector”.
To achieve this, an action plan has been prepared by NDDB for establishing about 75,000 new Multipurpose DCS (MDCS) during 2024-25 to 2028-29. Further, it is envisaged that about 46,000 existing village level DCS/PACS will be strengthened in terms of better and advanced milk procurement and testing infrastructure e.g. Automatic Milk Collection unit (AMCU), Data Processor Milk Collection Unit (DPMCU), testing equipment, Bulk Milk Coolers, etc. as per the requirement.
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- NDDB Scheme to support MDCS/MPACS to initiate milk procurement activities
In consonance with the White Revolution 2.0, to initiate milk procurement activities as an additional income generation in PACS/MPACS, NDDB has launched a scheme under which one-time financial assistance of Rs. 40,000/- per MPACS is provided to viable MPACS to initiate milk procurement activities. The financial assistance is routed through Milk Union/Federation/ Milk Producer Organizations operating in the region and they also provide forward linkage to these MPACs. As a pilot project, the scheme is to be rolled out in 1,000 MPACS. This scheme has now been extended to include MDCS also.
Under this scheme till date, projects worth Rs. 349.2 lakhs have been sanctioned to 12 milk unions and 1 Milk producer company supporting 873 MPACS/MDCS.
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- Formation and Promotion of 10,000 Farmer Producer Organisations (FPOs)
Collectivisation of small and marginal farmers to form their organisations as Farmer Producer Organisations has been recognised as the most effective and appropriate institutional mechanism to reduce cost of production, increase productivity and facilitate better market linkages so as to enhance their net income. Realising the significance of FPOs, the Government of India has brought a dedicated Central Sector Scheme “Formation and Promotion of 10,000 Farmer Producer Organisations (FPOs)”.
NDDB has received approval for formation and promotion of total 126 FPOs:
- 100 Fodder Plus FPOs
- 26 Beekeepers’ FPOs
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Fodder Plus FPOs
All 100 Fodder Plus FPOs have been registered in 19 states. These Fodder Plus FPOs have initiated business activities such as green fodder production and sale, silage making and sale, securing dry fodder and sale, trading of silage, dry fodder and fodder seed sale, Sale of feed and feed supplement, Sale of Silage bags, Sale of culture, Sale of Slips, other allied activities etc. They are also undertaking seed distribution among the farmers for green fodder production, training and handholding of dairy farmers for production of green fodder silage.
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Beekeepers’ FPOs
26 Beekeepers’ FPOs have been registered in 11 states of the country. These FPOs have initiated business transactions in terms of selling honey collected from members by providing suitable market linkages such as through dairy cooperative brands or launching a new brand altogether.
Some of the established and popular dairy cooperatives have started selling honey under their respective brand names such as Aanchal by Uttarakhand Dairy Cooperative Federation, Vashudhara by Valsad Milk Union, Purabi by West Assam Milk Union, Sundarini Naturals by Sundarbans, Sagar by Mehasana Milk Union, AMUL NutriBee by Kaira Milk Union.
NDDB is organizing various training and capacity building programmes to these FPOs to grow into sustainable entities, such as Board Orientation Programme at Anand, Training of CEOs, Training of key officials of CBBOs, Training of farmers etc.
NDDB is working closely through dairy cooperatives, Producer Owned Institutions and other agencies for implementation of this scheme and to achieve the goal of a “Sweet Revolution”.
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- Implementation of NBHM Scheme
In order to develop beekeeping as a successful and prosperous agriculture business, NDDB is implementing the “National Beekeeping and Honey Mission” (NBHM) scheme with the support of Dairy Cooperatives and other agencies.
The main objective of the scheme is to promote scientific beekeeping for holistic growth of the beekeeping industry for income and employment generation, providing livelihood support to farm and non-farm household, to enhance agriculture/ horticulture production, developing infrastructural facilities, including Integrated Beekeeping Development Centre (IBDC)/ CoE, Honey Processing Plant, Testing Lab etc., and developing and promoting latest technologies in beekeeping.
NDDB conducts capacity building and technology demonstration programmes aimed at equipping farmers with both technical know-how and practical skills necessary for scientific beekeeping.
NDDB is encouraging dairy cooperatives and other organisations to set up post harvest infrastructure facilities such as honey testing labs and processing plants.
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- NDDB Foundation for Nutrition
NDDB founded the ‘NDDB Foundation for Nutrition’ (NFN) in 2015 with an objective to address malnutrition among children studying in government schools through its Giftmilk Programme. The Giftmilk programme sources and channelizes Corporate Social Responsibility (CSR) funds from leading corporations for making available 200 ml of flavoured milk preferably fortified with Vit A & D to government school children at the school premises.
NFN is registered as a Trust under Bombay Public Charitable Trust Act, 1950 and as a Society under the Societies Registration Act, 1860. Incorporation certificate of NFN, CSR-1 registration & Certificate 12 AA registration under I.T. ACT are given as annexures. Further, donations made to the NFN Trust shall qualify for tax deductions u/s 80G (5) of IT Act 1961.
Since its inception in 2016, NFN has covered 1.25 lakh children in 650 government schools and distributed over 18 million units of Giftmilk (36 Lakh Litres) in over 17 states. NFN leverages the support of the vast network of dairy cooperatives for supply of safe milk and milk products.
An impact study of the Giftmilk Programme, conducted by the Rajendra Institute of Medical Sciences, Ranchi, in programme schools in Latehar District of Jharkhand, showed marked improvement in indices such as stunting and Body Mass Index (BMI) as well as cognitive parameters. A majority of the schools also reported a significant increase in attendance in these schools
For more information:
- Marketing Cell
One of the defining characteristics of the Indian dairy sector is the small herd size among dairy farmers. Given this, milk aggregation plays a crucial role in ensuring efficient marketing. Producer-Owned Institutions (POIs) facilitate the aggregation of milk from thousands of dairy farmers, providing them with direct market access and ensuring the best possible returns. For POIs to thrive as successful marketing organizations, key factors such as skilled manpower, an efficient organizational structure, a robust distribution network, and strong consumer patronage are essential.
With increasing competition, dairy cooperatives had been urging NDDB to extend support in marketing activities. Considering this, the Marketing Cell was formed in NDDB in February 2020.
The primary objective of the Marketing Cell is to provide sales and marketing support to the cooperative dairy sector to strengthen their marketing functions. Since its inception, the Cell has undertaken several initiatives to enhance the marketing capabilities of POIs, including:
- Brand Development: Assisting POIs in strengthening their brands
- Support to strengthen Distribution infrastructure and Cold Chain Logistics
- Product Portfolio Management: Supporting POIs in developing a well-balanced product portfolio.
- Market Research & Strategy: Providing guidance on conducting market research for diagnostic analysis and strategy formulation.
- Capacity Building: Offering training support to enhance the skills of POI manpower.
- Professionalization: Assisting in the deployment of professional manpower and helping the POIs in defining the structure and systems of the sales and marketing function.
- Sales & Distribution Support: Strategic guidance for the development of sales and distribution functions of the POIs.
Milk unions have been experiencing challenges in sales and marketing of milk & milk products following the outbreak of the COVID-19 pandemic. Following the pandemic, considering the challenges faced by the small dairy cooperatives, NDDB has launched a marketing support scheme in 2021, “Support to Strengthen Marketing Operations of Producer-Owned Institutions (POIs)” scheme, aimed at enhancing the marketing capabilities of smaller POIs to help them expand their market share in milk and milk products.
The details of the marketing support scheme are given below.
Marketing Support Scheme
During the course of the pandemic, NDDB worked out a scheme – “Support to Strengthen Marketing Operations of Producer Owned Institutions” for providing support to dairy cooperatives by extending grant-in-aid to develop marketing infrastructure, professional branding development, and to provide professional guidance for the development of sales and distribution functions. Training and capacity building for marketing and sales personnel shall also be covered in the scheme. The scheme was approved by the NDDB Board in January 2021 for a period of five years from FY 2021-22 to FY 2025-26. The total outlay of the scheme was Rs 24.30 crore including grant assistance of Rs 13.77 crore by NDDB. Thereafter, the Board has approved the revision of the scheme in August, 2022. Through this revision, along with other changes, the grant assistance was enhanced by Rs 5 crore to a total of Rs 18.77 crore.
Status of implementation of the scheme:
The scheme has led to heightened activities in sales and marketing focusing on expansion in distribution network, booth channel, cold chain, brand visibility and engagement with channel partners. The implementation status of the scheme as on March, 2025 is given below:
Creation of 3 new cooperative brands:
i. “Medini” for Midnapore Cooperative Milk Producers’ Union Ltd., West Bengal
The Midnapore Co-operative Milk Producers Union Ltd. has been marketing milk under the brand name ‘MIMUL’ which was derived from the name of the cooperative. When the cooperative felt the need for creating a brand identity for its dairy products, support was extended under the Marketing Scheme in creation of the brand identity – “Medini”.
ii. “Mulkanur” for Mulukanoor Women’s Mutually Aided Milk Producer’s Co-operative Union Ltd., Hanumakonda (Dist.), Telangana
Mulukanoor Women’s Mutually Aided Milk Producer’s Co-operative Union Ltd., Hanumakonda (Dist.), Telangana, established in 2002 is the India’s first women’s cooperative dairy, set up and run by women. Even though the dairy was marketing its products under a certain brand identity, being from the village of Mulukanoor, the brand was known amongst the consumers as Mulukanoor. Consequently, the given brand identity was disconnected from consumers. Therefore, it was decided to create an identity for the brand which is rooted in the consumers’ connection with the Mulukanoor Dairy. Thus, support was extended under the Marketing Scheme in the creation of the brand identity – “Mulkanur”.
iii. “Ladakh Oma” for Ladakh UT Dairy Co-operative Federation Ltd., Leh, Ladakh
The Ladakh UT Dairy Cooperative Federation was founded in October 2023 to empower rural farmers and supply high-quality milk and dairy products in Leh-Ladakh. Given the region’s harsh winters and reliance on long-shelf-life milk from other parts of the country, the establishment of this dairy will be crucial to ensuring year-round access to fresh milk and dairy products. As a new entity, the dairy required a strong brand identity, leading to the creation of “Ladakh Oma” under the Marketing Scheme.
In addition to creation of these new brands, creative support was provided to 7 POIs for brand refresh. The POIs supported under this initiative are Parag (Varanasi), Devbhog (Chhattisgarh), Milma (Kerala), Purabi (Assam), Mahanand (Maharashtra), Medha (Jharkhand) and Saras (Rajasthan). This initiative includes developing or revamping of brand elements, package designing, creative designs for in shop and outdoor brand promotions and creative support for other brand collaterals. The benefits of these initiatives include:
- Strengthened Brand identity and recognition through a refreshed, consistent look.
- Enhanced shelf appeal and consumer interest through modernized packaging.
- Improved differentiation from competitors, boosting market presence.
Other major initiatives under the scheme are given below:
- About 100 milk booths/parlours were established under the scheme
- About 2000 chest/visi coolers were procured and placed in the market
iii. Guidance for strengthening Sales & Distribution systems of over 10 beneficiary cooperatives.
- 7 training programmes were conducted and about 240 officials were trained.
- NDDB also has supported these dairy cooperatives in expanding their product portfolio by launching several value-added products.
- Over 1000 insulated crates/boxes were distributed.
vii. Retailer Awareness Programmes covered over 3000 retail outlets
viii. More than 30 Focus Group Discussions were organized for consumer research.
New Milk Parlours/ Booths/Kiosks:
New outlets with contemporary designs can enhance the brand image and increase visibility. These outlets can serve as hubs for all consumer activities and offer home delivery services. Strategically positioned, they can provide a unique consumer experience. Located in prominent residential or public areas, they can give customers easier access to products, improving overall convenience and satisfaction. Their presence in high-footfall areas can help ensure that the brand remains top-of-mind for potential buyers.
Training & Capacity Building of Manpower:
Comprehensive training programs have been conducted for marketing managers, encompassing market visits, classroom sessions, and practical exposure to Sales and Distribution (S&D) techniques, GPS-enabled delivery systems, e-commerce platforms, logistics control, competition tracking, and digitisation of sales systems. Additionally, specialized training programs were provided to front-line sales personnel, focusing on command and control of delivery routes, S&D techniques, relationship management, and Ways of Working (WoW). Exposure visit and a short-term course in Marketing Management were also organized for sales and marketing staff from POIs/NDDB. Benefits of these initiatives are:
- Enhanced Sales Efficiency: Improved knowledge of S&D techniques, relationship management etc boosts operational effectiveness of the manpower.
- Stronger Market Competence: Practical exposure and competition tracking sharpen marketing strategies.
- Improved Team Performance: Specialized training enhances sales personnel’s command over delivery, customer relations, and execution.
Market Studies
More than 30 Focus Group Discussions were organized in different cities across India to understand the consumer behavior and preferences, usage patterns and perception about different brands.
In 2022-23, a dairy market assessment was undertaken in the state of Kerala. The study included consumer interviews, retailer and distributor surveys and focus group discussions in major towns and cities where the three regional dairy cooperative unions are marketing their products under the brand name “Milma”.
Even though the brand is well established and widely accepted by the Consumers, over a period of time, as the dairy market expanded to new product categories, the brand has yielded its market share in value added products categories to its competitors. Under these circumstances, the objective of the study was to do an assessment of competition in the market and assess the consumers’ and trade partners’ perception of the brand. The study led to overall revamp of the brand by a complete redesigning of the packages of all the SKUs of milk, curd and ghee which contribute 97% of the revenue of the brand.
Consumer Awareness and Retailer Engagement:
Consumer awareness and retailer engagement activities under the scheme include door-to-door campaigns, product trials, and local events to drive awareness and interest. Free sampling and targeted interactions encourage trial purchases and long-term consumer retention.
Sales & Distribution Hand Holding Support & Training of Marketing Field Staff:
Tailor-made training programs and workshops are conducted for managers and front-line sales teams for skill enhancement and capability building. These programs provide employees with industry-specific expertise, improving their competence, adaptability, and overall efficiency in operations. Additionally, financial support is extended to hire competent sales and marketing professionals to lead Sales and Distribution initiatives.
Other activities
The cell has been providing support in implementation of the marketing component under DTC-JICA. In addition to this, need based support is being provided to cooperatives in the form of creative designing for brand development, guidance for strengthening sales and distribution and manpower training.