Cooperatives Drive Dairy Growth & Farmer Income

Dairy cooperatives in India continue to play a central role in ensuring remunerative and stable pricing for farmers, with procurement prices determined based on cost of production and market dynamics, according to a government statement. Payments to farmers are increasingly automated and directly credited to bank accounts, improving transparency and efficiency across the value chain.

The government has launched White Revolution 2.0, a cooperative-led initiative aimed at expanding coverage, generating employment, empowering women, and promoting sustainability, with a target to increase cooperative milk procurement by 50% over the next five years.  As part of this push, 24,350 new multi-purpose dairy cooperative societies have been formed and 19,592 existing societies strengthened to deepen rural reach.

Additional support mechanisms include the Supporting Dairy Cooperatives & Farmer Producer Organisations (SDCFPO) scheme, offering interest subvention on working capital loans, and the Animal Husbandry Infrastructure Development Fund (AHIDF), which provides 3% interest subvention for dairy infrastructure development and value addition.

Meanwhile, liquid milk sales by cooperatives have shown steady growth, rising from 39,087 thousand litres per day in 2021-22 to 46,295 TLPD in 2025-26, reflecting expanding market reach and strengthening cooperative presence in the organised dairy sector.

Source: Dairynews7x7 2 April, 2026 Read full article here

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