NDDB plans to invest Rs 15,000cr for dairy development, research

The country's apex body for milk cooperatives, National Dairy Development Board (NDDB), has proposed an investment of Rs 15,000 crore over the next five years for projects ranging from setting up new dairies in Saurashtra to funding research for breeding cows.

The National Bank for Agriculture and Rural Development (NABARD) will help the body in raising the required funds. The funds will be invested in new dairy projects, technology transfer, research and development of animal food and animal husbandry, strengthening supply networks and milk cooperatives in the country.

"We have submitted the proposal to the ministry of agriculture and cooperation for approval. We have estimated a 4 per cent growth in milk markets over the next five years, which requires support with proper facilities," Dr Amrita Patel, chairman of NDDB, said.

According to NDDB officials, the total milk production as on 2006 stood at 25 crore kg annually, with the producers consuming half of it and the rest, estimated at 13 crore kg, sold in the open market. Of this, the unorganised sector accounted for 8 crore kg and private companies and cooperative societies 5 crore kg. "By 2020, the organised sector will have to produce 16 crore kg. So the cooperative producers should produce 8 crore kg compared with the current 2.5 crore kg. It's a big challenge, and we have to ensure the growth of the sector with various incentives," NDDB's Managing Director Deepak Tikku said.

To achieve these targets, Dr Patel called for setting up producer companies, removing red tapism and improving transparency in the cooperative sector. "Cooperative societies have a strong presence in Gujarat at the grassroots level. But outside the state, the scenario is not very encouraging," she added. Patel also wanted the three-tier system of cooperatives to be replaced with an easier structure, enabling bigger groups to get benefits from economies of scale.