April 2012/ Volume 2/Issue 4/Article No-11/568-579 ISSN: 2249-7196
INTERNATIONAL JOURNAL OF MANAGEMENT RESEARCH
LEADERSHIP OF INDIAN COOPERATIVE DAIRY INDUSTRY:
ISSUES, CHALLENGES & STRATEGIES: CONTEXT OF GLOBALIZATION
Prof Amit Gupta*1
Research Fellow, National School of Leadership, Bangalore.
Dairy industry is of crucial importance to India in terms of livelihoods, poverty alleviation
and inclusive growth. Dairy products are a major source of cheap and nutritious food to
millions of people in India and the only acceptable source of animal protein for large
vegetarian segment of the population, particularly among the landless, small and marginal
farmers and women.
Dairy sector witnessed spectacular growth between 1971-1996, i.e, Operation Flood era. An
integrated cooperative dairy development program on the proven model of Anand pattern was
implemented in three phases by National Dairy Development Board, an institution of national
importance created for this purpose.
The major objective was to provide an assured market round the year to rural milk producers
and to establish linkage between rural milk production and urban markets through modern
technology and professional management.
In this article, an attempt has been made to trace the growth of the dairy industry since 1971,
driven by the cooperative movement, and analyse the status in the current context of
globalization and trade liberalization, wherein the constraints of cooperatives need to be seen
in light of private sector competition.
The critical issues and areas of concern need to be looked into across the dairy industry value
chain spanning from inputs, feed, credit, production, processing, marketing and value added
The primary objective of this secondary research study is to address the following questions:
• What is the implication of these changes on the farmers –potential threats and
• Which models better serve the interest of the farmers?
• How can the co-operatives be strengthened to meet the emerging changes?
Keywords: Dairy cooperatives, Operation Flood, rural producers, urban markets, inputs,
processing, value chain
INTRODUCTION & OVERVIEW
Indian Dairy Industry is at cross roads. Though the industry has traditionally been dominated
by the government and cooperative sector, strong competition from private sector has made
inroads into the market share of these organizations.
*Corresponding Author www.ijmrr.com 568