Union Home Minister and Minister of Cooperation Amit Shah addressed the State Level Cooperative Conference in Bhopal on April 13, 2025, where he announced a significant step towards strengthening the dairy cooperative sector in Madhya Pradesh. A Memorandum of Understanding (MoU) was signed between the National Dairy Development Board (NDDB) and the Madhya Pradesh Cooperative Dairy Federation (MPCDF).
The MoU aims to increase the role of cooperative dairies in the state's milk production, which currently stands at five and a half crore liters per day, accounting for around 9% of the country’s total.
Despite this massive production, less than one percent is processed through cooperative dairies. Shah emphasized that the newly signed MoU would help raise this share significantly and ensure that farmers receive fair returns for their milk. He highlighted that currently, out of 3.5 crore liters of surplus milk in the state, only 2.5 percent reaches cooperative dairies, and just 17 percent of villages have milk collection systems.
The goal is to expand this network to 83 percent of villages and establish cooperative primary milk producing committees in at least 50 percent of them within the next five years. This would greatly increase milk processing capabilities and directly improve farmers' incomes.
Union Minister also highlighted the importance of value addition through products like curd, cheese, and buttermilk, and stressed that farmers should receive 100 percent of the profit from their milk. He called on MPCDF to focus on policy making, branding, quality checks, and timely payments to farmers. Financial support, if needed, would be provided by the National Cooperative Development Corporation.
Reflecting on broader cooperative reforms, Shah noted the revival of Primary Agricultural Credit Societies (PACS), which now offer more than 20 types of services beyond short-term loans. PACS have been allowed to operate Jan Aushadhi Kendras, distribute gas, manage water supply, and even run petrol pumps. He praised Madhya Pradesh for leading in the computerization of PACS, which now operate in 13 regional languages and are integrated with NABARD, bringing transparency and efficiency.
To support farmers further, the government has formed three national-level cooperative societies: NCEL for exports, NCOL for organic produce, and BBSSL for preserving and promoting indigenous seeds. These organizations aim to empower small farmers, giving them access to better prices and global markets.
The event was attended by Madhya Pradesh Chief Minister Dr. Mohan Yadav, State Cooperation Minister Vishwas Sarang, and Secretary of the Union Ministry of Cooperation Dr. Ashish Kumar Bhutani.
