The Madhya Pradesh government has partnered with the National Dairy Development Board (NDDB) to revamp the state’s milk cooperatives, specifically the Madhya Pradesh Cooperative Dairy Federation (MPCDF), which operates under the brand name Sanchi. The decision has sparked criticism from the opposition Congress party and dairy unions in the state, who fear that NDDB’s involvement will eclipse the local brand, Sanchi, and benefit Amul, a Gujarat-based dairy cooperative, at the cost of local farmers.
The Congress party has demanded a “white paper” on the deal, questioning which “Gujarat lobby” the state government intends to benefit and whether the agreement is aimed at benefiting Amul. The party has also accused the state government of taking decisions unilaterally without consulting farmers. Milk unions in Madhya Pradesh have also opposed the move, citing concerns that NDDB’s administration of milk federations in the state would rob the local milk cooperative movement of its soul.
The Indore Dairy Sangh, one of the milk unions, has threatened to approach the court to challenge the agreement. The union’s representative, Tawar Singh Chouhan, pointed out that NDDB had not helped the union when it sought a loan, and instead, the union had to use its own funds to set up a milk powder producing plant. Chouhan argued that the government should focus on improving the functioning of loss-making milk unions in Gwalior and Jabalpur instead of handing over control to NDDB.
The NDDB, however, has assured that it will work to increase the footprint of district cooperative societies across the state and reach out to consumers who purchase loose milk. The organization plans to hire senior managers to transform Sanchi and improve the quality of products while equipping the state with better infrastructure. The minister for animal husbandry, Lakhan Patel, has stated that NDDB will continue with the brand name Sanchi and work to deliver upon its strong attachment in Madhya Pradesh.
Despite the assurances, many are still skeptical of NDDB’s capacity to transform Madhya Pradesh’s milk cooperatives. Girish Paliwal, affiliated with the Bhopal Milk Union, pointed out that one of the biggest problems faced by Sanchi was its poor marketing, and it remains to be seen how NDDB plans to increase milk sales across the state over the next five years.
The Madhya Pradesh government’s decision to partner with NDDB is part of its efforts to revamp the state’s dairy sector, which has been struggling with poor marketing, stiff competition from Amul, and low infrastructural investment. The state is the third-largest milk-producing state in India, but it ranks 11th in packet milk sales. The NDDB’s involvement is seen as a way to improve the sector’s performance and increase the sales of packet milk. However, the move has sparked controversy, and it remains to be seen how the partnership will play out in the coming years.