Amit Shah launches New Era of Dairy Cooperative Movement

Pashu Sandesh, 06 July 2025

The Ministry of Cooperation, Government of India, celebrated its Fourth Foundation Day today at the iconic Amul Dairy premises in Anand, Gujarat. The event, organised by the Gujarat Cooperative Milk Marketing Federation Limited (GCMMF), was presided over by Union Home and Cooperation Minister Amit Shah, who unveiled several key initiatives, notably the launch of the Sardar Patel Cooperative Dairy Federation Limited (SPCDFL) a landmark development for India’s dairy cooperative sector. The launch of this federation will mark the beginning of a new era of Dairy cooperative movement.  The event also featured the inauguration of key dairy infrastructure projects by  GCMMF,  NDDB and NCDFI.

Broader Vision behind SPCDFL

SPCDFL is part of a larger cooperative transformation mission under the Ministry of Cooperation. The goal is to make cooperatives the third pillar of India's economy, alongside the public and private sectors. With dairy being the largest agri-sector contributor to rural income, this initiative could lift millions out of poverty, stabilize rural livelihoods, and make India a global dairy powerhousewith the cooperative model at the heart of it.

Structure and objectives of SPCDFL

In a major policy move, the Government formally launched the Sardar Patel Cooperative Dairy Federation Limited(SPCDFL), a multi-state cooperative body headquartered in Anand. This federation is designed to bring together milk producer cooperatives from over 20 states, encompassing more than 20,000 dairy societies and handling upwards of 100 lakh litres of milk per day. The federation’s objective is to standardize milk procurement practices, ensure transparent payments, and enhance value chain efficiencies through a centralized yet farmer-owned cooperative framework.

Amit Shah emphasized that the federation will serve as a national platform to facilitate organized market access, build a circular dairy economy, and implement uniform quality, pricing, and processing systems across states.

Policy and Philosophy Behind SPCDFL

The formation of the Sardar Patel Cooperative Dairy Federation Limited (SPCDFL) is deeply rooted in India’s cooperative development model, inspired by Sardar Vallabhbhai Patel’s vision of self-reliant rural India and Dr. Verghese Kurien’s Amul revolution. This federation is not just a dairy body—it’s a strategic, multi-state initiative aiming to democratize dairy economics and empower rural producers, especially women and small farmers.

Policy Objectives:

1. Unify Fragmented Dairy Cooperatives Across India:
   SPCDFL aims to integrate thousands of local and state-level milk producer cooperativesinto a single, national-level multi-state federation. This promotes standardization, collective bargaining, and scaling efficienciesacross state boundaries.
2. Ensure Transparent Milk Procurement & Fair Prices:
   A central aim is to ensure that milk producers receive remunerative pricesdirectly through cooperative structures. The policy ensures end-to-end traceability, real-time payments, and reduced middlemen exploitation.
3. Promote Circular and Sustainable Dairy Economy:
   The federation plans to reinvest profits into rural development, cattle care, training, and processing infrastructure. This creates a closed-loop economywhere profits fuel productivity.
4. Build Infrastructure for Value-Added Products:
   It will facilitate modern processing plants, cold chains, and marketing platforms, allowing producers to shift from raw milk to high-margin productslike cheese, butter, ghee, curd, and paneer.
5. Encourage Women’s Participation and Livelihood Enhancement:
   Following Amul’s success with over 50% women participation, the SPCDFL will prioritize gender-inclusive policies, enabling women farmers to become direct stakeholders in the dairy economy.

Core Philosophy: "By the Farmers, For the Farmers, With the Farmers"

The ideological backbone of the SPCDFL rests on three pillars:

1. Cooperation as a Socio-Economic Tool:

The federation channels the Gandhian-Gram Swaraj spirit—self-sufficient villages working through community-led, democratic decision-making. It’s not just about profit but shared prosperity.

2. Sardar Patel’s Legacy of Organization and Unity:

As the architect of India’s political integration, Sardar Patel believed in strength through unity. This federation reflects his ideals—unifying lakhs of milk producers under one economic umbrella.

3. Dr. Kurien’s White Revolution Model:

The federation follows Dr. Kurien’s Amul blueprint—empowering farmers at the grassroots through cooperatives, enabling them to own the value chain—from production to processing to marketing.

Implementation Strategy

• Multi-State Registration under MSCS Act, 2002
  Enables cross-border operations with centralized policies and localized execution.
• Digital-first Cooperative Infrastructure
  Members will be connected through digital dashboards, milk tracking, payment alerts, and quality control data.
• Training and Capacity Building
  The NDDB and Ministry of Cooperation will jointly run skill development programsfor cooperative leaders, veterinarians, and milk handlers.

 A Blueprint for the Future of Dairy Cooperatives

The formation of SPCDFL signifies a paradigm shift in India’s dairy cooperative movement, aligning small and marginal milk producers into a unified structure that promotes profit-sharing, process transparency, and market competitiveness. By replicating Amul’s time-tested model at a pan-India level, the federation is expected to enhance milk value realization at the farmer level and improve the quality and reach of dairy products across the nation.

 Amul Expands Capacity; NDDB and NCDFI Infrastructure Boosted

The event also featured the inauguration of key dairy infrastructure projects by Gujarat Cooperative Milk Marketing Federation (GCMMF), the apex body of the Amul brand:

• Chocolate Plant at Mogar: Expanded capacity from 30 to 60 tonnes/day, built at a cost of Rs 105 crore.
• Cheese Plant at Kheda: A Rs 260 crore facility to enhance Amul’s cheese production capabilities.

In addition, the National Dairy Development Board (NDDB) inaugurated a new Ready-to-Use Culture Plant (Rs 45 crore) and laid the foundation stone for its upcoming headquarters in Anand.

The National Cooperative Dairy Federation of India (NCDFI) also inaugurated its new office building, Maniben Patel Bhawan, at a cost of Rs 32 crore.

Conclusion

The 4th Foundation Day celebration of the Ministry of Cooperation at Amul Dairy not only paid homage to the stalwarts of India’s cooperative movement but also laid down a concrete roadmap for the future. With the formation of the Sardar Patel Cooperative Dairy Federation, the government is reinforcing its commitment to making cooperatives the third pillar of the Indian economy, alongside the public and private sectors.

For dairy industry stakeholders, this marks the beginning of a new era of scale, sustainability, and inclusive growth in India's cooperative landscape.