New Delhi. India is the largest milk producing country in the world and Dairy Business is considered a very beneficial and durable option here. In 2024, the price of the Indian dairy market was ₹ 11.3 lakh crore, which is estimated to increase by 2032 to ₹ 22.9 lakh crore. Especially starting a milk business through cooperative society, it is an excellent opportunity for small and medium farmers, because it gives the benefit of collective resources and government schemes.
This model not only shares the cost but also gives farmers a better price and easy access to the market. Amul is the biggest example of this, which today has more than 18,000 cooperative societies. If you also want to start the milk business with the cooperative society, then this guide is for you.
Registration and legal formalities
The cooperative society has to register under the State Cooperative Act. For this, the District Cooperative Registrar has to be contacted and documents like the list of members, share capital and bylaws have to be submitted. In addition, it is necessary to get a license from Food Safety and Standards Authority (FSSAI). There is also a need for approval from the pollution control board on working on a large scale.
Structure and operation
Tools such as a clean milk collection center, stainless steel container, electronic milco tester and coolers are essential. Also, nutritious fodder and clean water will have to be arranged for animals. Animal health services, artificial insemination and training to farmers are also an important part of this process. The committee conducts a managing committee, which makes policies and oversees the works.
Funding and government schemes
The government runs many schemes to promote dairy business. NABARD’s Dairy Entrepreneurship Development Scheme (DEDS) subsidize farmers up to 25-33%. Apart from this, banks also provide special loans for dairy. The advantage of the cooperative society is that due to collective bargaining, farmers get better milk prices and the cost is also low.
Marketing and expansion
Milk can be started by supply of milk to local shops, hotels and homes. Value-aided products like curd, cheese, ghee and flavored milk can be increased further. Nowadays digital marketing and home delivery services are also pursuing dairy business rapidly. Connecting with big networks like District Milk Association and Amul can also provide big benefits to farmers.
