Amit Shah Launches World’s Largest Dahi Plant in Kolkata: UPSC & PCS Key Insights

19 Jul Amit Shah Launches World’s Largest Dahi Plant in Kolkata: UPSC & PCS Key Insights

Subject Relevance — Where This Topic Fits

• GS Paper II — Developmental Processes and the Role of State  |  GS Paper III — Food Processing and Agro-based Industries, Animal Husbandry, Cooperative Societies
• Prelims: Cooperative Societies Act, 1912, Operation Flood (White Revolution), National Dairy Development Board (NDDB), Dairy Cooperatives, Animal Husbandry Infrastructure Development Fund (AHIDF), Sex-sorted semen technology in livestock
• Essay: Cooperative federalism as a model for inclusive growth, The role of agriculture and allied sectors in India’s economic transformation

Quick Revision: The Amul Bengal Dairy Project exemplifies the integration of cooperative federalism, technological innovation in livestock management, and market-driven dairy development to transform West Bengal’s rural economy.

Why is this in the news?

The ceremonial groundbreaking of the world’s largest yoghurt production plant under the Amul Bengal Dairy Project in Kolkata marks a significant milestone in India’s cooperative dairy sector. The project, inaugurated by the Union Home and Cooperation Minister, aligns with the Government of India’s vision of ‘Sahakar Se Samriddhi’ and ‘White Revolution 2.0’, aiming to enhance dairy productivity, farmer incomes, and cooperative governance in West Bengal. The initiative is strategically positioned to revitalise the state’s dairy economy while integrating technological advancements such as sex-sorted semen for livestock improvement.

Background

• The dairy sector in India is governed by the cooperative model pioneered by the National Dairy Development Board (NDDB) under Operation Flood, which transformed India from a milk-deficient nation to the world’s largest milk producer.
• West Bengal, historically a non-dairy surplus state despite its agricultural potential, has lagged in dairy productivity compared to states like Gujarat, Maharashtra, and Karnataka, which are home to successful cooperative dairy federations like Amul.
• The Government of India’s ‘White Revolution 2.0’ initiative seeks to double milk production by 2024 and increase the share of milk cooperatives in the organised sector from 20% to 50% by 2030.
• The Union Ministry of Cooperation, established in 2021, has been instrumental in promoting cooperative enterprises across sectors, including dairy, to enhance farmer livelihoods and rural employment.
• West Bengal’s dairy sector faces challenges such as low productivity, fragmented landholdings, and limited access to modern dairy infrastructure, which the Amul Bengal Dairy Project aims to address through large-scale processing and market integration.
• The project is part of a broader strategy to integrate West Bengal into the national dairy value chain, leveraging its geographical proximity to eastern and northeastern markets.

What is the Amul Bengal Dairy Project?

• The Amul Bengal Dairy Project is a cooperative dairy initiative led by Gujarat Cooperative Milk Marketing Federation (GCMMF), under the Amul brand, to establish a state-of-the-art yoghurt production plant in New Town, Kolkata.
• The project includes the world’s largest yoghurt production facility, with a processing capacity of 1 million litres of milk per day, enabling large-scale production of high-quality dairy products.
• The plant is designed to source milk from approximately 1.2 lakh dairy farmers in West Bengal, ensuring direct income benefits through cooperative procurement mechanisms.
• The project integrates backward linkages, including livestock improvement programmes, with the provision of sex-sorted semen technology to enhance milk productivity and genetic quality of cattle.
• The initiative aligns with the ‘Sahakar Se Samriddhi’ vision, ensuring that 87% of the consumer’s expenditure on Amul products directly reaches dairy farmers, reinforcing the cooperative ethos of equitable profit distribution.
• The plant will produce ‘Mishti Dahi’, a traditional Bengali sweetened yoghurt, catering to regional taste preferences while expanding market reach across India.
• The project includes a 30-acre land allocation by the West Bengal government free of cost, symbolising state support for cooperative enterprises and rural livelihood enhancement.
• The initiative is complemented by the ‘Sarthi’ concept, where taxi drivers in West Bengal are integrated into the Bharat Taxi network, enhancing rural mobility and economic opportunities.

Key Features

Why it Matters

Economic Development and Rural Prosperity

• The establishment of a large-scale dairy processing plant creates direct and indirect employment opportunities, stimulating local economies.
• Ensures better market access and remunerative prices for milk producers, enhancing the income stability of dairy farmers.
• Promotes value addition in the agricultural sector, moving beyond raw material production to processed goods, which fetches higher returns.

Cooperative Model Reinforcement

• Showcases the effectiveness of the cooperative structure (Amul model) in empowering farmers and ensuring fair distribution of profits.
• Strengthens the ‘Sahakar Se Samriddhi’ (Prosperity through Cooperation) vision, demonstrating its practical application in achieving economic goals.
• Encourages replication of successful cooperative models in other agricultural and allied sectors, fostering collective growth.

Food Security and Nutritional Enhancement

• Increases the availability of processed dairy products like curd, contributing to the nutritional security of the population.
• Supports the ‘White Revolution 2.0’ objectives by boosting milk production, processing, and consumption across the nation.
• Diversifies food processing capabilities, reducing reliance on raw agricultural exports and enhancing domestic food supply chains.

Technological Advancement in Animal Husbandry

• Introduction of sex-sorted semen technology signifies a leap in animal breeding practices, aiming for higher milk yields and genetic improvement.
• Modernisation of dairy farming through breed improvement initiatives contributes to long-term sustainability and efficiency of the sector.

Challenges

1. Ensuring Equitable Benefit Distribution

• The challenge lies in ensuring that the benefits, particularly higher milk prices, reach all 1.20 lakh dairy farmers, including those in remote areas.
• Preventing intermediaries from capturing a disproportionate share of the value chain remains crucial for farmer empowerment.

UPSC Link: Agriculture: Marketing and economics

2. Sustainability of Dairy Farming

• Maintaining the health and productivity of a large livestock population requires robust veterinary services, feed management, and disease control.
• Addressing environmental concerns associated with large-scale dairy operations, such as waste management and water usage, is vital for long-term sustainability.

UPSC Link: Agriculture: Animal Rearing

3. Infrastructure and Logistics

• Developing adequate cold chain infrastructure and transportation networks is essential for efficient milk collection and distribution from diverse locations to the plant.
• Ensuring reliable power supply and water resources for the large-scale processing plant is a significant operational challenge.

UPSC Link: Infrastructure: Energy, Roads

4. Market Penetration and Competition

• Successfully integrating ‘Mishti Doi’ from Bengal into national markets requires effective branding, distribution strategies, and competitive pricing.
• Navigating competition from existing local and national dairy players necessitates continuous innovation and quality assurance.

UPSC Link: Economy: Marketing and Distribution

Challenges — UPSC Perspective

Government Initiatives — Must-Memorise for Prelims

• Sahakar Se Samriddhi

Way Forward

• Strengthen the cooperative network by providing training and capacity building to dairy farmers, especially women, in modern dairy practices.
• Invest in robust cold chain infrastructure and logistics to ensure efficient and timely collection of milk from all participating farmers.
• Implement stringent quality control measures at every stage, from milk collection to processing, to ensure high-quality dairy products.
• Promote sustainable dairy farming practices, including efficient waste management and water conservation techniques, to minimise environmental impact.
• Develop effective marketing and branding strategies to enhance the reach and acceptance of ‘Mishti Doi’ and other products in national and international markets.
• Leverage technology for breed improvement programs, such as widespread access to sex-sorted semen, to enhance livestock productivity and farmer income.
• Establish grievance redressal mechanisms for farmers to address issues related to milk pricing, quality, and cooperative functioning.
• Facilitate financial inclusion for dairy farmers through access to credit and insurance schemes, supporting their economic stability and growth.

UPSC Value Addition

Prelims Practice Questions

Q1. Consider the following statements regarding the Amul Bengal Dairy Project:
1. The project involves the establishment of the world’s largest curd production plant in Kolkata.
2. It aims to process 10 lakh litres of milk daily, benefiting approximately 1.20 lakh dairy farmers.
3. The project is a key initiative under the ‘Sakar Se Samriddhi’ vision, promoting cooperative development.

1. 1 and 2 only
2. 2 and 3 only
3. 1 and 3 only
4. 1, 2 and 3

Answer: 1, 2 and 3 — Statement 1 is correct as the project involves the establishment of the world’s largest curd production plant. Statement 2 is correct as it aims to process 10 lakh litres of milk daily, benefiting 1.20 lakh dairy farmers. Statement 3 is correct as the project aligns with the ‘Sakar Se Samriddhi’ vision, emphasizing cooperative growth and farmer prosperity.

Q2. Which of the following initiatives are associated with the broader goals of dairy sector development and farmer welfare in India?
1. White Revolution 2.0
2. Provision of sex-sorted semen for cattle breeding
3. Ensuring a high share of consumer expenditure reaches dairy farmers
4. Implementation of ‘Sarathi’ concept for taxi ownership

1. 1, 2 and 3 only
2. 1, 3 and 4 only
3. 2, 3 and 4 only
4. 1, 2, 3 and 4

Answer: 1, 2 and 3 only — Statements 1, 2, and 3 are correct. ‘White Revolution 2.0’ aims to modernize and expand the dairy sector. The provision of sex-sorted semen is a technological intervention for improving cattle breeds. Ensuring a high share of consumer expenditure reaching farmers is a core principle of cooperative models like Amul. Statement 4, the ‘Sarathi’ concept, relates to taxi ownership and is not directly associated with dairy sector development or farmer welfare.

Mains Practice Question

✍ The Amul Bengal Dairy Project exemplifies the potential of cooperative models in driving rural economic development and achieving agricultural prosperity. Critically analyse the role of cooperatives in transforming the dairy sector, highlighting the challenges they face and suggesting measures for their further strengthening in India. (250 words)

Approach: Candidates should begin by introducing the Amul Bengal Dairy Project as a case study for cooperative success. The analysis should then delve into the multifaceted role of cooperatives in the dairy sector, covering aspects such as market access, fair price realization for farmers, value addition, and technological adoption. Subsequently, a critical examination of the challenges faced by cooperatives, including governance issues, lack of capital, competition from private players, and regional imbalances, is necessary. The answer should conclude with constructive measures for strengthening cooperatives, such as policy support, capacity building, technological integration, and diversification of activities, to foster inclusive growth in the agricultural sector.

Source: PIB (Press Information Bureau)

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