The cooperative increases procurement prices for farmers while launching a massive expansion plan to boost its supply chain.
The Indore Cooperative Milk Union, a key player in the Indian dairy market, has announced a significant increase in the price it pays to farmers for their milk. This strategic decision is part of a two-pronged initiative that also includes the formation of 550 new village-level committees. These measures are designed to strengthen the cooperative’s procurement network and directly benefit its dairy farmer members by providing them with enhanced income opportunities.
Under the new rate structure, the union has raised its purchase price for buffalo milk by ₹25 per kilogram of fat. Simultaneously, the rate for cow milk has been increased by ₹10 per kilogram of fat. These adjustments are a direct financial boon for thousands of farmers who supply milk to the cooperative, potentially improving their economic stability and incentivizing increased production.
The decision to establish 550 new village cooperative committees is a pivotal move aimed at operational expansion. The union currently collects an impressive 2.5 lakh liters of milk daily, but these new committees are expected to bring more farmers into the fold. This expansion not only broadens the cooperative’s supply base but also fortifies its position in the competitive dairy landscape.
For the international dairy community, this development highlights the critical role of cooperative models in promoting sustainable growth and farmer welfare. The Indore union’s strategy demonstrates a clear commitment to leveraging scale and fair pricing to drive both economic empowerment for producers and supply chain resilience. This approach serves as a compelling case study for other regions exploring similar growth strategies.
The increase in rates and the formation of new committees reflect a forward-looking management approach by the Indore Cooperative Milk Union. By investing in its supply-side infrastructure and directly improving farmer income, the union is laying the groundwork for future growth and ensuring the long-term viability of its business. These actions underscore the dynamic and proactive nature of India’s cooperative dairy sector.
Source: The Times of India
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