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Agri-Biz & Commodities - Dairy & Dairy Products


NDDB plans to develop parallel milk chain

Vinod Mathew

NDDB's initiative is expected to bring more tracts of milk producers in the country under its ambit.

Ahmedabad , Aug. 19

THE National Dairy Development Board (NDDB) is expected to roll out its blueprint soon for what could become the new structure in the dairy industry.

As per this initiative, co-operative societies and co-operative unions may be slugging it out with `producer institutions' and `producer companies' for the collection and marketing of milk.

Attempts by Business Line for comments on this development drew a blank, with Mr Deepak Tikku, Managing Director, NDDB, neither confirming nor refuting the points raised on the issue. NNDB is expected to play a vital role in the development of this parallel milk chain by virtue of its status as a public finance institution.

NDDB's initiative is seen as a corollary to the apex dairy development board's decision to give a corporate colour to the dairy industry.

With Mother Dairy India Ltd (one of the four companies set up by NDDB) churning out fresh products by the dozen, the chain of milk providers and milk collectors is expected to meet the resultant rise in demand for liquid milk.

While the producer institutions are likely to be self-help groups as in a co-operative society, the producer companies will be similar to the co-operative unions. Infrastructure such as milk cooling plants and chillers will come from NDDB. The aim is to bring under a cold chain those regions uncovered by Operation Flood.

Meanwhile, there has been lot of activity at the dairy board campus at Anand in the last few weeks. M/s Ernst & Young is looking to enhance the HR skills of the NDDB personnel. Also, a second team from Land O' Lake, one of the largest players in the US dairy industry, made its second stopover at the NDDB headquarters in six months.

The latest NDDB initiative is expected to bring more tracts of milk producers in the country under its ambit compared to its not-so-successful joint venture initiatives with the State milk federations recently.

This means that there could be a direct standoff between the existing co-operative milk chain and the new one.

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