AgriBot

NDDB — National Dairy Development Board: Operation Flood, the Anand Pattern, Amul / GCMMF, National Dairy Plan and Dr Verghese Kurien's White Revolution

Canonical reference: https://agri.bot/nddb

The National Dairy Development Board (NDDB) is the statutory apex body of the Government of India for the dairy sector, headquartered at Anand, Gujarat. It was set up in 1965 as a registered society on the initiative of then Prime Minister Lal Bahadur Shastrito replicate the Kaira District Co-operative Milk Producers' Union (Amul) three-tier co-operative model across India, and was reconstituted as a body corporate under the National Dairy Development Board Act, 1987, which merged the erstwhile Indian Dairy Corporation with NDDB. Dr Verghese Kurien — widely revered as the father of India's White Revolution— was NDDB's founder Chairman from 1965 to 1998. Through the three phases of Operation Flood (1970-1996)— the world's largest integrated dairy development programme — NDDB helped lift India from a chronically milk-deficit importer to the world's largest producer of milk since 1998, at about 230.58 million tonnes in 2022-23. NDDB is the institutional bridge between farmer-owned co-operative and producer-company milk institutions and the wider Central portfolio of dairy schemes — the Rashtriya Gokul Mission for indigenous bovine breed development (whose underlying dairy-cattle science and elite bull pipeline is anchored at ICAR–NDRI, Karnal— India's ICAR Deemed-to-be-University for dairy R&D), the National Programme for Dairy Development (NPDD) for co-operative-sector milk-procurement infrastructure, the Animal Husbandry Infrastructure Development Fund (AHIDF) for dairy processing capacity and the National Livestock Mission (NLM). For the broader index of farmer-welfare programmes see our India government schemes for farmers reference.

Origin, legal basis and headquarters

NDDB was set up in 1965 at Anand, Gujaratas a registered society, at the initiative of Prime Minister Lal Bahadur Shastri, who was struck during a night's stay in an Amul village by the transformative effect of the co-operative on the incomes and dignity of the milk-producing household. His instruction was that the Anand model should be spread across the country — and NDDB was the institutional vehicle to do so. Two decades later, Parliament enacted the National Dairy Development Board Act, 1987, which reconstituted NDDB as a body corporate and merged into it the erstwhile Indian Dairy Corporation (the earlier vehicle used to channel EEC commodity aid under Operation Flood). The Act gives NDDB a statutory mandate to plan and organise programmes for the development of dairying on co-operative lines, promote farmer-owned producer institutions, conduct research, and provide technical and financial support to the state co-operative dairy sector. NDDB's head office is at NDDB House, Anand - 388 001, Gujarat, with regional offices and specialised centres including the Animal Breeding Centre at Salon (Uttar Pradesh), the Semen Station at Sabarmati Ashram Gaushala (SAG) and animal nutrition laboratories.

Dr Verghese Kurien and the White Revolution

Dr Verghese Kurien(26 November 1921 – 9 September 2012) was the architect of India's co-operative dairy revolution. Sent to Anand in 1949 as a young dairy engineer under a government bond, he stayed on to build the Kaira District Co-operative Milk Producers' Union — the original Amul dairy — into the template that Operation Flood would later replicate across India. He served as the founder Chairman of Amul, the founder Chairman of GCMMF, the founder Chairman of NDDB (1965-1998), and the founder Chairman of the Institute of Rural Management Anand (IRMA) set up in 1979 to train rural managers for the co-operative sector. National Milk Day is observed each year on 26 November, his birth anniversary. He was awarded the Padma Vibhushan (1999), the World Food Prize (1989) and the Ramon Magsaysay Award (1963), among other honours.

Operation Flood — the three phases

Phase I (1970-1980)

Operation Flood Phase I was launched by NDDB in 1970 and completed in 1980. Its funding backbone was the sale proceeds within India of skimmed milk powder (SMP) and butter oil gifted by the European Economic Community through the World Food Programme — a model of monetising commodity food aid into local-currency capital for institution building rather than distributing it as end-consumption relief. The programme linked 18 of India's premier milkshedswith the milk markets of the four metros of the time — Bombay, Calcutta, Delhi and Madras — through a national milk grid, and built the initial ring of District Co-operative Milk Producers' Unions on the Anand Pattern.

Phase II (1981-1985)

Phase II ran from 1981 to 1985 and was financed through a World Bank IDA credit and further EEC commodity assistance. It expanded the co-operative fold to about 136 milksheds, added 290 urban milk markets, built the National Milk Grid infrastructure of bulk-milk transport and inter-state balancing, and put in place the animal-health and cattle-feed support services that made the producer union economically viable at scale.

Phase III (1985-1996)

Phase III ran from 1985 to 1996 and consolidated the co-operative institutions built under the first two phases. It strengthened milk-procurement, processing and marketing infrastructure, brought the milkshed count to about 173, financed veterinary first-aid, artificial-insemination and cattle-feed services and put in place the professional-management cadre and IT systems that continue to run the co-operative dairy sector to this day. By the close of Phase III, the co-operative sector was procuring milk from over 96,000 village dairy co-operative societies spread across the country, and India was on the verge of becoming the world's largest milk producer — a milestone crossed in 1998.

The Anand Pattern — three-tier co-operative structure

The Anand Pattern is a three-tier farmer-owned co-operative structure with elected representation upward at each tier:

  1. Tier 1 — Village Dairy Co-operative Society (DCS). Milk producer households of the village are members of the DCS. Milk is pooled twice a day at the village collection centre, tested for fat and Solids-Not-Fat (SNF) and paid for on the basis of quality using automatic milk collection stations.
  2. Tier 2 — District Co-operative Milk Producers' Union. All DCSs in a district are federated into a union, which owns the chilling centres, the bulk-milk transport fleet and the dairy plant. The union processes the milk into liquid pouches, cultured products, butter, ghee, SMP and other products, and pays the DCSs on a co-operative basis after covering operating costs and a defined margin.
  3. Tier 3 — State Co-operative Milk Marketing Federation. All district unions in a state are federated into the state marketing federation that markets the pooled output under a single umbrella brand — Amul (GCMMF, Gujarat), Nandini (KMF, Karnataka), Aavin (Tamil Nadu), Vijaya (Andhra Pradesh), Verka (Punjab), Saras (Rajasthan), Sudha (Bihar), OMFED (Odisha), Milma (Kerala) and their equivalents.

Ownership at each tier is elected from the tier below, so the state federation is ultimately owned by the village dairy-producer households — the design principle that gives the Anand Pattern its resilience and its ability to pay a farm-gate price close to the consumer rupee.

NDDB, GCMMF and the Amul brand

Amul is the brand under which the Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF) — the apex state federation of the Gujarat district co-operative milk unions — markets its milk and milk products. The original Kaira District Co-operative Milk Producers' Union Ltd, better known as Amul Dairy Anand, was founded in 1946 under the leadership of Tribhuvandas Patel and Sardar Vallabhbhai Patel, and is one of the eighteen district unions federated under GCMMF. NDDB itself is neither GCMMF nor Amul — NDDB is the statutory apex body that replicated the Anand co-operative model nationally under Operation Flood and continues to provide technical, engineering, ICT and animal-productivity services to the co-operative sector. Dr Verghese Kurien served as founder Chairman of Amul / GCMMF and of NDDB, which is why the three names are often used interchangeably in popular writing, but they are legally and operationally distinct.

NDDB's major subsidiaries

Mother Dairy Fruit & Vegetable Pvt Ltd

Mother Dairy is a wholly owned subsidiary of NDDB set up in 1974 as a milk-marketing arm of Operation Flood in Delhi, initially to distribute liquid milk through vending booths across the National Capital Region. Today Mother Dairy markets liquid milk, cultured products (dahi, lassi, paneer), ice creams, edible oils under the Dhara brand, and fresh fruits and vegetables under the SAFALbrand across the NCR and other markets, and is one of India's largest food and dairy companies by turnover.

NDDB Dairy Services (NDS)

NDDB Dairy Services (NDS) is a not-for-profit company set up by NDDB to promote farmer-owned Milk Producer Companies under the producer-company chapter of the Companies Act — an alternative institutional form for states where the classical three-tier co-operative structure has been hard to organise. Notable NDS-promoted producer companies include Paayas Milk Producer Company (Rajasthan), Shreeja Mahila Milk Producer Company (Andhra Pradesh, an all-women producer company), Baani Milk Producer Company (Punjab), Maahi Milk Producer Company (Gujarat / Saurashtra) and Saahaj Milk Producer Company (Uttar Pradesh / Bihar). NDS provides these companies with project management, milk-procurement software and market-access services.

Indian Immunologicals Ltd (IIL)

Indian Immunologicals Ltd (IIL), headquartered in Hyderabad, is another NDDB subsidiary and one of India's largest veterinary vaccine manufacturers. IIL produces Foot-and-Mouth Disease (FMD) vaccine, rabies vaccine, brucellosis vaccine and other animal and human vaccines, and is a major supplier to the National Animal Disease Control Programme (NADCP) for the mass FMD and Brucellosis vaccination drives that are registered on Pashu Aadhaar / INAPH.

Other NDDB institutions

NDDB also promoted / operates other specialised entities including the Institute of Rural Management Anand (IRMA) set up in 1979 to train rural managers for the co-operative sector, the Sabarmati Ashram Gaushala (SAG) semen station (a joint venture with the Sabarmati Ashram Preservation and Memorial Trust), and specialised subsidiaries in animal-nutrition and cattle-feed manufacturing.

National Dairy Plan Phase I (NDP-I, 2011-12 to 2018-19)

The National Dairy Plan Phase I (NDP-I) was a Central Sector scheme implemented by NDDB from 2011-12 to 2018-19 with a total outlay of about ₹2,242 crore, financed through an International Development Association (IDA) credit from the World Bank, the Government of India share and contributions from the end-implementing agencies (state co-operative milk federations, milk producer companies and other producer institutions). Its two central objectives were:

  • Increase productivity of milch animals through scientific breeding (high-genetic-merit bull production, expanded semen-station capacity, Progeny Testing and Pedigree Selection of Sahiwal, Gir and Murrah) and scientific nutrition (ration-balancing programme for over 27 lakh milch animals).
  • Expand village-level milk-procurement infrastructure of producer-owned institutions — over 45,000 new village-level milk-procurement points were added and about 40 lakh additional farmer membersbrought into the co-operative and producer-company fold, in 18 major dairy states that together account for roughly 90% of India's milk production.

NDP-I also built out the Information Network on Animal Productivity & Health (INAPH), the same database that today powers Pashu Aadhaar under Rashtriya Gokul Mission and vaccination tracking under NADCP — a rare example of a project-generated public-good digital rail that has outlived the project itself.

Dairy Processing & Infrastructure Development Fund (DIDF)

The Dairy Processing & Infrastructure Development Fund (DIDF) is a Central Sector scheme approved by the Cabinet in September 2017 with a corpus of ₹8,004 crore (subsequently expanded). The structure is a three-way loan chain: NABARD extends the loan at market rate to NDDB and the National Cooperative Development Corporation (NCDC); NDDB and NCDC on-lend to end borrowers — state co-operative milk federations, district milk unions and Milk Producer Companies — at an effective interest rate of around 6.5% for modernisation of milk-processing, chilling and value-addition infrastructure. The Government of India covers the interest subvention — the gap between the market rate on the NABARD loan and the concessional rate to the end borrower. DIDF has financed bulk milk chiller (BMC) installation, dairy plant modernisation, cheese and ice-cream lines, cattle feed plants and effluent treatment across the co-operative sector.

NDDB and the Central dairy-scheme portfolio

NDDB is the technical / implementation partner for most of the Central Government's dairy programmes:

  • Rashtriya Gokul Mission (RGM): NDDB operates the empanelled sex-sorted-semen stations, IVF labs and the INAPH backbone that supports Pashu Aadhaar and the accelerated breed-improvement programme for the 53 recognised indigenous bovine breeds.
  • NPDD — National Programme for Dairy Development: the direct Central-scheme window that finances co-operative-sector milk-procurement infrastructure and quality-testing labs; NDDB is a key technical partner for project appraisal and implementation oversight.
  • AHIDF — Animal Husbandry Infrastructure Development Fund: the ₹15,000 crore facility (expanded to ₹29,610 crore) launched in 2020 with a 3% interest subvention on bank loans for dairy processing, feed plants, breed multiplication and Animal Husbandry Start-Ups; DIDF operated by NABARD-NDDB-NCDC is the co-operative-sector analogue.
  • NLM — National Livestock Mission: rural livestock entrepreneurship for poultry, sheep / goat, piggery and fodder — sits alongside the NDDB-anchored dairy institutions.
  • NADCP — National Animal Disease Control Programme: 100% centrally funded FMD and Brucellosis vaccination drive using Pashu Aadhaar on INAPH and Indian Immunologicals Ltd (an NDDB subsidiary) as a major vaccine supplier.
  • KCC-AH&D: KCC extended to animal husbandry and dairying in 2018-19 for working-capital needs of the dairy farmer household.

Scale of the Indian dairy sector

  • Milk production (2022-23): about 230.58 million tonnes — the largest in the world; India has been number one since 1998.
  • Per-capita milk availability (2022-23): about 459 grams per day, well above the ICMR-NIN recommended dietary allowance for milk.
  • Global share: India accounts for roughly one-fourth of global milk output.
  • Value: milk is the single largest agricultural commodity by value in India, exceeding paddy and wheat.
  • Co-operative sector organisation:the Anand-Pattern co-operatives and NDS-promoted producer companies organise a substantial share of the country's organised milk procurement.

Sources: NDDB Annual Report, Basic Animal Husbandry Statistics published by the Department of Animal Husbandry & Dairying.

Governance and leadership

NDDB is governed by a Board of Directors constituted under the NDDB Act, 1987, with the Chairman as its chief executive. Successive Chairmen after Dr Verghese Kurien (1965-1998) have included Dr Amrita Patel (1998-2014), T. Nanda Kumar (2014-2017), Dilip Rath (2017-2020) and Meenesh C. Shah (2022 onwards) — see the NDDB portal at nddb.coop for the current composition of the Board and the Executive Committee.

Related pages

References

  • National Dairy Development Board (nddb.coop) — corporate portal: NDDB Act 1987, Annual Reports, National Dairy Plan documents, subsidiary companies, INAPH portal, e-Pashu Haat and current Board composition.
  • Department of Animal Husbandry & Dairying (dahd.nic.in) — administrative Ministry: Basic Animal Husbandry Statistics, NPDD and DIDF operational guidelines, and NDDB oversight.
  • GCMMF / Amul (amul.com) — Gujarat Cooperative Milk Marketing Federation, the apex state federation that markets the pooled output of the eighteen Gujarat district co-operative milk unions under the Amul brand.
  • Mother Dairy (motherdairy.com) — NDDB's wholly owned milk, edible-oil (Dhara) and fruit & vegetable (SAFAL) marketing subsidiary set up in 1974.
  • Press Information Bureau (PIB) — Cabinet approvals for the National Dairy Plan Phase I, DIDF (September 2017) and successor dairy programmes; PIB releases on National Milk Day and NDDB milestones.

Frequently asked questions

What is the National Dairy Development Board (NDDB)?
The National Dairy Development Board (NDDB) is the statutory apex body of the Government of India for the Indian dairy sector, headquartered at Anand, Gujarat. It was set up in 1965 as a registered society on the initiative of the then Prime Minister Lal Bahadur Shastri to replicate the Kaira District Co-operative Milk Producers' Union Ltd (Amul) three-tier co-operative model across India, and was reconstituted as a statutory body corporate by the National Dairy Development Board Act, 1987 which merged the erstwhile Indian Dairy Corporation with NDDB. Dr Verghese Kurien — widely known as the father of India's White Revolution — was NDDB's founder Chairman from 1965 to 1998. NDDB's mandate is to plan and organise programmes for the development of dairying on co-operative lines, promote farmer-owned producer institutions, and act as the technical / financial arm of the Department of Animal Husbandry & Dairying for national dairy programmes.
What were the three phases of Operation Flood?
Operation Flood was the world's largest integrated dairy development programme, implemented by NDDB in three phases. Phase I (1970-1980) was funded primarily by the sale proceeds of skimmed milk powder and butter oil gifted by the European Economic Community through the World Food Programme; it linked 18 of India's premier milksheds with the milk markets of the four metro cities (Bombay, Calcutta, Delhi and Madras) and built the initial ring of District Co-operative Milk Producers' Unions on the Anand Pattern. Phase II (1981-1985) expanded the co-operative network to about 136 milksheds, added 290 urban milk markets, built a national milk grid, and financed the National Milk Grid infrastructure through the World Bank and further EEC commodity assistance. Phase III (1985-1996) consolidated the co-operative institutions, strengthened milk-procurement, processing and marketing infrastructure, expanded coverage to about 173 milksheds, and put in place the animal-health, feed and breed-improvement services that support the co-operatives to this day.
What is the Anand Pattern three-tier co-operative structure?
The Anand Pattern — named after the Kaira district town of Anand where Amul was founded in 1946 — is a three-tier farmer-owned co-operative structure: at the base, the village-level Dairy Co-operative Society (DCS) that pools milk twice a day from member households and pays them on the basis of fat and SNF content; at the middle, the District Co-operative Milk Producers' Union that owns the chilling centres and the dairy plant, procures milk from all the DCSs in its area, processes it and sells liquid milk and milk products; and at the apex, the State Co-operative Milk Marketing Federation that markets the pooled output of all the district unions in the state under a single brand — Amul (Gujarat), Nandini (Karnataka), Aavin (Tamil Nadu), Vijaya (Andhra Pradesh), Verka (Punjab), Saras (Rajasthan), Sudha (Bihar), OMFED (Odisha), Milma (Kerala) and equivalents. Ownership at each tier is elected upward from the tier below, so the state federation is ultimately owned by the village dairy producer households.
What is the relationship between NDDB, GCMMF and Amul?
Amul is the brand name under which the Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF), the apex state federation of the Gujarat district co-operative milk unions, markets its milk and milk products. The Kaira District Co-operative Milk Producers' Union Ltd — the original Amul Dairy at Anand founded in 1946 — is one of the eighteen district unions federated under GCMMF. NDDB itself is neither GCMMF nor Amul: NDDB is the statutory apex body that replicated the Anand co-operative model nationally under Operation Flood, provided technical and financial support to state federations to organise similar three-tier structures, and continues to provide project-management, engineering, ICT and animal-productivity services to the co-operative sector. Dr Verghese Kurien served as founder Chairman of both Amul / GCMMF and NDDB — hence the popular conflation, but the two are legally and operationally distinct.
What did the National Dairy Plan Phase I (NDP-I) achieve?
The National Dairy Plan Phase I (NDP-I) was a Central Sector scheme implemented by NDDB from 2011-12 to 2018-19 with a total outlay of about ₹2,242 crore, funded through an International Development Association (IDA) credit from the World Bank, Government of India share and end-implementing agency contribution. Its two central objectives were to increase the productivity of milch animals through scientific breeding and nutrition, and to expand village-level milk procurement infrastructure of producer-owned institutions. NDP-I covered 18 major dairy states that together account for about 90% of the country's milk production, brought over 40 lakh additional farmer members into the co-operative and producer-company fold, added about 45,000 new village-level milk-procurement points, expanded high-genetic-merit bull production, ration-balancing programmes for over 27 lakh milch animals, and set up the Information Network on Animal Productivity & Health (INAPH) — the same INAPH database that today underpins Pashu Aadhaar under Rashtriya Gokul Mission and vaccination tracking under NADCP.
What is the Dairy Processing & Infrastructure Development Fund (DIDF)?
The Dairy Processing & Infrastructure Development Fund (DIDF) is a Central Sector scheme approved by the Cabinet in September 2017 with a corpus of ₹8,004 crore (subsequently expanded), operated by NABARD which extends loans to NDDB and the National Cooperative Development Corporation (NCDC) at a concessional rate; NDDB and NCDC in turn on-lend to end borrowers — state co-operative milk federations, district milk unions and Milk Producer Companies — at an effective interest rate around 6.5% for modernisation and creation of milk-processing, chilling and value-addition infrastructure. The Government of India covers the interest subvention (the gap between the market rate on the NABARD loan and the concessional rate to end borrowers). DIDF has financed capacity addition of bulk milk chillers, dairy plant modernisation, ice cream and cheese lines, and cattle-feed plants across the co-operative sector.
What are Mother Dairy, NDDB Dairy Services and Indian Immunologicals?
NDDB operates through several subsidiaries. Mother Dairy Fruit & Vegetable Pvt Ltd, a wholly owned subsidiary set up in 1974 initially as a Delhi milk-marketing arm of Operation Flood, today markets liquid milk, cultured products, edible oils under the Dhara brand and fruits and vegetables under the SAFAL brand in the National Capital Region and other markets. NDDB Dairy Services (NDS) is a not-for-profit company set up by NDDB to promote farmer-owned Milk Producer Companies under the producer-company chapter of the Companies Act — companies like Paayas Milk Producer Company (Rajasthan), Shreeja Mahila Milk Producer Company (Andhra Pradesh) and Baani Milk Producer Company (Punjab) — and to provide them project management support, milk procurement software and market-access services. Indian Immunologicals Ltd (IIL), Hyderabad, is another NDDB subsidiary that manufactures Foot-and-Mouth Disease (FMD), rabies and other veterinary and human vaccines that supply the National Animal Disease Control Programme (NADCP) and public-sector immunisation.
Is India really the world's largest milk producer, and what is the current production?
Yes. India overtook the United States to become the world's largest producer of milk in 1998 — an outcome directly attributable to the co-operative dairy movement built through Operation Flood — and has retained the top position every year since. Per the Basic Animal Husbandry Statistics published by the Department of Animal Husbandry & Dairying and reflected in NDDB's Annual Report, India's milk production in 2022-23 was about 230.58 million tonnes, with per-capita availability of about 459 grams per day, contributing roughly one-fourth of global milk output. Milk is the single largest agricultural commodity by value in India, and the co-operative and producer-company sectors organised on the NDDB / Anand Pattern account for a substantial share of the organised procurement.
How does NDDB compare with Rashtriya Gokul Mission and AHIDF?
NDDB is a statutory institution — the apex body for the dairy sector — that organises farmer-owned producer institutions, operates its own subsidiaries and provides technical / project-management services. Rashtriya Gokul Mission is a Central scheme of the Department of Animal Husbandry & Dairying focused specifically on genetic upgradation and conservation of indigenous bovine breeds through sex-sorted semen, IVF and Breed Multiplication Farms — NDDB is a key implementing partner for the sex-sorted-semen roll-out, IVF labs and INAPH backbone under RGM, but NDDB itself is not RGM. AHIDF (Animal Husbandry Infrastructure Development Fund) is a credit-and-interest-subvention facility launched in 2020 that offers a 3% interest subvention on bank loans for dairy processing, feed plants, breed multiplication and Animal Husbandry Start-Ups; DIDF operated by NABARD-NDDB-NCDC is the co-operative-sector analogue that on-lends to state co-operative milk federations at a concessional rate. NPDD (National Programme for Dairy Development) is the direct Central scheme window that finances co-operative-sector milk-procurement infrastructure and quality testing labs downstream of NDDB's institutional development work.

NDDB's legal form (registered society 1965; body corporate under the NDDB Act 1987), Anand head office, Operation Flood phase dates and outcomes, Anand-Pattern three-tier co-operative structure, subsidiary companies (Mother Dairy, NDS, IIL), NDP-I outlay, DIDF corpus and interest-subvention structure, and milk-production figures above summarise publicly available material on nddb.coop, the Department of Animal Husbandry & Dairying portal at dahd.nic.in and PIB releases. Scheme parameters, outlays and end-lending rates are revised from time to time — beneficiaries and dairy co-operatives should verify current NDDB and DAHD guidelines before drawing assistance.