NDDB to help dairy cooperatives market produce

Thursday, 06 March 2003, 20:30 IST
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NEW DELHI: The state-owned National Dairy Development Board (NDDB) would forge joint ventures with dairy cooperatives across the country to help them market their produce, Agriculture Minister Ajit Singh said here Wednesday. "The joint ventures would be forged by a subsidiary of NDDB, which will lease the assets of the state cooperatives," said Singh, who is also in charge of cooperatives. Clarifying that the centre was not attempting to curtail the freedom of dairy cooperatives, which are looked after by states, Singh said: "The cooperatives would have full freedom to opt out of the joint venture at any time. The arrangement would be for helping the cooperatives to market their products, which will continue to be sold under their respective brand name." Speaking at the release of a handbook on "Technology of Indian Milk Products", Singh said while the India's milk production has been growing annually at around nine percent, the marketing infrastructure has not kept pace, registering only around four percent growth annually. The handbook is aimed at helping food processing industries take advantage of the new technologies to reach out to a growing global demand for traditional Indian sweets, with the U.S. market alone currently estimated to be $550 million. "The handbook will help industries to capitalise on India's position as the largest milk producer and use new technologies not only to make Western products but also Indian sweets, traditionally the forte of the local 'halwai' (sweet-maker)," said P.R. Gupta, the editor of the book. With the dairy sector taking the shape of an industry with more emphasis on value addition, Singh said there is need to develop the marketing infrastructure while ensuring that the cooperative structure of organisations is not lost. "The proposed joint ventures would enable the cooperatives to remain competitive and reach out to a larger domestic and global market," said Singh. NDDB has already forged a joint venture alliance through its subsidiary Mother Dairy Foods Ltd. with Kerala Cooperative Milk Marketing Federation, which markets it produce under the Milma brand. There have been reports of Kerala farmers belonging to the cooperative opposing the alliance as they fear their brand identity would be lost and their group would end up losing it functional freedom. Fears of dairy cooperatives losing their identify have also been voiced at various forums by Verghese Kurien, the father of India's "white revolution" in milk production.
Source: IANS