The problem of plenty
The Madhya Pradesh State Cooperative Dairy Federation (MPCDF) is seeking to manage its surplus of around 3 lakh liters of unsold milk daily by converting it into butter and skimmed milk powder. Due to low market prices, these byproducts accumulate, creating mounting stocks. To address this, MPCDF has proposed that the Madhya Pradesh government buy flavored milk powder from the federation and supply it to schools and anganwadis.
A senior MPCDF official stated, “We have proposed to the state government to include flavored milk powder in the midday meal scheme and in anganwadis. This will help clear surplus stocks and enhance the nutritional value of school meals.”
Infrastructure challenge
The official explained that supplying loose milk would require extensive infrastructure, whereas flavored milk powder can be easily transported to villages and remote areas. They highlighted that surplus milk is converted into byproducts, which are difficult to sell due to low prices. Redirecting these supplies to schools would be beneficial for both parties, with 17 Indian states already providing milk or eggs in midday meals.
MPCDF collects approximately 10.5 lakh liters of milk daily from farmers’ cooperatives, selling 7 lakh liters as packaged milk. The federation has also requested state funds to revive the financially struggling Jabalpur and Gwalior milk unions and upgrade their plants. MPCDF operates six milk unions in Bhopal, Indore, Ujjain, Jabalpur, Gwalior, and Bundelkhand, with Jabalpur and Gwalior facing significant financial challenges.
Revival of unviable Unions
“We have sought financial assistance from the state government to revive Jabalpur and Gwalior milk unions, which face liquidity and operational issues. We have also proposed upgrading and revamping plants to strengthen the cooperatives and milk unions,” said the official.
