Operation Flood

Operation Flood, launched in 1970, organised milk producers into farmer-owned dairy cooperatives and connected them with processing and urban markets. Implemented by the National Dairy Development Board, it replicated the Anand model so that producers collectively controlled procurement, services and marketing rather than depending mainly on intermediaries.

Three-tier cooperative structure

The model integrated producers through a vertically linked cooperative system.

• At the village level, milk producers became members of village dairy cooperative societies, which procured milk and paid members according to quantity and quality.
• Village societies collectively owned a district milk union, which processed milk, manufactured dairy products and provided technical and veterinary support.
• District unions formed a state federation to coordinate large-scale marketing, distribution and brand development.

Producer ownership and services

The cooperative treated milk producers as both suppliers and owners. Members participated in cooperative governance, while professional management handled specialised commercial functions.

• Collective procurement increased producers' bargaining power and reduced dependence on private middlemen.
• Cooperatives supplied services such as cattle feed, animal-health care, artificial insemination and extension support to improve productivity.
• Regular procurement converted small daily milk surpluses, including those of small and landless households, into a dependable source of cash income.

Linking villages with markets

Operation Flood created a National Milk Grid connecting rural milk sheds with major consumer markets. Processing, transport and marketing at scale enabled cooperatives to move milk from surplus areas to demand centres.

• The network widened the assured market available to producers and helped them receive a larger share of the consumer price.
• Initial programme infrastructure was supported partly through funds generated by selling donated milk powder and butter oil.
• The arrangement combined producer-oriented procurement with a more regular supply of milk to urban consumers.