Bihar’s dairy sector is witnessing a significant expansion of its milk procurement network, with 2,150 newly established primary milk producers’ cooperative societies becoming operational and adding 91,000 kg to the state’s daily milk collection. The development follows the formation of 4,800 new dairy cooperatives during the current financial year, strengthening organised milk procurement and market access for rural dairy farmers.
According to a press release issued by Bihar’s Information and Public Relations Department (IPRD), the cooperatives are being established through the Bihar State Milk Cooperative Federation Ltd (COMFED), under the Department of Dairy, Fisheries and Animal Resources. The expansion is intended to strengthen the Sudha dairy network, improve farmers’ access to organised markets and support income generation through cooperative-based milk procurement.
Bihar currently collects an average of 25 lakh litres of milk daily, approximately three lakh litres more than the average daily collection recorded in the previous year. The growing procurement base highlights the increasing importance of organised dairy infrastructure in connecting milk producers with reliable markets.
Dairy Cooperatives Strengthen Rural Milk Procurement
The formation and activation of new cooperative societies are central to Bihar’s efforts to expand its dairy economy. By bringing more villages into organised procurement networks, COMFED aims to create additional channels through which farmers can sell milk regularly.
For small and marginal dairy farmers, cooperative societies can reduce dependence on informal marketing arrangements and provide a more structured route to market. Regular procurement, organised collection and established distribution networks can help producers sell milk more consistently while supporting the availability of dairy products for consumers.
The addition of 2,150 operational societies is particularly significant because newly formed cooperatives must become functional collection and procurement centres to contribute meaningfully to the dairy supply chain. The reported increase of 91,000 kg in daily milk collection reflects the immediate contribution of these newly operational units.
The expansion also provides a foundation for increasing participation in organised dairy production, potentially strengthening rural livelihoods and supporting the state’s wider animal husbandry sector.
Sudha Network Expansion Targets All Panchayats
Alongside cooperative formation, COMFED is working to establish Jeevika-Sudha sales centres across all 8,053 panchayats in Bihar under the state government’s Saat Nischay-3 programme.
The initiative is intended to broaden the availability of Sudha dairy products and strengthen connections between rural communities, dairy producers and consumer markets. Wider retail coverage could help improve the distribution of milk and other dairy products while creating additional commercial opportunities within the cooperative ecosystem.
The programme also envisages selecting Sudha Sakhis in panchayats and providing them with training under the Prime Minister’s Internship Scheme. This component is expected to support local participation in dairy-related activities and expand opportunities associated with retailing and the distribution of dairy products.
Together, cooperative expansion and the development of village-level sales centres aim to strengthen different stages of the dairy value chain, from milk procurement to consumer access.
Digital Collection Units to Improve Transparency
Bihar is also introducing data processor-based milk collection units (DPMCUs) to improve the accuracy and transparency of milk procurement.
These units are designed to measure the quantity and quality of milk supplied by producers more accurately. Reliable measurement is important in dairy cooperatives because payments can be linked to the amount and quality of milk delivered.
The introduction of DPMCUs is also intended to facilitate direct transfers of payments into farmers’ bank accounts. Such systems can improve accountability, reduce scope for discrepancies in collection records and provide producers with clearer information about their milk transactions.
For the dairy industry, digitising procurement processes can support better operational management and strengthen trust between farmers and cooperative institutions. Accurate collection data can also help organisations monitor procurement volumes and manage the flow of milk through their supply networks.
Rising Milk Collection Supports Bihar’s Dairy Economy
Bihar’s average daily milk collection of 25 lakh litres represents an increase of approximately three lakh litres over the previous year’s average. The state government has attributed this improvement to the expansion of cooperative societies and the activation of new procurement units.
Continued growth will depend on the ability of cooperatives to sustain milk collection, maintain quality standards, ensure timely payments and provide dependable market access. Veterinary services, animal nutrition, productivity improvements and effective chilling and transportation infrastructure will also be important to supporting long-term growth in milk production and procurement.
The expansion of the Sudha network offers an opportunity to strengthen the relationship between rural milk producers and organised dairy markets. However, the long-term impact will depend on whether the new societies remain operational and deliver consistent benefits to participating farmers.
With additional cooperatives, wider retail ambitions and digital procurement systems, Bihar is seeking to build a more connected dairy ecosystem. If implemented effectively, these measures could support rural incomes, improve milk marketing efficiency and strengthen the state’s position in India’s expanding dairy sector.
