Role of Cooperatives in Strengthening the Dairy Sector in Rajasthan
Rajasthan’s dairy sector, a major contributor to the state’s livestock economy, is organized predominantly through a three-tier cooperative structure — Dairy Cooperative Societies (DCS) at the village level, District Milk Producers’ Cooperative Unions, and the apex Rajasthan Cooperative Dairy Federation (RCDF) Limited, Jaipur, established in 1977.
Key Contributions:
- Apex Body: RCDF acts as the apex organisation for the entire dairy cooperative structure in the state. It oversees 21+ District Milk Unions.
- Brand Building: It manages and promotes the famous “Saras” brand, which is a household name in Rajasthan for quality dairy products.
- Procurement, Processing & Marketing:
- Large-scale milk procurement from farmers.
- Processing and marketing of liquid milk, ghee, paneer, and other value-added products.
- Infrastructure Development:
- The Rajasthan Cooperative Dairy Infrastructure Development Fund (RCDFIDF) has been doubled to ₹2,000 crore in the recent budget to expand processing capacity and infrastructure.
- Market Expansion:
- ₹100 crore allocated to make Saras a national brand.
- Expanding retail outlets to NCR, Uttar Pradesh, and Madhya Pradesh.
- Farmer Empowerment: Provides assured market, fair prices, and technical support to millions of dairy farmers, especially small and marginal ones.
- The cooperative model has transformed Rajasthan’s dairy sector from a traditional activity into a professionally managed, economically viable industry, ensuring income security for rural households and contributing significantly to the state’s rural economy.
Rajasthan operates several targeted schemes for livestock health, insurance, and conservation of indigenous breeds, given the sector’s centrality to rural livelihoods.
Major Schemes
- Mukhyamantri Mangala Pashu Bima Yojana: In 2024-25, free insurance policies were issued to 5.54 lakh families, covering 10.63 lakh animals; in 2025-26, a target of 42 lakh animals has been set, with 100% of the premium borne by the State Government (free coverage for cow, buffalo, sheep, goat, and camel effective 1 December 2025).
- Livestock Free Health Scheme: Free medicines available for sick animals increased from 138 to 200 types, reducing the financial burden on livestock owners.
- Camel Conservation and Development Mission: Financial assistance for camel breeding — 25,364 newborn camel calves supported with ₹17 crore, benefiting 9,379 camel rearers.
- Gaushala Support: Assistance rates for cattle care increased (large cattle: ₹44 to ₹50/day; small cattle: ₹22 to ₹25/day); ₹1,204.90 crore allocated to 3,043 Gaushalas (up to December 2025).
- Nandishala Jansehbhagita Scheme: Addresses stray male cattle issues through Panchayat Samiti-level Nandishalas (90:10 government-public funding).
Rajasthan, with its arid and semi-arid climate, frequent droughts, and 83% rainfed agriculture, faces high crop failure risk. In this context, livestock acts as a shock absorber for rural households. It contributes significantly to the state’s economy (part of ~25.74% GSVA from Agri & Allied) and provides stable income when crops fail.
Why Livestock is a Resilient Asset
- Drought Resilience: Animals (especially goats, sheep, camels, and indigenous cattle) can survive on low-quality fodder and minimal water. They continue to yield milk, meat, wool, and manure even in severe drought years.
- Economic Contribution: Rajasthan ranks 2nd in milk production (14.5% of India’s total) and 1st in wool production (~48% of India). Livestock supports livelihood of more than 80% rural households.
- Women Empowerment: Dairy and backyard poultry are largely women-led activities, providing regular cash income.
- Multiple Outputs: Milk, dung (fuel & fertilizer), wool, meat, and draught power make it a multi-functional asset.
- Government Support:
- Rajasthan Cooperative Gopal Credit Card (interest-free loans up to ₹1 lakh for dairy farmers).
- Pashu Sakhi & Krishi Sakhi under Rajeevika (37,000+ women providing extension services).
- Artificial Insemination and breed improvement programmes.
- RCDF (Saras brand) for milk procurement and processing.
Critical Analysis (Challenges & Limitations)
- Fodder & Water Scarcity: Droughts cause severe fodder shortage. Many animals die or become unproductive due to malnutrition. Permanent pastures cover only ~4.81% of land.
- Low Productivity: Indigenous breeds have low milk yield. Cross-breeding and feed management remain inadequate for small/marginal farmers.
- Disease & Mortality: Outbreaks of Foot & Mouth Disease, PPR, etc., increase during stress periods. Veterinary services are weak in remote areas.
- Market & Processing Gaps: Distress sale of animals during drought, weak cold chain, and limited value addition reduce farmer income.
- Climate Change Impact: Rising temperature and erratic rainfall are making droughts more frequent and severe, challenging even hardy species.
- Equity Issues: Benefits of schemes largely reach larger livestock holders; landless and very poor households often face difficulties in availing credit and insurance.
Conclusion
For livestock to become a truly sustainable and high-return asset, Rajasthan must focus on fodder banks, drought-resistant breeds, stronger veterinary infrastructure, women-led dairy cooperatives, and better integration with processing & marketing under Vision 2047. Without these structural interventions, livestock will remain only a survival mechanism rather than a prosperity engine.
