Operation Flood and Cooperatives and Formation of Amul – UPSC Post-Independence Notes

Operation Flood, a groundbreaking initiative, revolutionized India’s dairy industry by establishing a network of cooperatives, with Amul as its shining beacon. Conceived in the 1970s under the visionary leadership of Dr. Verghese Kurien, Operation Flood aimed to transform India from a milk-deficient nation into one of the world’s largest milk producers. Central to this strategy was the formation of dairy cooperatives, empowering millions of farmers across the country. Among these cooperatives, Amul emerged as a paragon of success, embodying the spirit of self-reliance and community-driven progress. This triumphant saga of cooperative endeavor not only ensured economic upliftment for dairy farmers but also became a symbol of India’s ability to overcome challenges through collective action and innovation.

White Revolution (Operation Flood)

The White Revolution, also known as Operation Flood, was a successful initiative in India’s dairy industry. It was launched in 1970 with the primary aim of modernizing and developing the dairy sector. Here are some key features and impacts of the White Revolution:

1. Milk Cooperatives: The White Revolution was centered around the creation of dairy cooperatives. These were formed to empower local dairy farmers by collectively managing the production, processing, and marketing of milk and dairy products.
2. Amul Cooperative Model: The Amul cooperative model, initiated by Dr. Verghese Kurien, was a cornerstone of the White Revolution. It established a successful framework for dairy cooperatives, starting in the state of Gujarat. The model emphasized the collective strength of small dairy farmers.
3. Modernizing Infrastructure: The initiative focused on modernizing dairy infrastructure, which included the introduction of advanced technology in milk production, processing, and distribution.
4. Increasing Milk Production: The primary goal of Operation Flood was to increase milk production and make India self-sufficient in dairy products. This was achieved through a combination of measures including breed improvement, better cattle nutrition, and veterinary care.
5. Market Access and Fair Prices: Dairy cooperatives helped farmers get fair prices for their milk by eliminating middlemen and ensuring direct access to markets. This contributed to improved livelihoods for millions of small-scale dairy farmers.
6. Regional Expansion: The success of the program led to its replication in various states across India, significantly expanding its reach and impact.
7. Impact on Rural Economy: The White Revolution played a crucial role in uplifting rural economies by generating employment opportunities and increasing the income of dairy farmers.
8. Food Security and Nutrition: By ensuring a steady and affordable supply of milk and dairy products, the White Revolution contributed to enhancing food security and improving nutrition levels, especially among children.
9. Reducing Dependence on Imports: India, which used to be heavily reliant on imported dairy products, became self-sufficient in milk production, reducing its dependence on foreign markets.
10. Global Recognition: The success of Operation Flood gained international recognition and was hailed as one of the world’s largest agricultural development programs.

The White Revolution stands as a testament to the power of cooperative movements and community-driven initiatives in transforming agriculture and improving the lives of millions of people.

The success story of dairy cooperatives and the Amul brand began in the Kaira district of Gujarat, India. Here’s a brief history of the cooperative movement and the birth of Amul:

Background:

• In the years following India’s independence in 1947, farmers in the Kaira district faced significant challenges, especially in the marketing of milk.
• The Bombay Milk Scheme, initiated by the Government of Bombay in 1945, was designed to provide a regular supply of milk to the city. However, the benefits of this scheme were not reaching the milk producers directly.
• Milk contractors, who acted as intermediaries, siphoned off a substantial portion of the profits, leaving the farmers with minimal returns for their milk.

Initiation of the Cooperative:

• Against this backdrop, the farmers of Kaira district sought advice from Sardar Vallabhbhai Patel, who had previously advised them to form their cooperatives during the Quit India Movement of 1942.
• Sardar Patel reiterated his advice, emphasizing the importance of farmers’ cooperatives for their economic welfare.
• Morarji Desai, a prominent leader and statesman, was deputed by Sardar Patel to facilitate the establishment of a cooperative in the Kaira district.

Formation of the Kaira Union:

• Despite facing challenges and opposition from the Bombay government, the Kaira District Cooperative Milk Producer’s Union was officially established in 1946.
• The primary objective of the Kaira Union was to provide proper marketing facilities to milk producers in the district.
• It started supplying milk under the Bombay Milk Scheme but with a significant difference: the milk producers were directly involved in the cooperative, ensuring they received a fair share of the profits.

Leadership:

• Tribhuvandas K. Patel, a Gandhian freedom fighter and a staunch advocate for farmer cooperatives, became the first chairman of the Kaira Union in 1947.
• Dr. Verghese Kurien, known as the “Milkman of India,” served as the Chief Executive of the union from 1950 to 1973.

The success of the Kaira District Cooperative Milk Producer’s Union, popularly known as Amul, and its cooperative model catalyzed the White Revolution (Operation Flood), making India the world’s largest milk producer and improving the livelihoods of millions of dairy farmers. The Amul brand became synonymous with high-quality dairy products and played a pivotal role in transforming India’s dairy industry.

Amul’s remarkable journey continued with several key developments:

Increased Production and Demand:

• As milk production increased, the Bombay Milk Scheme was no longer capable of absorbing the surplus milk. This prompted the need for a processing plant that could convert excess milk into products such as butter and milk powder. In 1955, Amul established a processing plant to meet this demand.

Introduction of the ‘Amul’ Brand:

• The Kaira Union adopted the name ‘Amul,’ derived from “Anand Milk Union Limited,” for marketing their dairy products. This was a significant step in creating a distinct brand identity.

Diversification and Innovations:

• Amul continued to diversify its product range and introduce innovations in the dairy industry. Notably, Amul achieved a significant breakthrough by producing milk products from buffalo milk, a pioneering feat recognized globally.
• In 1960, Amul set up a new factory for the manufacturing of cheese and baby food, further expanding its product offerings.
• The cooperative adopted modern technologies for the production of cattle feed, employing computer technology for cost-benefit analysis to ensure the nutritional value and pricing of feed ingredients were optimized.

Expansion and Formation of Gujarat Cooperative Milk Marketing Federation Ltd:

• The success of the ‘Anand Pattern’ cooperative model in the Kaira district led to its replication in other districts of Gujarat.
• In 1974, the Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF) was established as an apex organization overseeing marketing activities. GCMMF played a crucial role in coordinating marketing efforts among various district-level unions, ensuring that Amul’s products reached a wider customer base.

The success of the Amul cooperative and its contribution to the White Revolution can be attributed to several key factors:

1. Visionary Leadership: Dr. Verghese Kurien provided visionary leadership to the cooperative. He recognized that solving the problem of milk marketing was essential for increasing milk production. His commitment and innovative thinking were instrumental in the project’s success.
2. Veterinary Services: The provision of veterinary services, including artificial insemination, improved the quality of livestock. This contributed to higher milk yields and better animal health.
3. Comprehensive Strategy: The cooperative implemented a comprehensive program that addressed various aspects of animal husbandry. This included animal breeding, nutrition, health and hygiene, livestock marketing, and scientific extension services. High-quality fodder seeds were also made available to enhance milk production.
4. Insurance: To provide security to milk producers, the cooperative offered insurance coverage for milch animals. This reassured farmers in case of the loss of an animal, encouraging them to invest in dairy farming.
5. Awareness Campaign: The cooperative actively conducted awareness campaigns among peasants and women, who often managed the animals. Educating them about advancements in animal husbandry and scientific practices motivated them to adopt these practices, resulting in increased milk production.
6. Democratic Model: The democratic and cooperative model of functioning created a sense of ownership among all members. This encouraged active participation and collaboration among farmers. It instilled a feeling that they were partners in the success of the cooperative, which significantly contributed to increased milk production.

These factors, combined with the commitment of the farmers and the cooperative’s focus on quality and innovation, led to the extraordinary success of Amul and the White Revolution in India’s dairy industry.

The impact of the success of the Amul cooperative and the White Revolution was substantial:

1. Improved Living Standards: The White Revolution significantly elevated the living standards of poor and landless farmers. Nearly half of the rural households’ income in Kaira district came from dairy farming.
2. Collective Benefits: The profits generated by the cooperatives were reinvested to enhance common facilities in villages. This included improvements in wells, roads, schools, and other essential infrastructure.
3. Social Inclusion: The cooperative model brought together producers from diverse backgrounds, including different castes, classes, genders, and religions. This promoted social inclusion and cohesion within the community.
4. Promotion of Democracy: The cooperative’s democratic structure, where each member had one vote in the elections for chairmanship regardless of their shareholding, contributed to the spread of democratic principles and practices.
5. Impact on Operation Flood: The success of the Kaira cooperative served as a valuable model and experience for the broader initiative known as ‘Operation Flood.’ This nationwide program aimed to replicate the success of the Amul cooperative across various states, further revolutionizing India’s dairy industry.

Overall, the White Revolution not only transformed the dairy sector but also had a profound impact on the socio-economic fabric of rural communities, promoting inclusivity, democracy, and collective prosperity.

The establishment of the National Dairy Development Board (NDDB) in 1965 marked a significant step in replicating the success of the cooperative model pioneered by the Amul initiative. Here are some key points about the NDDB:

1. Formation and Objectives: The NDDB was established in 1965 with its headquarters located in Anand, Gujarat. Its primary objective was to strengthen farmer’s cooperatives and formulate policies conducive to their growth and development. The overarching vision was to utilize dairy farming as a tool for the holistic development of rural India.
2. Leadership and Duration: Dr. Verghese Kurien, the visionary behind the Amul cooperative, served as the first chairman of the NDDB and led the organization until 1998. His extensive experience and dedication were instrumental in shaping the board’s initiatives and strategies.
3. Focus Beyond Dairy: While the NDDB was initially set up to replicate the successful dairy cooperative model, it later expanded its scope beyond milk. Under Dr. Kurien’s guidance, the NDDB initiated cooperatives for producers of fruits and vegetables, oilseed cultivators, small-scale salt makers, and tree growers. This diversification helped extend the cooperative movement to various sectors across India.
4. Avoidance of Bureaucratic Structure: Dr. Kurien’s insistence on locating the NDDB in Anand proved advantageous. This strategic decision enabled the board to steer clear of the traditional bureaucratic framework. As a result, the NDDB operated as an institution that was better aligned with its objectives and exhibited greater efficiency.
5. Expansion of Cooperatives: The NDDB’s efforts extended beyond dairy to encompass a broader range of agricultural products. One notable outcome was the creation of the ‘Dhara’ brand, which focused on vegetable oil production. Through these endeavors, the cooperative model spread to different regions of India, positively impacting diverse agricultural sectors.

The NDDB’s establishment and subsequent initiatives played a crucial role in replicating the success of the Amul cooperative and furthering the cooperative movement in India’s agricultural landscape. This expansion not only boosted rural development but also empowered farmers across various sectors.

Operation Flood was a monumental dairy development program initiated in 1970 by the National Dairy Development Board (NDDB) of India. Here are the key points about Operation Flood:

1. Origin and Design: The program was conceived by the NDDB in 1969 as a comprehensive strategy to establish a robust, self-sustained national dairy industry. It aimed to integrate rural milk production with urban milk marketing by leveraging the cooperative model.
2. International Collaboration: In 1970, Operation Flood was officially launched with technical support from international bodies like the United Nations Development Programme (UNDP) and the Food and Agriculture Organization (FAO). These organizations provided crucial expertise and resources to facilitate the program’s implementation.
3. Adaptation of Anand Model: Operation Flood drew heavily from the successful cooperative model pioneered by the Kaira Union in Anand. The personnel and expertise from the Kaira Union were instrumental in guiding and implementing the program on a larger scale across the country.
4. Objectives of Operation Flood:
   • Increasing Milk Production: Operation Flood aimed to significantly boost milk production in India. The term “Flood” symbolized the program’s goal of generating a substantial surge in milk supply.
   • Direct Linkage between Producers and Consumers: By eliminating intermediaries, Operation Flood sought to establish a direct connection between milk producers and consumers. This streamlined approach aimed to ensure fair returns to both parties.
   • Rural Income Augmentation: The program aimed to enhance the income of rural milk producers by providing them with a platform to market their products effectively. This was expected to contribute to poverty alleviation and economic empowerment.
   • Affordable Milk Prices for Consumers: Operation Flood aimed to stabilize milk prices, ensuring that consumers received milk at reasonable rates while simultaneously providing fair compensation to the producers.

Operation Flood was implemented in three phases spanning nearly two decades, making it one of the world’s largest dairy development programs. The initiative played a pivotal role in transforming India from a milk-deficient nation to one of the largest milk producers globally, significantly impacting rural livelihoods and the national economy.

Operation Flood Implementation Phases:

1. Phase 1 (1970-1980):
   • Objectives: This phase aimed to establish a strong foundation for the dairy industry in India. It focused on linking the primary milk-producing regions to major urban centers.
   • Financing: The initial phase was funded through the sale of skimmed milk powder and butter oil provided by the European Union (then known as the European Economic Community) via the World Food Programme.
   • Implementation: Operation Flood Phase 1 was meticulously planned and executed by the National Dairy Development Board (NDDB). It entailed negotiations with the European Economic Community regarding the specifics of their assistance.
   • Coverage: This phase established crucial mother dairies in four major metropolitan cities: Delhi, Mumbai, Kolkata, and Chennai. It connected 18 of India’s primary milk-sheds to these urban centers.
2. Phase 2 (1981-1985):
   • Objectives: Building on the accomplishments of Phase 1, the second phase aimed to further expand and fortify the dairy industry. It aspired to create a modern, self-sustaining dairy sector capable of meeting the nation’s growing demand for milk and milk products.
   • Implementation: This phase extended the coverage of Operation Flood, intensifying its impact and reach.
3. Phase 3 (1985-1996):
   • Objectives: The third phase of Operation Flood focused on the consolidation of the dairy cooperative movement in India. It emphasized the expansion and enhancement of infrastructure to facilitate the procurement and marketing of the increased milk production.
   • Areas of Emphasis:
     • Research and Development: There was a heightened emphasis on R&D in areas like animal health, animal nutrition, and veterinary services, including the development of vaccines.
     • Strengthening Veterinary Services: Efforts were directed towards improving veterinary services, which played a pivotal role in enhancing the health and productivity of livestock.
     • Expansion of Infrastructure: The phase saw substantial investment in expanding and reinforcing the necessary infrastructure for the procurement and distribution of milk and milk products.

Each phase of Operation Flood contributed significantly to India’s dairy industry, leading to a remarkable transformation in the nation’s milk production capacity and self-sufficiency in dairy products.

Critical Analysis of Operation Flood:

Positives:

1. Increased Milk Production: The program resulted in a significant boost in milk production, increasing from a growth rate of 0.7% to over 4%. This marked improvement in production contributed to India’s self-sufficiency in milk.
2. Poverty Alleviation: Dairying became a vital source of income for small and landless farmers. Approximately 60% of the beneficiaries were from this segment, showcasing its impact on poverty reduction.
3. Access to Technical Inputs: The program provided farmers with crucial technical inputs like artificial insemination, balanced cattle feed, improved fodder varieties, veterinary services, and more. These inputs played a pivotal role in enhancing livestock productivity.
4. Empowerment of Women: Operation Flood, in collaboration with organizations like the Self-Employed Women’s Association (SEWA), established numerous women-led dairy cooperative societies. This led to increased participation of women in decision-making processes.
5. Growth of Dairy Machinery Industry: The initiative spurred the growth of the indigenous dairy equipment manufacturing industry, which later expanded to include exports of dairy equipment.
6. Employment Opportunities: Operation Flood created new avenues for employment and income generation, particularly in rural areas. This contributed to a slowdown in the migration of rural populations to urban centers.
7. Export of Milk Products: India transitioned from being reliant on imports and gifts of milk powder to becoming a milk surplus nation. Within a decade of the program’s launch, India began exporting milk powder.
8. Elimination of Intermediaries: Operation Flood successfully reduced the influence of middlemen who were siphoning off profits from dairy farmers by imposing unprofitable prices.

Negatives:

1. Uneven Distribution of Benefits: The benefits of Operation Flood were concentrated in a few states, with states like Uttar Pradesh, Punjab, Haryana, Rajasthan, Maharashtra, Tamil Nadu, and Gujarat contributing the majority of the increased milk production. Even within these states, the benefits were often concentrated in specific pockets, primarily benefiting the affluent.
2. Strengthening of Intermediaries: Instead of eliminating exploitative intermediaries, the cooperative model inadvertently empowered them, enabling them to emerge as significant political power centers.
3. Lack of Transparency in NDDB: The National Dairy Development Board (NDDB), which led the program, faced criticism for its lack of transparency and limited scrutiny from the government.

Overall, Operation Flood made substantial contributions to India’s dairy industry and rural economy, but it also faced challenges and limitations in achieving equitable benefits and overcoming systemic issues.

The Food Corporation of India (FCI)

It plays a vital role in India’s food security and agricultural support system. The Food Corporation of India (FCI) was set up in 1965, under the Food Corporations Act 1964. Here’s a summary of its achievements, challenges, and prospects:

Achievements:

1. Increased Procurement: FCI has successfully increased the level of procurement of food-grains, which helps in ensuring stable prices and adequate stocks.
2. Reduced Dependence on Imports: FCI’s efforts have significantly reduced India’s dependence on food imports, contributing to the country’s self-sufficiency.
3. Price Support for Farmers: By purchasing food-grains at government-fixed minimum support prices (MSP), FCI prevents prices from falling to unremunerative levels for farmers, providing them with price stability.
4. Public Distribution System (PDS): FCI is responsible for the distribution of food grains throughout the country, which forms the backbone of the Public Distribution System (PDS), ensuring food availability to economically disadvantaged sections.
5. National Food Security: FCI maintains a buffer stock of food grains, ensuring national food security by having strategic reserves in case of emergencies.
6. Inflation Control: FCI’s operations help stabilize food prices and control inflationary pressures in the market.
7. Enhanced Storage Capacity: It has contributed to increasing India’s scientific storage capacity, helping in preserving food grains efficiently.

Challenges:

1. Rising Costs: The increasing procurement prices of food-grains have raised the cost of FCI’s operations, affecting its financial sustainability.
2. Storage and Distribution Costs: The FCI faces challenges related to the rising costs of storage and distribution, especially considering the vast geographical area of India.
3. Excess Stock: Accumulation of excess food-grain stocks can lead to wastage, making efficient stock management crucial.
4. Declining Issue Prices: The issue prices for food grains through PDS have been kept low to support food affordability for the poor. This has impacted FCI’s profits and financial sustainability.

Prospects:

1. Decentralized Procurement: The Shanta Kumar Panel’s recommendation for a decentralized procurement system may help in streamlining the procurement process and reducing operational costs.
2. Restructuring Debt: The recommendation to restructure FCI’s debt to reduce the interest burden could make its operations more financially viable.
3. Pending Government Action: The government is yet to accept and implement these recommendations. Their acceptance and subsequent action will determine the prospects and efficiency of FCI in the future.

In summary, the FCI has made significant contributions to India’s food security, agricultural support, and price stability. However, it faces financial and operational challenges that need to be addressed for long-term sustainability. The pending recommendations and reforms will play a crucial role in shaping FCI’s future efficiency and effectiveness.

FAQs

1. What was Operation Flood, and why was it implemented?

A: Operation Flood was a nationwide dairy development program launched in 1970 to modernize India’s dairy industry and alleviate rural poverty. It sought to replicate the success of the Amul model in other parts of the country, aiming to increase milk production, enhance dairy infrastructure, and empower dairy farmers through cooperative structures.

2. How did Operation Flood contribute to the formation of cooperatives like Amul?

A: Operation Flood played a pivotal role in fostering the formation and growth of dairy cooperatives, including Amul. It provided technical and financial assistance to establish cooperatives, encouraged farmers to organize themselves into dairy cooperatives, facilitated the setting up of milk processing plants and infrastructure, and offered training to farmers in modern dairy farming practices and management.

3. What is the significance of Amul in the context of Operation Flood and cooperatives?

A: Amul, an iconic dairy cooperative based in Gujarat, serves as a benchmark for the success of cooperative dairy movements in India. It demonstrated the potential of cooperative models in transforming the lives of small-scale dairy farmers. Amul’s success in organizing farmers, improving milk production, ensuring fair prices, and delivering quality dairy products has inspired similar initiatives across the country under Operation Flood.

4. How did the formation of Amul under Operation Flood impact rural communities?

A: The formation of Amul and other cooperative dairy societies under Operation Flood brought about significant socio-economic changes in rural communities. It empowered small-scale dairy farmers by providing them with a collective bargaining platform, fair pricing for their produce, access to modern technology, and training in dairy management. This led to increased income levels, improved living standards, and enhanced social cohesion within rural areas.

5. What were the key outcomes of Operation Flood and the formation of cooperatives like Amul?

A: Operation Flood and the establishment of cooperatives like Amul led to several positive outcomes, including a significant increase in milk production, reduction in milk shortages, improved dairy infrastructure, enhanced rural livelihoods, and empowerment of farmers. These initiatives not only transformed the dairy sector but also served as a model for rural development programs globally, showcasing the potential of cooperative movements in fostering sustainable development.

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