Operation Flood (OF) Programme


In 1965, the NDDB (National Dairy Development Board) was created in response to then Prime Minister Lal Bahadur Shastri call, which drew up a project called “operation flood” in late sixties. The Amul model has helped India to emerge as the largest milk producer in the world. More than 13 million milk producers pour their milk in 1,28,799 dairy cooperative societies across the country. Their milk is processed in 176 District Co-operative Unions and marketed by 22 State Marketing Federations, ensuring a better life for millions.

Operation Flood I (1970 – 1981)

  • Operation Flood I (OF-I) was launched in 1970 following an agreement with the World Food Programme. The Programme had laid emphasis on setting up of the “Anand Pattern” rural milk producers cooperative organization to procure, process and market milk and to provide some of the essential input services for increasing milk production. The main aim was to set up dairy co-operatives in the milk sheds, so as to link them to four metro cities of Mumbai, Calcutta, Delhi and Chennai to capture a commanding share of the milk markets. The overall objective of OF-I was to lay foundation of a modern dairy industry in India to meet the country’s need for milk and milk products. Funds for operation of OF-I were generated by the sale of World Food Programme aided skim milk powder (SMP) and Butter oil (BO). A total of 116.4 crores was invested in the implementation of the programme.

Operation Flood II (1981 –1985)

  • The IDA assisted dairy development projects in Karnataka, Rajasthan and Madhya pradesh were utilized as foundations for the operation of OF-II. In this phase there were successful replication of the Anand Pattern with a three tier cooperative structure of societies, unions and federations. The programme had a financial outlay of Rs.273 crores, and helped to market milk in about 148 cities and towns.

Operation Flood III (1985-96)

  • Major emphasis of OF-III was to consolidate the achievements gained during the earlier phases by improving the productivity and efficiency of the dairy cooperatives and institutional strengthening in the form of training, research, market promotion, monitoring and evaluation. The number of dairy cooperatives societies increased to 70,000 and the capability of dairy processing infrastructure handling up to 137 lakhs litres of milk per day. The estimated cost of this phase of the programme for the period of 1987-96 was Rs. 1303 crores. Moreover, efforts were taken to expand the marketing infrastructure in all major markets, linking them to milk sheds through the national Milk Grid (NMG) to ensure year round stable milk supply.
  • The surge in milk production was due to White Revolution under the title Operation Flood (OF)Programme launched in 1970. The real adoption of three tier model / Anand Pattern of dairy cooperatives, OF envisaged sustained increase in resource productivity culminating in improved quality of life of milk producers and assured supply of quality of milk and other dairy products to consumers at reasonable price in a free market environment.
  • Following the cooperative path, market oriented milk production and modernization of dairying, milk production, processing and marketing progressed significantly. The programme was implemented with the assistance of World Bank and Food Aid from the European Economic Community (EEC).
  • The commodities assistance was also provided from the World Food Programme in the form of milk powder and butter oil. In all, an amount of approximately Rs. 1750 crore was invested in the dairy cooperative sector. This amount was disbursed as 30% grant and 70% loan. The milk processing capacity established was 200 lakh litres per day and average rural milk procurement was 137 lakh litres per day. The programme was implemented between 1970 to 1996 and covered 170 milk sheds falling under 22 State Cooperative Federations.
  • As per World bank expert opinion,for an initial investment of Rs 200 crores in Operation flood II,the net return/year to rural economy has been 2400 crore rupees. No other major development programme all over the world has matched this inut-output ratio.
Last modified: Wednesday, 11 April 2012, 8:14 AM