Union Home and Cooperation Minister Amit Shah informed the Lok Sabha that the National Bank for Agriculture and Rural Development (NABARD) has promoted 10 Farmer Producer Organizations (FPOs) in the dairy sector in Karnataka, bringing together 2,901 shareholders, including 2,538 small and marginal farmers and 1,069 women farmers.
According to the minister, these FPOs have collectively mobilized Rs 24.85 lakh as share capital, while NABARD extended Rs 55 lakh as credit assistance and a credit guarantee cover of Rs 38.25 lakh. The initiative aims to strengthen dairy-based livelihood opportunities, enhance rural incomes, and improve access to credit facilities for small farmers.
Shah further revealed that while several dairy FPOs are active across different districts of Karnataka, not a single FPO has been promoted under the dairy cooperative model in Chikkaballapur constituency.
The minister shared detailed data showing that while some organizations are actively engaged in dairy procurement, input supply, milk collection, and marketing, others have become defunct after completing their projects. The active FPOs, however, continue to provide vital support to rural farmers by engaging in diverse activities such as milk processing, fertilizer and fodder supply, and marketing of agricultural produce.
Shah said the government remains committed to expanding FPO coverage across all regions, with a focus on empowering small and marginal farmers and ensuring women’s participation in the dairy economy.
He further added, Under the revised National Programme for Dairy Development (NPDD) scheme of the Department of Animal Husbandry and Dairying (DAHD), the Jalgaon Milk Union has submitted a proposal to the State Government for the formation of 117 new Dairy Cooperative Societies (DCSs) in 2025–26, seeking financial assistance under the scheme.
