UPSC MainsANI-HUSB-VETER-SCIENCE-PAPER-I202410 Marks
Q31.

Write the role of NDDB in rural development.

How to Approach

This question requires a nuanced understanding of the NDDB's role beyond just dairy production. The answer should be structured around its initial mandate, its subsequent diversification into rural infrastructure, financial inclusion, and community development. A historical perspective, coupled with examples of NDDB’s interventions, is crucial. The answer must highlight how NDDB contributes to inclusive and sustainable rural development, linking its activities to broader national goals. A concluding section emphasizing its future role and challenges is important.

Model Answer

0 min read

Introduction

The National Dairy Development Board (NDDB), established in 1969, initially aimed to replicate the success of the "White Revolution" in other states, building upon the Amul model. Born out of the vision of Dr. Verghese Kurien, NDDB’s mandate extended beyond dairy processing to encompass rural infrastructure development, financial inclusion, and community empowerment. Over the decades, NDDB has evolved into a multi-faceted institution playing a significant role in India’s rural development landscape, contributing to economic growth and improving the livelihoods of millions. This answer will delve into NDDB’s evolving role, examining its diverse interventions and their impact on rural India.

NDDB: A Historical Perspective and Initial Mandate

NDDB's genesis lies in the "Operation Flood" program, a landmark initiative that transformed India from a milk-deficit country to the world's largest milk producer. Initially, NDDB’s primary function was to finance dairy cooperatives and establish dairy plants across India, mirroring the cooperative structure of Amul in Gujarat. It provided technical assistance, training, and marketing support to these cooperatives, fostering a robust dairy sector.

Diversification into Rural Infrastructure Development

Recognizing the interconnectedness of rural development, NDDB progressively expanded its scope beyond dairy. It began investing in rural infrastructure projects, vital for overall rural prosperity:

  • Rural Roads: NDDB has been instrumental in building and upgrading rural roads, improving connectivity and facilitating access to markets, healthcare, and education. The Rural Infrastructure Development Fund (RIDF) initially managed by NABARD, drew significant funding from NDDB for road construction.
  • Watershed Development: NDDB implemented Integrated Watershed Development Programmes (IWDP) to conserve water, improve soil fertility, and enhance agricultural productivity.
  • Animal Husbandry and Fisheries: Beyond dairy, NDDB extended its support to other livestock sectors and fisheries, promoting better breeds, improved feeding practices, and market linkages.

Financial Inclusion and Microfinance

NDDB played a pioneering role in promoting financial inclusion in rural areas. It established Rural Infrastructure Development and Small Industrial Development Banks (RISIDBs) in various states, providing credit to rural entrepreneurs and small-scale industries. These RISIDBs focused on:

  • Microfinance: Providing small loans to women’s Self-Help Groups (SHGs) for income-generating activities.
  • Rural Entrepreneurship Development: Supporting rural entrepreneurs through training and access to finance.
  • Dairy Cooperatives Financing: Continued support to dairy cooperatives for expansion and modernization.

Community Development and Capacity Building

NDDB’s approach to rural development emphasizes community participation and capacity building. It undertakes various initiatives to empower rural communities:

  • Training Programs: Conducting training programs for farmers, dairy farmers, and rural entrepreneurs on various aspects of agriculture, animal husbandry, and business management.
  • Awareness Campaigns: Organizing awareness campaigns on health, hygiene, and nutrition.
  • Promotion of Farmer Producer Organizations (FPOs): Facilitating the formation and strengthening of FPOs to enhance farmers’ bargaining power and market access.

NDDB’s Recent Initiatives and Current Focus

NDDB continues to adapt to the evolving needs of rural India. Recent initiatives include:

  • NDDB Dairy Infrastructure Fund (NDDIF): To provide affordable credit for setting up and upgrading dairy infrastructure.
  • Focus on Climate-Resilient Agriculture: Promoting sustainable agricultural practices to mitigate the impact of climate change.
  • Digitalization of Dairy Cooperatives: Improving efficiency and transparency through digital technologies.
  • Promoting Value-Added Products: Encouraging dairy cooperatives to diversify into value-added products like cheese, yogurt, and ice cream.

Challenges Faced by NDDB

Despite its significant contributions, NDDB faces several challenges:

  • Competition from Private Sector: Increased competition from private players in the dairy and rural infrastructure sectors.
  • Financial Sustainability: Ensuring the long-term financial sustainability of its operations.
  • Coordination with Other Agencies: Effective coordination with other government agencies and institutions involved in rural development.
  • Reaching the Marginally Disadvantaged: Ensuring that the benefits of its programs reach the most vulnerable sections of rural society.
Initiative Description Impact
Operation Flood Financed and established dairy plants across India Transformed India into the world’s largest milk producer
RIDF (Initially Managed by NDDB) Funding for rural road construction Improved rural connectivity
RISIDBs Provided credit to rural entrepreneurs and small industries Promoted rural entrepreneurship and financial inclusion

Conclusion

The National Dairy Development Board has played a pivotal role in India’s rural development journey, evolving from its initial focus on dairy to a broader mandate encompassing infrastructure, finance, and community empowerment. While challenges remain, NDDB’s commitment to inclusive and sustainable rural development continues to be vital. Future success hinges on its ability to adapt to changing dynamics, leverage technology, and foster collaboration with other stakeholders, ensuring that the benefits of rural transformation reach every corner of India.

Answer Length

This is a comprehensive model answer for learning purposes and may exceed the word limit. In the exam, always adhere to the prescribed word count.

Additional Resources

Key Definitions

Operation Flood
A program launched in 1970, transforming India from a milk-deficit nation to the world’s largest milk producer through dairy cooperative development.
RISIDB
Rural Infrastructure Development and Small Industrial Development Banks, established by NDDB to provide credit to rural entrepreneurs.

Key Statistics

India’s milk production has increased from 23.22 million tonnes in 1950-51 to over 300 million tonnes in 2022-23, largely due to the success of Operation Flood and NDDB's initiatives.

Source: DAIRYING - AT A GLANCE – Department of Animal Husbandry & Dairying, Ministry of Fisheries, Animal Husbandry and Dairying

NDDB has facilitated the establishment of over 45,000 dairy cooperatives across India.

Examples

Amul Model

The cooperative dairy model pioneered by Amul in Gujarat, which served as the blueprint for NDDB's operations across India, empowering farmers and ensuring fair prices.

Watershed Development in Rajasthan

NDDB’s Integrated Watershed Development Programme in Rajasthan improved water availability, increased agricultural productivity, and reduced soil erosion in drought-prone areas.

Frequently Asked Questions

What is the difference between NDDB and NABARD?

NDDB primarily focuses on dairy development and rural infrastructure, while NABARD (National Bank for Agriculture and Rural Development) is a development bank focused on agriculture and rural development financing. NDDB often collaborates with NABARD.