Operation Flood

Operation Flood was a landmark programme launched in India to revolutionise the dairy sector and transform the country from a milk-deficient nation into one of the world’s largest producers of milk. Implemented by the National Dairy Development Board (NDDB), it is often described as the “White Revolution” of India. The initiative not only aimed at increasing milk production but also focused on improving rural incomes, modernising the dairy industry, and ensuring equitable access to nutritious food for the population.

Background and Origin

Before the 1970s, India faced chronic shortages of milk and dairy products, relying heavily on imports such as milk powder and butter oil. The dairy sector was largely unorganised, dominated by middlemen, and suffered from low productivity due to poor infrastructure, inadequate veterinary services, and lack of market access for small farmers.
The Anand Milk Union Limited (Amul) cooperative model, established in Gujarat in the 1940s under the leadership of Tribhuvandas Patel and guided by Dr. Verghese Kurien, demonstrated a successful example of farmer-led dairy development. Inspired by Amul’s success, the National Dairy Development Board (NDDB) was established in 1965 at Anand to replicate this model nationwide.
Operation Flood was formally launched in 1970, with Dr. Verghese Kurien as its chief architect and chairman of the NDDB. It was implemented with technical and financial assistance from international organisations such as the Food and Agriculture Organization (FAO) and the World Food Programme (WFP), which provided surplus milk powder and butter oil from the European Economic Community (EEC).

Objectives of Operation Flood

The key objectives of Operation Flood were to:

• Increase milk production by strengthening dairy cooperatives and improving breeding, feeding, and animal health services.
• Ensure fair prices for both producers and consumers by eliminating exploitative intermediaries.
• Create a national milk grid to link milk producers with consumers in urban markets.
• Enhance rural employment and improve the economic conditions of small and marginal farmers.
• Promote self-sufficiency in milk and reduce dependence on imports.

Phases of Operation Flood

Operation Flood was implemented in three main phases, each focusing on specific developmental goals and infrastructure expansion.

Phase I (1970–1981)

• Funded mainly by the sale of donated European milk products (skimmed milk powder and butter oil).
• Established the basic structure of dairy cooperatives in rural areas.
• Set up milk collection centres, chilling plants, and processing units in major cities.
• Linked 18 milk-shed regions with major urban markets like Delhi, Mumbai, Calcutta, and Chennai.
• Marked the foundation of the “Anand Pattern” dairy cooperatives — a three-tier structure comprising village societies, district unions, and state federations.

By the end of Phase I, the cooperative network had reached over 10 million rural milk producers and laid the groundwork for national-level milk distribution.

Phase II (1981–1985)

• Expanded the cooperative structure to include 136 milk-shed areas connected to 290 urban markets.
• Improved animal husbandry, feed, and veterinary support services.
• Strengthened cooperative training through the establishment of institutions like the National Dairy Research Institute (NDRI) and Institute of Rural Management, Anand (IRMA).
• Encouraged local manufacturing of dairy equipment and promoted self-reliance in dairy technology.
• Began using funds generated internally through the sale of milk rather than external aid.

This phase significantly increased milk production, improved the efficiency of distribution networks, and promoted the professional management of cooperatives.

Phase III (1985–1996)

• Focused on sustainability and consolidation of the cooperative movement.
• Enhanced milk quality control, marketing systems, and rural employment generation.
• Emphasised the expansion of dairy infrastructure in underdeveloped states and regions.
• Introduced computerised milk collection centres for transparency in weighing and payment.
• Integrated women into dairy cooperatives to promote gender equity in rural development.

By the end of Phase III, India had achieved self-sufficiency in milk production, becoming the largest producer of milk in the world by the mid-1990s.

Organisational Structure: The Anand Pattern

Operation Flood replicated the “Anand Pattern”, a cooperative structure originally developed by Amul. It operates through a three-tier system:

1. Village Dairy Cooperative Society (VDCS): Farmers collect milk and receive payment based on quality and quantity.
2. District Milk Union: Processes and markets milk, provides services such as animal health care and feed supply.
3. State Federation: Coordinates marketing, processing, and policy support at the state level.

This model ensured farmer ownership and democratic management, empowering rural producers while ensuring supply chain efficiency.

Achievements of Operation Flood

Operation Flood had transformative effects on India’s economy and society:

• Milk Production Boom: India’s milk production increased from about 22 million tonnes in 1970 to over 75 million tonnes by 1996, and later surpassed 200 million tonnes in the 21st century.
• Global Leadership: India became the largest producer of milk globally, surpassing the United States.
• Rural Empowerment: Over 10 million farmers, including many women, gained direct income opportunities through cooperatives.
• Reduction in Imports: India transitioned from a milk-importing country to a self-sufficient and exporting nation.
• Improved Nutrition: Wider milk availability enhanced dietary nutrition among the population.
• Technological Development: Growth of indigenous dairy technology and training institutions such as IRMA and NDRI.
• Economic Impact: Contributed significantly to rural GDP and became a model for agricultural development based on cooperatives.

Challenges and Criticism

Despite its success, Operation Flood also faced challenges:

• Regional Imbalances: The benefits were concentrated in states like Gujarat, Punjab, and Maharashtra, while eastern and northeastern regions lagged.
• Bureaucratic Inefficiencies: In some areas, cooperatives suffered from political interference and poor management.
• Market Competition: Liberalisation and private sector entry in the 1990s challenged cooperative monopolies.
• Animal Health Issues: Rapid expansion occasionally led to neglect of genetic diversity and animal welfare concerns.

Nonetheless, the programme’s achievements far outweighed its limitations, and it remains a benchmark in rural development policy.

Significance and Legacy

Operation Flood fundamentally altered India’s agricultural and socio-economic landscape. It:

• Demonstrated the power of cooperative movements in achieving large-scale rural transformation.
• Created a self-sustaining dairy economy, independent of foreign aid.
• Inspired similar models in other sectors such as edible oils (Operation Golden Flow) and agricultural marketing.
• Enhanced India’s food security and nutrition standards.
• Cemented Dr. Verghese Kurien’s legacy as the “Father of the White Revolution in India.”