Constraints and stimuli faced by dairy cooperatives of West Bengal during liberalization Era

The ‘winds of economic change’ blowing in the wake of liberalization started affecting the base of co-operatives movement in India. Following the Uruguay Round Agreements, trade was liberalized, as a result a number of multinational and overseas companies along with small private dairy farms started mushrooming into the whole country with sole intention of making profit instead of social benefits or welfare. The scene of dairy co-operatives in West Bengal cannot be different from the fellow co-operative federations from other parts of the country. Therefore, the present study was conducted in13 milk producers co-operatives unions of West Bengal to identify the constraints and stimuli faced by dairy co-operatives with respect to procurement, processing and sales and distribution during liberalization era. The study revealed that brunt of liberalisation was severely felt in the sales and distribution sector followed by procurement and processing sectors. Lack of retail out-lets for sale of products is the biggest problem of marketing. Irregularity and lack of advance payments was most serious constraint faced during milk procurement. On the other hand, it was found that biggest boost was in the market area followed by procurement and processing.