Village level primary milk collection centres- backbone of Indian dairy industry

by IUF Asia/Pacific | Jun 30, 2025 | Collective Bargaining Rights, English language, Freedom of Association, Labours' Rights, women's rights

Indian rural workers working in these village level primary milk collection centres remains unorganised and deprived of their labour rights but organising and fighting of workers at Kolhapur District Cooperative Milk Producers Union Limited successfully helped them to win their workers right.

The village level primary milk collection centres are responsible to collection, testing of milk, maintain collection records, milk payment to farmers, and also implementation of policies at the local level. These milk collection centres are legally registered with the state authorities as cooperative and provides on ground required support to small-marginal farmers. However,

The workers employed at the centres are from the same village and works in the morning and evening shift at the time of milk collection. Due to lack of implementation of one village, one primary co-operative, in some states like Maharashtra, multiple centres in the villages creates competition and reduce milk collection quantity and ultimately reduces the income of centres and their workers.

The employment of these workers is with the centres and district cooperative pays centres like per litre of milk collection i.e., INR 0.6 paise per litre (means INR 6 for ten litres of milk) as employee cost and 0.8 paise per litre (means INR 8 for ten litres of milk) as centre administrative cost.

Despite all odds, milk collection centres workers at Kolhapur District Cooperative Milk Producers Union Limited (brand name Gokul) organised themselves under the legally registered labour union called Kolhapur Zilha Sahakari Doodh Sanstha Karmachari Sanghatana. Currently, the union represents around 9626 milk collection centre workers from Kolhapur district of Maharashtra and the membership continuous to grow. The union is also officially recognised by Gokul management, and the state authorities and invited for policy discussions.

The union also started different welfare schemes for their members from additional annual collection of INR 400 per member. They provide health insurance, term insurance, accidental insurance, retirement benefits, scholarship for children, etc,. to centre workers and their families.

The union also regularly followed with the social security (Provident Fund) Office and allowed their registration as employees. Hence, their Provident Fund amount is also directly deposited in to their PF account whereas in other state cooperatives like Karnataka Milk Federation (brand name Nandini), PF account is not allowed for centre workers in Karnataka, with the justification that centre does not qualify the requirement of minimum 20 employees at workplace. In an exchange visit, organised by the IUF Asia Pacific, unions from Maharashtra agreed to provide all the required technical support to lobby with concerned authorities to start Provident Fund membership to milk collection centre workers in Karnataka state.

GOKUL center workers representatives at Karnataka Milk Collection Centre

During IUF Asia Pacific outreach in Kolhapur, centre workers mentioned that majority of women workers in rural areas are involved in dairy animal management and bring this milk to centres. Hence, any state decisions directly affects the livelihood of millions of women dairy farmers in rural areas, including women dairy farmers.

Indian dairy production continus to grow annually and at the heart of this success are the unsung heroes of the rural dairy ecosystem—the workers at primary milk collection centers. These individuals serve as the first point of contact between millions of smallholder farmers and the broader dairy supply chain. Their dedication ensures that milk is collected efficiently, tested for quality, and transported under hygienic conditions, safeguarding both farmer incomes and consumer trust.

The Indian dairy industry mainly relies on these workers to collect quality milk supplies but in the absence of stronger union to protect and promote their rights, this whole arrangement is unsustainable. Hence, the future of Indian dairy industry directly linked with safe, secure and sustainable employment to these milk collection centre workers.

Women Dairy Farmer while supplying milk to village level milk collection center of Karnataka Milk Collection Center