How Medha Dairy is transforming livelihoods of farmers across Jharkhand

The Medha Dairy Plant in Hotwar, Ranchi, which began operations on February 11, 2016, has emerged as a key pillar of the cooperative dairy model in Jharkhand. Operated by the Jharkhand State Cooperative Milk Producers’ Federation Limited, the plant helps ensure fair prices for farmers, generates employment, and supplies quality dairy products to consumers across the state.

According to Ravindra Kumar Sinha, Plant & Project Head, Medha Dairy, Hotwar, "Medha Dairy was established around 2014. When the Jharkhand Milk Federation was formed, it started with a capacity of about 10,000 litres of milk. Today, we are procuring around 2.5 lakh litres of milk across Jharkhand and selling nearly 2 lakh litres..."

Milk collected from villages across Jharkhand reaches the plant through an organised supply chain. Farmers deliver milk every morning and evening to local collection centres, from where it is transported to chilling facilities before being sent to the Medha Dairy plant.

At the plant, the milk undergoes strict quality checks before entering modern processing systems. It is then pasteurised and homogenised using advanced technology. Of the nearly 2.5 lakh litres of milk procured daily, around 2.10 lakh litres are processed at the facility, while the remaining milk is used to manufacture products such as curd, ghee, lassi and paneer.

Pankaj Marwah, General Manager, Jharkhand State Cooperative Milk Producers’ Federation Limited, says, "The biggest contribution to this growth has been the MoU signed between the Jharkhand government and the NDDB. We would like to point out that the current Chief Minister, Hemant Soren, was also the Chief Minister when the first MoU was signed, and this agreement was made during his earlier tenure. The structures created under this MoU are the reason why the federation has been continuously growing.."

The state government has also taken several steps to boost dairy production and strengthen the cooperative network. In 2023, Jharkhand Chief Minister Hemant Soren announced an additional incentive of ₹3 per litre of milk to support dairy farmers.

Chief Minister of Jharkhand Hemant Soren says, "A dairy plant cannot be run by the government alone; it can only be run by our farmers. Therefore, to encourage farmers, the government has decided to provide an additional ₹3 per litre so that farmers can receive some financial support."

Currently, more than 65,000 farmers are associated with the federation. Looking ahead, the organisation aims to connect one lakh farmers by 2029 and increase milk procurement to 5 lakh litres per day, signalling a significant step toward strengthening the dairy sector and rural livelihoods in Jharkhand.