Economics • Indian EconomyMedium
Examine the role of the Haryana Dairy Development Cooperative Federation (confederated under Vita) in transforming the rural economy. Which economic principle best characterizes the cooperative model in the state's dairy sector?
A. Elimination of middlemen intermediaries, ensuring remunerative producer prices, and sharing surplus profits directly with milk-producer members✓ Correct Answer
B. Creation of private monopoly cartels that artificially restrict milk supply to maximize corporate dividends
C. Absolute reliance on foreign multinational conglomerates for all milk procurement and cattle feed supply
D. Complete state ownership without any democratic participation by local dairy farmers
💡 Solution & Explanation
The dairy cooperative movement led by Vita in Haryana integrates small dairy farmers by organizing village-level cooperative societies that handle bulk collection, processing, and marketing, thereby cutting out exploitative middlemen and returning profits to producers. White Revolution initiatives have made dairying a stable secondary source of income for rural households. Cooperative processing adds value to raw milk through packaged dairy products sold across regional markets.
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