New Delhi : The National Dairy Development Board (NDDB), founded by Dr. Verghese Kurien in 1965, is renowned for spearheading the farmer cooperative movement in India. However, the current state of the organization is concerning. Milk production has been declining annually, and the NDDB, a vital institution for farmers, is operating without a full-time chairman. Dr. Meenesh Shah, the acting chairman, has already retired but continues to hold the position. Despite the challenges faced by the NDDB, Dr. Shah has applied for an extension to remain in his role, although there is no certainty that he will be granted the position based on his name ‘Shah’. Under his leadership, milk production has dropped, raising questions about why the Modi government, in a nation of 140 crore people, cannot find a capable dairy expert to carry forward Dr. Kurien’s legacy.
Why NDDB is Struggling to Find Qualified Leadership
The National Dairy Development Board (NDDB) is currently operating without a full-time chairman, with nearly 50% of its positions vacant. To add to the governance concerns, an individual was rapidly promoted, jumping four to five grades within five years to become the chief of NDDB. This situation highlights the breakdown of corporate governance at what was once India’s most respected cooperative institution.
An internal circular issued by NDDB’s human resources department on 16 November 2022, and seen by CSR News, confirms that Meenesh C. Shah, the executive director, was promoted to Managing Director effective from 15 November 2022.
A dairy expert expressed frustration, stating, “It is unfortunate that for 45 months, the government has been unable to find a qualified expert to lead NDDB, and even approval for an extension has been delayed, forcing the current leader to continue unofficially without a formal order or notification.”
Decline in NDDB’s Milk Production
Examining NDDB’s recent milk production reveals a concerning trend. According to the 2023-24 report from the Ministry of Animal Husbandry & Dairying, NDDB’s milk output reached 230.58 million tons, showing a modest increase of 3.83 million tons over the previous year. However, this still represents a decline of around 2%, roughly 4.6 million tons. This marks the largest drop in milk production over the past decade, with the downturn becoming noticeable from 2019-20 and continuing with a steady decline in production percentages since then.
Lack of Coordination Between NDDB and the Ministry
A notable gap in coordination between NDDB and the Ministry of Animal Husbandry & Dairying comes to light when examining the availability of reports. The 2023-24 report is missing from NDDB’s official website, with only the 2022-23 report accessible. This raises important questions: is there a disconnect between NDDB and the ministry, or could there be an underlying conflict between the two entities? Additionally, discrepancies in milk production figures from NDDB and the Ministry further deepen the concern.
What the NDDB Statute States
It’s important to note that NDDB operates under its own statute, and the organization has often asserted that the Companies Act does not apply to it. According to the NDDB Act, its board must consist of eight members, including a chairman, one director representing the Union government, two directors who are chairpersons of state cooperative dairy federations, up to three full-time directors from NDDB’s top executives, and one external expert director.
In response to a query in the Rajya Sabha, Parshottam Rupala, Minister of Fisheries, Animal Husbandry, and Dairying, stated, “Meenesh C. Shah has been serving as MD of NDDB since 15 November 2022 and held the additional charge of chairman until 30 November 2022. A proposal for extending the additional charge as chairman for another six months, effective 1 December 2022, or until a regular chairman is appointed, has been submitted for approval to the nodal department.”
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NDDB has been facing allegations of irregularities
NDDB has been embroiled in allegations of irregularities, including the inquiry into Mother Dairy, the transfer of crores to a defunct milk producer company, and the audit by the CAG.
It seems the central government has neglected the NDDB. Which is constantly making headlines in the media. That is why the government has turned a blind eye to whatever is going on in NDDB and on top of that, no eligible candidate is being found for the post of chairman. It now appears that Dr. Meenesh Shah, who has retired after applying for an extension, will get another chance.
