INDIA – Strengthening rural livelihoods in Birbhum through dairy farming

West Bengal, India – In the rural district of Birbhum, West Bengal, dairy farming is emerging as a reliable means of enhancing the livelihoods of smallholder farmers. The Institute for Motivating Self Employment (IMSE) developed a business plan to strengthen farmers’ dairy enterprises across several villages in the Birbhum District and provided grants to selected farmers. The business plan received funding from APFP-FO4A amounting to USD 25,000.

The Asia-Pacific Farmers’ Program (APFP) – Farmers’ Organizations for Asia (FO4A) is implemented by the Asian Farmers’ Association for Sustainable Rural Development (AFA) and La Via Campesina (LVC), with funding from the European Union (EU) and the International Fund for Agricultural Development (IFAD). The program aims to strengthen the capacities of farmers’ organizations to provide economic services, advocate for enabling policies, and promote sustainable livelihoods for small-scale family farmers across Asia.

IMSE uses the fund as a revolving loan facility, enabling farmers to borrow money to invest in livestock and repay within a year at a minimal interest rate of 1%. These loans enabled farmer members of the Monachitura Farmers Producers Company Ltd. to purchase cows and invest in proper feeding and animal care. With better resources and technical guidance, farmers quickly began to see results. Many beneficiaries shared that their dairy businesses have become profitable enough for them to purchase additional cows beyond their initial investments.

In addition, IMSE supported the dairy farmers by facilitating market linkages, helping them secure stable and regular buyers.

Monachitura FPC has since established a hub where members coordinate milk collection, storage, and sales. Aside from selling fresh milk, some farmers produce value-added dairy products such as ghee and ice cream, creating additional streams of income. Some farmers have also invested in refrigerators to prevent spoilage. Milk and dairy products are sold in local markets, and Monachitura FPC and IMSE continue to explore opportunities with larger buyers to further scale production.

Meanwhile, byproducts of dairy farming, such as cow dung has become a source of fuel for the farmers, reducing household expenses.

The impact at the household level is already visible. Farmers are better able to manage daily expenses, improve family nutrition through their own dairy products, and support their children’s education.