Operation Flood Phase II (1981–1985) increased the number of milk sheds from 18 to 136; urban markets also expanded the outlets for milk to 290. By the end of 1985, a self-sustaining system of 43000 village co-operatives with 4,250,000 milk producers was covered. Domestic milk powder production increased from 22,000 tons in the pre-project year to 140,000 tons by 1989, with all of this increase coming from dairies set up under Operation Flood. In this way, EEC gifts and a World Bank loan helped in promoting self-reliance. Direct marketing of milk by producers' co-operatives also increased by several million liters a day.
