The Aryavarth Express
Agency (Gujarat): The Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF), popularly known as Amul, represents a highly successful cooperative model in India, especially in the dairy sector. As of 2023, Amul stands as India’s largest Fast-Moving Consumer Goods (FMCG) company with an impressive annual brand sales turnover of Rs. 72,000 Crores. This cooperative federation is made up of about 36 lakh (3.6 million) milk producers in Gujarat, organized into 18,600 village dairy cooperative societies. Amul’s daily handling capacity of over 3 crore (30 million) litres of milk highlights its enormous scale and efficiency.
The core of Amul’s success is its three-tier structure, which has become a benchmark in cooperative organization. This structure includes:
1. Primary Milk Producers at the Grassroots Level: These are the individual farmers who produce milk and supply it to the village cooperative societies (VDCS).
2. District Cooperative Milk Producers’ Union: This level involves the collection of milk from all VDCS within a district and its processing into various value-added dairy products.
3. State-Level Milk Marketing Federation: This top tier is responsible for the sales and marketing of products manufactured by the district unions across the state.
This model ensures equitable returns for the milk producers (farmers), efficient collection and processing of milk, and widespread availability of Amul products across various markets.
Amul’s recognition extends beyond national boundaries. It is Asia’s largest and the world’s 8th largest dairy company in terms of milk volume handled, as reported by the International Farm Comparison Network in 2020. In 2023, Amul was acknowledged as the Strongest Dairy Brand globally and the 2nd Strongest Food Brand in the world by Brand Finance, UK. Additionally, according to Kantar, Amul is the 3rd largest global brand in terms of consumer choice, with its products being picked off shelves 6 billion times.
The “Amul Model” has gained international attention and is being replicated in neighboring countries of India and across the African continent. This model is a testament to the effectiveness of cooperative structures in empowering local communities, ensuring fair trade practices, and achieving large-scale commercial success.
These achievements and the operational model of Amul were highlighted by the Minister of Cooperation, Shri Amit Shah, in a written reply to a question in the Lok Sabha, underscoring the significance of Amul’s cooperative model in India’s socio-economic landscape.
