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India needs a second White Revolution, says Gujarat Co-operative Milk Marketing Federation

FE Bureau
white revolution, milk production milk consumption, milk, gujarat

Gujarat Co-operative Milk Marketing Federation (GCMMF), which markets the Amul brand of milk and dairy products, has registered a turnover of Rs 33,150 crore for the financial year 2018-19 (FY19). Its sales turnover is 13% higher than the previous financial year s.

The mantra of rapid expansion has yielded rich dividends with the Amul Federation s sales turnover jumping more than fourfold, from Rs 8,005 crore in 2009-10 to Rs 33,150 crore in 2018-19. Results of the apex body of dairy cooperatives in Gujarat were declared on Tuesday in its 45th annual general meeting. The group turnover of GCMMF and its constituent member unions, representing non-duplicated turnover of all products sold under Amul brand, stood at over Rs 45,000 crore or $6.5 billion.

GCMMF aims to achieve a turnover of Rs 50,000 crore and become the largest fast-moving consumer goods organisation in India by 2020-21. In the long-term, Amul aims to establish itself as the largest dairy organisation in the world, rising up from its current ranking as the ninth largest dairy body globally to the top three.

According to an official communique, GCMMF chairman Ramsinhbhai P Parmar stated that during the past nine years, the organisation s milk procurement had witnessed a phenomenal increase of 153%. This enormous growth was a result of the high milk procurement price paid to farmer-members which had increased 105% in this period. He added considering the urbanisation and population growth estimates, it was envisaged that India needs 600 million tonne of milk per year (65 crore litres per day) in FY51 from the current level of 176 MT per year (48 crore litres per day) to fulfil the demand for milk and milk products.

This means that India s milk production needs to grow at 3.2% CAGR for the next 40 years. This can be possible only when dairy farmers are given stable and remunerative prices through a proper market linkage. To achieve this estimated growth in demand, the time is ripe for the Second White Revolution in India.

Vice-chairman Jethabhai Bharwad has said for the past 21 years, India continues to be the largest producer of milk in the world and is likely to retain its prime position with an annual growth of 5.5% during three-four years, against global milk production, growing at 2.0%. India contributes almost 50% to the growth of global milk production. The monetary value of milk produced in India is Rs 7 lakh crore, which is more than the total value of pulses and grain put together.

Managing director R S Sodhi emphasised that with double-digit value growth in consumer products during the past five to six years, GCMMF was among the fastest-growing FMCG organisations in India.
Amul s success has been driven by its 3E mantra Rapid expansion in milk procurement, rapid expansion in manufacturing facilities and rapid expansion in marketing & distribution network. He added, We have already upped our total milk processing capacity to 360 lakh litres per day and planned for a 400 lakh litres per day expansion within the next two years. In Gandhinagar, AmulFed Dairy s capacity expansion from 35 lakh litres per day to 50 lakh litres per day further underlines its status as the largest dairy factory in India.