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I. AMUL Story II. NDDB Story

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I. AMUL Story II. NDDB Story I. AMUL Story Amul was registered on 1 December 1946 as a response to the exploitation of marginal milk producers by Polson dairy. Moreover, the government had given monopoly rights to Polson to collect milk and supply to Bombay city. Angered by unfair and manipulative practices followed by the trade, the farmers of the district approached the great Indian patriot Sardar Vallabhbhai Patel for a solution. He advised them to get rid of middlemen and form their own co-operative, which would have procurement, processing and marketing under their control. In 1946, the farmers of this area went on a milk strike refusing to be cowed down by the cartel. Under the inspiration of Sardar Patel, and the guidance of leaders like Morarji Desai and Tribhuvandas Patel, they formed their own cooperative in 1946. This co-operative, the Kaira District Co-operative Milk Producers Union Ltd. began with just two village dairy co-operative societies and 247 litres of milk and is today better known as Amul Dairy. The cooperative was further developed and managed by Dr.Verghese Kurien. Within a short span, five unions in other districts – Mehsana, Banaskantha, Baroda, Sabarkantha and Surat – were set up. To combine forces and expand the market while saving on advertising and avoid competing against each other, the GCMMF, an apex marketing body of these district cooperatives, was set up in 1973. The Kaira Union, which had the brand name Amul with it since 1955, transferred it to GCMMF. In 1999, GCMMF was awarded the "Best of all" Rajiv Gandhi National Quality Award. II. NDDB Story Late Prime Minister of India, Lal Bahadur Shastri understood that the success of Amul could be attributed to four important factors. The farmers owned the dairy, their elected representatives managed the village societies and the district union, they employed professionals to operate the dairy and manage its business. Most importantly, the co-operatives were sensitive to the needs of farmers and responsive to their demands. At his insistence in 1965 the National Dairy Development Board was set up with the basic objective of replicating the Amul model. Dr. Kurien was chosen to head the institution as its Chairman and asked to replicate this model throughout the country. The major success of this mission was achieved through the World Bank financed Operation Flood, which lasted for 26 years (1970 to 1996) and was responsible for making India the world's largest producer of milk. This operation was started with the objective of increasing milk production, augmenting farmer income and providing fair prices for consumers. India is the world’s largest dairy producer. According to the National Dairy Development Board (NDDB), Indian dairy demand in 2021-22 is estimated to be between 200 to 210 MMT. From 2007 to 2012, Ministry of Agriculture (MOA) statistics show a 4.5 percent increase per year for dairy production. Using MOA statistics from 2012-13, Indian dairy production needs to grow approximately 5 percent per year in order meet NDDB’s 2021-22 demand projection. Production Policy and Environs India’s dairy industry challenges mainly include low farmer knowledge/expertise, less land due to urban sprawl, a declining water table, animal disease, and insufficient animal feed and fodder, which affects dairy productivity. Limited resources and inputs, especially feed, have reportedly caused dairy prices to rise in the last few years. In order to address these issues, the government of India (GOI) offers subsidies and other assistance through schemes to enhance production, including allocating Dairy, Milk, Nonfat Dry Dairy, Milk, Fluid Dairy, Butter monies to the Indian Council of Agricultural Research to increase research and development. However, government initiatives only focus on assisting state-supported cooperatives and processors. It is unclear whether these initiatives will be able to boost dairy production to meet India’s future demand needs. For a detailed list of other ongoing government initiatives, please see GAIN reports IN4080 and IN3098. III. NDP – I (National Dairy Plan) The NDDB is in charge of implementing the National Dairy Plan (NDP), which currently concentrates on genetic improvement, animal nutrition, and procurement in the dairy sector. Phase I of the NDP will be implemented from 2011-12 to 2016-17, and has a financial outlay of USD $416 million (more than 20 billion rupees). The first phase is focused on 14 major milk producing states: Andhra Pradesh, Bihar, Gujarat, Haryana, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Odisha, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh and West Bengal. These states account for over 90 percent of total milk production. For more information on the NDP, please google NDDB IN2031. While the NDP will be managed by NDDB, most activities will be carried out by end implementing agencies (EIAs), who will be approved by NDDB. EIAs may include: State Cooperative Dairy Federations District Cooperative Milk Producers Unions State Livestock Development Boards Registered Societies/Trusts and Non Government Organizations (NGO’s) Producer companies Subsidiaries of statutory bodies Indian Council for Agricultural Research(ICAR) and state institutes engaged in breeding and fodder development activities NDP 1’s stated objectives are: To help increase the productivity of milk animals and thereby increase milk production to meet the rapidly growing demand for milk; and To help provide rural milk producers with greater access to the organized milk processing sector. In order to achieve these goals, NDP 1 will focus on three major areas. They are- Increasing productivity through scientific breeding and feeding Promoting and strengthening village based milk procurement systems Project management and learning IV. Dairy Trends Fluid Milk Prices Climb Source: Ministry of Commerce & Industry, Govt. of India In recent years, more private sector dairy processors have entered the market. Some private sector processors provide farmers access to modern extension services, which help improve farm management, feeding, fertility (including artificial insemination and genetics), food safety/hygiene, and veterinary care. In return for these services, farmers agree to provide milk to collection centers owned by these private companies. Dairy farmers are paid by volume and fat and solids-not-fat content. Higher Income Brackets Spend More on Dairy Products All-India Annual Dairy Consumption by Product .
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