3 Milk Unions after Amul Likely to Become Billion Dollar Organisations

These 3 dairies are likely to become billion dollar entities by March 31, this year. The benchmark was hit by the GCMMF (marketers of brand Amul) 12 years ago.

3 Milk Unions after Amul Likely to Become Billion Dollar Organisations
Amul Dairy
3 Milk Unions after Amul Likely to Become Billion Dollar Organisations

Banas Dairy, Amul-Fed Dairy (a GCMMF unit) and Amul Dairy are likely to become billion dollar entities by March 31, 2020. The benchmark was hit by the Gujarat Co-operative Milk Marketing Federation (GCMMF) (marketers of brand Amul) 12 years ago.

As per reports by The Times of India, both Banas and Amul, who began their operations in Gujarat, have also expanded their business outside the state. In January 2020, the Banas Dairy’s highest collection was of 73.75 lakh litres per day, which is the highest recorded procured milk by any dairy union in Asia.

RS Sodhi, MD, Gujarat Co-operative Milk Marketing Federation, credited growth of the industry to the fact that a good procurement price is paid to the dairy farmers. As per the report Amul’s worth itself is likely to be $ 7.1 billion. Though, 18 member unions are likely to touch the Rs 50,000 crore mark by the end the financial year. The Federation as of now is running 84 dairy processing plants in and outside the state.

However, things have not always been in favour of Gujarat dairy farmers. Last year in October, the Government was in final stages of the proposed Regional Comprehensive Economic Partnership (RCEP) when 15 Lakh postcards were sent by women milk producers from Gujarat to PM Narendra Modi, urging him to intervene in the matter.

According to the RCEP, there would be a free-trade agreement between 10 member states of the ASEAN. It would have led to foreign surplus milk being dumped in India & impacting domestic milk prices. In November, PM Modi declared that the country is pulling out from the RCEP.

Source: News18