People And Their Problems

New Delhi, 14 July 2007

India’s White Revolution

GIVING IT A NEW EDGE

By Radhakrishna Rao

Faced with increasing suicides by indebted and desperate farmers in various parts of  India, the National Bank for Agriculture and Rural Development (NABARD) has launched an ambitious Rs.10,000 million National Milk Scheme. To provide farmers with sustained income to tide over the difficult times marked by recurring droughts and occasional crop failure.

In fact, the white revolution in India became a reality after farmers’ cooperatives were floated by the Anand-based National Dairy Development Board (NDDB) in 1960s. Thanks to the vision and endeavours of V. Kurien, who as the head of the NDDB gave an impetus to the dairy revolution in the country, that was instrumental in transforming India into the numero uno milk producer in the world.

Today, NABARD will join hands with NDDB for implementing its milk plan in 326 districts spread across the country. Notwithstanding, the steady increase in milk production in the country, there is still a huge potential for boosting milk production as the per capita milk consumption of milk and dairy products is dismally poor compared to global standards. Moreover, dairy products offer a huge export potential

Together both NABARD and NDDB will support a range of activities at the field level with a focus on milk production, its handling, processing and marketing of dairy products in all the 326 selected districts of the country. With the demand for milk expected to touch around 172-million tonnes in 2021-22. Plainly, to meet this huge demand, milk production would need to be boosted by 4 per cent per year.

Meanwhile, a feeling is gaining ground that as there is a daily income in milk, wherever the farming community has taken to dairying as a secondary occupation, suicides have not been reported. Clearly, the NABARD sponsored milk scheme supported by NDDB seeks to increase milk productivity and optimize the cost of production by providing institutional credit to support quality breeding of the milch animals.

Today the daily per capita consumption of milk in the country is little over 250-ml as against 106-ml when “Operation Flood” was launched three decades ago. Also, the dairy industry has emerged as a single largest contributor to the Indian economy with as many as 80-million farming households involved in dairy related activities. With 12-million farmers spread over 176 districts of the country actively participating in the dairy cooperative movement initiated by NDDB, the future of the while revolution in India appears bright.

According to the Indian dairy industry analysts, India has the potential to become one of the leading players in the export of milk and milk products as the country has the geographical advantage of being located close to major milk deficient countries in Asia and Africa. Significantly, the major importers of milk and dairy products such as Bangladesh, China, Hong Kong, Singapore, Thailand, Malayasia, Philippines, Japan and UAE are located close to India. Thus, this could help India tap the export potential to these countries.

Further, in a significant development, the Gujarat Cooperative Milk Marketing Federation (GCMMF), based in Anand, is planning to roll out 10,000 Amul parlours across the country over the next three years. Today, Amul products stand out as a by- word for quality dairy products not only in India but in various parts of the world.

“The time has come for us to make direct contact with the consumers and to ensure that we are not exploited or squeezed out in the market by the big players,” said a GCMMF spokesman. Adding, “we will open 10,000 parlours by 2010.” More than 1,000 such parlours are already operational in various parts of the country.

Described as a billion dollar cooperative, GCMMF is quite bullish about its future prospects. “We have already joined the US$1-billion club and have set a target of US $2.5-billion by 2010” averred the spokesman of GCMMF. Today, Amul products are sold around the world. The USA, S.E. Asia and W. Asia are Amul’s major consumers.

Besides, export of various Amul products to markets like West Asia, USA and Europe has increased by 15 per cent over the last two years. The GCMMF is also exploring new, potential markets in the Asia–Pacific region which includes markets like Japan and Australia.

Amul’s long term marketing strategy is centred round the premise that the upwardly mobile cash-rich middle class consumers in India are increasingly becoming aware of the importance of health food and dairy products. All said and done, Amul’s real strength lies in the network of its 2.5 million milk farmers organized through 12,000 cooperative societies in the villages of Gujarat.

All the 13 district milk cooperatives in Gujarat use Amul as the brand name for the packaged milk and other dairy products. Interestingly, GCMMF first introduced butter in 1956, cheese in 1970, ice cream in 1996 and today boasts of a wide range of milk products including srikhand, curd, flavoured milk and butter milk.

Thus, the Anand-based prime milk cooperative which took off in 1946 with a view to end the exploitation of dairy farmers by the middlemen is today a major force in the Indian dairy industry. Currently, the GCMMF processes around 5-million litres of milk per day. Amul today is not just a brand. But “represents the entrepreneurial spirit of the Indian farmers and the national commitment of self reliance and development of human resources and values based on a sustainable development process” says Verghese Kurien, the architect of the white revolution in India.

Amul is now a leader in baby food, dairy whiteners, cheese and ice cream. It holds more than three-fourth of the market share in butter. In order to stay competitive it has made a massive investment on technology upgradation. By all counts, Amul is hopeful of boosting the milk production in arid areas of Gujarat. Its hopes are based on the greening of Gujarat by the Narmada water in the near future.

Milk production in India is now close to 100-million tones a year. Since mid-1990s, India has retained its position as the biggest milk producer in the world. Driven by the growing disposable income and changing lifestyle, the demand for dairy products in India is on the rise. Sources in GCMMF point out that changing lifestyle characterized by urbanization, dietary habits and impulse buying have heightened the demand for dairy products in most parts of the country.

Higher farmgate prices for raw milk are spurring dairy farmers to increase the milk production through the upgradation of the genetic stock of their milch animals. The creation of a country-wide milk grid through quick transportation and efficient storage, has also given a boost to the milk production in the country.

According to a study by the US Department of Agriculture (USDA), the continuing expansion of the milk processing facilities in the private sector, the need to sustain fluid milk supplies during peak seasons and firm prices could lead to the increased milk yield in the country. In addition, the increased demand for value added dairy products and growing private sector investment in the dairy sector are conspiring to give an impetus to milk production in India. ----- INFA

(Copyright India News and Feature Alliance)