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)
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