Amul, from Amoolya (Sanskrit) meaning “priceless” and an acronym for Anand Milk Union Limited, is the brainchild of Dr. Verghese Kurien. One of the greatest success stories of rural development in India and even globally, it is firmly based on the buffalo owner in the village.
Amul was introduced to counter the exploitation by middlemen in milk collection. Coinciding with the Indian Freedom Movement, it was initiated in 1946 to help farmers earn their freedom and get higher returns on milk.
Back in 1946, Amul comprised only two village societies and a collection of 247 litres of milk per day. If we compare this with the figures for fiscal year 2007-08, the picture has changed drastically (albeit in a good way). Amul is now jointly owned by 2.41 million milk producers and generates total revenue amounting to US$ 1.33 billion (FY07-08). GCMMF is now India's largest food products marketing organisation. Amul is also the biggest brand in the pouched milk sector in the world and has received several awards for quality. Apart from milk, the brand offers a large range of products such as butter, cheese, curd, chocolate, ice cream and others. These are exported to various countries, including the United States, Australia, Mauritius, China, Hong Kong, Singapore, UAE, and Bangladesh.
The success of Amul is based on the world’s largest development programme, ‘Operation Flood’ and the Amul model, more commonly known as the ‘Anand Pattern.’ The latter is a three-tier pattern consisting of a co-operative society at the village level, affiliated to a milk union at the district level and further federated into a milk federation at the state level.
The Anand Pattern of dairy co-operatives has been greatly praised by the world as it spearheaded the White Revolution in India and combined the productivity of farmers with professional management and latest technology. It helped achieve economies of scale and provided Indian milkmen with a steady source of income, enhanced their earnings and raised their standard of living.
As a direct consequence of ‘Operation Flood’ and the Amul model, India has become a leading milk producer in the world. Recently, the International Farm Comparison Network (IFCN) has ranked Amul amongst the largest dairy businesses in the world. By analyzing dairy trends in over 80 countries, the IFCN has ranked Amul 21, based on the milk production during the year 2007.
Amul has kept pace with the ever-changing economic and technological environments, promoting the concept of rural retailing. It has successfully bridged the digital divide by using automated milk collection system units, implementing a customised ERP system, using data analysis software for forecasting milk production and increasing productivity; making IT education mandatory for all its employees and other similar measures.
The Indian government is making an effort to replicate the Anand Pattern elsewhere in the country. Even other countries are implementing or planning to implement a similar dairy model. Pakistan, being the fourth highest milk producing country in the world, can also learn a lot from the Amul example.
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