It is indeed great news when an Indian corporation achieves a billion dollar

turnover, but the same news gets bigger and in itself becomes a reason for
celebration if it is Gujarat Cooperative Milk Marketing Federation (GCMMF: an
apex body of 13 milk co-operatives), more popularly known as Amul – The Taste
of India. Yes! The federation has crossed the coveted billion dollar mark in the
current financial year, 2006-07. What makes this achievement special is that
unlike any other corporation where the benefits of this kind of achievement
accrue to its promoters and shareholders, in the case of GCMMF, it accrues to the
most neglected and the majority stakeholder of our economy, i.e., the Indian
farmer!

Of course, there is more than one reason why the success of GCMMF is both
unique and critical, particularly in the Indian environment. In a country where
farmers have been the most neglected stakeholders, GCMMF has shown how,
with the right intent and vision, a farmer cooperative can function like any other
professionally run corporation, compete in this fiercely competitive FMCG
market, keep operational costs low, and yet succeed and set up an example,
which is completely unheard of. The federation’s success also goes on to show
how – in a country where ageless apathy of the Indian farmer is a reality and
none, including the government, has bothered to make them partners of growth
and success – an organization solely run by farmers can not only sustain but also
succeed and plan to achieve more, making life more meaningful for the
staggering 26 lakh farmers associated with it. At a point in time where farmer
suicides across the nation is a regular feature, and adding to their apathy is the
current spree of land grabbing, GCMMF’s achievement indicates that in this
market economy too, it is possible to build a humane organisation and take
development to the last level of the social hierarchy.

Truly, GCMMF – a co-operative revolution that was envisaged by Sardar Vallabh

Bhai Patel in 1946 – has come a long way. With humble beginnings with two
cooperatives and 250 litres of milk procurement per day, it has grown to 13
cooperatives and an average of an incredible 6.75 million kilograms of milk
procurement per day.

In fact, the entire credit of making India the largest producer of milk (from a
milk deficit nation, if one remembers) goes to this organisation and its
iconoclastic leader, Varghese Kurien (also known as the father of this white
revolution), who gave birth to the brand Amul. India, as such, has one of the
largest livestock in the world with 16% of the world’s cattle, 57% of buffaloes,
17% of goats and 5% of sheep. But what is close to miraculous is the
federation’s brilliant success in converting this livestock advantage and
translating the same to thousands of farming households in Gujarat. And by
doing so, they have been able to productively engage the rural poor and thus
create an impact in their overall socio-economic condition. The impact of the
federation has been such that studies have proved that the general standard of
living and quality of life of associated farmers are remarkably better when
compared to other regions in the country.

Among other things, another notable aspect of GCMMF is their success in one of
the most ‘relinquished’ sectors of our economy, namely agriculture. At a period
where the capital formation in agriculture has been constantly shrinking, what
with investments from both government and corporations not forthcoming, and
even global markets, particularly the developed ones, leaving no stone unturned
to protect their farmers, the federation has successfully shown that it (aka,
agriculture) is not only prudent business, but a hugely profitable one for that
matter. Almost a decade back in one of my books, ‘Planning India’, I had proved
why it makes economic sense to invest in agriculture and allied industries
particularly in the Indian environment. The argument went – and holds more
strongly now – that not only do we have a rural advantage (as a majority of our
population is based in rural hinterlands, ergo, providing productive engagement
becomes easier), but also that agriculture and allied industries have a relatively
much lower incremental-capital-output ratio as compared to other industries,
whereby returns could be generated even with relatively smaller dosage of
investments, provided products are of quality and marketed well. But thanks to
our government, we have completely failed in nurturing this advantage. Forget
nurturing the agri-advantage, what has been most unfortunate is the kind of
pathetic market environment that has been created, whereby half a litre of
sweetened water in a pet bottle sells for Rs.20, but for a litre of milk, consumers
nonchalantly bargain even to pay even Rs. 18. All that apart, what Amul has
done is something that is completely irreplaceable and irrevocable, and that is
that it has won the trust of consumers. In a country where this factor is grossly
deficient, Amul has given us the same in abundance. And that is why when Amul
achieves, it is not just an organisation’s achievement, or even the achievement
of those 26 lac associated farmers, but truly, a national achievement! The taste
of India? Oh yes...