The power of India’s cooperative dream

Started on a modest scale in 1946 in Anand, Gujarat, Amul has since blossomed into one of India’s most remarkable success stories. From a small cooperative initiative, it has grown into a nationwide movement — one that every Indian can take pride in, as it has empowered farmers and transformed the country’s dairy sector, making India the world’s largest milk producer. The White Revolution was thus born.

In the last 80 years, Amul — Anand Milk Union Limited — has not only survived but has passed every corporate test, whether it be scale, diversification of products, or maintaining quality and ensuring an efficient supply chain. Amul has withstood every challenge. It is indeed heartening that the Gujarat Cooperative Milk Marketing Federation (GCMMF), the custodian of the iconic Amul brand, has crossed the INR 1 lakh crore turnover. Amul puts to rest any critique of the cooperative movement, as it not only survives but thrives in the cut-throat competitive corporate world. Though it acts like a corporate, its structure is fundamentally different in ownership and operations. It is built on the foundation of collective ownership, with an objective to empower farmers at the grassroots.

Inspired by the vision of leaders like Verghese Kurien, Amul transformed India from a milk-deficient nation into the world’s largest producer. Today, with over 3.6 million farmers, daily procurement of 31 million litres of milk, and a presence in more than 50 countries, it stands as a global leader in milk and milk products. The impressive 11 per cent growth reflects its sustained trust among consumers and producers alike. Amul’s cooperative model is the most democratic and effective ownership model for a developing country. By ensuring that farmers are both suppliers and stakeholders, Amul ensures their participation and ownership, effectively ploughing back the profits to the people. This profit-sharing gives the farmers participation, ownership, and dignity. The fact that Amul has been ranked the world’s No. 1 cooperative by the International Cooperative Alliance only reinforces its credibility. Amul is a counterpoint to all those arguments that discredit the cooperative movement as inefficient, unscalable, corrupt, lacking professionalism and accountability. Amul’s success shows scale need not come at the cost of decentralisation. Amul’s three-tier structure — from village societies to district unions and the state federation — ensures efficiency without alienation. Today, Amul has a diversified portfolio of over 1,200 products and expansion into global markets like Europe and the United States. Technology and professionalism can coexist with cooperative ideals, as seen in its sophisticated supply chains and branding strategies. Amul demonstrates that cooperatives can compete — and win — in highly competitive FMCG markets. Amul’s milestone is not just a celebration of its success but a reminder of an idea whose time has not passed — one that India would do well to nurture and replicate with renewed vigour.