Page 1 of 15
Journal for Studies in Management and Planning
Available at http://edupediapublications.org/journals/index.php/JSMaP/
e-ISSN: 2395-0463
Volume 02 Issue 5
May 2016
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 243
“Role of Dairy Cooperatives in Inclusive Growth- A
Revolutionary Case of AMUL”
*Ms. Jayalaxmi Samal ; ** Mr. Ajit Kumar Kar
*Ms. Jayalaxmi Samal, Assistant Professor, Biju Pattnaik Institute of Information Technology &
Management Studies, Bhubaneswar, Odisha,
Email: samal.jayalaxmi567@gmail.com
**Mr. Ajit Kumar Kar, Assistant Professor, Biju Pattnaik Institute of Information Technology &
Management Studies, Bhubaneswar, Odisha,
Email: ajitkar5@gmail.com
Abstract
The cooperative sector is one of the well
designed segments of Indian economy and
has contributed significantly for the growth
and development of SMEs in India. In the
cooperative segment the growth of dairy
cooperatives during the last three decades
has been quite impressive. It plays a
predominant role in balancing the rural
inequality by promoting growth in income,
employment and social justice. Dairy
cooperatives have enabled India to achieve
self-sufficiency in milk and dairy products.
AMUL- a pioneering and successful case of
dairy cooperative, has changed the lives of
poverty stricken farmers through its
Operation Flood Programme, which is one
of the world’s largest rural development
programme. Considering the fact, this paper
is an attempt to represent Amul as a
revolutionary dairy cooperative which has
transformed the face of India’s Dairy Sector
thereby contributing to social inclusion.
AMUL- the pioneering dairy with its
innovative strategy has helped dairy
cooperatives to come together and make
India the world’s largest producer of milk.
Keywords: Dairy cooperatives, Milk,
Inclusive growth, Amul model
1. Introduction:
“Cooperatives are model for Inclusive
Growth”- Dr. D. Subbarao
Growth with the proper pace and pattern,
which again are interlinked and addressed
together, can be called as inclusive growth.
In this 21st century growth with rapid pace
has become a bare necessity for substantial
poverty reduction in particular and for long
run sustainable growth in general. The
challenges which are appearing in the path
of inclusive and equitable growth are not
less for a developing economy like India, as
the interest of all segments of people need to
be addressed here. To make the growth
process more equitable and inclusive, the
12th Five Year Plan (2012-2017) aimed at
“faster, sustainable and more inclusive
growth”. India is predominantly an
agricultural country and the contribution of
national GDP from agriculture is only 16 to
17 percentage and involving around 55 to
Page 2 of 15
Journal for Studies in Management and Planning
Available at http://edupediapublications.org/journals/index.php/JSMaP/
e-ISSN: 2395-0463
Volume 02 Issue 5
May 2016
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 244
58 per cent of population (National
Cooperative Union of India, 2012). In spite
of this the rural mass of India is always
being deprived of the basic necessities.
Hence, poverty, food security,
unemployment, quality education, and lack
of other basic infrastructures are the
common problems of rural India. Co- operative societies act as the catalyst to
combat the above said problem to a greater
extent as they promote inclusion and social
upliftment through their unique approach
towards business.
Co-operatives are significant economic
players in a developing economy like India
which in general contribute to sustained
economic growth and in particular assist to
tackle rural poverty, expand poor people’s
access to financial services, provides
opportunities for self determination and
empowerment, social cohesion and
transformation to name a few . Cooperatives
in India covers a wide array of activities like
credit & banking, fertilizer, sugar, dairy,
marketing, consumer goods, handloom,
handicraft, fisheries and housing. Among
these the success of dairy cooperative has
made India the world’s largest milk
producer. From a milk-deficit status in the
early 1960s, production has been increasing
exponentially for the last two decades,
growing from 56 million tons in 1991-92 to
127.9 in the year 2011-12. It is also
expected that India’s milk production will
be equal to that of whole European Union
by 2021 (National Dairy Development
Board, 2012). The whole credit for this goes
to the dairy sector which is now the leading
agricultural output in the country. IMARC
(International Market Analysis Research
and Consulting) Group, one of the world’s
leading research and advisory firms, finds in
its new report entitled “Indian Dairy Market
Report & Forecasts 2012-2017” that driven
by a strong growth in both urban and rural
demand for milk products in India is
expected to surpass US$ 163 Billion by
2017. India has achieved this level by
involving the poor farmers and other people
as producers, distributors and consumers.
According to NDDB statistics, twelve
million Indian farmers (primarily small,
marginal farmers and landless labourers) are
engaged in milk production, are organized
in 122,500 village Dairy Cooperative
Societies (DCS), supplying 23 million
kilograms of milk per day, operate in more
than 346 districts.
2. Objective of the Study
Page 3 of 15
Journal for Studies in Management and Planning
Available at http://edupediapublications.org/journals/index.php/JSMaP/
e-ISSN: 2395-0463
Volume 02 Issue 5
May 2016
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 245
The prime objective of this study is to
analyze the inclusive approach of AMUL to
reach Bottom of Pyramid thereby promoting
social upliftment.
3. Methodology
The description of economic success of
AMUL and its contribution to inclusive
growth and social upliftment are based on
secondary data. The paper emphasis the role
of Amul as a role model in empowering and
improving the social status of members of
dairy cooperatives and hence data related to
Amul is collected from the official website
of Amul and GCMMF.
4. Dairy Cooperatives of India
The last decade of 19th century had witness
the beginning of co-operative movement in
India, with the twofold objective to protect
the farmers from the hands of the private
money lenders and to improve their
economic condition. Madras province was
the birth-place of this movement. With the
setting up of an Agricultural Co-operative
Banks the movement took root in our land
and slowly gained strength. The golden era
of Co-operative movement began after India
had won freedom. Within two decades of
independence the membership of primary
societies had increased four times while the
share capital and working capital increased
23 and 31 times respectively
(Bandyopadhyay, 1996). India is the
world’s largest producer of dairy
products by volume and has the world’s
largest dairy herd. The country accounts
for more than 17% of world’s total
milk production and is also the world’s
largest consumer of dairy products,
consuming almost all of its own milk
production (Global Agriculture Information
Report, 2012).
Table 1: Key Statistics for India’s Dairy Industry
Annual Milk Production (2011-12) 127.9 Million Tonnes
Share of World Dairy Production (2011-
12)
17%
Number of Milk Producers’ Cooperative
Unions (2011-12)
177
Number of Village Dairy Cooperatives
(2011-12)
1,48,965
Number of State Cooperative (2011-12) 15
