Mehsana Dairy to Break Away from Amul

INDIA - India's biggest and most prominent milk cooperative Gujarat Co-operative Milk Marketing Federation (GCMMF), owner of the Amul brand, is breaking up for the first time in over four decades.
calendar icon 23 April 2019
clock icon 1 minute read

The movement that created India's White Revolution has been snared by politics as GCMMF's fourth largest member Mehsana Dairy, which accounts for over 10 percent of its revenue, has decided to break away and chart its own path nationally with 'Dudhsagar' brand.

Mehsana was one of the founder members of GCMMF in 1973 and until a decade ago procured the maximum quantity of milk for the cooperative.

However, over the years Mehsana's milk procurement has stagnated at 18 lakh litres a day, while Banaskantha has become the most productive with a procurement of 50 lakh litres per day.

Mehsana Dairy has been at loggerheads with GCMMF ever since its former Chairman, Vipul Choudhury, was removed as Chairman of GCMMF after the BJP came to power at the Centre in 2014.

More recently, the dairy has been struggling under a debt of about Rs 1,500 crore because of stagnant milk procurement as well as excess capacity. It procures 1.8 million litres per day while it has a capacity of 7.3 million litres per day.

On Monday, Mehsana Dairy, which is the fourth largest dairy union of GCMMF, announced that it would break away and register itself as a multi-state cooperative (which will enable it to procure and sell across the country).

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Source: Business Today

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