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Amul merges with five other cooperative societies

Updated: Oct 30, 2022

In the 70th North Eastern Council (NEC) held in Guwahati, the Home minister stated that Amul will be merged with five other cooperative societies to form a multi-state cooperative society (MSCS).

Amul merges with five other cooperative societies

Why it matters: Amit Shah emphasized the need to double milk production in the country over the next five years, not just to meet the demand in the domestic market, but also those of neighboring countries like Nepal, Bhutan, etc.

  • India has the biggest milk industry in the world, producing more than 180 million tons of milk every year. This is 23% of the world’s annual production, according to the UN Food and Agriculture Organization

What was said: "Modi Govt is giving priority to natural agriculture and digital agriculture and for certification of natural products, the process to form a multi-state cooperative society by merging Amul and five other cooperative societies have been started," the Union Home and Cooperation minister said.

The big picture: While the EU, as well as the U.S., exports a lot of their products, India is not a major exporter of milk, showing a high domestic consumption.

  • Indian dairy market is worth more than 9 trillion Rupees ($128 billion) and is growing at 5.5% every year according to IBEF.

  • This will also help Modi Govt to make India a $5 trillion economy by 2024-25.

What will happen: MSCS will ensure the export of the products after its certification so that profit can go directly into the bank accounts of the farmers.

  • Adoption of technology solutions will help in increasing production efficiency and reducing wastage in the supply chain.

  • About 60% surplus milk is handled by the unorganized sector (milkmen), while the remaining 40% is procured by the organized sector. This move is expected to improve these numbers.

Catch up quick: Citing a necessity for India to climb up higher in the world economy and increase export of milk and milk products to neighboring countries, the Modi-led government has initiated a merger between Amul and 5 other cooperative societies, which would post-certification of exported products, immediately transfer the profits to the accounts of farmers.


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