GCMMF controlled Amul style of operation has disturbed hundreds of dairy companies in Maharashtra who took farmers for granted and supplied inferior stuff to consumers, reports the daily Agrowon which is circulated across almost all the villages in Maharashtra.
Keeping the mantra of Farmers First, Amul is paying 80 paise to producers out of Rs 1 got from consumers. It naturally attracted thousands of farmers to Amul and thus it surged ahead of those who made money at the cost of farmers.
Additionally, Amul dared to increase milk price by Rs 2 per litre in state, banking on its brand value and consumer trust earned over a long period of time. Dairies have gone jittery that such increase will led to decrease in their milk.
While some dairies such as Gokul or Chitale dairies have maintained their credibility, all other dairies who were accepting low quality milk & paying less to farmers & higher margins to dealers to sell their milk, are in trouble, reports the daily.
It bears recall that Amul is the largest corporate brand having a turnover of Rs 30000 Cr in 2018 which reached to Rs 33000 Cr in 2019. It aims to achieve a turnover of Rs 40000 Cr in 2020.
The daily also reports that all the dairies in the state are worried over Amul’s growth in the state and are wondering wriggle out of the situation. Dairies are not getting a way out and are unable to control surging brand of Amul, say the daily.
The crux of the matter is that brands like Amul, Mother, Patanjali dairies are posing challenge to private dairies in the state. These dairies are getting political support in the state to spread. Among all these dairies, Amul is dangerous & small dairies will not be able to sustain”, the report tells.
It also reveals that the Amul is collecting best quality milk only -8.5% SNF. Also they have provided infrastructure to chill milk & their policy to pay more than others is helping them however small dairies can’t afford such competition in milk quality. Therefore small dairies are worried” it concluded.