The Hindu Business Line : Kurien calls for resolution of GCMMF, union spat

The former Chairman of the Gujarat Cooperative Milk Marketing Federation (GCMMF), Dr Verghese Kurien, has expressed concern over the growing `conflict situations' arising between the federation and its member unions, while warning against attempts to "mix business with politics".

Dr Kurien's observations came a day after the Mehsana District Milk Producers' Union — which accounts for roughly a quarter of the milk procured by GCMMF's 12 unions — threatened to virtually pull out of the federation and set up a parallel distribution network.

"It is unfortunate that the relationship between GCMMF and its largest union has reached this stage. "They should resolve the differences before it is too late for their mutual benefit. GCMMF must realise that it exists for the unions and the unions should realise the value they derive from joint marketing under a common brand", the 85-year-old dairyman told Business Line.

Bone of contention

The bone of contention between GCMMF and Mehsana union is the former's recent move to supply two lakh litres per day (llpd) of milk to Mother Dairy India Ltd for covering its shortfall in the Delhi market.

This is over and above the 3.5 llpd that GCMMF is currently selling under its own `Amul' brand in the National Capital.

While the 3.5 llpd is being sourced entirely from the Mehsana dairy, the two llpd milk for Mother Dairy is coming from the Banaskantha district union, whose Chairman, Mr Parthibhai Bhatol, also heads GCMMF.

"How can the Chairman of GCMMF supply milk from his dairy to a rival brand, more so when it competes with my milk being sold under the Amul brand?" said Mr Vipul Chaudhary, Chairman of the Mehsana Union. The Mehsana Union currently procured 16 llpd of milk on an average, while Banaskantha collected 10 llpd.

The two, along with the Sabarkantha (nine llpd), were GCMMF's leading unions, ahead of even the Kheda union (7.5 llpd) that was the progenitor to the Anand/Amul cooperative model. Mr Chaudhary claimed that under the earlier marketing arrangement, the Mehsana dairy was feeding the Delhi market, just as Mumbai was allocated to the Valsad Union and Kolkata to Kheda. "I have invested Rs 55 crore in a plant near Delhi that can ultimately handle six llpd of milk and 25,000 litres each of ice-cream and yoghurt. "If GCMMF is more interested in giving milk to Mother Dairy, it is better I develop my own marketing network. After all, I have an existing Sagar ghee and whitener brand that GCMMF is using along with Amul", he said.

According to Dr Kurien, the issue at stake was better coordination and adherence to discipline. "We have a strange case, where one union (Ahmedabad) is packing milk not just under its own brand (Uttam) and for GCMMF, but also for its business rival (Mother Dairy). "It is for the Federation to prevent such things", he added.

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