Kurien’s producer-centric approach has rubbed off on private dairies as well; they have come a long way from the time of Polsons.
The passing away of Verghese Kurien presents an opportunity for reflection, not only on the exceptional contributions of the Father of India’s White Revolution, but also on the future of dairying in the country. Kurien helped nurture an entity, Amul, whose affiliate dairies collect and process over 10 million litres of milk daily from 3 million farmer-members of 16,000-odd village-level societies across Gujarat. These farmers are indirect shareholders of this ‘company’ that exists in order to maximise returns, not on the capital contributed by them (if at all), but on the raw material (milk) they supply. The fact that its farmers are able to capture roughly three-fourths of the price paid at the retail consumer end is testimony to the venture’s success. This has been made possible through a transparent system of paying farmers based on the fat/solids content in their milk; efficiencies in processing and supply chain management; and an advertising strategy relying not on expensive celebrity endorsement as much as exploiting the natural mindspace that milk products occupy among Indian consumers (there hasn’t been a better medium for it than the likeable Amul moppet). Amul, in a sense, represents the best of capitalistic and grassroots community empowerment values essential to a vibrant liberal democracy.
Unfortunately though, Kurien’s model of cooperative capitalism has not permeated beyond Gujarat and, to an extent, Karnataka. The fault for it lies both with the National Dairy Development Board – which he set up to replicate the Amul model across India – and the State governments that have viewed cooperatives largely as captive patronage-dispensing extension arms, rather than as businesses meant to deliver value to those for whom they ostensibly exist. That’s, indeed, what Amul or Fonterra – the world’s largest dairy company cooperatively owned by 11,000 milk producers in New Zealand – are. Today, cooperatives in India procure collectively some 11 million tonnes (mt) of milk, half of which comes from Gujarat and Karnataka. Elsewhere, organised private dairies have made huge inroads over the last 10-15 years, so much so that their combined procurement may have crossed 15 mt – more than the cooperatives.
That is not bad in itself, considering that private dairies have evolved since the days of Polson – a company, which symbolised exploitation of farmers and triggered the founding of Amul, way back in 1946. Many of these dairies have now eliminated middlemen in procurement and pay according to fat content. Some have even invested in artificial insemination, scientific breeding, animal nutrition, fodder development and other backend activities – which, too, Kurien may have approved, in spirit if not in form. Either way, the fact is that the cooperatives, barring those in Gujarat and Karnataka, are floundering, while the bulk of new processing capacities are being created in the private sector. The ultimate tribute for a public official is in seeing his initiatives being adopted by the private sector in the same field. Judged by that yardstick, many of Kurien’s innovations have become industry best practices and Indian dairy farmers are the lasting beneficiaries. Kurien may be no more, but he has left millions of them a happy lot.
Keywords: Amul model, Verghese Kurien, White Revolution,
Comments:
The author missed several basics: Amul is the largest cooperative (by number of members),
of the weakest milk producers, and almost all suppliers of milk to Amul are true shareholders,
that Amul is heavily invested in it's investors: it provided free or nearly free animal care,
artificial insemination, and vaccines. It provided house calls on a sick animal back in the
1960's, identified (and so recognized) each buffalo and even offered affordable life insurance
on the cattle. It made processed animal feed over 40 years ago!
The other part of dr. Kurien's story is he stayed off politics: his only mission was uplifting the
marginal citizen thru admirable means. He was supported by the likes of Sardar Patel and
Tribhovandas Patel until he no longer needed that support. It is a reflection of local leaders if
NDDB and IRMA failed elsewhere.
Unfortunately, we say and publish and propagate so much of our own views of the world as if
they are facts.
No words would be sufficient to describe pioneering efforts made by Dr. V, Kurien in furthering the cause of farmers through milk producers’ co-operatives. With ‘Amul’ success milk production in the country increased and it catered to the growing urban population. But this is an occasion to do some introspection about Amul experiment. Amul model of production, procurement and marketing of milk initially, and of milk products subsequently, through village based co-operatives has been successful in increasing incomes of farmers. But with millions of families (consumers) with low purchasing power, big co-operatives like Amul have to sell milk and milk products to those families who can afford to buy it. This means if consumers cannot afford to buy milk, there could be ‘surplus’ which may keep price of milk at a level which the farmers feel not remunerative enough and consumers feel that it is high. This situation is not a happy situation to be in but today it is the bitter reality.
Hats of to Indian print media especially The Hindu to have expressed gratitude of a nation for the memorable and benevolent contributions made by late Dr Varghese Kurian.To expect complete and absolute perfection in any man is next to impossibility and to that extent Dr Kuran was also a humanbeing with emotions and errors of judgement.What makes him distinct is showing a ray of hope to millions of dairy farmers that milk is a tool for empowerment.He developed confidence in them.The rest is history.
No praise can be too high for Dr. V. Kurien who has put India in the world map in terms of the largest milk producing country in the world. Quiet rightly, he has left behind a rich legay for us to inherit and inspire. He was a man of vision and had that rare inbuilt stuff to convert the impossible into possible. His passing away is the great loss to the world in general and India in particular. May his soul rest in eternal peace.
The passing away of the patriarch of Indian white revolution is a great loss to the nation. The author has rightly acknowledged the seminal contribution of Dr. Kurien to the success of milk coopratives greatly nurtured and nourished by Dr. Kurien. He was the person at the helm who starting from a very humble background could reach the zenith of distinction in putting India on the world map in the matter of production of milk. Dr. Kurien is no more, but the legacy and the institution he built would ever be eternal. He has not been conferred 'Bharat Ratna' during his lifetime, but truly speaking he is the real undeclared Bhart Ratna, India is proud of.
Let the milk revolution in the country and the spirit of cooperation be strengthened with his demise.
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