Amul to help J&K dairies scale up their operations

Ahmedabad | Updated on March 11, 2020

Amul has extended support to dairy cooperatives in Jammu and Kashmir to help the region achieve self-sufficiency in dairy products.

Jammu and Kashmir is estimated to have high consumption of dairy products worth ₹700-800 crore, sourced from different parts of of the country.

Tie-up with local dairies

RS Sodhi, managing director of Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF) – Amul marketer – said the local dairy cooperatives in J&K will be provided handholding on the technical, administrative and procurement side to reduce their dependence on dairy products sourced from outside.

“Amul board has decided that we will help the J&K region to develop dairy sector with sustainable livelihood in rural areas based on Amul pattern. And we’ll provide whatever help is needed in replicating the Amul model,” Sodhi told BusinessLine after a roadshow of the J&K government in Ahmedabad on Monday.

J&K Lieutenant Governor GC Murmu, who was in Ahmedabad recently, has signed 35 MoUs worth ₹2,641 crore with Gujarat-based companies and organisations.

“It is clear that they have good amounts of consumption of dairy products. So, using the Amul model, if they procure locally, process locally and add value locally, it will be a great achievement. This is a matter of great satisfaction that without any major financial help, we can develop a good dairy sector in J&K,” Sodhi said.

It may be noted that soon after the abrogation of Article 370 in the State, BusinessLine was first to report about the prospects of dairy sector to boost employment in the region.

Local partnerships

Amul is working closely with the Jammu and Kashmir Milk Producers’ Cooperative Ltd (JKMPCL), a cooperative of dairy farmers. The dairy sector in J&K, for decades, was considered as a business with low remuneration, costly milk production and competition from private dairy players. This was the key reason behind farmers losing interest in animal husbandry.

However, Sodhi believes that with the Amul intervention, the dairy sector there will get a leg up not just for milk procurement but also in product innovation and market access. Currently, there are facilities to make milk, curd and buttermilk. But soon, new manufacturing facilities will be set up to produce paneer (cottage cheese), flavoured milk, ice cream and UHT Milk (packaged milk). Some products will be made in Jammu and some in Srinagar.

The J&K dairy cooperative currently has a turnover of about ₹100 crore, with daily milk procurement of about 65,000 litres and about 30,000 farmer families involved in the dairying.

“We are targeting to reach about 2.5 lakh litres of procurement per day with about 1 lakh farmers families on board. The turnover will jump to about ₹600 crore in the next 2-3 years,” Sodhi said, adding that the Centre and State financial support will be to the tune of ₹110 crore.

Processing capacity

The J&K Federation's plant at Chashmeshahi has milk processing capacity of 50,000 litres per day (LPD). JKMPCL procures this milk from mostly women self-help groups. The milk is sold in retail under the brand name ‘Snow Cap’. Most of the milk produced in the valley is from cows while it is from buffaloes in Jammu.

Amul has deployed a team of professionals in Jammu and Srinagar to take the project forward.

Published on March 11, 2020

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