Amul's Poverty alleviation Contribution
Amul has significantly contributed to the welfare of the poor, particularly rural farmers, through its cooperative model and focus on equitable income distribution. The foundation of this contribution lies in the Kaira District Co-operative Milk Producers’ Union Limited, established in 1946 after farmers in Anand, Gujarat, were exploited by private companies like Polsons Ltd. By forming a cooperative, farmers eliminated middlemen, ensuring that profits directly reached them This model has proven highly effective, with 80 to 82 percent of the price of milk sold going back to the farmers, a significantly higher percentage than the 36 percent seen in the United States
The impact extends beyond just financial gain. The White Revolution, driven by the 'Anand Model' and spearheaded by Varghese Kurien, transformed India into the world's largest milk producer, lifting millions out of poverty Operation Flood, the program launched in 1970, specifically targeted poor and landless farmers, who constituted a large portion of the participants. Over 70% of the households involved in the program owned just one or two milch animals, and 21% had no land at all, demonstrating how dairy farming provided a viable livelihood for the landless poor The system's design, which kept cattle in rural areas and transported milk to markets, provided a strong comparative advantage and allowed for the rapid growth of successful farmer organizations
Amul's cooperative structure ensures that farmers are not just producers but also owners. They receive payments based on the quantity and quality of milk supplied and also earn dividends based on the shares they hold, which are tied to their output This ownership model, combined with social security benefits like education and pensions, provides a comprehensive support system The cooperative model has also empowered women, who traditionally stayed at home, by giving them a source of income through milk production The success of this model has been so profound that the Indian government passed the 97th Amendment to the Constitution in 2011, making the right to form cooperatives a fundamental right.
