Section 37
How Amul let farmers own the whole chain
How can thousands of small milk producers get a fair price without a middleman taking the margin?
- case
- Success
- years
- 1946-2025
- ₹65,911 crore
- GCMMF turnover · 2024-25
- 36 lakh
- Farmer members · 2025
- About 300 lakh litres
- Milk collected per day · 2025
- 01
The situation
In the 1940s, dairy farmers in Kaira district of Gujarat sold milk through private contractors and had little say over price. In June 1946 the movement began with just two village-level dairy co-operatives. In December 1946 the district union, later known as AMUL, was registered with five village co-operatives as its members.
- 02
The decision
The farmers built a three-tier structure that NDDB now calls the Anand Pattern. The village society collects surplus milk from its members. The district union, owned by the village societies, handles collection, processing and sales, and gives members feed, veterinary care and breeding services. A state federation, formed by the district unions, markets the products under one brand and plans production.
- 03
The outcome
The model spread across India. In 2024-25 the Gujarat federation, GCMMF, reported a turnover of Rs 65,911 crore, up 11 per cent. Its 18 member unions collect about 300 lakh litres of milk a day from 36 lakh farmers in 18,600 villages of Gujarat.