Amul Achieves ₹1 Lakh Crore in Sales Amid Dairy Sector Growth in India

Amul, a prominent Indian dairy cooperative, has surpassed ₹1 lakh crore in annual sales, highlighting its significant contribution to the country's dairy industry. The cooperative, which began operations in 1946 with just 250 litres of milk per day, now processes 350 lakh litres daily, supported by 18 member unions and over 120 dairy plants.

India's dairy sector comprises approximately 200,000 cooperative societies across 28 states, making it the world's largest milk producer, accounting for 25% of global milk output. This figure is anticipated to rise to one-third within the next decade. Amul exports to over 50 countries and sells around 1,200 SKUs through 28 lakh retail outlets domestically.

Jayen Mehta, Managing Director of Amul, emphasized the importance of recent GST reductions on dairy products as a transformative policy decision. The changes reduced GST on ghee and butter from 12% to 5%, ice cream from 18% to 5%, and set paneer and UHT milk at zero. This policy aims to narrow the gap between consumer payments and farmer revenue and diminish tax advantages previously enjoyed by unorganised players.

Furthermore, the shift from loose milk to packaged products has opened new avenues for value addition. The sector now focuses on diversified dairy products such as dahi, lassi, and cheese, which offer higher margins and longer shelf lives.

Mehta highlighted the cooperative model's advantage in returning a larger share of revenue to producers, compared to private players in other countries. In India, over 80% of consumer spending on Amul products directly benefits milk producers, contrasting with the 35-40% seen in regions like the US and Europe.

India's dairy sector not only supports agricultural output but also serves as a vital socio-economic backbone for rural communities, with 10 crore families depending on dairy for their livelihoods.