Amul plans to set up 7,500 dairy units in Uttar Pradesh, boosting milk procurement and farmer incomes. The initiative, part of a Rs 900 crore investment, includes a new plant in Baghpat and aims to empower rural women and enhance the cooperative dairy model. This expansion will create jobs and strengthen UP’s dairy sector.
Amul’s Massive Dairy Expansion in Uttar Pradesh
The Gujarat Cooperative Milk Marketing Federation (GCMMF), which operates the Amul brand, is set to transform Uttar Pradesh’s dairy landscape by establishing 7,500 dairy units across the state. This ambitious expansion, backed by a Rs 900 crore investment, aims to enhance milk procurement, empower rural farmers, and bolster the state’s position as India’s top milk producer. The initiative builds on Amul’s cooperative model, which has been instrumental in India’s White Revolution, making the country the world’s largest milk producer.
A key component of this expansion is the construction of a new dairy plant in Baghpat, with an investment of Rs 800 crore. The plant, designed to process over eight lakh litres of milk daily, is expandable to 14 lakh litres, tapping into the milk-rich western districts of UP. This facility is expected to generate direct employment for over 400 people and indirect jobs for 4,000 more, providing a significant economic boost to the region. The remaining Rs 100 crore will be used to augment Amul’s existing milk processing capacity in the state, scaling it from 10 lakh litres to 25 lakh litres per day, reaching approximately 4,000 milk societies.
Amul’s entry into Uttar Pradesh has already shown promising results. Since establishing operations in Kanpur and Lucknow through Banas Dairy, one of GCMMF’s largest member unions, Amul has reduced milk adulteration and improved farmer livelihoods. Small dairy farmers, who often keep just a few cattle, now receive better returns and timely payments, a stark contrast to the erratic payments from private dairies. In villages like Khuthaniya in Sonbhadra, Amul’s presence has revitalized dairy farming, with farmers previously discouraged by low prices now benefiting from fair compensation.
The initiative also focuses on empowering women dairy farmers, aligning with broader efforts to promote gender equality in rural economies. By integrating women into cooperative societies, Amul aims to replicate the success of its Andhra Pradesh model, where women in 400 villages across three districts earned Rs 5-7 more per litre of milk. In UP, this approach is expected to strengthen the cooperative dairy movement, particularly in regions like Bundelkhand, where Amul has recently expanded its network.
Uttar Pradesh, with its vast livestock population and 20% contribution to India’s milk production, presents a unique opportunity for Amul. However, challenges such as low milk yield per animal, poor quality feed, and traditional cattle breeds persist. Amul is addressing these through advanced technologies like sex-sorted semen and embryo transfer to enhance productivity. Additionally, the cooperative is promoting sustainable practices, including biogas installations and solar-enabled dairy cooperative societies, to ensure long-term viability.
The Baghpat plant and the broader expansion are part of Amul’s strategy to deepen its footprint outside Gujarat, where it currently procures 60-65% of its milk. With existing operations in cities like Varanasi, Kanpur, and Lucknow, and a network of over two lakh milk producers in UP, Amul is poised to strengthen the state’s dairy ecosystem. The cooperative’s model, which eliminates intermediaries and ensures fair pricing, has already set a benchmark for quality and trust, compelling private dairies to improve standards.
This expansion aligns with the Uttar Pradesh government’s Nandini Krishak Samriddhi Yojana under the Nand Baba Mission, which aims to improve cattle breeds and increase milk production. By collaborating with state authorities, Amul is not only enhancing farmer incomes but also contributing to the state’s goal of doubling agricultural income. The initiative reflects the cooperative’s commitment to its founding principles, established in 1946 by Tribhuvandas Patel and Verghese Kurien, to empower small producers through collective action.
Disclaimer: This article is based on recent news reports, official statements from Amul and the Uttar Pradesh government, and industry sources. Information has been sourced from credible publications like The Times of India, The Hindu BusinessLine, and posts on X. Data accuracy depends on the reliability of these sources, and readers are advised to verify details independently.