Dairy giant Amul enters milk procurement business in Andhra Pradesh

Amul, Gujarat-based dairy giant, on Wednesday forayed into the milk procurement business in Andhra Pradesh in collaboration with the state government.

Chief minister Y S Jagan Mohan Reddy launched the first phase of Andhra Pradesh-Amul project from his chamber in state secretariat at Amaravati, in the presence of Gujarat Cooperative Milk Marketing Federation managing director Dr R S Sodhi and other executives of Amul.

Several ministers and officials also attended the event, while director of Institute of Rural Management Anand (IRMA) Prof Saswath N Biswas took part from Anand through video conference.

In the first phase, Amul would procure milk from women cooperative dairy societies in 100 villages in Prakasam, Chittoor and Kadapa districts. In all, the dairy giant plans to procure milk in a total of about 550 villages in these three districts in the subsequent phases.

The chief minister started the procurement process at Nallapureddypalli village of Pulivendula assembly constituency in Kadapa district through video conference.

Speaking to beneficiaries, Jagan said AP-Amul project would help improve the financial conditions of women who took up dairy business under YSR Cheyutha programme. He pointed out that it had taken two years to start 200 dairy cooperative societies in Gujarat, but in Pulivendula alone, 43 societies were formed in a span of 23 days.

He said under the AP-Amul project, each dairy farmer would get a profit of Rs 5-7 per litre, which would go a long way in improving their financial status. He appreciated the efforts of Amul authorities and also the state government officials in materialising the project.

In July this year, the AP government signed a memorandum of understanding (MoU) with Amul to encourage milk cooperative societies, especially those run by women, and further develop the dairy sector in the state.

Nearly 5.6 lakh women, who were provided with financial assistance under YSR Cheyutha had come forward for setting up mini dairies in the villages and the government had supplied cattle and buffaloes to those women. An additional 22 lakh litres of milk production is estimated through mini dairies.

Andhra Pradesh’s miniser for dairy development S Appala Raju said the state government would spend Rs 1,362 crore for infrastructure development by setting up Bulk Milk Cooling Units and Milk Collection Centres in Rythu Bharosa Kendras. The project will be implemented in a phased manner and in the first phase about 7,121 milk collection centres and 2,774 bulk milk cooling units would be set up.

“The tie-up with Amul is for an all-around growth of dairy sector by giving a helping hand to the dairy farmers ensuring quality feed, veterinary services and marketing facilities,” he said.