CONTENTS

1. Golden Jubilee Celebration of GCMMF and Amul’s Success: Prime Minister’s Highlights
2. e-Kisan Upaj Nidhi

Golden Jubilee Celebration of GCMMF and Amul’s Success: Prime Minister’s Highlights

Context:

The Prime Minister participated in the Golden Jubilee celebration of the Gujarat Cooperative Milk Marketing Federation (GCMMF) and emphasized the remarkable success of Anand Milk Union Limited (Amul), which is a product of GCMMF.

Relevance:

GS III: Agriculture

Evolution of Amul: Nurturing the White Revolution

Founding Years (1946-1950):

• Established in 1946 as the Kaira District Co-operative Milk Producers’ Union Limited in Anand, Gujarat.
• Founded by Tribhuvandas Patel with crucial support from Morarji Desai and Sardar Vallabhbhai Patel.
• In 1950, transitioned into Amul (Anand Milk Union Limited), a brand representing cooperative-produced dairy products.

Cooperative Empowerment Model:

• Pioneered the Anand Pattern, an economic organizational model emphasizing collective action for small producers.
• The model integrates producers for scale benefits while preserving individual decision-making autonomy.

International Recognition:

• Amul’s success story became a global reference in cooperative economics and rural development.
• Garnered attention for effectively empowering small producers through a cooperative framework.
• White Revolution Catalyst (1955 onwards):
• Integral role in India’s White Revolution, geared towards self-sufficiency in milk production.
• Initiated the White Revolution with the introduction of milk powder manufacturing in 1955.

Global Presence and Impact:

• Over 50 countries receive Amul products, highlighting its global export footprint.
• Network encompasses 18,000+ milk cooperative committees and 36,000+ farmers.
• Daily processing capacity of over 3.5 crore litres of milk and facilitating online payments exceeding Rs 200 crores to livestock breeders.

India’s White Revolution – Operation Flood: Transforming Dairy Dynamics

Foundations of Change (1965):

• National Dairy Development Board (NDDB), chaired by Verghese Kurien, established in 1965.
• Objective: Revolutionize India’s dairy sector through innovative strategies.

Launch of Operation Flood (1970):

• Operation Flood initiated in 1970, also known as the White Revolution.
• Inspired by the successful “Anand Pattern” to connect rural milk producers with urban consumers through cooperative models.

Key Achievements:

• India became the world’s largest milk producer.
• Significant enhancement in milk production and management efficiency.

Operational Phases:

Phase I (1970-1980):

• Financing through European Union’s milk powder and butter oil.
• Connected 18 milksheds with major cities.
• Laid the foundation for village cooperatives.

Phase II (1981-1985):

• Expanded to 136 milksheds and 290 urban markets.
• Established 43,000 village cooperatives, covering 4.25 million milk producers.
• Promoted self-reliance in milk powder production.

Phase III (1985-1996):

• Strengthened infrastructure for milk procurement and marketing.
• Emphasized veterinary healthcare, feed, and artificial insemination.
• Expanded to 30,000 new cooperatives, peaking at 173 milksheds.

Post-Operation Flood (1991 onwards):

• Liberalization reforms allowed private participation in the dairy sector.
• Introduction of Milk and Milk Products Order (MMPO) in 1992 for regulation and oversight.
• MMPO aimed at maintaining and increasing milk supply.

Industry Dynamics:

• Initial phase marked by unregulated dairies and concerns of adulteration.
• Growth in processing capacity driven by large private players.
• Sector witnessed significant expansion and modernization.

Current State of Indian Milk Production

Production Leadership (2021-22):

• India ranks first globally in milk production, contributing 24% of the world’s output.
• Over the last decade, milk production has surged by nearly 60%, with a corresponding 40% increase in per capita milk availability.

Top Milk-Producing States:

• Leading states in milk production: Rajasthan, Uttar Pradesh, Madhya Pradesh, Gujarat, and Andhra Pradesh.
• Rajasthan tops the list, emphasizing regional contributions.

Sector Growth and Global Comparison:

• Indian dairy sector experiences a robust 6% annual growth, surpassing the global average of 2%.

Dairy Exports (2022-23):

• India exported 67,572.99 Metric Tons (MT) of dairy products globally, valued at USD 284.65 million during 2022-23.

Challenges in the Indian Dairy Sector:

Low Milk Yield:

• Milk yield per animal in India falls below the global average.
• Attributed to factors like poor-quality feed, traditional cattle breeds, and inadequate veterinary care.

Logistical and Handling Challenges:

• Issues in milk collection, pasteurization, and transportation.
• Handling concerns in informal dairy setups impact milk safety.

Adulteration Concerns:

• Adulteration of milk remains a persistent challenge due to quality control difficulties.

Price Disparities:

• Milk producers receive lower purchase prices compared to market rates, affecting profit distribution in the value chain.

Livestock Health Issues:

• Frequent outbreaks of diseases like Foot and Mouth Disease, Black Quarter infection, and Influenza impact livestock health and productivity.

Crossbreeding Limitations:

• Limited success in crossbreeding indigenous species with exotic stocks to enhance genetic potential.

e-Kisan Upaj Nidhi

Context:

Recently, the union Minister for Consumer Affairs, Food & Public Distribution, Commerce and Industry and Textiles launched ‘e-Kisan Upaj Nidhi’ (Digital Gateway) in New Delhi.

Relevance:

GS II: Government Policies and Interventions

Dimensions of the Article:

1. e-Kisan Upaj Nidhi Platform: Facilitating Farmers’ Post-Harvest Storage
2. About Warehousing Development and Regulatory Authority (WDRA):

e-Kisan Upaj Nidhi Platform: Facilitating Farmers’ Post-Harvest Storage

• Digital Gateway: e-Kisan Upaj Nidhi is a digital platform operated by the Warehousing Development and Regulatory Authority (WDRA).
• Objective: It simplifies the process for farmers to store their produce at any registered WDRA warehouse for up to 6 months, offering an attractive 7% interest per annum.

Key Features:

• Digital Process:
  • The platform leverages digital technology for a streamlined and simplified process.
  • Aims to alleviate distress sales by providing farmers with viable post-harvest storage options.
• Interest Rate:
  • Farmers opting for storage through this platform benefit from a competitive 7% interest per annum.

About Warehousing Development and Regulatory Authority (WDRA):

• WDRA was established under the Warehousing (Development and Regulation) Act, 2007.
• Consists of one Chairperson and two full-time Members.

Mission:

• Establishment of a negotiable warehouse receipt system in the country.
• Promotion of warehouse receipts as a primary tool of trade and facilitation of finance against it.
• Improvement of the quality of lending portfolios for banks.
• Enhancement of interest in lending against goods stored in warehouses.

Functions:

• Issuance of negotiable warehouse receipts to help farmers secure loans from banks.
• Mitigation of distress sales during peak marketing seasons.
• Prevention of post-harvest storage losses.

Commodity Coverage:

• WDRA covers 136 agricultural commodities for issuing negotiable warehouse receipts, including cereals, pulses, oilseeds, spices, rubber, tobacco, and coffee.
• Additionally, 24 horticultural commodities are covered for cold storage, along with 9 non-agricultural commodities.