The cooperative principle is based on avoiding unhealthy competition, adherence to mercantile ethics, and Sarvodaya development. Therefore, the dispute between Nandini and Amul is unnecessary and provocative, and suspected to be part of a scheming plan along with the forced imposition. However, it’s certain that all possibilities of the Amul “Ashwamedha” horse coming to Karnataka cannot be denied, as preparations have been made for it.
Their website provides details on their growth so far, including the Amul Chairman’s speech at last year’s annual general meeting where he revealed their expectations for the next 25 years.
According to their website, the total size of the dairy products market in India is now Rs. 11.35 Lakh Crore. Amul had a total turnover of Rs. 101 Crore in Gujarat in 1995-96, but now they have grown to Rs. 61,000 Crore in 22-23 with plans to increase their branches from the current 82 to 100 by 23-24. This sudden rise in a single year is due to their presence in 400 major cities in the country.
Since the domestic market for dairy products has limited growth potential, cooperative rather than corporate survival has been the key to success. If they want to expand, they need to explore foreign markets.
Amul grew its turnover from Rs. 100 Crore to Rs. 11,000 Crore in 27 years when there was scope for growth, but now they are talking about Rs. 18 Lakh Crore turnover in 25 years (by 2047). This means that they must either absorb other firms within the country or increase their export possibilities.
KMF’s FY21-22 turnover was Rs 19,780 Crore, indicating similar growth in the dairy products market. These developments in the dairy products market, such as rumours of Amul taking over the Karnataka market or KMF takeover, seem to be a result of the Indian Government trying to boost the agriculture and dairy cooperative sectors in its frenzy of doubling farmers’ income. However, this may lead to the co-operative sector burning out and traders keeping their hands on their heads. It’s better for the co-operative market to grow as a cooperative and encourage others to grow as well.