Gujarat’s Dairy Revolution: From 50 Lakh to 250 Lakh Litres a Day

Gujarat has once again demonstrated why it is regarded as the heart of India’s cooperative movement. The state’s milk procurement has grown nearly five times over the last two decades, touching an impressive 250 lakh litres per day in 2024–25, compared to just 50 lakh litres daily in 2001–02. This growth story, highlighted recently in Parliament, represents not only an agricultural transformation but also a social and economic revolution in rural Gujarat.

The Numbers Behind the Rise

  • Procurement growth: In just over twenty years, milk collection jumped from 50 lakh litres to 250 lakh litres per day.
  • Farmer benefits: The price farmers receive for milk fat rose from around ₹400 per kg to ₹950 per kg, an increase of nearly 140%, directly improving rural incomes.
  • Infrastructure expansion: Thousands of bulk coolers, automatic collection systems, and quality-testing units have been installed across villages, ensuring freshness and trust in the system.

These numbers show how a state once struggling with low productivity has turned itself into the nerve centre of India’s dairy economy.

Why Did This Transformation Happen?

Several key initiatives fueled this leap:

  1. National Dairy Development Programme (NPDD)
    Grants worth over ₹300 crore were provided to strengthen village-level infrastructure. More than two thousand bulk milk coolers and thousands of automatic testing machines were set up, improving efficiency and reducing spoilage.
  2. Dairy Infrastructure Funds
    Schemes like the Dairy Processing and Infrastructure Development Fund (DIDF) and the Animal Husbandry Infrastructure Development Fund (AHIDF) made low-interest loans and grants available. This encouraged investment in chilling plants, breed improvement, feed centres, and modern training for farmers.
  3. Policy–Cooperative Partnership
    Both central and state governments worked hand-in-hand with Gujarat Cooperative Milk Marketing Federation (GCMMF), better known as Amul, ensuring that support reached the grassroots.

The Cooperative Advantage

The backbone of Gujarat’s dairy success is its cooperative model, perfected by Amul and replicated across the state.

  • Village societies: More than 18,000 village-level cooperatives act as the first collection point for farmers. Every member is both a supplier and an owner.
  • Union structure: These village societies feed into district unions, which then join hands through GCMMF to market products under the Amul brand.
  • Assured market: Farmers are protected from middlemen because the cooperative guarantees procurement every single day.

This structure ensures that profits are ploughed back to the members rather than diverted to private hands. It is this model that Verghese Kurien once envisioned during the White Revolution, and Gujarat continues to prove its strength.

Economic Scale and Growth

  • In the early 2000s, Gujarat’s daily collection was less than 45 lakh litres. By 2022–23, it had already crossed 240 lakh litres, and today it stands at 250 lakh litres.
  • The annual turnover of the state’s dairy sector has reached around ₹80,000–90,000 crore, placing Amul among India’s largest consumer brands.
  • Cooperative markets committees, which manage agricultural trade including milk, have also expanded their turnover five-fold in the last two decades.

This growth has created a cycle of prosperity: better returns motivate farmers to improve breeds and adopt modern practices, which in turn increase productivity.

Women at the Forefront

Perhaps the most heartening part of Gujarat’s dairy story is the role of women:

  • Rising participation: Women-run cooperatives have grown steadily, accounting for nearly one-quarter of all milk societies in the state.
  • Higher procurement: Their share in total milk collection has risen to over 57 lakh litres per day, almost 26% of Gujarat’s daily output.
  • Leadership: Women now occupy board positions in district unions and cooperative bodies, giving them a voice in decision-making.
  • Economic empowerment: The annual turnover of women-led cooperatives has jumped from around ₹6,000 crore to more than ₹9,000 crore in just a few years.

The dairy cooperative has thus become a platform for women’s empowerment, income security, and social change.

Broader Social Impact

The transformation is not merely about litres of milk or crores of rupees. It has had far-reaching consequences:

  • Stable rural incomes: Regular procurement ensures that even during crop failures, farmers have a dependable source of cash flow.
  • Nutrition: Increased availability of milk has improved diets, especially in rural areas.
  • Employment generation: Dairy farming and processing provide jobs to lakhs of families, directly and indirectly.
  • Skill development: Training in animal husbandry, feed management, and technology use has created a more knowledgeable farming community.

A National Model

Gujarat’s story has national relevance. Operation Flood made India the world’s largest milk producer, but Gujarat remains the best example of how cooperative strength, policy support, and farmer ownership can sustain growth. States across India—from Rajasthan to Bihar—are attempting to replicate parts of this model, though Gujarat’s success lies in decades of consistency.

Challenges Ahead

While the progress is remarkable, challenges remain:

  1. Climate change may impact fodder availability and animal health.
  2. Rising costs of feed and labour could squeeze margins.
  3. Global competition in dairy exports demands higher standards of quality and safety.
  4. Technology adoption must continue—such as AI-based monitoring of animal health, genetic improvement, and digital payment systems.

Addressing these issues will be critical to sustain the five-fold growth achieved so far.

Conclusion

From 50 lakh litres a day at the turn of the century to 250 lakh litres today, Gujarat has scripted a dairy revolution that stands as a beacon for the world. Farmers now receive higher prices, rural households enjoy greater stability, and women have found new avenues for empowerment. The combination of visionary policy, strong cooperatives, and community participation has created not just an economic success but a social movement.

The journey is far from over, but Gujarat’s experience proves that when farmers are owners, when infrastructure is reliable, and when women are equal participants, agricultural growth can transform entire societies.

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