The Gujarat-based biggest dairy brand Amul has crossed the $ 2.5-billion mark with a turnover of Rs 11,668 crore in 2011-12, ended March 31, 2012 out of which Rs 9,901 crore were paid back to 32 lakh farmer members of milk unions, according to a BL report.
Announcing the annual results after the 38th annual general body meeting of Gujarat Cooperative Milk Marketing Federation Ltd, which markets the Amul brand, its Chairman, Parthibhai Bhatol, said today that the turnover of FY12 was 20 percent higher than that in 2010-11, Rs 9,775 crore. In 2012-12, GCMMF plans to achieve a turnover of Rs 14,400 crore, noted the report.
At a time when farmers in other States were struggling to make their milk business viable in the absence of good returns, their counterparts in Gujarat are rejoicing over a 58 per cent increase in their milk prices over the last three years, he said in a statement. Member farmers of GCMMF received a price of Rs 468 per kilogram of fat for their milk production this year, the highest price being paid to farmers in the country. Last year, GCMMF initiated its largest distribution expansion exercise to extend its reach to smaller towns and semi-urban areas, the report said.
Apart from the 750 distributors added in dairy and fresh products segment, GCMMF also added 150 super distributors through the implementation of its new ‘hub and spoke’ model, to reach the smaller markets. In 2011-12, 965 new Amul Parlours have been added, taking the total strength to 6,315. Apart from the 170 parlours at railway stations and 303 operating at various centres of excellence, Amul also has 600 air-conditioned ice-cream scooping parlours, making it the largest single brand retail in the country, said the report.
GCMMF will be investing Rs 3,000 crore to set up nine processing units in the next four years. 'This would enhance our milk handling capacity from the existing 145 lakh litres per day to 180 lakh litres per day', the statement said.
Currently, dairying contributes 26 percent in agricultural output but still receives only 12 percent of the public expenditure on agriculture. Exempting income-tax on dairying, as in case of agriculture, and reduced VAT rates on consumer products at 12.5 percent, would help boost dairy sector and ensure better returns to milk producers and consumers, the official added.