FevIew: 'The Amul ndIa Story' by Futh HeredIa.

'The Amul ndIa Story' by Futh HeredIa Is a story of Ideals transformIng Into buIldIng up of one of
ndIa's greatest success storIes In the daIry sector. t traces the the bIrth of a small movement In
Cujarat the KaIra 0IstrIct CooperatIve |Ilk Producer UnIon and Its evolutIon Into a fantastIc new
paradIgm of development the story of Amul.

The vIsIon was laId by Sardar 7allabhaI Patel wIth the focus of use of approprIate technology for rural
communIty organIzatIon of producer's cooperatIve marketIng InstItutIons servIng the twIn purpose of
augmentIng rural Income and developIng local Industry. HIs central questIon for success of a
cooperatIve was "Are the farmers happy:" and If the answer was yes It meant the cooperatIve was
meetIng Its Intended purpose.

After the establIshment of the UnIversIty for farmers wIth whIch the story begIns we get to see how
TrIbhuvandas KIshIbhaI Patel uses cooperatIon as the key to solvIng the problems of the mIlk producers
In KaIra for gettIng a faIr deal and so they could Improve theIr lIvIng standards. He was the leader who
helped lead and organIze the cooperatIve socIety. A tenacIous begInnIng and an equally tenacIous
journey although followed.

8etter qualIty of mIlk and effIcIent and economIcal dIstrIbutIon of mIlk were the startIng poInts of the
unsatIsfactory mIlk productIon. |Iddle men and mIlk contractors also exploIted the producers In the
earlIer system and In turn the commIssIons they took meant the consumers got the mIlk for hIgher
prIces. Also manIpulatIng the collectIon durIng seasonal excesses or shortfalls meant further
exploItatIon.

Thus started the cooperatIve as means of pasteurIzatIon and chIllIng of mIlk before transportatIon to
the metropolIs through a processIng plant and the producers sellIng theIr mIlk to the cooperatIve. And
at thIs stage TrIbhuvandas made poInt of great Importance: membershIp of the mIlk producers coop
woul be open to all vIllagers - no relIgIon, caste or communIty made any dIfference.

HavIng great connectIons In the polItIcal system he was able to procure equIpment and establIsh the
cooperatIve faster although not wIthout glItches and opposItIon from detractors at every step. Later
the entry of 7erghese KurIen self confIdent, IntellIgent, hard workIng , technIcally qualIfIed and
extremely ambItIous changed the whole face of the daIry. Dne statement sums It all up :

"Even the most voIatIIe men can often be IrresIstIbIy drawn to the steady fIame of IdeaIIsm burnIng
In one man".

ThIs Is perhaps why hIghly educated professIonals In engIneerIng and daIryIng In agrIcultural and
veterInary scIences wIth the cIty dwellers sophIstIcated tastes and habIts found themselves and
contInue to fInd themselves as beIng part of a rural renaIssance begun by a sIngle countryman of low
academIc educatIon but hIgh IntegrIty.

KurIen hImself admItted that from the InItIal professIonal prIde In the technology developed the belIef
that he was an employee of the farmers and must be at theIr servIce came to hIm slowly absorbed from
TrIbhuvandas.

The team work between them and H| 0alaya the chIef daIry technologIst also was at the forefront of
the success of the daIry. Adverse bureaucratIc decIsIons were offset by the great polItIcal Influence of
the cooperatIve's leaders but In a posItIve manner and dIscrImInately. An outstandIng organIzer
TrIbhuvandas was also able to delegate to persons of proven abIlIty as he dId wIth KurIen and 0alaya.
The mangement of Amul and all technIcal and commercIal functIons he entrusted to KurIen and 0alaya
as he hImself focused on lIaIson wIth mIlk producers and Congress party members and elected
representatIves. 8y vIrtue of hIs hIghprIncIpled and blameless conduct he held great moral Influence.

The producers came to form great solIdarIty wIth the management as they were taken Into confIdence
on all measures and allowed to see the functIonIng and express theIr doubts, reservatIons and the trust
was buIlt mutually. Eventually the ANAN0 model was the benchmark for cooperatIves model wIth
vIllagers commItted to theIr uplIft and agreeIng on how to attaIn the goal. TrIbhuvandas was the leader
convIncIng the producers of the power of cooperatIon and democratIc prIncIples to Improve theIr
human condItIon. He held theIr loyalty and affectIon. KurIen was the tough mInded and InnovatIve
manager - a pugnacIous champIon agaInst threats bureaucratIc and foreIgn. 0alaya was the wIzard
daIry technologIst.

The trIo acted as InspIratIon wIth KurIen servIng the challenge to the staff of Amul. The staff,
comprIsIng of young men were gIven the freedom to develop theIr area of responsIbIlIty and each had a
term of dIrect servIce to the vIllagers and were never penalIzed for theIr mIstakes.

A sense of mIssIon and of the personal commItment to fIght vested Interests dIstInguIshed the
employees of the KaIra CoperatIve. 0edIcatIon, IntegrIty, responsIbIlIty, prIde In work well done and
prIde of partIcIpatIon In an admIrable enterprIse, loyalty, a boldly InnovatIve approach to solvIng
problems were some of the hallmarks and characterIstIcs of the A|UL ethos. To elImInate poverty, and
sImultaneously buIld a strong, proud and just natIon by harnessIng the educatIon, commItment and
skIlls of employees was the constant remInder.

The fIve key characterIstIcs of a professIonal's role In management of change annuncIated by KurIen
Include:

O The ethIc of masterIng one's subject
O A focus on other's need
O An InternalIzatIon of the exterIor world one serves
O ConstructIve Iconoclasm toward the bureaucracy and
O ClarIty of mInd about the many seemIngly small elements whIch make up great endeavors
As KurIen says addressIng the staff, young recruIts:

"Serve the farmer and he wIII enabIe you to preserve your professIonaIIsm, because he respects It
and because he vaIues your IntegrIty"

The dIrect lInk of a cooperatIve structure transferred to the producer the largest share of the
consumer's rupee, creatIng an IncentIve to Improve productIon. 8y placIng the farmer In command , as
the owner of the cooperatIve It Involved hIm In the process of development and creatIon of democratIc
InstItutIons rIght down to the level of vIllages by means of the "one member, one vote" prIncIple.

The board of dIrectors Is elected from the producers members, traInIng In accountIng and InformatIon
systems Is gIven and they can dIsmIss qualIfIed and experIenced professIonals who are responsIble for
operatIons management and marketIng, If found not to be promotIng the coop's Interests. 8eIng on
the board the observant producers develop a remarkable degree of managerIal skIlls and faIr amount of
famIlIarIty wIth the basIc technology Involved.

ElectIon contests are also spIrIted and the choIce of leadershIp Is governed by economIc and ratIonal
justIfIcatIons rather than polItIcal or communal prIorItIes. These cooperatIves also help In wardIng off
the consequences of natural dIsasters such as droughts and floods.

Dne notable feature of the system was the speed wIth whIch InformatIon was communIcated between
headquarters at Anand and the remotest vIllage and all kInds of InformatIon from notIces of meetIngs
and ImpendIng vIsIts reports of sIck anImals, shortage of fodder or cash. 7ets, traIned staff and mobIle
dIspensarIes are always avaIlable from the headquarters for tendIng sIck cattle.

Small and margInal farmers earn as much as 25 to J0 percent of theIr Income from mIlk and they have
over the years been able to augment thIs by 50 to 100 . t has also ben an uplIftIng experIence for the
communItIes once regarded as untouchables; they have become the largest producers of mIlk. The
rural communIty whIch was once InsIgnIfIcant experIenced a revolutIonary change In Its collectIve
sense of selfesteem.

Traders who once denIed them credIt, advanced seed and fertIlIzers and a bank loaned money to buy
cows and buffaloes. As the vIllagers worked harder and prospered alcoholIsm also declIned.

Normally at the end of each year the cooperatIve has made some profIt and out of the added sum
shareholderproducers receIve an annual bonus In proportIon to the value of the mIlk they have
supplIed durIng the year.

Shareholders also receIve a dIvIdend, and the paId staff get an annual bonus. Dut of a part of the
profIts allocatIons are made to varIous funds IncludIng reserve, educatIon, charIty, cattle development
etc. Farmers have learnt to be more receptIve, use resources effectIvely and effIcIently and be alert of
messages from the envIronment and to modIfy theIr decIsIons accordIngly.

From lessons In anImal husbandry and scIentIfIc practIce they are learnIng to plan theIr famIlIes and
take care of theIr dIetary and sanItary habIts. ExhIbItIons and annual competItIons encourage growth of
mIlk productIon - educatIon fIlms and demos are gIven - IncludIng educatIonal semInars.

As KurIen often says:
"We are not here to deveIop cows, but to deveIop peopIe".

ThIs Amul model has gIven rIse to several mIlk and other cooperatIves across Cujrat and the country
too.
by ShamIt 8agchI 2/08/2010 11:J9:00 P|
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2 commentaIres:

NIkhII KurugantI saId...
HI ShamIt,

lIked thIs post has a detaIled stuff on Amul but one of the Important thIng you could have talked
about Is the amul's marketIng strategy for the urban IndIa.

suggest that you vIsIt our blog for complete collectIon of amul advertIsements

have come across an other websIte that has a lot of collectIon of amul advertIsements vIsIt Ad
Heads
|arch 05, 2010 9:J9 A|

ShamIt agchI saId...
Thanks NIkhIl! The people perspectIve was captured here.
|arch 10, 2010 12:28 P