The India-US trade agreement is a significant opportunity for farmers and a significant milestone for the nation’s dairy industry, according to Jayen Mehta, Managing Director of the Gujarat Cooperative Milk Marketing Federation Limited, which runs the Amul brand.
In an interview with Arvind Sharma, special correspondent for Dainik Jagran, he stated that this agreement will boost milk producers’ incomes and the cooperative system in addition to giving Indian dairy goods a new identity on the international market.
What is the most significant aspect of the trade agreement between India and the United States?
In response, this is a delicate balance. The protection of our home market will coexist with the opening of lucrative markets such as America for Indian goods. Above all, this agreement does not jeopardize the interests of livestock and agricultural producers. Farmers’ interests are of utmost importance, as Prime Minister Narendra Modi has stated.
On that stance, the government has not wavered. Since dairy products were left out of this agreement, foreign competition has not been allowed in India’s dairy market. Additionally, this agreement will strengthen cooperatives. India is going to make more progress in its goal of being the “Dairy to the World.”
To what extent is this agreement beneficial to farmers and livestock producers?
The direct benefit to them is the answer. The opening of the dairy industry to foreign corporations might result in losses for milk producers of about ₹1.5 lakh crore. The government safeguarded the dairy industry after realizing the threat. In the nation, between 80 million and 100 million families work as milk producers.
This choice has guaranteed their standard of life, job, and income stability. Additionally, when it comes to agricultural items with restricted market access, our farmers can compete with American farmers.
What effect will this transaction have on customers? Will the cost of milk and ghee increase or decrease? How will it affect farmers’ earnings over the next five years?
Answer: Customers do not have to be concerned. There would not be any negative impact on the pricing of milk, yogurt, ghee, or butter because foreign dairy products will not enter India. Conversely, there has already been a substantial domestic GST reduction.
There is no longer a 12% tax on cheese and butter, and there is no longer a 5% duty on tetrapack milk. As a result, demand has grown and prices have stabilized. The next five years should see a large boost in farmers’ incomes due to new markets and improved technology. In order to cut expenses, Amul is also working on breed improvement.
What effect will this deal have on Amul’s exports and business?
Amul has 3.6 million farmer families as its members, and it operates milk markets in 18,600 Gujarati villages. A significant accomplishment for us is that India has not granted access to the Indian market to major milk-producing nations as part of the agreement.
In contrast, the United States has lowered the import tax on dairy goods from fifty percent to eighteen percent. This will increase the competitiveness of Indian goods on the global market and create new export prospects. This year, Amul’s turnover hit ₹90,000 crore, and by the fiscal year 2026, the company wants to reach ₹1 lakh crore.
In what ways will Amul’s current and upcoming initiatives contribute to farmers’ increased income?
Answer: We prioritize bolstering the farmers’ value chain in addition to buying milk. We currently gather about 35 million liters of milk daily. We provide farmers a clear system, prompt payment, and a fair price. Direct bank account payments boost the rural economy.
More milk entering the cooperative sector will guarantee farmers a steady income. In contrast to other countries where only 30 to 35 percent of the profits go to the farmers, 80 percent of the proceeds from the purchase of an Amul milk product go to the farmers’ accounts.
What steps is Amul taking to enhance the quality of milk, animal feed, and animal health?
Answer: The foundation of the dairy and cattle industries is high-quality animal feed. Amul produces over 12,000 tons of high-quality feed each day from its eight animal feed facilities. De-oiled rice bran, corn, rapeseed extract, and molasses make up this mixture.
The indigenous availability of all ingredients eliminates reliance on imports. Amul has created a system based on artificial intelligence that gives cattle farmers round-the-clock guidance on the health, nutrition, and breed of their cows.
Q: Amul operates in roughly 12 states at the moment. Will you be expanding to the other states?
Answer: There are twenty states, sir, thus it is not twelve. About two lakh Indian villages have milk markets, and the size of organized dairy will grow significantly over the next ten years. Twenty lakh people are members outside of Gujarat as well. There are 118 Amul plants in the nation. at Bihar, there are plants at Gaya and Patna.
In Ranchi, Jharkhand, there is a plant. UP has four plants. Our goal is to spread the milk cooperative model throughout the nation so that as many farmers as possible can become members. An important step in this regard is the establishment of the largest curd facility in the world in Kolkata.
What part will Amul play in achieving the objective of establishing dairy cooperatives in each Panchayat by 2029?
The objective is visionary. For eight decades, Amul’s cooperative approach has been effective. There will be twice as many dairy cooperatives. Amul’s expertise, technology, and training can be very helpful in the establishment of new dairy societies. We plan to open 20,000 milk markets in a year. The strength of cooperatives will boost the incomes of farmers, empower women, and strengthen villages.
