Bihar’s milk trail to NCR

Nov 18 2012, 20:45 IST
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SummaryEarlier this month in a packed press meet, Bihar State Milk Co-operative Federation announced its entry into the ever-expanding milk distribution market in the national capital region, with the introduction of its products under the Sudha brand.

With Sudha brand of milk and dairy products from Bihar’s milk cooperative joining the list of state federations supplying milk to the NCR, the competition gets intense in the Delhi region milk market

Earlier this month in a packed press meet, Bihar State Milk Co-operative Federation (COMFED) announced its entry into the ever-expanding milk distribution market in the national capital region (NCR), with the introduction of its products under the Sudha brand.

With an estimated daily consumption of 70 lakh litres of milk in the Delhi region, Sudha is the latest entrant to the market, which is dominated by Amul (Gujarat Cooperative Milk Marketing Federation), the country's largest food product marketing organisation, Mother Dairy (owned by National Dairy Development Board) and private players. The consumption in Delhi region is expected to touch 100 lakh litres daily by 2020.

However, it would be sometime before Sudha makes its presence felt in NCR. “It shows that competition among 20-odd state milk marketing federations is hotting up, which would be beneficial for the consumers,” an official with the department of dairy and animal husbandry told FE.

The key onus of this competition goes to Amul, which has managed to emerge as the biggest packaged milk supplier in the country during the past one decade. “Milk distribution is a volume business and we try to expand our market through an aggressive marketing network,” an official with Gujarat Cooperative Milk Marketing Federation (GCMMF) said. Thanks to the Amul model, India has emerged as the largest milk producer in the world. More than 15 million farmers or milk producers sell their produce to 1.44 lakh dairy cooperative societies across the country. Then the milk is processed in 177 district cooperative unions and marketed by 22 state marketing federations to the consumers.

“India continues to be the largest milk producing nation, with production of 122 million tonnes in 2011-12. This is about 16% of the world's milk production. We are expecting 127 mt production of milk this year, which is likely to reach 180 mt by 2020,” PG Bhatol, chairman, GCMMF, recently stated.

The strategic move to enter the Delhi market by Sudha comes after its success in increasing milk procurement and marketing in Bihar, Jharkhand and other eastern states. Although Sudha's daily milk procurement volume of around 1.4 million litres is nowhere near Amul's 10.3 million litres, it shows that state cooperatives are coming of age and ready for competition. With

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