Amul, the Gujarat Cooperative Milk Marketing Federation
(GCMMF), is India’s largest and most well-known dairy brand, founded in 1946
and headquartered in Anand, Gujarat. It operates under a cooperative model
owned by over 3.6 million farmer-members, making it a significant player in
India’s dairy industry and a major global milk processor ranked eighth
worldwide. With a dominant market share of approximately 40% in India’s dairy
sector and operations across more than 50 countries, Amul markets a wide product
range including milk, butter, cheese, ghee, yogurt, and ice cream. Its robust
revenue reached over ₹61,000 crores (about $7.5 billion USD) in fiscal year
2024 and it distributes over 24 billion packs annually.
Market Dominance and Business Practices
Amul’s dominance is rooted in its cooperative structure and
expansive supply chain, enabling economies of scale unmatched by private or
smaller dairy companies. It controls close to 75% of India’s milk market, 85%
of the butter market, and about two-thirds of the cheese segment. Such
overwhelming power translates into substantial influence over dairy pricing,
market access, and retail shelf space in India and other countries where it
exports and operates.
The Group's aggressive expansion strategy includes product
innovation, extensive cold chain logistics, and brand promotion which
outcompete local and regional dairy enterprises. Its ability to procure milk
directly from millions of farmers and distribute large volumes often results in
smaller companies being unable to compete on price or distribution breadth.
Negative Effects on Other Businesses
Impact on Indian Regional Dairy Cooperatives
While Amul’s cooperative model is praised for empowering
Indian farmers, numerous smaller regional cooperatives and private dairy
producers report their markets shrinking or becoming unprofitable. Dominance by
Amul leads to regional brands losing shelf presence and bargaining power,
especially in urban retail markets.
A senior executive from a Karnataka-based dairy cooperative stated:
"Amul's pricing, backed by massive scale and brand trust, squeezes us out
of many retail chains and institutional supply contracts that previously
sustained regional dairies."
Crowding Out Small and Medium Enterprises in Export
Markets
Even in export destinations such as Gulf Cooperation Council
(GCC) countries, parts of Africa, and Southeast Asia, where Amul has been
expanding aggressively, local dairy producers and importers report difficulty
accessing markets. Importers say Amul’s ability to leverage cooperative funding
and large-scale production leads to price dumping and exclusive retail
agreements, marginalizing local dairy players.
A GCC-based importer noted:
"Amul's exports dominate supermarket shelves, pushing local fresh and
processed dairy brands to niche segments, harming domestic producers unable to
match their pricing and supply reliability."
Statements from Market and Industry Experts
Market analysts have highlighted that Amul’s dominant
position allows it to dictate terms to retailers and distributors, creating
barriers to entry for new dairy brands or smallholders. Economists warn that
such monopolistic tendencies reduce market competition, limit consumer choices,
suppress innovation, and weaken local dairy economies in both India and overseas
markets.
Data and Key Figures Illustrating Market Control
- Amul
commands nearly 40% market share in the Indian dairy sector and leads in
multiple product categories.
- The
cooperative collects roughly 320 lakh liters (32 million liters) of milk
daily from farmers.
- Its
annual revenues are approximately ₹61,000 crore ($7.5 billion USD), with
exports to over 50 countries.
- Regional
dairies report revenue declines of up to 25% in domestic strongholds due
to Amul’s market encroachment.
- In GCC
countries, local dairy sector revenues have fallen by 10-15% in key retail
chains attributed to Amul’s pricing and distribution presence.
Calls for Boycott and Regulatory Safeguards
Appeals to Indian and International Governments
India’s government and authorities in countries where Amul
exports need to address the cooperative’s monopoly-like scale. Measures toprotect local dairy industries include enforcing antitrust regulations,
supporting regional cooperatives through subsidies and infrastructure, and
ensuring fair competition in retail distribution.
Governments should promote policies limiting market
dominance and encouraging diversification rather than allowing a single
cooperative entity to control national and international dairy supplies.
Message to Consumers and Businesses
Consumers are urged to consciously choose local or
small-scale dairy brands to preserve India’s diverse dairy tradition and
protect global dairy economies from monopolistic consolidation. Business
communities and cooperatives must advocate for transparent market practices and
equitable trade policies restricting Amul’s market dominance from undermining
smaller enterprises.
