DMPQ Premium- Discuss the origin and Socio-economic impact of co-operative movement in Gujrat.

The cooperative movement in Gujarat started with a modest attempt to organize 20 villages in Kheda district of Gujarat to collectively produce and supply milk to Bombay. This model of co-operatives was later expanded to Kheda district to form Anand Milk Union, widely known as Amul, and then, under the National Dairy Development Board, to other districts of Gujarat in the 1970s and to 170 districts of India in 1980s. The village co-operatives are linked to the markets through district level cooperatives.

Dairy industry in Gujarat state is well-established at present and is taken as a model for replicating in other states of the country. The dairy sector in the state assumes key importance as it is a business that helps generate the best alternative additional income and employment for poor, rural farmers. Milch animal-holders feed and nourish dairy animals with crop residuals and agriculture by-products available with them.

The co-operative dairy structure is very sound is central, north and partially in the southern region of the state. The milk producers of these regions have no major problem for the marketing of milk even in flush seasons. Majority of milk producers of these region sell their milk through milk co-operative societies. Few producers sell milk either directly to consumers or to milk vendor/middlemen. The exploitation of milk producers by milk vendor/ middlemen is low due to the existence of cooperative societies in the village.

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