Amul takes away Anand from Hyderabad milk vendors

Hyderabad: The aggressive market thrust by the Gujarat Cooperative Milk Marketing Federation (GCMMF), which launches its brand Amul soon in Hyderabad, threatens the livelihood of several milk vendors in the city. 'The Taste of India' is planning to spread its reach from Anand in Gujarat to down south. It had launched its fresh milk in Goa recently and now, it plans to expand its base to Hyderabad.

It is learnt that the GCMMF proposes to reach out to bulk consumers directly. Normally, as per the existing system the major dairies in the state have a network consisting of dealer who supplies to the vendor and the vendor reaches out to the customer. But it is understood that Amul wants to do away with the vendor system and supply milk directly to the bulk consumers like Restaurants, Hotels etc., at a rate less than what the vendors supply.

This, analysts say could result in two kinds of problems. It would first affect about 10,000 vendors who are making a living earning anything from Rs 6000 to Rs 10,000 a month as they would lose their livelihood. Later it will affect the other cooperative dairies in the State as bulk customers would prefer Amul milk since they would be getting it at a cheaper rate. This would force the existing dairies also to follow the Amul path and by pass the vendors resulting in collapse of the vendor system.