Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do. There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Now as I approach my 90th birthday ( 27 June 2023 ) , I invite you to visit my Digital Avatar ( www.hemenparekh.ai ) – and continue chatting with me , even when I am no more here physically

Thursday, 2 July 2020

Irony of Amul




Context :


Extract :

Faced with ample stocks of skimmed milk powder (SMP) amid demand disruption in the bulk consuming sector, largest dairy player Amul has approached the Gujarat government seeking a 160-crore financial incentive to export the surplus stocks.

And we have collected record milk during the lockdown period and converted it into SMP and white butter. Now, there is about 1.25 lakh tonnes of stocks of SMP available in the country,” said Sodhi told BusinessLine.

During the lockdown period, Amul had procured additional 40-50 lakh litres of milk from producers, but due to insufficient bulk demand, it is now sitting on SMP stocks of about 80,000 tonnes.

SMP prices have seen a sharp decline from a peak of 330 per kg before the lockdown in December 2019-January 2020 to about 130 a kg in June

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Where is the IRONY ?


Some 50 years ago, I had an opportunity to attend a lecture by Shri Verghese Kurien ( Father of India’s White Revolution )

He narrated the following episode from those early days of Amul :


He wanted lakhs of people to drink milk but there was insufficient supplies from dairy farmers, in and around city of Anand ( Gujarat )


That is when he read that Dutch dairy farmers had overstocked on Skimmed Milk Powder and, in order to sustain a profitable price-level, they were destroying this excess stock by dumping into the sea


He approached the Dutch Government and said :

“ To sustain price level, you don’t have to dump milk powder in the sea. Just gift your surplus stock to Amul. I will add some water, convert into milk and give it to poor people of India “


To the Dutch Government, this logic appealed. It would also be a philanthropic act !


They said : 

“ Granted . Take as much as you want . Bring your ships and load up “


But the Dutch Government was totally unprepared for what Verghese said next :


“ I have no money to rent ships. Please pay the rent directly to Shipping companies. It will still cost you less than the cost that you are incurring in destroying your surplus stocks “


The Dutch Government could not find fault with logic / arithmetic of Verghese  !


They agreed !


As they say :  Rest is History !


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If Verghese was still around, he would have told Shri Vijaybhai Rupani ( CM-Gujarat ) :


 Amul is a “ for profit “ co-operative society that is owned by lakhs of poor dairy farmers


 Due to Covid, these farmers are already on the brink of starvation


Hence, Amul cannot give away these 80,000 tons of SMP for free


But you- the Government of Gujarat – certainly can


Please pay Amul , take these stock and distribute FREE , 100 grams , to each of the 80 crore poor persons, all over India, to whom the Central Government is going to give 5 kg of FREE food-grains during July-Nov


Let Gujarat demonstrate that it cares for the poor, wherever they might be living / working


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Dear Vijaybhai Rupaniji,



(   079-23250074 / 9824811186  )


Not only Verghese but if Bapu too was around, he would have made the same request to you



With regards,

Hemen Parekh

hcp@RecruitGuru.com  /  03 July 2020





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