Amul is an embodiment of faith – faith in the ability of our farmers to break the shackles of poverty and oppression and to create a socio-economic revolution in rural India. At the same time, it had multidimensional impact on rural economy and society: - generating higher income and employment opportunities, facilitating education, enhancing nutrition levels, addressing gender issues and contributing to village-level social amenities. Through the “Anand Pattern” diary cooperatives, our farmers demonstrated to the world, the key to successful “Management of Development”. Diary cooperatives have provided the farmers, a steady source of income, enhancing their earning and enabling them to improve their standard of living.

Operation Flood, which was perhaps, world’s largest development programme, was based on the rich experience gained from the Amul model, also popularly known as ‘Anand Pattern’. ‘Anand Pattern’ is an innovative three-tier organisation structure combines the productive genius of farmers with professional management and modern technology. The facilities at all levels are entirely farmer-owned. The cooperatives are able to build markets, supply inputs and create value-added processing. Prompt and remunerative payment for produce of good quality has ensured the best incentive for the farmer to increase production and quality.

The three-tier “Anand Pattern’ structure consists of a Cooperative Society at village level affiliated to a Milk Union at District level and they are further federated into a Milk Federation at State level. The above three-tier structure was formed in order to delegate responsibilities at various levels such that there is no internal competition and economics of scale is achieved.

The Village Cooperative is the primary society under the three-tier structure. It has membership of milk producers of the village (approximately 200 member milk producers per village) and is governed by an elected Management Committee consisting of 9 to 12 elected representatives of the milk producers. The main function of this cooperative society is to collect surplus milk from the milk producers of the village and make payment based on quality and quantity. It also provide support services to the members like Veterinary First Aid, Artificial Insemination Services, Cattle-feed sales, mineral mixture sales, fodder & fodder seed sales, conducting training on Animal Husbandry and Dairying, etc.

The district-level Milk Union is the second tier under the three-tier structure. It has membership of Village Societies of the District and is governed by a Board of Directors consisting of 9 to 18 elected representatives of the Village Societies. The main function of the Milk Union is to process milk into various milk and milk products as per the market requirement. The Union procures milk from the Village Societies of the District and arranges for the transportation of raw milk from the villages to the Milk Union. It also provides input services to the producers and other support to the village level societies.

The State-level Federation is the apex tier under the three-tier structure. It has membership of Milk Unions of the State and is governed by a Board of Directors consisting of one elected representative of each Milk Union. The main function of the Federation is to market the milk and milk products, manufactured by Milk Unions. The Federation establishes distribution network for marketing of milk and milk products and maintains the supply chair network. It also provides support services to the Milk Unions and members like Technical Inputs, Management support and Advisory services.

As a direct consequence of ‘Operation Flood’ and the Amul model, India is now the leading milk producer in the world, with a milk production of 91 million MTs/ annum. The cooperative structure now touches the lives of 11 million farmer households across India. In Gujarat itself, 2.4 million farmer households form a part of the large Amul family. Dairying has now become an attractive source of livelihood; bring prosperity and economic development to rural India.