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Wednesday, December 30, 1998

Centre interference must cease at co-operatives: Amrita Patel 

Shilpa Joglekar  
Anand, Dec 29: If her predecessor's style was confrontationist, her's is persuasive. Amrita Patel, the new chairman of the National Dairy Development Board (NDDB), may have a style very different from that of V Kurien, but she comes from the same school. Clarity about what they stand for, their priorities and idealism are the same. She may have stepped into shoes difficult to fill, but she has set out an ambitious agenda for NDDB.

The first of these is replicating Anand in as many places as possible. So far, the co-operative movement has been a complete success only in Gujarat and to some extent in Maharashtra. According to a recent World Bank study, only in Gujarat is each co-operative a net earner. There have been other unlikely pockets of success, such as Bihar, but nowhere has the success been so comprehensive as in Gujarat. Says Patel, "My priority now is to bring more co-operatives into the fold."

One of the first things she did as chairman was to shortlist 100 co-operatives where there was maximumpotential and start setting the house in order. Last year, NDDB had started work on 20 weak co-operatives operating under various state bodies. But replicating the Anand model is not so simple. Says Patel, "To get the co-operatives functioning professionally, I have to first remove the government from co-operatives." While the government in this case translates into political interference, it just indicates how much the environment under which the NDDB must now operate has changed.

One reason for the success of milk co-operatives in Gujarat was that they were started 50 years ago when the political leadership was committed to the cause and they were professionally run. Kurien himself, at all costs, strove to keep the movement free of politics.

But 50 years after the movement first started, Patel has now inherited co-operatives in other states which are politically motivated. "I first need to ensure that the co-operatives are democratised. Which means fair elections are held, union boards are formed and a3-5 year rehabilitation plan is worked out." To start with, the co-operatives have to be convinced that government patronage is unneccesary. This, she admits, is a slow process. But giving her reason for optimism is Bihar, where milk co-operatives run almost entirely by women, have been a phenomenal success.

The NDDB is already stepping in to improve things. Says Patel, "We will provide the missing links. If procurement is the problem, we will help create the systems. If marketing is the drawback, we will provide the expertise. If they need funds to construct milk processing plants, we are right here." About 120 NDDB officers are already out in the field, supplying these much needed inputs to get them as close to the Anand model as possible.

Her other priority is making the existing ones more efficient. Yields have to be increased, and this has to be done only by improving the quality, not the numbers of livestock. With quality at the source being their biggest strength against competitors, NDDB hopes toimprove this advantage.

Patel acknowledges the competition at the doorstep. Aware of the marketing strength of the multinational giants they are competing with, she believes that the NDDB will have to gear up. "It is being tackled at the grassroot level. Our individual co-operatives have developed a range of products, moving up the value chain."

And here she is with the GCMMF. "Some kind of brand consolidation will be inevitable," she feels. But in what is typically her style, she is quick to add, "However, that will have to be decided by the co-operative bodies. They may or may not take our advice." She can count on her strengths - some 10 million households pour 68 mmt of milk into 77,645 village-level dairies every year. And for this she gives out cash payment twice a day, to the tune of Rs 4,000 crore a year.

"We have created a sourcing system no competitor will be able to match in a short time." But competition has in a way hit her where it hurts. Offering three times the salary and perks she can,the private sector has taken away some of her best people. As she replaces them, she hopes that they will have the same level of integrity and idealism that made the Anand experiment such an unqualified success -- financially and otherwise.

With about Rs 3,000 crore in assets under its belt (this does not account for the large real estate property that NDDB owns in Anand, Mumbai and Hyderabad), and acclaimed as a financial success globally, the institution is now branching into new territory. Says Patel, "With our expertise being called on by various agencies, we will see fee-based work increase." The NDDB is already trying to repeat its success in Sri Lanka, Kryghz, Ethiopia and Nepal. Within the country also, NDDB is leveraging its considerable experience into greenbacks.

For instance, NDDB's engineering department, created to execute work on the milk processing plants, is now bidding for any construction and engineering design work that they are qualified to take on. The very commercial concept ofindependent profit centres is now creeping in.

Training, once given free to whoever asked for it, will also cost. Says Patel, "People value your contribution only when they have to pay for it." The NDDB will now conduct training programmes even for the co-operatives under its umbrella for a fee.

Very quietly, the NDDB is moving into new territory -- be it putting weak co-operatives on their feet, or intensifying their efforts to make their brands stronger and taking on competition. The style in which it will be done may be different. The content remains the same.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.


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