Amul is set to revolutionize Uttar Pradesh’s dairy industry with a Rs 1,500 crore investment to establish 7,500 new dairy units. The expansion, including a new plant in Varanasi, aims to boost milk production, empower 2 lakh farmers, and create 5,000 jobs, strengthening Amul’s cooperative model and rural economy in the state.
Amul’s Bold Expansion in Uttar Pradesh to Boost Dairy Industry
In a significant move to bolster India’s dairy sector, Amul, the country’s leading dairy cooperative, has announced an ambitious plan to establish 7,500 new dairy units across Uttar Pradesh with an investment of Rs 1,500 crore. This expansion, spearheaded by the Gujarat Cooperative Milk Marketing Federation (GCMMF), is poised to transform the state’s dairy landscape, empower farmers, and create substantial employment opportunities.
A key component of this mega expansion is the construction of a state-of-the-art milk processing plant in Varanasi, the third Amul facility in Uttar Pradesh and the first in the Purvanchal region. Spread over 32 acres, this plant, built with an investment of Rs 500 crore, is expected to be operational by early 2026. The facility will have a processing capacity of 5 lakh litres of milk per day, significantly enhancing Amul’s ability to meet the growing demand for dairy products in the region.
The initiative aims to integrate approximately 2 lakh dairy farmers into Amul’s cooperative framework, providing them with better remuneration and access to modern dairy farming techniques. By procuring milk directly from farmers at the village level, Amul ensures higher returns for producers, reducing the role of intermediaries. This decentralized cooperative model, often referred to as the “Anand pattern,” has been a cornerstone of Amul’s success since its inception in 1946 and is now being replicated on a massive scale in Uttar Pradesh.
The Varanasi plant alone is projected to generate 5,000 direct and indirect employment opportunities, contributing to the socio-economic development of the region. Additionally, Amul plans to set up bulk milk chilling units (BMCUs) and automatic milk collection units (AMCUs) across the state to streamline milk procurement and ensure quality control. These units will be supported by the supply of high-quality animal feed through Amul’s network, further enhancing productivity and sustainability for farmers.
Uttar Pradesh, one of India’s largest milk-producing states, has a fragmented dairy sector with a significant presence of unorganized players. Amul’s entry into the state is expected to strengthen the organized dairy market, offering consumers high-quality milk and milk products while ensuring fair prices for farmers. The cooperative’s focus on sustainable practices, such as eco-friendly farming methods and waste minimization, aligns with its broader vision of supporting rural development.
This expansion follows Amul’s recent global forays, including its successful launch of fresh milk in the United States and Spain, signaling its intent to become a global dairy powerhouse. Domestically, the cooperative continues to dominate, with a turnover exceeding Rs 90,000 crore in FY25, driven by strong demand for its diverse product portfolio, including milk, butter, cheese, and ice cream.
Amul’s strategic push in Uttar Pradesh is also seen as a response to the state’s untapped dairy potential. With an average milk surplus of over 28 million litres per day, the state offers a fertile ground for Amul to expand its procurement and processing capabilities. The cooperative’s efforts are expected to reduce the influence of the unorganized sector, which currently accounts for a significant portion of milk trade in the state, thereby improving quality standards and farmer incomes.
The expansion has garnered support from local authorities, with the Uttar Pradesh government facilitating land allocation and infrastructure development for the Varanasi plant. Industry experts view this move as a game-changer for the state’s dairy economy, potentially setting a precedent for other states to strengthen their cooperative dairy models.
Disclaimer: This article is based on recent news reports, official statements from Amul, and industry insights available through web sources and posts on X. Information is accurate as of August 2025, but readers are advised to verify details with official Amul or government sources for the latest updates.