Union threatens to withdraw brand Amul from GCMMF

The state of affairs at the country’s largest dairy cooperative, Gujarat Cooperative Milk Marketing Federation (GCMMF), are getting murky, with one of its affiliate cooperative unions threatening to withdraw the brand Amul lent to the parent federation.

The Kheda District Cooperative Milk Producers Union, which is part of GCMMF, today threatened to withdraw the licence granted to GCMMF to market its products under the Amul brand name. Kheda owns the brand and the logo since 1974 and had lent it to the federation for marketing.

“Due to infighting in GCMMF, nearly 2.7 million dairy farmers associated with it have not got dividend. Small unions are not able to maintain the quality. Because of this, the brand Amul is getting affected,” Ramsinh Parmar, chairman, Kheda Union (known as Amul dairy), said.

“We are thinking of withdrawing the Amul brand from the federation as it is a question of reputation for the brand, which is trusted by tens of millions,” Parmar said.

“We shall be discussing this issue at the next annual general meeting of the federation,” he added.

However, GCMMF Chairman Parthi Bhatol said the Kheda union cannot take back the brand, as both the parties have entered into an agreement. “The issue of trademark or brand withdrawal was raised in the past also, when Pravin Patel was the chairman of Kheda Union. Then, an agreement was signed between Kheda Union and GCMMF, laying down the terms and conditions for brand withdrawal,” Bhatol said.

“Today, Amul is a brand of 3 million farmers in the state and nobody can withdraw the brand name just like that. A lot of conditions have to be met before a union like Kheda can withdraw it,” he said.

“As far as quality of milk is concerned, the federation has appointed qualified certifier at every dairy for quality control checks, so there is no question that there will be compromise with the quality of milk being sold under the Amul brand name,” Bhatol further said.

Two successive board meetings of GCMMF convened on May 4 and 25 this year to pass the financial results for 2009-2010 and discuss the budget for next year could not be held due to non-quorum. The dividend of dairy farmers is also approved during this meet.

Some board members of the nation’s largest milk cooperative want chairman Bhatol to step down, while he is determined to complete his second term.

Following internal bickering, BM Vyas, managing director of the federation, resigned last week.