Amul Ranked World’s Number 1 Cooperative, Iffco Second

Amul and IFFCO: India's Cooperative Triumph on the Global Stage

A quiet but remarkable milestone was achieved when Amul, under the stewardship of the Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF), was ranked as the world’s number one cooperative in the ICA World Cooperative Monitor 2025. With over 18,600 village-level dairy cooperatives and 3.6 million milk producers—most of them women—this achievement is also symbolic of rural India’s transformation. Following closely, the Indian Farmers Fertiliser Cooperative Limited (IFFCO), the world’s largest fertilizer cooperative, secured the second spot. This recognition reaffirms India’s historically formidable cooperative model. But scale and achievement aside, the global ranking also invites introspection: Are our cooperatives keeping up with evolving global challenges, or are structural inefficiencies holding them back?

Institutional Infrastructure Driving Amul and IFFCO

Amul’s triumph is underpinned by its unique three-tier cooperative structure. At the grassroots, village-level dairy societies collect and supply milk, which then feeds into 18 state-level milk unions responsible for processing. These unions collectively market under the umbrella of GCMMF, which exclusively promotes the Amul brand. Additionally, Amul’s operating model ensures equity through its one-member, one-vote principle, directing surpluses back to its farmer members rather than private shareholders. These facets exemplify the essence of cooperatives as democratic, member-owned enterprises.

Similarly, IFFCO has been built on democratic governance. Established in 1967, it now boasts a network encompassing over 36,000 cooperative societies, producing 9.1 million metric tonnes of fertilizer annually. Beyond rankings, IFFCO’s topline underscores its vital role in India’s agricultural economy: a turnover of ₹57,778 crore in FY 2025.

These achievements also reflect the framework laid down by the 97th Constitutional Amendment (2011). It safeguarded the fundamental right to form cooperatives under Article 19, while introducing Part IX-B of the Constitution for their governance. Moreover, in multi-state cooperatives like Amul and IFFCO, the Multi-State Cooperative Societies Act, 2002 ensures regulatory cohesion across state boundaries, supervised by the newly created Ministry of Cooperation (established 2021).

Uneven Outcomes and Persistent Challenges

Beneath the gleaming veneer of Amul and IFFCO’s success lies a sobering truth: such stories are the exception, not the norm, in India’s cooperative sector. While Amul’s scale minimizes inefficiencies, smaller cooperatives remain vulnerable to governance issues, political interference, and corruption. The problem of weak institutional capacity has long plagued state-level dairy or credit cooperatives, where bureaucratic control stifles grassroots agency.

Consider the issue of technological gaps. While Amul has embraced digital integration in milk collection and logistics, smaller cooperatives often lag, constrained by inadequate infrastructure and resources. A recent State of Indian Cooperatives study (2023) found that 68% of cooperatives lacked basic digital systems for financial management. This technological inertia hampers their ability to compete with private enterprises like Reliance Fresh or multinational agribusinesses.

Further, cooperatives face constraints in accessing credit. Despite RBI frameworks for cooperative banking, rural cooperatives often struggle with non-performing assets (NPAs). This inhibits their ability to reinvest in member services, perpetuating inefficiency. The political economy adds a layer of tension—state-run cooperatives are frequently beholden to local powerbrokers, diluting the cooperative principle of autonomy.

Global Cooperatives: The New Zealand Paradigm

India must also contend with sharper global benchmarks. Consider Fonterra, New Zealand's leading dairy cooperative. Though it shares structural similarities with Amul—including being farmer-owned—Fonterra has built a robust export focus, contributing nearly 30% of global dairy trade. Key enablers include regulatory systems that permit latitude in international growth while holding cooperatives accountable through stringent quality controls. In contrast, Amul is still largely inward-facing, with exports contributing just 2-3% of its revenue. Expansion into global markets remains hampered by protective policies that shield domestic players, but at the cost of capping global ambitions.

Reforming India’s Cooperative Model

The government’s emphasis on cooperatives, particularly under the new Ministry of Cooperation, signals intent, but the path forward is fraught with complexities. Success would mean addressing India’s key structural issues: ensuring governance autonomy by insulating cooperatives from political interference; promoting digital transformation to improve efficiency and competitiveness; and devising targeted credit schemes to support struggling rural cooperatives.

Moreover, cooperatives must align with market realities. As seen in Amul’s integration of private sector efficiencies while retaining its cooperative roots, bringing in professional management at scale is non-negotiable. Without modernization, smaller cooperatives will continue to lose ground to private enterprises that deploy flexible, technology-driven operations.

Tracking Cooperative Development

To ensure substantive progress, several metrics demand closer tracking. These include:

• Annual turnover and member income growth across cooperatives, particularly smaller societies.
• Percentage of cooperatives adopting digital platforms for governance and financial operations.
• Export revenue share for cooperatives, particularly in sectors like dairy and agriculture.

Ultimately, the global rankings could spur Indian cooperatives to recalibrate. But much hinges on overcoming systemic stumbling blocks—gaps in technology, governance, and finance—that risk fossilizing the sector.

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