UP scrambles to save Parag from Amul

Sep 21 2012, 11:59 IST
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SummaryAmul, Mother Dairy attack led Akhilesh Yadav govt to rope in IIM-L and NID to save Parag.

National Institute of Design has been engaged to redesign the packaging of Parag products

Alarmed over Amul and Mother Dairy getting a foothoold in the UP market, the Akhilesh Yadav government has decided to improve the marketing of the state’s Parag dairy products and make their packaging more attractive.

For this purpose, the government has engaged Indian Institute of Management, Lucknow, to submit a plan to improve the marketing of UP Pradeshik Cooperative Dairy Federation Limited (UPPCDF), which makes Parag products. Ahmedabad-based National Institute of Design (NID) has been engaged to redesign the packaging of Parag products.

The Parag brand dairy products include ghee, table butter, curd, flavoured milk, plain milk, toned milk, kheer, butter milk, paneer, and sweets like peda, gulab jamun, rasgulla and kalakand.

UP Agriculture Production Commissioner Alok Ranjan said that IIM-Lucknow will study the operation and marketing of UPPCDF and give its report by the end of October. He said the NID will soon start its work and suggest attractive packaging designs for Parag. This is the first time since Parag brand was launched around 30 years ago that the packaging will be redesigned.

Officials said that the need for engaging these specialised institutions was felt because Gujarat-based Amul and Delhi-based Mother Dairy had captured parts of the dairy market in UP which was dominated by Parag until a few years ago. “ While Mother Dairy is dominating in western UP, Amul is gaining ground in other parts of the state,” said an official.

As these dairies are better organised, Parag is losing the market share day by day in small districts. UPPCDF has its collection and milk processing units in 59 districts, of whom 33 are now running in loss and four are closed. The districts units which are running in profit include Lucknow, Allahabad, Varanasi and Meerut.

Sources said that the installed capacity of UPPCDF dairy plants is 17.40 lakh litre per day, but only 36.84 per cent of that capacity is being utilised because the availability of milk to UPPDF has reduced, said an official.

The official said farmers preferred to sell milk to Amul and Mother Dairy becuase their payments are prompt. UPPCDF’s district level dairy federations have pending dues of Rs 55 crore to the farmers till September. Chief Minister Akhilesh Yadav had recently announced that government will pay all these dues.

Sources said pilferage is also problem in collection and distribution

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