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Amul may acquire private land for proposed plant at Rajkot

The proposed plant of Gujarat Cooperative Milk Marketing Federation (GCMMF) in Rajkot is facing troubles because of want of land. The dairy giant has rejected a piece of 100-acre land that was identified by Rajkot collectorate near Anandpar because of its high price. GCMMF has demanded another piece of land.

The federation’s total budget for the proposed plant is around Rs 500 crore. Sources said that the 100-acre land offered by the Rajkot collectorate in revenue survey numbers of Anandpar, Navagam and Sokhda villages on Ahmedabad highway costs around Rs 2.75 crore per acre.

Amul has sought 100-acre land to install a milk processing plant with capacity of 30 lakh litre per day (LLPD).
“The plant and machinery cost is expected to cross Rs 300 crore so we need land at cheaper rate. We have asked the government to identify land on Bhavnagar road. If we do not find the government rate affordable, we will acquire private land,” GCMMF’s vice chairman Valamji Humbal told TOI.

Rajkot is a strategic location for a plant for milk coming from all districts of Saurashtra. Currently, around 30 LLPD from Saurashtra and Kutch is sent to Amul’s Gandhinagar plant where milk products like srikhand, chocolate, cheese and butter are manufactured. The Gandhinagar plant has capacity to process 50 LLPD.

“But milk procurement will increase to 60 LLPD during peak season of winter. We are doing everything to take surplus milk. But after one more season, if we won’t be able to commence our Rajkot plant, we will be forced to declare milk holiday for a day during peak winter. It will result in heavy loss to milk producers,” he said.
A day’s milk holiday would cost loss of around Rs 12 crore to milk producers in the region.

Transportation cost is Rs 30 lakh a day

GCMMF currently spends Rs 30 lakh per day for the transporting surplus milk from various parts of Saurashtra to Gandhinagar. This cost will be saved and the milk collection from this region will be increased once Rajkot plant commences operation. The time consumed in transportation of milk will also reduce. Milk collected from every location of Saurashtra travels around 300 km before reaching Gandhinagar plant.

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