Amul to set up five lakh litres per day capacity dairy plant in Varanasi

Asia's biggest milk brand Amul on 14 May 2014 announced to set up a dairy processing plant in Varanasi. The plant will initially process five lakh litres per day with the capacity to double the production.

Palanpur based Banas Dairy will set up the plant with the investment of 200 crore rupees. Banas Dairy is a member of the union of the Gujarat Cooperative Milk Marketing Federation that markets Amul.

Uttar Pradesh chief minister Akhilesh Yadav offered Amul 30 acres land in Varanasi.

Besides Varanasi, Banas Dairy also acquired 40 acres land in Kanpur and another 20 acres land in Lucknow to set up dairy processing plants, each with Rs 200 crore investments. Like the Varanasi plant, both Kanpur and Lucknow plants will have the capacity to process five lakh litres per day, expandable to 10 Lakh Litre per day (LLPD).

The setting up of dairy plants in these three places in Uttar Pradesh is a part of Akhilesh government to develop dairy sector in UP.

 Amul is the most preferred milk brand in all milk markets in UP including Varanasi, which consumes 75000 litres milk per day. Since Banas Dairy began procuring milk locally in UP based on Amul model of co-operatives, farmers in UP are getting better remuneration for their milk.

Although UP is India's largest milk producing state, the share of organized sector is only one lakh litres milk per day while private players were exploiting the farmers.