It is highly befitting to look back at the deeds of one of the greatest managers of post independent India who is instrumental in touching the lives of more than 15 million farmers and giving more than 200 brands on his 90th birthday (recently celebrated on the 26th of November). He is no other than Verghese Kurien popularly referred to as the ‘milk man of India’ and the ‘architect of Operation Flood’ who made India the largest milk producer in the world from being an importer of milk products.
While the policy makers (government, RBI), economists and industry analysts are grappling with double digit food inflation for significant time, Kurien’s chosen path has lots to offer. When the political parties are divided over allowing FDI in multi brand retailing and its ramifications for the small farmers, retailers etc., what Kurien has delivered on the ground can throw more light. The three tiered Anand pattern of milk cooperative societies have proven that small rural producers can be successfully integrated in agricultural value chain from the farm gate to the consumer doorstep. We can draw lessons about the way production systems like agriculture, agri-allied activities can be organised with no compromise on technology, quality and with simultaneous stress on democratic processes in peoples’ institutions like cooperatives.
Kurien always strongly believed that rural India equally and more urgently needs professional managers and management techniques to incentivize production, create economies of scale and most importantly making the rural producer institutions competitive in the market. Hence, he came out of IIM, Ahmedabad board and gave shape to his dream through Institute of Rural Management Anand (IRMA). He wanted IRMA to be the best blend of management practices and development orientation.
Management techniques have evolved over a period of time to a great degree of sophistication to suit the complex business realities. It is equally and possibly even more challenging to apply management techniques like Project Management (PERT, CPM), linear programming to operationalise rural livelihood projects. AMUL demonstrated that the best of ‘Sales and Distribution’ techniques, ‘Supply Chain Management’, ‘Branding and Advertising’ strategies can be used to compete and continue to be the largest food products selling entity in India. There is absolutely no problem in allowing FDI in retailing if it can lead to efficient to efficient supply chain and more remunerative prices for the farmers.
Simultaneously and even more urgently, we must work on organizing producer institutions like AMUL to make more and more small farmers part of this process. The transitional phase of Indian economy is marked by sharp reduction in agriculture’s contribution to GDP (around 15% now) with no corresponding decline in the workforce dependent on agriculture (still pegged around 50%). Phrases like ‘Inclusive Growth’ will prove merely rhetorical unless more people become part of the growth bandwagon.
Kurien rightly appreciated the necessity of building such institutions which can stand the reality of cut throat market competition. He says that for every Anand to prosper there must be a market in the form of Mumbai. He had the strong conviction that cooperatives must first become commercially viable and later can take up other activities. Hence, he always maintained that political interests should never guide the functioning of these producer institutions. Even the professional managers working for the cooperatives are mere employees of the farmers who are the real owners. Kurien strongly viewed cooperatives as best means to equalize people across castes and creeds especially the lower sections.
Growing urban centers provide huge opportunities for supply of daily essentials like fruits, vegetables, meat, milk etc. In fact, the galloping food inflation which is proving difficult to tame is largely attributed to changing food habits of our population which is gradually moving towards protein rich diet. Hence supply side constraints in agriculture need to be addressed to improve production which can address inflation. Mission mode orientation that was present when we implemented ‘Operation Flood’ or ‘Green Revolution’ must come back with more intensity.
As Gyanendra sir tells us in the academy, employment elasticity of growth projects must become one of our key concerns. Huge proportion of our working population is only of help when we match, repair and prepare their skillset as per the requirements of the new generation economy. Hence MNREGA, Food Security Act are appreciable only in the short run. They are more like relief projects addressing the immediate concerns of work and food. But, MNREGA must become a livelihood generator with every rupee spent on it giving back the community some degree of livelihood security. Watershed management, horticulture and improved agriculture all can be taken under MNREGA with more livelihood focus.
The sequence of rural development programmes like Integrated Rural Development Programme (IRDP) in 80s, 90s – Swarna Jayanti Gram Swarojgar Yojana (SGSY) till 2010 – National Rural Livelihoods Mission (NRLM) now also explain our journey of varying degree of understanding about effectiveness of various poverty alleviation strategies. The time now has come to make the community capable to take charge of its developmental discourse.
We cannot but become more uncomfortable when we read a recent article* written by Amartya Sen and Jean Dreze after the release of this year’s Human Development Report. Though India is doing relatively well in terms of per capita income, it has starting falling behind every other South Asian neighbor (with the partial exception of Pakistan) in terms of social indicators. Is it not criminal on our part that we allow some children go hungry even today (malnutrition rates stand close to 50%)? Why universal immunization is a distant dream and children continue to die out of encephalitis?
There is something surely to be corrected in our development strategy which seems to have produced certain spectacular success and massive failure at the same time. Kurien during his entire working life walked the talk and showed us way forward. Hopefully, his deeds make more Indians inspired to use the best of modern management techniques, technology for the benefit of greater numbers of our population As Kurien says ‘we must feel inspired and privileged to work where we are required the most and not where we are rewarded the most’.
*(“Putting Growth In Its Place” by Jean Dreze and Amartya Sen in Outlook Magazine dated 14th November, 2011)