AMUL TAKES THE CASHLESS WAY.
The same night that Donald Trump stunned pundits and became America’s President-elect, Indian Prime Minister NarendraModi dropped a bomb of his own: At midnight, his country’s 500- and 1,000-rupee notes would become “worthless little slips of paper.”
The ones impacted by demonetization in FMCG Sector are milk producers, village diary cooperative, manufacturers, distributors, wholesalers, retailers and consumers due to government policies, RBI policy and Banks.
Demonetisation came like a shot in the arm for India’s largest dairy co-operative that markets home-grown Amul brand of products.For nearly a decade, GCMMF was trying to go cashless, asking each of the 18,000 village level milk societies to get bank accounts opened for nearly 35 lakh farmers who are registered milk producers in the state. “Despite all our efforts and reminders, only 61% of the total farmers in our network had opened their bank accounts. Demonetisation came as a blessing for us,” said R S Sodhi, GCMMF’s managing director.
In Matunga, Amul has a store with largest selling products and knows the market well. When asked the Amul manager about the impact of demonetization on the brand Amul, he said, “We did face a few problems initially as the customers did not have enough change, nor did we. But on good will basis the products were given to the customers. In the beginning we did not have credit card/debit card machines so we were only accepting cash. We also don’t believe in PAYTM, as it is a big private company we cannot rely on it as it was already in a huge amount of loss.In the beginning we faced a decline of 20% sales overall but gradually it became stable and today the sales have raised upto the same level.”Many are skeptical the scheme will achieve its original aim—eradicating the untaxed “black money” that fuels corruption. India may be on the way to a more efficient, cashless economy—it’s just going to be a bumpy ride.
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