A cooperative is defined as a business owned and controlled equally by the people who use its services or by the people

who work there. In 1946, inspired by Vallabhbhai Patel and led by Morarji Desai and Tribhuvandas Patel, milk producers in Gujarats Kaira district went on strike, forcing the Bombay government to withdraw monopoly procurement rights conferred on a private diary. Later that year, the Kaira District Cooperative Milk Producers Union was registered, leading to the creation of the brand we know today as Amul. Amul is the largest food brand in India and world's Largest Pouched Milk Brand and currently Unions making up Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF) have 2.9 million producer members with milk collection average of 9.10 million litres per day. There were socio, economic and political issues within the community. After the AMUL cooperative came into existence these issues transformed and got resolved to an extent. The people were economically weak and the constraints of rural economy and the social organization posed. The nature of milk economy was weak and was not substantial enough to cope with the total economy. People from weaker sections did not had land and agriculture was not enough for smooth living. Dairy was acting as an auxiliary source of income. Constraints emerged in forms of the hierarchical nature of the traditional Indian social organization. For the different social groups within the society the milk economy, as a subsystem within the total agricultural economy, became either an auxiliary, intermediate, or subsistence economy. Let us explain each of these in some detail. AMUL gave exposure to the cooperative economic enterprise, organization, and technology to people. In Valasan village, Kaira district in 1958-59 the sale of milk was nearly half of the total agricultural income but after AMUL the income rose substantially. It wasnt just a cooperative but it lead to the fulfillment of the aspirations of the people. The women were looking for recognition in society, a status and the vulnerable group were looking for respect and upliftment in society. There was a gradual increase in the economic resources of an average farmer and this gave him/ her access to resources like land and cattle to flourish. The village cooperatives gave loans to people to buy buffalos. Due to non repayment of loans the cooperative played safe by not activating the loan mechanism itself hence it could not reach the segment of village society which needed its help the most. In Khadgodhara the women had to take milk twice a day to neighbouring village and their husband did not allow them. They did not used to get share of annual bonus and were not happy with the whole process. After they got associated with the AMUL cooperative became shareholders and got their share in annual bonus. Moreover now all the women got associated as they did not had to go far away to give milk. The vulnerable section also got together. This brought a new dimension in sociological structure where the women were leading and it gave birth to an army of managers who were able to take charge in other situations. The dependence of men was less and independent women with economic power stood up together. Women became shareholders, members, executives and chairperson.

The Milk cooperative became as a conjoint Economic activity across the Ethnic Divide. Cooperative dairying, cut across disproportionate benefits by ironing out the economic disadvantages imposed by the social hierarchy, particularly on the lower and the ex-untouchable castes. Regardless of their social background, the milk co-op treated all its shareholders as equals and thus proved to be a great social equalizer and also the maker of a new community of milk producers. Cooperative became as a Potential for Economic Development of the Poor. Not only the incomes but the social status of socially and economically backward groups uplifted. The land holdings of people increased, in 1918, 30 families of Venkars (ex-untouchables) had 100 acres of land, whereas in 1974, 60 families of Venkars had 250 acres of land. the Kshatriyas of Asodar made use of their extra income from milk to pay off their loans for acquiring land under the Land Tenancy Act. The Milk Co-op became as a lesson in Community Organization for Problem Solving. The milk co-op was a symbol of what could be achieved by means of organization, technology, and social concern. The capacity of single-commodity projects to have multidimensional impacts. The importance of commercial approach to development.