Interview of the week — Verghese Kurien

I am 76 years old and I think the time has come to entrust the chairmanship of the board to someone who is more vigorous and able to handle it in a better way.

Why have you suggested the name of Amrita Patel as your successor?

In my resignation letter, I have said that while it was entirely within the purview of the government to appoint my successor, `may I venture to suggest’, so it’s only a suggestion, that Amrita Patel has been groomed here to take up the responsibility.

Isn’t she a veterinarian bytraining?

Yes, but she is known for her administrative and managerial competence. She is one of the best women managers in the country. I may also mention that she is the first woman ever to be on the board of the Reserve Bank of India.

You have been associated with the NDDB right since its inception in 1965. How do you sum up your tenure?

The NDDB Act stipulates that the board is an autonomous institution of national importance. It specifies the powers of the board, and gives it freedom and flexibility of operation. Therefore, I thought I had the duty to protect its freedom and I have protected that freedom while I did my work.

Then you must have had quite a few brushes with politicians.

(Laughs) There are politicians and politicians. I had brushes, and I also benefited from them. Tribhuvandas Patel, who was chairman of Amul, was a politician. He made me what I am. He was my guru.

Successes like Anand are few and far between. In fact, cooperatives have benefited politiciansmore than farmers. Why has it happened?

In fact, there have been no cooperatives in India. You may register it as a cooperative, but if you put in an IAS officer as the managing director who is a government official — how is it a cooperative? Is he answerable to the farmers? Or their elected representatives? I say the cooperatives have never had a chance in India. Amul was an exception.

What needs to be done to make cooperatives stronger?

First, there should be an elected board. And it should have the wisdom to employ professionals to manage the cooperative.

You have been demanding a level-playing field for cooperatives. What do you mean by it?

Are you aware that under the cooperative law, I need the permission of the Registrar of cooperative societies to open a sales depot of Amul outside Gujarat? The Registrar is meant to register societies but he has become the boss. It is as good as making J.R.D. Tata subordinate to the Registrar of Companies.

You have been asking forliberalisation for cooperatives but you oppose liberalisation for the private sector?

How do I function if you liberalise the private sector? I have to compete with them, but my hands are tied. How can I act if I have to get the permission of the Registrar for everything? Before liberalising the private sector, the cooperative sector should be fully liberalised.

NDDB and you, personally, are regarded as opponents of the opening up of the dairy industry to multinationals. Your comment?

What is special about multinationals? There is Glaxo in India, Lever is in India, Cadbury, Nestle! They are all running dairy plants. Who has stopped them? We can take on any competition. I have nothing to fear, provided the laws applied on me are also applied on them.

It has been said that Amul’s spectacular performance is due to the monopoly it enjoyed for long in milk collection, processing and marketing. Your comment?

(Somewhat annoyed) Sorry! You are not right. There is no monopoly forcooperatives. Anyone can collect milk from a village. During festivals, merchants do collect milk and make `mawa’.

Why couldn’t the Anand pattern be replicated successfully in many areas? Why couldn’t dairy industry be developed in a nearby State like UP?

The case of UP reminds me of a very beautiful Governor we had here, Sharda Mukherjee. She was a friend of mine. When she was retiring, she told me that she was going to settle in Ratnagiri and asked me to build an Amul dairy there. I told her: `Madam, I have noted your desire. But I have also got a desire. I want you to grow Alphonso mangoes in Kaira district’. She said Alphonso mangoes could not be grown in Kaira. I then told her why should you produce milk where it is not economical to do so, when you can transport it from one corner of the country to another.

As Chairman of NDDB, you are responsible for the growth of dairies in all States. Simultaneously, you are also Chairman of the Gujarat Cooperative Milk Marketing Federation. There areallegations that NDDB has set up more plants in Gujarat than in any other State.

Your information is wrong. There are 175 Anands in 22 States in India. Where I have not set up is Sikkim. Even there we built a dairy. Probably, it is handling yak’s milk, I don’t know. There are areas where dairies are not viable and I will not build them.

Why did you refuse to submit your accounts for an audit by the Comptroller and Auditor General of India?

The NDDB Act says my accounts will be audited by a chartered accountant whom I appoint after obtaining the approval of the Government of India. The CAG said that, under his act, he could audit my accounts. I obtained the opinion of former Chief Justice of India P.N. Bhagwati and Soli Sorabjee. They said CAG cannot audit my accounts. So I told CAG, look these legal luminaries clearly say you cannot audit my accounts. As Chairman, it is my duty to protect the autonomy of the board. I am not prepared to have rape committed upon me by anyone who walks by. n Howdo you look at the future of cooperatives? After opening up of the sugar industry, against which cooperatives have protested, it could be the turn of the dairy industry next.

Cooperatives are quite capable of taking care of themselves. What I would object to is dumping of subsidised milk from other countries. Whatever Europe and America are exporting is subsidised to the extent of 65 per cent.

What are your future plans?

At 76, you don’t have a future, you have a past. I owe no one anything, no one owes me anything. I have done my job to the best of my ability. I have trained my successor, as I should have. And I hope the government will appoint her.