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Sumul or Surat Milk Union Limited, which is now renamed Cooperative Milk Producers Cooperative of the Surat District, is one of the 17 district unions that act as dairy manufacturing units for the Cooperative Milk Marketing Federation of Gujarat , the marketers of the Amul product brand. The Surat district has been a pioneer in India in channeling cotton and milk trade through cooperatives. Before SUMUL intervened, traditional private milk merchants dominated the area.
Private commerce was monopolizing the Milk market and exploiting both Milk Producers and Consumers alike. The purchase price of the milk that used to be set by merchants (traditional Bhatias) was very low and fluctuated from time to time in its sole discretion. These have taken advantage of the absence of infrastructure and processing facilities and have managed to prevent producers from obtaining equitable benefits from the marketable surplus generated. As such, their milk incomes were very low and they had no incentive for modern dairy production. Farmers resented the system, but were defenseless against these traditional restrictions and their own lack of resources.