Amul, the leading dairy brand, has once again become embroiled in a new controversy, this time in Tamil Nadu. This development comes shortly after facing intense political pressure in the neighboring state of Karnataka regarding the Nandini milk issue.
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Tamil Nadu CM Stalin on Thursday urged Home Minister Amit Shah to take prompt action and instruct the Gujarat-based dairy giant to immediately halt its involvement in milk procurement within the state.
Concerns are arising in Tamil Nadu as there is apprehension that Amul’s entry into the state might result in the loss of monopoly for Aavin, often referred to as the “milkman of the state,” in the domain of milk procurement.
According to PTI reports, Stalin penned a letter to Shah addressing various concerns related to milk procurement by the Kaira District Cooperative Milk Producers’ Union (Amul) within the Tamil Nadu milk shed area.
“Recently, it has come to the state government’s notice that Amul has utilised its multi-state cooperative license to install chilling centres and a processing plant in Krishnagiri district,” Stalin said.
According to a report from IANS, Amul has established a facility in Chittoor, Andhra Pradesh, where milk sourced from Vellore is being directed. The company has also disclosed plans to establish milk collection centers in various districts of Tamil Nadu, including Tiruvannamalai, Kancheepuram, Ranipet, Vellore, and Tiruvallur. These centers will be operated by Self Help Groups (SHGs) and cooperatives at the village level, as stated in the report.
“Also, Amul has planned to procure milk through FPOs and SHGs in and around Krishnagiri, Dharmapuri, Vellore, Ranipet, Tirupathur, Kancheepuram and Tiruvallur districts in Tamil Nadu.”
The Tamil Nadu leader made references to alleged infringements by Amul. “It has been a norm in India to let cooperatives thrive without infringing on each other’s milk-shed area. Such cross-procurement goes against the spirit of ‘Operation White Flood’ and will exacerbate problems for the consumers given the prevailing milk shortage scenario in the country. This act of AMUL infringes on Aavin’s (TN Co-operative Milk Producers Federation) milk shed area which has been nurtured in true cooperative spirit over decades,” he wrote.
According to the IANS report, the national dairy major is in the process of establishing an additional milk plant in Sri City, located merely 30 km away from the Tamil Nadu-Andhra Pradesh border. This development is expected to result in increased milk procurement from the districts of Erode, Tiruvannamalai, and Salem in Tamil Nadu. These districts have traditionally been suppliers to Aavin, the state’s milk cooperative.
“This move by AMUL will create unhealthy competition between cooperatives engaged in procuring and marketing milk and milk products,” Stalin observed.
Stalin underlined the key role of regional cooperatives in developing dairy business. “Regional cooperatives have been the bedrock of dairy development in the states and they are better placed to engage and nurture producers and to cushion consumers from arbitrary price hikes,” he said.
“Therefore, I request your urgent intervention to direct Amul to desist from milk procurement from the milk shed area of Aavin in Tamil Nadu with immediate effect,” the Chief Minister said.
It is noteworthy to mention that Amul had been exclusively selling its products in Tamil Nadu through its own outlets. Tamil Nadu, known for its robust dairy cooperatives, has been successfully operating a three-tier dairy cooperative system since 1981, benefiting both rural milk producers and consumers, Stalin emphasized, as reported by PTI.
He further said, “Aavin is our apex cooperative marketing federation. Under the ambit of Aavin co-operative, 9,673 Milk Producers Co-operative Societies are functioning in rural areas. They procure 35 LLPD of milk from about 4.5 lakh pouring members. Under this current arrangement, milk producers are assured of remunerative and uniform prices throughout the year by the cooperative societies.”
To bolster and ensure the continuous growth of milk production in Tamil Nadu, Aavin provides a range of essential resources to milk producers. These resources encompass cattle feed, fodder, mineral mixture, animal healthcare services, and breeding assistance for their livestock. Such support from Aavin plays a crucial role in sustaining and improving the milk production in the region.
Moreover, the Chief Minister emphasized that Aavin’s crucial role extends to guaranteeing the availability of premium milk and milk products to consumers at exceptionally affordable prices within our nation. Consequently, Aavin contributes significantly to enhancing the livelihoods of rural milk producers while fulfilling the nutritional needs of consumers.