Tamil Nadu Chief Minister M.K. Stalin on May 25, 2023, sought Union Home Minister Amit Shah’s intervention to direct Amul to desist from milk procurement from the milk shed area of Aavin in Tamil Nadu with immediate effect, contending that it would create “unhealthy competition” between cooperatives engaged in procuring and marketing milk and milk products in various parts of the country.
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Pointing out that it has been a norm in India to let cooperatives thrive without infringing on each other’s milk-shed area, Mr. Stalin argued: “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 milk shed area which has been nurtured in true cooperative spirit over decades.”
Amul is a milk brand under the Gujarat Cooperative Milk Marketing Federation Limited, while Aavin is a milk brand under the Tamil Nadu Cooperative Milk Producers Federation Limited. According to a newspaper report, Amul, which was just selling their products through their outlets in the State, was to commence milk procurement in Tamil Nadu.
Amul has reportedly utilised their multi-state cooperative license to install chilling centres and a processing plant in Krishnagiri district and has planned to procure milk through Farmer Producer Organisations and Self Help Groups in and around Krishnagiri, Dharmapuri, Vellore, Ranipet, Tirupattur, Kancheepuram and Tiruvallur districts.
In his letter to Mr. Shah, Mr. Stalin contended: “This move by AMUL will create unhealthy competition between cooperatives engaged in procuring and marketing milk and milk products. 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.”
Aavin has been providing various inputs such as cattle feed, fodder, mineral mixture, animal health care and breeding services for animals of milk producers to increase and sustain milk production in Tamil Nadu, the Chief Minister pointed out and underlined that Aavin played a vital role in improving the livelihood of rural milk producers and also met the nutritional requirement of consumers.
Tamil Nadu, with a strong dairy cooperatives structure, a three-tier dairy cooperative system, has been functioning effectively since 1981 for the benefit of the rural milk producers and consumers.
Under the ambit of Aavin co-operative, 9,673 Milk Producers Co-operative Societies are functioning in rural areas. They procure 35 LLPD (lakh litre per day) of milk from about 4.5 lakh pouring members. “Under this current arrangement, the milk producers are assured of remunerative and uniform prices throughout the year by the cooperative societies,” he added.
