Amul vs Aavin: After Karnataka, Amul lands in trouble in Tamil Nadu; CM MK Stalin asks Amit Shah to intervene
3 min read 25 May 2023, 08:06 PM ISTAmul vs Aavin: The Chief Minister wrote that the decision of AMUL to operate in Tamil Nadu is unfortunate, detrimental to the interest of Aavin and will create unhealthy competition between the cooperatives.
PremiumAfter Gujarat-based dairy giant Amul faced backlash in Karnataka, now Tamil Nadu Chief Minister M K Stalin has urged Union Home Minister Amit Shah to intervene and direct the brand to desist from milk procurement in the state with immediate effect.
The Chief Minister wrote that the decision of AMUL to operate in Tamil Nadu is unfortunate, detrimental to the interest of Aavin and will create unhealthy competition between the cooperatives.
In a letter to the Home Minister, MK Stalin drew the Centre's attention to the issues arising out of milk procurement by the Kaira District Cooperative Milk Producers' Union (Amul) in the Tamil Nadu milk shed area.
Also Read: After Amul vs Nandini, Kerala milk federations now stops Nandini to enter state | Explained
“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. 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," he wrote.
"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."
Further adding, CM wrote, "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. 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.
Price of Aavin vs Amul milk in Tamil Nadu
Aavin comes under the Tamil Nadu Cooperative Milk Producers Federation Limited. 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.
As per the Aavian website, Premium Full Cream Milk is price at ₹30 for 500 ml whereas the price of half ltr Aavin Green Magic (Standardized Milk) is priced ₹22. Another variant sold by the brand is the Diet Double Toned Milk which is priced at ₹18 for half ltr while the Aavin Nice (Toned Milk) is price at ₹20.
According to a report by Deccan Herald, Amul's entry in the state could also decrease the amount of milk purchased by the state-owned cooperative agency as it offers a better price per litre. “While Aavin provides anywhere between ₹32-34 per litre, Amul buys the same for ₹36 per litre. Obviously, farmers will supply milk to someone who buys it at a better price. This issue needs immediate attention," a milk supplier told Deccan Herald.
In the letter, CM Stalin also stated that till now, Amul was only selling their products in Tamil Nadu through their outlets. In Tamil Nadu, like in other States with strong dairy cooperatives, a three-tier dairy cooperative system is functioning effectively since 1981 for the benefit of the rural milk producers and consumers, Stalin said.
In order to increase and sustain milk production in Tamil Nadu, Aavin also provides various inputs such as cattle feed, fodder, mineral mixture, animal health care and breeding services for animals of milk producers. In addition, it ensures the supply of quality milk and milk products to consumers at one of the lowest prices in our country. Thus, Aavin plays a vital role in improving the livelihood of rural milk producers and the meeting the nutritional requirement of consumers, he said.
(With inputs from PTI)
