Amul should not buy milk in Tamil Nadu – The New Indian Express

By Express press service

CHENNAI: A month after Congress voiced strong opposition to Amul’s entry into the Karnataka market where state-owned Nandini is involved in milk distribution, the ruling DMK reacted similarly the Gujarat Dairy Federation’s decision to source milk from Tamil Nadu.

On Thursday, Chief Minister MK Stalin wrote to Union Home Secretary Amit Shah urging him to order Amul to refrain from procuring milk in TN with immediate effect. Amul is a brand of Gujarat Cooperative Milk Marketing Federation (GCMMF).

Stalin said the supply of milk from the state-owned Aavin Dairy Zone in TN would lead to “unhealthy competition” among co-ops buying and marketing milk and dairy products. The CM’s letter comes two days after TNIE reported details of Amul’s plans in TN.

Amul ensured incentives and timely payment

Amul plans to offer TN dairy farmers a higher purchase price, as well as incentives, compared to Aavin. Stalin said Amul’s decision went against the spirit of Operation White Flood and would exacerbate consumer problems given the country’s prevailing milk shortage. “It has become a norm in India to let cooperatives thrive without encroaching on each other’s dairy zone.

This act of Amul undermines Aavin’s milk storage area, which has been maintained in a true spirit of cooperation over the decades,” Stalin said. He added that regional cooperatives have been the foundation of dairy development in the states and are better placed to engage and support producers and protect consumers from arbitrary price hikes.

On behalf of the GCMMF, the Kaira District Cooperative Milk Producers Union (KDCMP), one of the oldest district unions in the country, purchases milk in Uttar Pradesh, Madhya Pradesh, West Bengal, Andhra Pradesh and a few other states.

Using the multi-state cooperative license issued in Andhra, the syndicate recently set up cooling centers and a processing plant in Krishnagiri district in TN. He had also planned to source milk through farmer-producer organizations (FPOs) and self-help groups in Tamil Nadu. As well as a Rs 2 per liter higher purchase price than Aavin, Amul representatives assured dairy farmers of additional incentives and timely payment.

Acting under the aegis of the Aavin Cooperative, established in 1981, 9,673 milk producers’ cooperative societies currently operate in rural areas. These companies collectively source about 35 lakh liters of milk every day from about 4.5 lakh members.

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