Tamil Nadu Chief Minister M K Stalin addressed Union Cooperation Minister Amit Shah regarding concerns arising from Amul’s milk procurement in the milk-producing region of Tamil Nadu. Stalin emphasized the successful operation of dairy cooperatives in the state since 1981, benefiting both rural milk producers and consumers. He stated that Aavin, the apex cooperative marketing federation, has played a pivotal role in this regard.
The chief minister highlighted that Aavin oversees approximately 9,673 milk producers cooperative societies in rural areas, which procure around 35 lakh litres of milk per day from approximately 4.5 lakh members. He further explained that the current arrangement ensures that milk producers receive remunerative and uniform prices throughout the year through the cooperative societies. This system has been instrumental in supporting the livelihoods of milk producers and maintaining price stability.
“To increase and sustain milk production in Tamil Nadu, Aavin also provides various inputs such as cattle feed, fodder, mineral mixture, animal healthcare 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 meeting the nutritional requirements of consumers,” Stalin wrote.
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.
Regional cooperatives have been the bedrock of dairy development in the states and are better placed to engage and… pic.twitter.com/yn2pKINofO
— M.K.Stalin (@mkstalin) May 25, 2023
Stalin wrote that Amul had used its multi-state cooperative licence to install chilling centres and a processing plant in Krishnagiri district and was planning to procure milk through farmer producer organisations and self-help groups in and around Krishnagiri, Dharmapuri, Vellore, Ranipet, Tirupathur, Kancheepuram and Thiruvallur districts.
It has been the norm in India to let cooperatives thrive without infringing on each other’s milk-shed area. Such cross-procurement therefore goes against the spirit of “Operation White Flood” and will exacerbate problems for the consumers given the milk shortage in the country, he added.
“This act of Amul infringes on Aavin’s milk-shed area, which has been nurtured in true cooperative spirit over decades. This will create unhealthy competition between cooperatives engaged in procuring and marketing milk and milk products,” Stalin wrote.
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, Stalin further wrote. He urged the Union minister to intervene and direct Amul to immediately stop procurement from Aavin’s milk-shed area in Tamil Nadu.