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Milk war | Raise procurement price to keep Amul away, PMK chief tells TN govt

Aavin is giving Rs 32 to Rs 34 a litre as procurement price, while Amul is offering Rs 36 per a litre, Anbumani Ramadoss has said, pushing for higher prices

May 26, 2023 / 09:27 AM IST

Tamil Nadu Chief Minister MK Stalin urged Union Cooperation Minister Amit Shah to direct Amul to stop procuring milk from Tamil Nadu.

Pattali Makkal Katchi (PMK) president and Rajya Sabha member Anbumani Ramadoss on May 26 urged the Tamil Nadu government to increase the milk procurement price to protect the state-owned Aavin cooperative society, as Gujarat-based Amul, India's biggest dairy group, plans a foray in the southern state.

The Tamil Nadu Cooperative Milk Producers Union's Aavin can lose its monopoly as Amul makes an entry into the state. Amul was recently caught in the middle of the election battle in neighbouring Karnataka when the Congress, which went on to win the assembly polls, opposed its entry into the state.

The PMK chief tweeted that Gujarat's state-owned Amul had intensified milk procurement in Tamil Nadu and fixed a target to procure 30,000 litres in Kancheepuram, Tiruvallur and Ranipet districts.

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"Amul is also forming self-help groups to increase procurement. Aavin is giving Rs 32 to Rs 34 per litre as procurement price, while Amul is giving Rs 36 per litre. This will reduce the amount of procurement considerably," he said.

Amul was constructing a milk processing unit in Sri City in Andhra Pradesh, which had easy connectivity to Chennai, the PMK leader said. It also planned to procure milk from Vellore, Tiruvannamalai, Salem and Erode districts.

"If the projects of Amul come into effect, Aavin will lose in procurement and sales. Aavin's share in Tamil Nadu milk market is just 16 per cent. PMK is urging the government to increase it to 50 per cent," he tweeted.

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Reacting to the government's assurance to increase the procurement to 70 lakh litres from 40 lakh litres, Anbumani said it was not sufficient to increase the market share of Aavin to 50 percent.

"There is a good response for Aavin products in the state. To prevent loss of procurement quantity, the only solution is to increase procurement price. Procurement price for cow's milk should be increased to Rs 42 and for buffalo's milk, price should be increased to Rs 51 per litre,” he tweeted.

Stalin says 'go back Amul'

On May 25, Tamil Nadu Chief Minister MK Stalin urged Union Cooperation Minister Amit Shah to direct Amul to stop procuring milk from Tamil Nadu after it started selling its products in the southern state.

In a tweet tagging Shah, 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 nurture producers. Therefore I request Hon @AmitShah to direct AMUL to desist from procuring milk from Aavin's milk shed area."

Moneycontrol News
first published: May 26, 2023 09:20 am