Dairy farmers associated with Aavin’s primary cooperative societies in Tamil Nadu are expressing concerns over rumors that Amul, the Gujarat-based milk cooperative, is planning to penetrate the Tamil Nadu milk market. M.G. Rajendran, General Secretary of the Tamil Nadu Milk Producers’ Welfare Association, highlighted the potential repercussions of Amul’s entry.
“While competition is generally beneficial, the timing could be detrimental for Aavin, given its current vulnerabilities. An entry by Amul could significantly disrupt our established three-tier cooperative system that dates back to the 1970s,” he stated.
Mohammed Ali, State President of the Tamil Nadu Milk Producers’ Association, noted the disparities between the two entities, describing Amul as a “giant” that could potentially overshadow Aavin in milk procurement efforts. He criticized the state government for not raising procurement prices to support local farmers, who currently incur costs of ₹50 to produce a liter of milk but receive only ₹33. Ali urged Aavin to attract more dairy farmers back to its cooperative system, to increase subsidies for cattle feed, and to adjust procurement prices upward.
An industry expert, who wished to remain anonymous, cited mismanagement and political interference as significant issues within the cooperative’s governance. He advocated for reforms to ensure that only actual cattle farmers hold decision-making positions within these organizations.
On a more positive note, Aavin has observed an uptick in milk procurement. With recent favorable weather conditions ushering in the flush season, daily milk volumes have increased from 26-27 lakh liters per day (LLPD) a few weeks ago to between 28 LLPD and 30 LLPD. Aavin sources remain optimistic, projecting that procurement will stabilize at around 30 LLPD in the coming weeks, although they dismissed concerns regarding delays in distributing incentives to farmers.
You can now read the most important #news on #eDairyNews #Whatsapp channels!!!
🇮🇳 eDairy News ÍNDIA: https://whatsapp.com/channel/0029VaPidCcGpLHImBQk6x1F
