“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.