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What's At The Core Of Aavin vs Amul Milk Debate In Tamil Nadu | Explained
After Karnataka, Amul now faces opposition in Tamil Nadu. CM Stalin asked Union Home Minister Amit Shah to ask Amul to immediately stop milk procurement from Aavin's milk shed.
Updated May 30, 2023 | 02:01 PM IST
Amul vs Aavin.
Photo : Times Now Digital
Chennai: After the faceoff with Nandini Milk in Karnataka last month, the Gujarat-based dairy cooperative Amul is facing the heat in Tamil Nadu. Amul's plan to acquire milk from the state has met severe opposition from the state government with Chief Minister MK Stalin coming out against the milk brand. The CM asked Amul to stop milk procurement from the milk sheds of the state cooperative, Aavin. He also wrote to Union Home Minister Amit Shah asking him to direct Amul to desist from "unfair trade practices".
What Are Amul's Plans in Tamil Nadu
Amul currently sells its dairy products through retail outlets in Tamil Nadu. The company is now planning to install its production centre with chilling centres and processing unit in the Krishnagiri district, around 250 kilometres away from Chennai.
Amul also plans to procure milk from Krishnagiri, Dharmapuri, Vellore, Ranipet, Tirupattur, Kancheepuram and Tiruvallur districts in Tamil Nadu.
According to reports, Amul plans to offer the farmers a higher procurement price and other incentives, compared to Aavin.
State Government Opposes Amul's Plan
CM Stalin opposed the move and called it an "unhealthy practice". "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," the chief minister commended.
In his letter to Amit Shah, the CM stated, "This act of Amul infringes on Aavin's (TN Co-operative Milk Producers Federation) milk shed area which has been nurtured in true cooperative spirit over decades."
What is Aavin
Aavin is a state-owned dairy producer run by the Tamil Nadu Cooperative Milk Producers Federation Limited under the Ministry of Cooperation, similar to Amul in Gujarat. Established in 1981, Aavin procures milk, mainly from Rural Tamil Nadu, processes it and sells milk and milk products including milk, butter, yoghurt, ice cream, ghee, milkshake, khoa, tea, coffee, and chocolate, among other goods.
Under the three-tier dairy cooperative system, as many as 9,673 Milk Producers Co-operative Societies are functioning in rural areas. Approximately, they procure 35 LLPD (lakh litres per day) of milk from about 4.5 lakh pouring members. This is only 14 per cent of the total daily milk production in the state (2.4 crore litres).
State BJP Leadership Opposes Stalin's Move
The BJP leadership in Tamil Nadu has come out against CM Stalin's attempt to stop Amul's plan to procure milk from the state. President of the Tamil Nadu unit of BJP, K Annamalai, called the CM's letter to Amit Shan a “diversion drama”. He argued that Aavin’s daily milk procurement has dropped to 21 lakh litres and the Dravida Munnetra Kazhagam (DMK)-led state government has not made any efforts to improve it.
What was Amul vs Nandini Row in Karnataka
Just before the recent state assembly election in Karnataka, Amul's plan to enter the state's retail market create huge controversy. The opposition parties and pro-Kannada groups rallied against Amul's entry. The critics argued that the entry of Amul in the fresh milk market could spell trouble for Karnataka’s local brand, Nandini.
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