Aavin to lose milk procurement monopoly with Amul's entry in TN?

VELLORE: Tamil Nadu Cooperative Milk Producers Union aka Aavin is slowly but surely losing its total monopoly in daily milk procurement with Gujarat’s Amul already establishing a plant in Chittoor in AP and milk procured in Vellore district being routed there, informed sources said.

The recent announcement by Amul calling for the formation of milk collection centres in Vellore, Tiruvannamalai, Kancheepuram, Ranipet and Tiruvallur through SHGs and cooperatives at the village, level is expected to sound the the death knell for the milk major, sources alleged.

Sources revealed that over 3,000 litres of milk from the Vellore district are being taken to Chittoor and the district supplies 1.70 lakh litres of milk daily to Chennai. Now, with Amul planning to increase its procurement from the current 3,000 litres to 30,000 litres, Aavin

It is also expected that Tiruvannamalai, Salem and Erode districts which are also top procurement areas in the State will soon be approached by the national milk major. The national dairy brand is also setting up a plant in Sri City, which is just 30 kilometres from the TN-AP border.

While TN provides milk farmers procurement prices ranging between Rs 32 to Rs 34 per litre depending on the fat/sold nonfat (SNF) content, Amul offers milk farmers up to Rs 36 with collection agents getting paid on the spot at the rate of 50 paise per litre, sources added.

A few alleged that though it was Amul, which originally stated that milk cooperatives of each State should not poach in another state, the national entity is now breaking its own rules to get milk from other areas.

Amul’s effect on milk procurement can be seen from the fact that daily procurement dipped to 32 lakh litres per day from the 40 lakh litres mark a month earlier.

Sources revealed that the national milk major is also on the lookout

for former Aavin officials who have experience in handling milk

supply logistics. Reacting to this, TN milk agents and employees welfare association state president SA Ponnusamy said: “Aavin is in trouble as local officials went against the national cooperative norm of specific colours for specific milk types (toned, double toned etc) and started supplying milk in various coloured packets. It was to counter this backlash that Aavin has now introduced the ‘magic’ brand.”

Taking about possible solutions, top Aavin sources said: "The solution has to be political, similar to Karnataka where its Nandini brand being poached upon by Amul resulted in a backlash through the recent electoral verdict. But whether TN politicians have the farsightedness of their Karnataka counterparts is a million dollar question.”