'Increase milk procurement prices to face Amul challenge'

CHENNAI: As the State-owned Tamil Nadu Cooperative Milk Producers Union's Aavin is facing threat of losing its monopoly in the State due to Gujarat-based Amul foray into the state, PMK president Anbumani Ramadoss has urged the government to increase milk procurement price to face the competition.

In his statement, the leader said that Gujarat's state-owned Amul has intensified milk procurement in Tamil Nadu and fixed a target to procure 30,000 litres of milk in Kancheepuram, Tiruvallur and Ranipet districts. "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.

He added that Amul is constructing a milk processing unit in Sri City in Andhra Pradesh, which is close to Chennai. Moreover, it has planned to procure milk in 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 said.

Pointing out the state dairy minister, who assured to increase the procurement to 70 lakh litres from present 40 lakh litres, Anbumani noted that it is not sufficient to increase the market share of Aavin to 50 per cent.

"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 urged.