CHENNAI: As the State-owned Tamil Nadu Cooperative Milk Producers Union (Aavin) is facing the threat of losing its monopoly due to Gujarat-based Amul’s foray into the state, PMK president Anbumani Ramadoss has urged the government to increase milk procurement prices 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 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.
Anbumani 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.
Anbumani noted that it is not sufficient just to increase the market share to 50 per cent but, “There is good response for Aavin products. 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 buffalo’s milk Rs 51 per litre,” he urged.