Amul's entry into TN threatens Aavin's monopoly in milk procurement
Amul has already established a plant in Chittoor in Andhra Pradesh and milk procured from Vellore is being routed to this plant
The Tamil Nadu Cooperative Milk Producers Union and the "milkman of the state" Aavin will soon lose their monopoly in milk procurement in the state with the arrival of the national milk major Amul to Tamil Nadu.
Amul has already established a plant in Chittoor in Andhra Pradesh and milk procured from Vellore is being routed to this plant.
Amul has already announced formation of milk collection centres in Tiruvannamalai, Kancheepuram, Ranipet, Vellore and Tiruvallur districts of the state through Self Help Groups (SHGs) and cooperatives at the village.
Presently 3,000 litres of milk is procured from Vellore district by Amul and it is planning to increase the procurement to 30,000 litres per day. At present, the Vellore district is supplying 1,75,000 litres per day to Aavin but Amul is slowly but steadily increasing the procurement.
The national dairy major is setting up another milk plant in Sri City which is just 30 km from the Tamil Nadu-Andhra Pradesh border and this would also lead to more procurement of milk from Erode, Tiruvannamalai and Salem districts of Tamil Nadu which have been hitherto supplying to Aavin.
Interestingly Aavin pays Rs 32 to 34 for a litre of milk procured from farmers but Amul is giving Rs 36 per litre and collection agents are provided 50 paise per litre on the spot. This is a more attractive proposition to the milk agents who are instrumental in procuring and arranging milk presently to Aavin and Amul is slowly entering into Tamil Nadu through such attractive measures.
Aavin officials while speaking to IANS said that political intervention is required to prevent this entry by Amul and want a backlash to be given to the national milk major just like Karnataka had opposed Amul poaching into the market of Nandini, the Karnataka milk major.