Tamil Nadu chief minister M.K. Stalin’s recent letter to Union minister of co-operatives Amit Shah has ignited the discussion over the increasing dominance of Amul in the dairy sector and its impact on local co-operatives which are limited to a particular state.
The Gujarat-based dairy cooperative Gujarat Cooperative Milk Marketing Federation, that sells its products under the brand name of Amul, has used its Multi-state Co-operative Society Licence to open a chilling centre and processing unit in the Krishnagiri district of Tamil Nadu and is also planning to procure milk in the “shed areas” of Tamil Nadu’s local dairy co-operative Aavin.
In view of this, Tamil Nadu CM Stalin wrote to Shah and said: “It has been a norm in India to let cooperatives thrive without infringing on each other’s milk shed area.”
“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,” Stalin said in his tweet.
`the issues highlighted by Stalin in his letter. He answers questions about Amul’s expansion and if the Tamil Nadu government can stop the cooperative from procuring milk within the state using any law.
