Aavin to hike procurement price to ward off Amul threat

Chennai, May 29 (IANS) Tamil Nadu milk cooperative Aavin, controlled by the state government, is in the process of increasing the milk procurement price from farmers, it was announced on Monday.

This is, in a way, intended to ward off the threat posed by Gujarat-headquartered milk cooperative, Amul which is aggressively foraying into the Tamil Nadu market by procuring milk from farmers there and establishing a plant in Andhra Pradesh close to the Tamil Nadu border.

Tamil Nadu Dairy Development Minister Mano Thangaraj told IANS that Aavin was in the process of taking various measures to correct some of the problems that have arisen in the past regarding procurement of milk from vendors.

He said that appropriate measures would be taken to provide fair prices to the farmers taking into account the cost of milk production and protecting their welfare.

The minister said that measures would be taken to improve Aavin management, computerisation and automation, mechanisation, and maintenance of the welfare of cooperatives and livestock.

The Aavin management is being directed to reduce the credit to the milk farmers from the present 90 days as Amul is promising payment within 10 days on procurement of milk. It is to be noted that Aavin is presently taking 90 days to credit the milk procurement money to the farmers and cooperatives.

The milk farmers association leaders also said that the Aavin management should impress upon the Chief Minister not to allow Amul to operate as a society in Tamil Nadu.

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