Chennai, Sep 15 (IANS) Private dairy operators in Tamil Nadu have appealed to Chief Minister C. Joseph Vijay to introduce an equitable support system for the entire dairy industry, arguing that subsidies exclusively available to Aavin were disrupting competition and affecting thousands of farmers associated with private companies.
The Tamil Nadu Dairies Association, in a representation submitted to Chief Minister Vijay on Tuesday, said private companies had helped expand milk procurement, processing and distribution networks across the State over the past three decades.
According to the association, the private sector currently handles nearly 75 per cent of Tamil Nadu’s milk procurement and sales.
While welcoming measures intended to protect dairy farmers from rising production costs, the association maintained that limiting financial assistance to the State-owned cooperative created a serious market imbalance.
Private dairies were unable to access similar subsidies despite procuring milk from a significant proportion of the State’s producers, it said.
The appeal followed two increases in Aavin’s cow-milk procurement price within a short period. The rate was enhanced from Rs 38 to Rs 41 a litre on August 19 and subsequently to Rs 44 on August 31.
The government attributed the revisions to increasing expenditure on cattle feed, fodder and farm maintenance. The latest increase is expected to cost the State around Rs 60 crore every month. Private dairies would now have to offer higher procurement prices to prevent farmers from shifting their supply to Aavin, the association said.
Since they did not receive subsidies, companies would be compelled to transfer the burden to consumers through higher retail prices.
Private operators were already paying more than Aavin in several parts of Tamil Nadu to secure milk supplies, it added. The association said private dairies and farmers supplying them were caught between subsidised cooperative milk and competition from dairies operating in neighbouring States.
It asked the government to reconsider consumer subsidies and permit retail milk prices to reflect actual procurement and costs, while safeguarding farmers dependent on private buyers.
The association also recommended examining the cooperative model followed by Gujarat-based Amul, under which a portion of the profits earned by the organisation is returned to milk producers.
Such an arrangement, it said, could directly benefit farmers and reduce the need for recurring government subsidies.
Calling for discussions with dairy farmers, private operators and cooperative representatives, the association asked the Chief Minister to formulate a comprehensive policy that would protect producers without distorting the market.
A balanced approach was essential to maintain fair competition, control consumer prices and ensure the long-term sustainability of Tamil Nadu’s dairy industry, it said.
–IANS
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