The decision of AMUL to operate in Tamil Nadu is unfortunate, detrimental to the interest of Aavin and will create unhealthy competition between...

Chief Minister M.K. Stalin addressed a formal letter to Union Minister for Cooperation Amit Shah, registering strong objection to the Gujarat-based dairy cooperative AMUL procuring milk within Tamil Nadu. Stalin characterized AMUL's decision to operate in the state as an unfortunate and detrimental development that undermines state cooperative institutions and threatens healthy federalism.

The Chief Minister explained that regional dairy cooperatives constitute the foundational bedrock of agricultural prosperity and rural dairy development across Indian states. In Tamil Nadu, the state cooperative dairy federation, Aavin, supports hundreds of thousands of small and marginal dairy farmers through extensive village-level procurement societies, veterinary care, and dependable milk pricing mechanisms. Stalin warned that cross-border milk procurement by an outside cooperative creates destructive competition and compromises Aavin's established milk shed network severely.

Stalin urged the Union Government to issue immediate directives instructing AMUL to desist from procuring milk within Aavin's operational territory. He maintained that cooperative federations must respect each other's regional boundaries to preserve cooperative federalism and ensure the economic security of local agrarian dairy producers who depend directly on state milk marketing networks.