Amul does not pose a threat to the operations of Aavin, as each has a different scope, ideals, and targets. Aavin can expand if it wants to but not at the cost of quality, Tamil Nadu Milk and Dairy Development Minister Mano Thangaraj said in Coimbatore on Sunday.
“In times of globalisation, anyone can expand operations. We too can easily get an FDA licence and operate elsewhere, but we have untapped potential in Tamil Nadu and other Indian markets,” he said.
Aavin’s main focus is on increasing milk handling capacity to 70 lakh litres by the end of the year, Mr. Thangaraj said.
Regarding concerns raised by farmers’ associations on lack of grazing pastures for livestock due to urban expansion, the Minister said enhancement of existing farmlands, as well as the conversion of crops into silage to provide nutrition for livestock, is the priority. “This initiative will be tested in Erode as a pilot project,” he said.
Speaking on Aavin’s milk procurement from unions, the Minister said it had reached an all-time high of 36 lakh litres per day across the State and would increase to 40 lakh litres in a couple of weeks.
To further support the dairy sector, he said Aavin had seen benefits emerge from the subsidised loans provided to producers and distributors. “In 2023-2024, ₹125 crore was given in loan with interest. Additionally, farmers have benefited from an interest-free loan scheme, with ₹120 crore disbursed in the last year alone,” he added.
The State-run co-operative also has plans to improve loan facilities and insurance this year. “At present, five lakh farmers have benefited from cattle insurance scheme, and we hope to add another four lakh into the insurance scheme.”
In terms of product sales, Aavin has seen 28% increase this year, and new products such as ghee sachets and small blocks of butter are being considered, with efforts to maximise shelf life without the use of chemicals.
Focusing on improving the availability of native breeds to increase milk yield, the Minister said Aavin successfully supplied four lakh frozen semen straws from Udagamandalam up to 2021, reaching 14 lakh in 2023. “This year’s target is 20 lakh,” he added.
