Amul caught in a fresh row over new AP dairy project
Co-operative giant Amol is caught up in fresh controversy. This time troubles are brewing around the new dairy venture in Andhra Pradesh. The major dairy company, owned by the Gujarat Milk Marketing Federation, is investing Rs 385 crore to revive Dairy Co-operative in Chittor.
While it is a geographically strategic investment for Amul due to its proximity to the lucrative markets of Tamil Nadu and Bengaluru, it is seen as a political move by the government of YS Jagan Mohan Reddy. The opposition says it is a ruse to target Heritage, a leading dairy company promoted by the family of Telugu Desam Party leader Chandrababu Naidu.
Chief Minister YS Jagan Mohan Reddy and Managing Director of Amul Jayen Mehta at the groundbreaking ceremony of ‘Amul Chittoor Dairy’ in Chittoor on Tuesday. Ministers K Narayanaswamy, Peddireddy Ramachandra Reddy, S Appala Raju, Usha Sri Charan and RK Roja are also present | Image source: private arrangement
What began as the state’s first milk refrigeration unit in 1969 with a capacity of just 6,000 liters per day, Chittoor Cooperative Dairy has seen fluctuations, reaching a processing capacity of two lakh liters per day at the time of its closure in 2002. Indicated for liquidation in 2003, the operation was not completed For her. In a bid to revive the dairy, the state government has agreed to pay dues to the tune of Rs 180 crore.
Charges against the former CM
Andhra Pradesh Chief Minister Jagan Mohan Reddy laid the foundation stone for the Albanian revival. Amul agreed to revive it with an investment of ₹385 crore. In the first phase, it will invest Rs 150 crore and process 1 liter of milk per day over the next few months.
Speaking to an assembly later, he alleged that the then Telugu Desam government had conspired against Chittoor Dairy Products as it came in the way of Heritage Foods growth. Naidu was the main reason for driving the Albanians to losses. It was very clear that Heritage Group started to turn a profit and Chittoor Dairy Company made losses around the same time.”
The YSRCP government signed a Memorandum of Understanding with Amul in 2020 as part of the Jaganana Bala Veluva (Milk Flood) to revive the dairy sector in the state. In the last two years, Amol has purchased 8.78 crore liters of milk in different parts of the state.
He said the prices of cow’s milk had risen to ₹89.76 per liter from ₹32 when the system was launched.
opposition position
However, the opposition derided the government for its reliance on the Gujarat Dairy Factory under the guise of reviving the cooperative sector. The CPM requested the government not to hand over land belonging to Chittoor Dairy Derivatives to Amul. They objected to handing over 28 acres of land to Amul under a 99-year lease.
Citing the examples of Karnataka and Tamil Nadu, Srinivasa Rao’s State Minister for Phytosanitary Measures asked the state government to promote the cooperative sector without support from outside.
However, the Jana Sina party leader hoped the move would not end up being a mere rant. “There is no other opinion that the cooperative dairy sector needs to be strengthened. We need to wait and see if it really helps dairy farmers and consumers.” business line.