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AP Amul Project – A Nightmare for Cooperatives?

by Mukesh
466 views Hyderabad

Chief Minister of Andhra Pradesh Y.S. Jagan Mohan Reddy on 2nd December launched AP-Amul Pala velugu project, claiming it as a part of his dream to help rural Andhra Pradesh. Speaking in the assembly, he described that he heard the woes of the cattle farmers during his padayatra, and this project was launched in this regard to promote them. He promised to  provide Rs. 4 additionally from all the other diaries.

He even claimed that the farmers will get a better deal only when there is competition in the market, the ruling party took every opportunity to advertise the launch by publicizing the event through all the major Telugu and English news dailies, claiming that Amul is giving a better deal to farmers than the other diaries. Sangam dairy, the biggest dairy in India refuted the claims of the Chief Minister in the Assembly on 30th and the advertisements in the newspapers on the 2nd of the December. They also gave a press release stating that Sangam Dairy gave a better deal to farmers by almost Rs.1 per litre than the Amul dairy for 2019-20.

The government is also handing over the prestigious Vijaya dairy in Godavari to Amul against the wishes of the local cattle farmers, and the cooperative members. Vijaya dairy for more than 50 years since its establishment in 1978 has had a rich legacy. Amul officials on their visit to dairy in September gave their nod to take over. The future of over 400 permanent employees, 200 temporary employees along with thousands of farmers who are dependent on the dairy is at the stake.

Many dairy owners in the state described the launch as a nightmare to the local cooperatives as Amul would destroy the prospects of the growth of the already debt ridden diaries in the state. They were questioning the government that instead of developing, supporting the local co-operatives, the government is developing a Gujarat based cooperative AMUL. It is also evident that most of the co-operative milk dairies are under the chairmanship of the TDP leaders, several attempts were made by the present government as well as the YSR government to take control of theses diaries, but everything in vain the present the ruling party is doing it the other way by taking control of the supply.

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