The entry of AMUL in Andhra Pradesh has led to intense competition in milk prices. Recently, AP CM YS Jaganmohan Reddy announced that the AP-Amul Pala Velluva project would help women dairy farmers garner an additional income of ₹5 – ₹7 per litre milk. However, a press note released by Sangam Dairy claims that the announcement by government holds no truth, and is simply a blatant lie. According to the Chairman, in Guntur District, Sangam Dairy pays ₹46.83 for Buffalo Milk which comprises of 6% fat while AMUL pays just ₹45.48 for the same milk composition. On the contrary, the CM himself asserting that AMUL pays an additional ₹5 to ₹7 per litre milk is a blatant lie, opines the governing body of Sangam Dairy.
Not much difference in prices
There is no much differences in milk collection prices amongst various dairies. In case if there is a difference it would be in the final price. If there is a difference of ₹5 – ₹7 per litre milk, then forces of demand play a major factor. This is the main reason why cooperative and private dairy players pay competitive prices. The situation is the same even after AMUL has set up milk collection centres in the state. However, dairy farmers have expressed their fears and concerns over the AP Government allocating Rythu Bharosa Kendras (RBK) which were built having spent lakhs of crores to AMUL.
Why so much affection for AMUL?
According to political analysts, CM YS Jaganmohan Reddy having roped in AMUL is an attempt to target Heritage Dairy which is owned by the Leader of the Opposition in AP. But analysts opine that it is not so easy, as several private and cooperative dairies have been serving dairy farmers or almost thirty years and if needed, they are gearing up to pay a higher price than AMUL. Meanwhile, the Opposition parties have demanded the state government to refrain taking decisions that affect Sangam and Vijaya Dairies which are running successfully in the state.
Cooperative societies providing many services
Dairy farmers are being provided with several services through cooperative societies. For instance, Sangam Dairy spends ₹3 crores annually for the medical treatment of cattle. This is a benefit for dairy farmers as they need not spend even a single rupee towards veterinary services which are very costly. Apart from this, they are provided free insurance and bonus paid twice in a year. Also, fodder for cattle is totally subsidised. Many are criticising the AP government for having spent thousands of crores to rope AMUL into the state, instead of backing cooperative dairies that are providing so many services to dairy farmers.