Chennai (PTI): Tamil Nadu Chief Minister M K Stalin on Thursday urged Union Home Minister Amit Shah to direct Gujarat-based dairy giant Amul to desist from milk procurement in the southern state with immediate effect.
Writing to Shah, Stalin drew the Centre's attention to the issues arising out of milk procurement by the Kaira District Cooperative Milk Producers' Union (Amul) in the Tamil Nadu milk shed area.
Recently, it has come to the state government's notice that Amul has utilised its multi-state cooperative license to install chilling centres and a processing plant in Krishnagiri district, Stalin said.
Also, Amul has planned to procure milk through FPOs and SHGs in and around Krishnagiri, Dharmapuri, Vellore, Ranipet, Tirupathur, Kancheepuram and Tiruvallur districts in Tamil Nadu.
"It has been a norm in India to let cooperatives thrive without infringing on each other's milk-shed area. Such cross-procurement goes against the spirit of Operation White Flood' and will exacerbate problems for the consumers given the prevailing milk shortage scenario in the country. This act of AMUL infringes on Aavin's (TN Co-operative Milk Producers Federation) milk shed area which has been nurtured in true cooperative spirit over decades."
This move by AMUL will create unhealthy competition between cooperatives engaged in procuring and marketing milk and milk products.
"Regional cooperatives have been the bedrock of dairy development in the states and they are better placed to engage and nurture producers and to cushion consumers from arbitrary price hikes.
Therefore, I request your urgent intervention to direct Amul to desist from milk procurement from the milk shed area of Aavin in Tamil Nadu with immediate effect," the Chief Minister said.
Providing a backgrounder to the matter, Stalin said till now, Amul was only selling their products in Tamil Nadu through their outlets.
In Tamil Nadu, like in other States with strong dairy cooperatives, a three-tier dairy cooperative system is functioning effectively since 1981 for the benefit of the rural milk producers and consumers, Stalin said.
"Aavin is our apex cooperative marketing federation. Under the ambit of Aavin co-operative, 9,673 Milk Producers Co-operative Societies are functioning in rural areas. They procure 35 LLPD of milk from about 4.5 lakh pouring members. Under this current arrangement, milk producers are assured of remunerative and uniform prices throughout the year by the cooperative societies."
In order to increase and sustain milk production in Tamil Nadu, Aavin also provides various inputs such as cattle feed, fodder, mineral mixture, animal health care and breeding services for animals of milk producers.
In addition, it ensures the supply of quality milk and milk products to consumers at one of the lowest prices in our country. Thus, Aavin plays a vital role in improving the livelihood of rural milk producers and the meeting the nutritional requirement of consumers, he said.
Let the Truth be known. If you read VB and like VB, please be a VB Supporter and Help us deliver the Truth to one and all.
New Delhi, Jan 10: Investors' wealth tumbled Rs 12 lakh crore in three days of market slump due to uninterrupted foreign fund outflows and concerns over quarterly earnings.
Also, rising crude oil prices and a strengthening dollar index added to investors' pessimism.
In three days, the BSE benchmark Sensex tanked 820.2 points or 1.04 per cent.
On Friday, the 30-share BSE benchmark declined 241.30 points or 0.31 per cent to settle at 77,378.91. During the day, the benchmark gyrated 820.15 points between the day's high of 77,919.70 and low of 77,099.55.
The NSE Nifty dropped 95 points or 0.40 per cent to 23,431.50.
The market capitalisation of BSE-listed firms diminished by Rs 12,07,314.99 crore to Rs 4,29,67,835.05 crore (USD 5 trillion) in the three days.
From the 30-share blue-chip pack on Friday, IndusInd Bank, NTPC, UltraTech Cement, State Bank of India, Sun Pharma, Axis Bank, Tata Steel and Power Grid were among the major laggards.
Tata Consultancy Services jumped nearly 6 per cent after the IT services company reported an 11.95 per cent surge in the December quarter net profit to Rs 12,380 crore.
Devarsh Vakil, Head of Prime Research at HDFC Securities, said, "Strong quarterly earnings from TCS drove the IT index up 3.4 per cent, helping the market withstand a sharp sell-off."
However, despite broad gains across IT stocks, the Nifty fell for the third consecutive session, Vakil added.
Tech Mahindra, HCL Tech, Infosys and Bajaj Finserv were the other big gainers.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 7,170.87 crore on Thursday, according to exchange data.
"Domestic market sentiment remained subdued due to rising crude oil prices, driven by supply concerns, and a strengthening dollar index. Despite the IT sector's resilience following positive early Q3 results, broader indices bled due to uncertainties surrounding Trump policies and high valuations.
"Consolidation may persist in the near term, yet investors are closely watching the US non-farm payroll data today for further guidance," Vinod Nair, Head of Research at Geojit Financial Services, said.
The BSE smallcap gauge dropped 2.40 per cent and midcap index declined 2.13 per cent.
Among BSE sectoral indices, power tanked 3.07 per cent, utilities (2.86 per cent), realty (2.64 per cent), industrials (2.08 per cent), commodities (2.05 per cent) and consumer durables (1.98 per cent).
BSE Focused IT jumped 3.17 per cent, IT (2.65 per cent) and teck (2.24 per cent) were the biggest gainers.
As many as 3,167 stocks declined while 827 advanced and 84 remained unchanged on the BSE.
"Markets continued its downward trajectory as the rupee dropping to new lows against the strengthening dollar has further dampened investors' sentiment. Amid concerns of subdued economic growth and expectations of a slowdown in the quarterly earnings, investors cut their bet on banking and mid & small cap stocks.
"With expensive valuations of Indian markets at large still a concern, investors would mostly resort to stock-specific activities," Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, said.