A memorandum seeking an inter-state inquiry into dairy pricing disparities between Aavin and Milma has surfaced on social media, raising concerns over procurement prices, subsidies and market competition in the cooperative dairy sector.
Addressed to the Ministry of Fisheries, Animal Husbandry & Dairying and the dairy development departments of Tamil Nadu and Kerala, the memorandum calls for a detailed investigation into structural and logistical imbalances affecting milk pricing in the two states.
The document highlights differences in procurement rates paid to dairy farmers, claiming that Aavin procures milk at around Rs 38 per litre, while Milma pays between Rs 45 and Rs 52 per litre. It also seeks an audit of subsidy mechanisms and retail price controls, warning that artificial pricing could affect the long-term financial sustainability of cooperative dairy unions.
The memorandum further points to higher transport and feed costs in Kerala, which relies heavily on imported cattle feed and faces logistical challenges as a milk-deficit state.
It also calls for standardised regional pricing benchmarks and a national strategy on feed subsidies to protect dairy farmers and ensure fair competition within the cooperative dairy sector.