The dairy farmers in newly formed Telangana state feel threatening their livelihood with the aggressive marketing tactics being adopted by the Amul Dairy Milk. It has been inviting sharp criticism by denying opportunity to the local milk vendors by directly importing from Gujarat without using the services of local venders.
On the otherhand, posing a challenge to local dairies, Amul milk is priced at Rs 2 lower than other brands available in the state. This would automatically makes them advantage in spreading market rapidly.
The Twin Cities Milk Vendor Welfare Association alleged that the dairy giant has been trying to monopolize the Telangana dairy market by dumping surplus skimmed milk and its powder in the State, following a decline in the price of milk overseas.
Fears are being raisied that the farmers here would be denied a livelihood if Amul keeps transporting milk from Gujarat, instead of procuring it from the farmers in the State. Nearly 10,000 vendors and the 50 lakh families that are surviving by selling milk would badly suffer if they continue to sell milk avoiding local vendors.
TJAC chairman Professor Kodandaram said that the entry of dairy giants should be stopped in the state. Although they might sell milk at low prices initially, in the future they would dominate the small dairy industries and would hold a monopoly, and would charge the prices at their will and wish, which is dangerous, he observed.
Food Sovereignty Alliance member Sagari R Ramdas said that the allegations leveled by the state government that the entry of Amul is through FDI is false. The dairy industry comes under the purview of the state government and not the Centre.
Progressive Women's Organisation (POW) activist Sandhya said that the dairy industry which is the next livelihood after agriculture for a majority of the people in the state would be under severe threat. The state should design policies to benefit the state farmers, she said. She recalled that Amul has been maintaining double standards on the issue as it had earlier opposed a similar strategy adopted by a foreign company.