Amul Chittoor Dairy in AP: Jagan's revival plan faces severe backlash

Andhra Pradesh government’s plan to revive the defunct Chittoor Cooperative Dairy (Vijaya Dairy) in collaboration with Gujarat Cooperative Milk Marketing Federation Ltd (GCMMFL), better known as Amul, is facing severe backlash.

This is not the first time in South India that Amul has become a big issue. It was in the news in the recent Karnataka Assembly elections, and in Tamil Nadu, Chief Minister MK Stalin, in May, wrote to Union Home Minister Amit Shah urging him to direct Amul to stop procuring fresh milk from the state as it infringes on its cooperative Aavin’s milk-shed area.

On Tuesday (July 4), Andhra Pradesh Chief Minister YS Jagan Mohan Reddy laid the foundation for the revival of Chittoor Dairy.

Also read: After Karnataka, Tamil Nadu asks Amul to stop procuring milk from state

The production at Chittoor Dairy was suspended for over 20 years with the debts mounting to Rs 182 crore. It was cleared by the present government to inject new life into it. As part of the collaboration, Amul has committed investments of Rs 385 crore which would generate 5,000 new jobs and benefit two lakh people indirectly.

Milk processing unit

As per the agreement with the state government, Amul has to start production within 10 months of receiving the lease of Chittoor Dairy land, where it will build a milk processing unit.

In December 2022, the state Cabinet had approved the proposal to lease out the lands belonging to Chittoor Dairy to Amul for 99 years.

Also read: Amul-Nandini row: Congress says it won’t allow BJP to raise ‘One Nation, One Milk’ slogan

It will also set up units to make paneer, yoghurt, cheese, butter, ice cream and a milk powder factory.

“Among the good things happening today is the reopening of the defunct Chittoor Dairy,” Reddy said after laying the foundation.

According to the chief minister, Amul will set up India’s largest ice cream manufacturing unit in Chittoor.

Also watch: Aavin vs Amul | Tamil Nadu’s dairy cooperative row

TDP calls it ‘surrender’ to Amul

The Opposition Telugu Desam Party (TDP) has termed the collaboration as a “surrender” to Amul, and called CM Reddy an “Amul Baby.”

TDP state president Kinjarapu Atchannaidu, in a letter to Chief Secretary KS Jawahar Reddy, said it was a “damaging” the self-respect of Telugu people.

“A letter has been written to Chief Secretary KS Jawahar Reddy about damaging the self-respect of Telugu people by handing over Chittoor diary to Amul and tying the assets worth thousands of crores of public and cooperative dairies to Amul,” Atchannaidu wrote on Twitter in Telugu and shared the letter.

Also read: As electoral demographics shift, Jagan govt goes big on schemes for women

In his letter, he wrote, “I am bringing to your notice that the Chief Minister, Jagan Mohan Reddy, who had promised to the people to revive the cooperative dairies, including the Chittoor Dairy, soon after coming to power, has changed tack after assuming power and undermining the whole system. Gujarat-based Amul has been invited to the state only to weaken the cooperative dairies.”

The Communist Party of India (Marxist) said the Reddy-led YSR Congress Party (YSRCP) in Andhra had become a “puppet” in the hands of the Union government, and urged it not to encourage Amul.

CPI (M) former Rajya Sabha member P Madhu, at a press conference in Tirupati, said, “The government officials are holding camps to threaten farmers to supply milk to Amul and not to Visakha or Vijaya dairies. This is how the cooperative dairies are systematically dismantled in the State.”

“The proceeds from Amul Dairy’s expansion will go to Gujarat and will not be spent locally for the benefit of the farmers,” he said.

YSRCP’s National General Secretary and Rajya Sabha MP Vijaysai Reddy hit out at critics of the Chittoor Dairy revival plan and called them “anti-farmer”.

“Some less informed, anti-farmer people are asking about the benefits of reviving the Chittoor Dairy industry that had actually closed down during TDP’s tenure in 2003 to benefit the family run dairy plant of Heritage. Amul’s ₹380cr. Investment will create India’s largest ice cream-making unit and create 5,000 direct jobs, 2 lakh indirect jobs and also give better remuneration for 25lakh dairy producers in AP. The impact of reviving the dairy industry in Chittoor is cascading! (sic),” Vijaysai Reddy tweeted.

Some less informed, anti-farmer people are asking about the benefits of reviving the Chittoor Dairy industry that had actually closed down during TDP’s tenure in 2003 to benefit the family run dairy plant of Heritage.
Amul’s ₹380cr. Investment will create India’s largest ice…

— Vijayasai Reddy V (@VSReddy_MP) July 5, 2023

CM attacks Chandrababu Naidu

Recounting the glorious days of Chittoor Dairy, the Chief Minister said it used to put smiles on the faces of farmers and enriched this region.

Holding former Chief Minister and Telugu Desam Party (TDP) chief Chandrababu Naidu allegedly responsible for Chittoor Dairy’s downfall, Reddy said the dairy started suffering losses following the birth of Heritage company, a private dairy company owned by Naidu’s family.

Further, he alleged that without issuing any notice, Chittoor Dairy had been shut down on August 31, 2002 when Naidu was the Chief Minister.

Chittoor Dairy which commenced operations as a chilling plant, went on to process 2 lakh litres of milk a day by 1988. It then increased the capacity between 2.5 lakh and 3 lakh litres of milk by 1993, Reddy said.

(With agency inputs)