Anbumani Ramadoss alleges suspension of more than 100 dairy products as milk procurement reportedly recovers to 32 lakh litres per day.
CHENNAI: Pattali Makkal Katchi (PMK) president Anbumani Ramadoss has urged the Tamil Nadu government to establish an expert committee to examine what he described as a financial and administrative crisis at Aavin, the state-owned dairy cooperative.
In a statement issued on Sunday, Anbumani expressed concern over the reported suspension of production of more than 100 dairy products, including butter, paneer and milk powder. He argued that the situation could affect consumer choice and Aavin’s ability to compete with major dairy brands.
PMK raises concerns over value-added dairy products
Citing a media report, Anbumani alleged that Aavin had stopped manufacturing several products despite continued consumer demand.
According to him, Aavin had previously produced and marketed more than 230 dairy products, but production of various items had reportedly been suspended. These included paneer, butter, milk powder, milkshakes, dry-fruit powders containing almond, pistachio and walnut mixes, cookies and chocolates.
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He questioned the operational constraints preventing the cooperative from meeting demand for products such as butter, paneer, ghee and flavoured dairy beverages.
The claims regarding the number of discontinued products and the reasons for their suspension were attributed to the PMK leader and were not independently established in the supplied report.
Milk procurement reportedly rebounds after decline
Anbumani also highlighted changes in Aavin’s daily milk procurement.
According to the figures cited in his statement, procurement reached a peak of approximately 41 lakh litres per day in 2021, before declining to around 28 lakh litres per day by August 2026. Following an increase in the milk procurement price from ₹38 to ₹44 per litre, procurement reportedly recovered to approximately 32 lakh litres per day.
He also claimed that Aavin currently meets only 15–16% of Tamil Nadu’s total milk requirement.
The figures point to questions about milk procurement, processing capacity and the cooperative’s ability to convert available milk into a broader range of marketable dairy products. However, the relationship between procurement trends and the reported product suspensions would require examination of Aavin’s operational and financial data.
Expert panel proposed to review operations and profitability
Anbumani called on the state government to constitute an expert committee to assess Aavin’s operations, identify bottlenecks and recommend measures to improve its financial health and profitability.
He also urged the cooperative to ensure that milk, paneer, butter, ghee and other dairy products are manufactured and distributed at full capacity in the interim.
The proposed review could examine milk procurement, plant utilisation, production planning, value-added product portfolios, distribution networks and the financial performance of individual product categories.
Implications for Tamil Nadu’s dairy sector
Aavin is an important player in Tamil Nadu’s organised dairy sector. The concerns raised by the PMK leader highlight the importance of balancing milk procurement, processing efficiency and value-added product development in a competitive market.
For dairy cooperatives, products such as paneer, butter, ghee, milk powder and flavoured beverages can diversify revenue streams beyond liquid milk. Their commercial viability, however, depends on consumer demand, processing capacity, raw-material availability, distribution efficiency and production costs.
Whether Aavin will undertake a formal operational review or restore the reported suspended products remains to be established. An official response from the Tamil Nadu government or Aavin would help clarify the current production status and the reasons behind the reported changes.
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