Chennai, May 25 (IANS): Tamil Nadu Chief Minister M.K.Stalin on Thursday said the Kaira District Cooperative Milk Producers' Union or Amul is infringing on the milk-shed area of Tamil Nadu Cooperative Milk Producers Federation Limited or Aavin.

Stalin, in a letter to Union Home Minister Amit Shah, urged him to direct Amul not to procure milk from Aavin's milk-shed area.

Stalin referred to Amul setting up of chilling centres and a processing plant in Krishnagiri District and its plans to procure milk in and around Krishnagiri, Dharmapuri, Vellore, Ranipet, Tirupathur, Kancheepuram and Tiruvallur districts in the state.

"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 milk- shed area which has been nurtured in true cooperative spirit over decades," Stalin said.

Even as there are several private diaries in the state competing with Aavin, Stalin said the 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," Stalin said.

Meanwhile, former Union Minister and PMK leader Anbumani Ramadoss said Amul is setting up a processing plant at SriCity in Andhra Pradesh and targets to procure about 30,000 litres of milk daily in Tamil Nadu.

The PMK leader said Aavin's market share in Tamil Nadu is only 16 per cent and it will go down further if Amul enters the milk market in the state.

Ramadoss said Amul is procuring milk at a price of about Rs 36 per litre whereas Aavin is paying about Rs 32-34/litre. Aavin should increase its milk procurement price.