Opposition Demands White Paper on Aavin's Finances Amid 30% Supply Cut Controversy

BJP Leader Demands White Paper on Aavin

Tamil Nadu BJP president Nainar Nagendran posted a sharp warning on X on Tuesday, raising alarm that the state-run Aavin dairy cooperative may be on the verge of bankruptcy, and demanding that Chief Minister Joseph Vijay publish a white paper on the organisation's finances.

Nagendran cited a series of troubling developments over the past few days: the withdrawal of a Rs. 2-per-litre discount for monthly card-holders in Coimbatore; a roughly 30 percent reduction in Aavin milk supply across Tamil Nadu, including Chennai; a per-person cap of one litre at some Aavin outlets; and revelations that 60 percent of milk procured by Aavin across 10 districts in May alone failed to meet quality standards.

"These reports are deeply shocking," he wrote. "Poor and middle-class families depend heavily on Aavin for their daily nutritional needs. If such mismanagement continues, people will be forced to pay double the price for private dairy brands — placing them under financial strain and sacrificing their nutrition."

Nagendran blamed the previous DMK government for failing to offer adequate incentives to milk farmers who supply to Aavin, which he said led to a decline in milk procurement and higher production costs. He condemned the current Joseph Vijay-led government for trying to cover those losses by compromising on milk quality, distribution, and consumer subsidies.

He urged the Chief Minister to abandon any plans to further cut into public nutrition, to clearly list the irregularities and challenges facing Aavin in a formal white paper, and to take steps to make Aavin as successful as cooperatives like Amul.

CPI Urges Government Intervention to Halt Supply Cuts

The Communist Party of India's Tamil Nadu State Secretary M. Veerapandian separately issued a statement calling on the state government and the Dairy Development Minister to intervene directly.

Veerapandian noted that Aavin currently distributes 14.50 lakh litres of milk daily across Greater Chennai and its suburbs, while public demand stands at 15.50 lakh litres — a shortfall of 1 lakh litres. Despite competition from private dairy brands, he said consumers strongly prefer Aavin products, particularly the popular "Green Magic" variety priced at Rs. 44 per litre and Rs. 22 per half-litre.

He said Aavin has cut its overall milk supply by around 7 percent, with the Green Magic variety specifically reduced by 30 percent, effectively ceding market share to private companies. "Consumers are struggling to obtain the milk they need. Aavin risks losing both market share and the distribution agents who are essential links in its supply chain," he said.

Veerapandian noted that Aavin previously used to make alternative arrangements to safeguard its market position during procurement shortfalls, but is no longer doing so. He urged the government to ensure Aavin gives full attention to meeting milk demand in Chennai and surrounding areas before the situation deteriorates further.

Aavin and Government Deny Shortage

The Tamil Nadu Milk Agents Workers Welfare Association had earlier attributed the supply reduction to private companies offering higher procurement prices to farmers than Aavin, leading producers to favour them.

Aavin issued a press release firmly rebutting the shortage claims. The cooperative said it is supplying all varieties of milk packets without interruption across Chennai, averaging 14.82 lakh litres per day this June — up from 14.46 lakh litres per day in June 2025, an increase of 36,000 litres or 0.36 percent.

"No milk supply has been reduced. Aavin remains committed to ensuring uninterrupted supply to consumers. Reports of a shortage are false," the statement said.