The Hindu : Front Page : Woes of milk unit highlighted

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Thursday, Jun 25, 2009
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Woes of milk unit highlighted

R. Arivanantham

KRISHNAGIRI: Officials here have flagged the plight of the Dharmapuri District Cooperative Milk Producers Union, founded in 1982, which has been incurring a loss of Rs. 50 lakh a month barring some phases. Only modernisation, vigorous marketing efforts and cutting production costs could rejuvenate it, they said on Wednesday.

General Manager G. Ninappan said the union procures 1.76 lakh litres of cow’s milk from 534 cooperative societies in Krishnagiri and Dharmapuri districts at Rs. 14 a litre. Of this, 10 paise go to the union as commission, 40 paise go towards establishment expenses, and the remaining Rs. 13.50 go to producers.

Of the 1.76 lakh litres, 1.2 lakh litres is sent to the State Cooperative Milk Producers Federation in Chennai.

Mr. Ninappan said about 17,000 to 18,000 litres is sold in retail markets in Krishnagiri, Dharmapuri and Hosur through Aavin depots and parlours. Butter, ghee, khova, butter milk and curd are produced.

Every week a truck load of ghee, 34,000 kg, is sent to Chennai. It fetches Rs. 153.20 a kg, while the production cost is between Rs. 138 and Rs. 140 a kg.

The union raised the prices of its byproducts in the local market by 10 to 15 per cent from June 1 following a resolution passed at its administrative committee meeting here on May 20.

The union got Rs. 9.71 crore from the Union and State governments last year under a rehabilitation package which helped wipe out a part of the loss.

A sum of Rs. 35 lakh was due from the Centre out of this, Mr. Ninappan said.

The monthly pay bill for the 451 regular and 14 casual labourers came to Rs. 52 lakh.

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