Milk coop societies hit by post-demonetisation curbs

The restrictions in withdrawal of money from banks following the demonetisation of Rs.500 and Rs.1000 notes has hit milk producers as the cooperative milk producers societies in rural areas were facing problems in disbursing payments.

Raising the issue at the Farmers Grievances meeting here, N. Ganesan, joint secretary, Tamil Nadu Milk Producers Welfare Association, said although the Tiruchi District Cooperative Milk Producers Union (Aavin) released the payments through banks, the cooperative milk producers societies in rural areas were unable to withdraw the money from the banks and disburse cash to producers as was the usual practice till now.

“We used to withdraw cash from the society accounts and make the payments due to producers once every 15 days. Now, banks say that we can withdraw only Rs.12,000 a week,” Mr. Ganesan said. The District Central Cooperative Bank was unable to make direct transfers to the accounts of producers, he claimed.

“The income from milk is vital for most farmers and the delay in payment has caused much hardship,” Mr. Ganesan said and urged the district administration to take steps to ensure that the payments were transferred to the accounts of the producers directly.

Collector K. S. Palanisamy, who chaired the meet, instructed the Aavin officials to hold field-level meetings with the milk producers to find out their preferred mode of payment.

If the sum was high, payments could be made by bank transfers to individual bank accounts of producers. Small amounts can be paid in cash, he said.