The Union government’s move to demonetise Rs. 500 and Rs. 1,000 notes has cast its shadow on the 1.12 lakh dairy farmers in Mandya district with the cooperative societies forcing them to collect payment only twice a month.
Mandya, the largest milk producing district in the State, has 1,170 milk producers’ cooperative societies. Of this, around 50 per cent are all-women cooperative milk producers’ societies. As many as 1.12 lakh farmers supply at least 7.5 lakh litres a day to the Mandya Milk Manufacturers’ Union Ltd. (MANMUL).
On an average, each farmer supplies seven litres of milk a day to MANMUL through societies spread across the district.
They are paid Rs. 27.30 for one litre (including the incentive of Rs. 4 and 80 paise for the society maintaining charges). Nevertheless, according to the suppliers, the ban of the two high-value currency has destabilised the financial activities of the societies.
The demonetisation move has severely hit the milk producers since November 9, says Kadaluru Ramakrishna, chairman, the Mandya Milk Manufacturers’ Union Ltd..
Cash crunch
According to milk suppliers, the currency crisis has been forcing them to collect payment once in 10 or 15 days owing to shortage of smaller denomination notes.
Mandya is the largest milk producing district (in terms of district-wise milk production) in the State with a production of 7.5 lakh to 8 lakh litres a day.
While the Kolar Milk Union collects around 7 lakh litres from farmers in Kolar and Chickballapur districts, Mysuru Milk union procures around 6.10 lakh litres from farmers in Mysuru and Chamarajanagar districts.
Around 50 per cent of suppliers are women and majority of the suppliers are from poor economic background. The move has made them to struggle to arrange money for their daily needs as well as to buy fodder for their cattle, Mr. Ramakrishna further said.