Dairy farmers hit by demonetisation

The decision is affecting them as they are not getting their fortnightly income

The demonetisation of high currency notes and restrictions on the withdrawal of cash from banks has hit the dairy farmers of Karimnagar, Rajanna-Sircilla, Jagtial and Peddapalli districts, falling under the jurisdiction of Karimnagar Milk Producer Company Limited.

The Karimnagar dairy debits Rs. 9 crore through banks every fortnight to milk producers as payment for procuring milk. But, the dairy farmers were unable to withdraw not more than Rs.24,000 per week from nationalised banks as they do not have Kisan Credit Cards (KCC) to withdraw Rs.50,000 per week. The cooperative banks such as District Cooperative Central Banks (DCCB) and Telangana Grameena Bank (TGB) were providing cash not more than Rs.2,000 per week.

The Karimnagar dairy procures 1.8 lakh litres of milk daily from 924 villages (milk producer institutions) and makes online payment to each milk institution through banks. The milk producer institution president and manager of milk chilling unit have joint cheque withdraw powers from banks and distribute money to the milk famers in their respective villages.

The milk producer institution would be getting average fortnightly income of Rs.1.5 lakh to Rs.7.5 lakh, depending upon the supply of milk to the Karimnagar dairy. Each milk producer would get fortnightly income ranging from Rs.1,500 to Rs.10,000 and above. The demonetisation had become a cause of concern for the milk producers for purchasing essentials to eke out their living.

Director and milk producer Prabhakar Rao of Mamidipalli village in Konaraopeta mandal in Rajanna-Sircilla district said farmers are agaitated over non-payment of their milk bills due to demonetisation and are abusing the field staff.

Welcoming the demonetisation of high currency notes, Karimnagar Dairy chairman Ch. Rajeshwara Rao said that the decision had affected milk producers as they could not get their fortnightly income on time. However, we are taking all measures to ensure that the farmers get their payment at the earliest by talking to the banks concerned, he said, and added that they were also planning to open bank accounts to all the milk producers and make the online payment every fortnight.