NDDB to invest Rs 30 crore in three districts

As part of its efforts to revive milk co-operative movement in Andhra Pradesh, the National Dairy Development Board (NDDB) has proposed to take up modernisation of existing infrastructure at an investment of over Rs 30 crore in Chittoor, Cuddapah and East Godavari districts.

The board has also proposed to set up milk producers' co-operative institutions in the Telangana districts of Medak, Nizamabad, Mahabubnagar and Khammam, which are so far not covered under any milk co-operatives.

Amrita Patel, chairperson of NDDB, who met chief minister Y S Rajasekhara Reddy here on Monday, said that it will need at least Rs 150 crore to Rs 200 crore investment for the revival of co-operative movement in milk production across the state.

According to Patel, NDDB would operate in Chittoor and Cuddupah districts through its Balaji Dairy and invest over Rs 15 crore in infrastructure required for milk procurement, processing and marketing.

It also proposed to invest another Rs 15 crore for the modernisation of existing facilities of Godavari milk producers' union at Rajahmundry and extends its operations to other parts of the East Godavari district and neighbouring areas.

"At present, co-operative sector covers only 15 per cent of the total milk production. We want to increase it," she said. She also said that the marketing network in Hyderabad and other places in the state would be strengthened.

NDDB had signed an MoU with the Andhra Pradesh government in July 2004 to help revive milk co-operative movement in the state. The chief minister is keen on developing this sector as it provides a good supplementary income to farmers and other rural families.

In today's meeting with NDDB chairperson, he urged Patel to extend the Board's support to the entire state in reviving the co-operative sector.

"All the new co-operative milk unions need to be registered under the Companies Act. They will have to work on sound business principles and run by professionals even though they would be built on core cooperative principles. We also need to enhance the role of milk producers in the affairs of cooperatives," Patel said while speaking to Business Standard.

According to her, the present set up in co-operative sector is not conducive to the revival of a genuine co-operative institutions in the state.

NDDB also operates through 'Mother Dairy' in Nalgonda and Ranga Reddy districts which supply over 1.5 lakh litres of milk under the brand.