Eight firms show interest in Milkfed consultancy

Federation had advertised for expression of interest for helping it overcome recurring losses.

Eight business consultancy agencies have submitted expressions of interest (EoIs) for formulation of a "Strategic Vision Plan" for Punjab's Milkfed (Milk Federation) to improve the efficiency, profitability and market operation of the federation.

The eight firms that have responded to the advertisement by the department are Gurgaon-based Zeitgeist Advisorate, Delhi-based Datamation Consultants(P) Ltd, New Delhi-based companies 3i Infotech Ltd, Deliotte Touche Tohmatsu India (P) Ltd, Agriculture Finnace Corporation Ltd, Rabo India Finance Ltd, Global Agri Systems (P) Ltd and Kolkata-based Genesis Fintec Ltd.

Sources in Milkfed said the consultation firms would soon be invited for presentation on basis of which they would be shortlisted and asked for a commercial bid.

Markfed incurred a loss of Rs 4.24 crore during the first half (April-September) of the current financial year, while during the same corresponding period last year, it had suffered loss of Rs 5.50 crore. The annual turnover of Milkfed was Rs 782 crore in 2006-07.

Earlier, Punjab Co-operation Minister Captain Kanwaljit Singh had blamed poor management, lack of proper policy directions and lack of performance-based incentives for recurring losses incurred by Milkfed in the recent past.

Compared to 1995-96, when Punjab held fifth position in milk procurement, it had slipped to ninth position during 2005-06. Punjab has 11.7 million litres of marketable surplus milk per day against the daily production of 23.4 million litres. Milkfed has a share of just 6.7 per cent in daily milk procurement.

Also, the public-sector milk plants in the state are utilising only 48 per cent of their installed capacity.

At present, there are approximately 360,000 dairy farmers (also member of co-operative societies) under 11 different milk union supply milk to the federation. 3 milk unions, namely milk unions at Bathinda, Sangrur and Amritsar, are in the red.

The government has set a target for Milkfed to increase its capacity utilisation from 48 percent to 75 percent in the current year and further up to 400 percent in the next four years to keep itself in growing competition.

Further to explore new markets, the federation has decided to explore possibilities of marketing milk procured from Amritsar and Gurdaspur in Jammu & Kashmir, Jalandhar and Hoshiarpur in Himachal Pradesh, Bathinda and Sangrur in national capital region as well as in Haryana.

Recently, Milkfed has tied up with Allahabad Bank and Oriental Bank of Commerce to provide loans to farmers as an effort to increase milk production, which includes setting up of 100 commercial dairies in the state.