Govt wrests control of Visakha Dairy

The state government's move to seize control over cooperative dairies through an ordinance has been condemned by Adari Tulasi Rao, chairman of Visakha Dairy. "Such a move will only benefit private diaries," Rao told Business Standard.

As per the ordinance, all the eight cooperative dairies in the state, including Visakha Dairy, registered under the mutually-aided Cooperative Act 1995, will come under the 1964 Cooperative Societies Act.

According to Rao, the government has issued the ordinance obviously to strip leaders of Opposition parties of their power over the cooperative dairies. The majority of the members of the governing bodies of the eight dairies belongs to the Opposition parties.

Visakha Dairy, the largest cooperative dairy in the state, has been earning profits for the last several years while paying higher procurement price to milk suppliers. More than two lakh milk producers supply milk to the dairy through about 750 village cooperative societies.

After issuing the ordinance, all the 750 village milk societies have been abolished. The government officials have taken charge to run the dairy and village milk societies. The government has appointed district collector Anil Kumar Singhal as in-charge and divisional cooperative officer Bhagavan as general manager of the dairy.

The Rs 250-crore Visakha Dairy procures about 4.2 lakh litres of milk daily from Visakhapatnam, Vizianagaram, Srikakulam and East Godavari districts. In order to avoid the state government's interference in the dairy, Visakha Dairy came under the Producers Company Act only last month.

It has plans to set up milk processing and powder units in East Godavari district at an investment of about Rs 30 crore.