The Goa unit of BJP today sought to allay apprehensions that permission for a Gujarat-based milk production company to operate in the state will pose a threat to Goa Dairy.
The BJP-led state government has allowed Gujarat-based Surat District Co-operative Union Ltd (SUMUL) to start operations in addition to the existing Goa Milk Producers' Union, also known as Goa Dairy.
"Government will not provide land or financial support or assistance in any other form to SUMUL. Rumours are being spread that SUMUL will finish Goa Dairy," BJP spokesman Dr Pramod Sawant said.
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SUMUL's entry will create competition in the market and benefit farmers and consumers, he said.
"Government gives subsidy of Rs 9 per litre to Goa Dairy but despite it they sell milk for Rs 24 per litre. SUMUL's entry will further bring down the prices," he said.