Will benefit milk producers and increase milk production
The Karimnagar district mutually-aided cooperative milk producers union albeit Karimnagar Dairy, which had been making strides in launching a milk revolution and benefitting milk producers, have been converted into the Producers Company by acceding with the Companies Act 1956 to grow into a bigger and stronger organisation to benefit milk producers.
Disclosing this to newsmen here on Saturday, Karimnagar Dairy chairman Ch. Rajeshwara Rao said that the decision to convert Karimnagar Dairy into Producers Company was taken after discussions with the board of directors on September 16, 2011.
Later, the process was completed in spite of objections raised by Andhra Pradesh Dairy Development Cooperative Federation Limited. He added that the Registrar of Companies of Minister of Companies Affairs had allowed for Karimnagar Dairy to be made into Producers Company after being satisfied with the dairy’s performance and keeping in mind the welfare of farming community.
Stating that they were forced to go to Producers Company under the Companies Act as the State government was scuttling the Cooperative Milk Producers Union’s development, he said that the Visaka Dairy was the first cooperative dairy in the State to go for conversion into the Producers Company.
He said that after the conversion of the dairy into the Producers Company, the milk producers alone would be the share holders and the profits would be shared among the milk producers only.
The conversion had made the dairy an independent agency without political interference and would give more benefits to the farmers.
The Karimnagar Dairy was established in 1971 and was handed to the farmers in November 1, 1998 as cooperative dairy as part of the Cooperative Act 1964.
Since then, the dairy had made long strides in milk production and welfare of milk producers. The milk sales had crossed 1 lakh litres and procurement had also crossed one lakh litres per day.
On the other hand, the loss making unit was made into a most viable unit with profits. The Karimnagar Dairy turnover reached 130.92 crore as on March 31, 2012, the dairy chairman said.
Dairy managing director V. Hanumantha Reddy was present.
Thanks to chairman sir and Board of directors
It is heartening to note that the Karimanagar Milk Union has taken a bold and appropriate step in converting into Producer Company. I hope other Milk Unions in AP will follow.