`Investment sans Aavin price hike won't be viable'

By S. Vydhianathan

CHENNAI, NOV. 24. Any investment in the Tamil Nadu Cooperative Milk Producers Federation (TNCMPF) will be viable only if the Aavin selling price is increased by Rs 1.50 a litre for toned milk and Rs 0.50 for standardised milk in the city, the National Dairy Development Board has made it clear.

The board also directed it to conduct early election, right from village cooperative milk cooperative societies to the federation, and opposed the posting of common cadres like IAS officers to the TNCMPF and unions on deputation.

In its perspective plan - 2010 for the first 10 years of the new millennium, the board has assessed that an investment of Rs. 46 crores is needed for the federation strengthening its activities.

But the investment, will be viable only if the price is increased. Increasing the price apart, the board wanted the federation to improve the sale of milk in the city from 7.4 lakh litres per day to 11.50 LLPD. Another condition was that the federation pass on at least 30 paise per litre to the district unions as overhead charges for bulk supply to Chennai.

After a review, the board found that the Salem, Tiruchi, Coimbatore, Madurai, Kancheepuram, Vellore, Dharmapuri, and Nilgiris district cooperative milk unions could sustain a total investment of Rs. 72 crores provided they also increased the selling price by at least Re. 1 a litre and the total sale of local milk.

The Erode and Villupuram unions could not sustain any investment with their current financial conditions and hence they were to be considered for rehabilitation. The two unions might require an investment of Rs. 13 crores to handle the projected milk requirement during 2004-05.

The board has laid three more conditions for the federation and cooperative unions receiving NDDB funds. Payment dues to milk producers should not be for more than one week/10 day supply; the audit of unions, pending since 1997-98, should be updated upto 1999-2000. The unions might utilise the services of private auditors for completing the task.

Earlier the Tamil Nadu Government submitted a consolidated proposal to the board, seeking assistance to the tune of Rs 220 crores for improving and providing additional infrastructure in the federation and all district unions to be implemented in the next five years. It is said the board agreed to offer Rs. 131 crores for both the federation and the unions.

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Section  : Southern States
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