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Private dairies milk farmers in Ongole
The private dairies in Prakasam district are cashing on the financial crisis of Ongole Dairy. Once famous for quality and tasty milk, Ongole dairy is now in deep crisis and unable to pay the bills to farmers or give salaries to employees. This situation is helping the private dairies to procure more milk from farmers by reducing rate of price.
Ongole: The private dairies in Prakasam district are cashing on the financial crisis of Ongole Dairy. Once famous for quality and tasty milk, Ongole dairy is now in deep crisis and unable to pay the bills to farmers or give salaries to employees. This situation is helping the private dairies to procure more milk from farmers by reducing rate of price.
The Ongole dairy used to procure 70,000 to 80,000 liters when it is working in normal conditions. It pays Rs 55 per litre for milk with 10 per cent fat. But for the last few years, the financial situation of the dairy deteriorated due to market conditions and management decisions. It is said the dairy went into debts of Rs 70 crore including dues to farmers and salaries for employees for the last four months.
At present, the Ongole dairy can procure nearly 20,000 litres per day and requesting the farmers to continue supplying milk so that some revenue is generated. The remaining 50,000 litres of milk is now available to private dairies which usually pays Rs 50 to 52 per litre.
As a bulk quantity of milk is available and the farmers are in a condition to sell it to private dairies with reduced price per litre by Rs 2.5 to 3 starting this month. That means, the farmers, who used to sell milk to Ongole dairy are losing nearly Rs 5 per litre.
On the other hand, the Sangam dairy from Guntur district is locking horns with the private dairies in Prakasam district. The Sangam dairy is selling about 5,000 litres of milk in the district by setting up separate counters and is procuring about 10,000 to 12,000 liters per day from Addanki and Komminenipalem points. But it is not able to compensate the farmers who are being fleeced by the private dairies.
The dairy farmers are looking at Ongole dairy for its resurrection but losing hope as the time passing by. SM Hussain, Managing Director of Ongole Dairy said, “The farmers are ready to supply milk if we pay them at least 50 per cent of arrears. The chairman and the board members are working hard and hopeful that we overcome the crisis in 15 days.”
