Govt directs cooperatives to open bank accounts for milk producers

New Delhi: The government has asked dairy major Amul to open bank accounts for all milk producers by the end of this month and other cooperatives by January to ensure smooth payment to farmers post-demonetisation.

The Centre is also reviewing and monitoring the situation of easing the payment to milk producers. "Consequent upon the government's decision of demonetisation, certain unintended impacts have been observed especially in the sectors thriving upon sheer cash transactions.

"In this regards, non-availability of funds to the co-operative banks for making payments to milk producers/farmers by dairy co-operative against the milk supplied by them came to the notice of the government," an official statement said.

Gujarat Co-operative Milk Marketing Federation (GCMMF), which sells milk and other dairy products under Amul brand, has been specifically directed to ensure 100 per cent milk producers' accounts to be opened by December, 30, 2016.

"Similarly, other co-operatives have been directed to ensure the opening of 100 per cent accounts of milk producers/farmers by 30th January, 2017," the statement said.

The Centre has issued specific instructions to all the agencies such as National Dairy Development Board, Mother Dairy, Delhi Milk Scheme and all state dairy co-operative federations for ensuring direct payment to milk producers' bank account at the earliest.

"Low penetration of nationalised banks and co-operative bank accounts in rural areas need adequate financial support with appropriate safe guards," the statement added.

Responding promptly to the prevailing situation of reported payment problems, Agriculture Minister Radha Mohan Singh has regularly reviewed and directed to take appropriate action to alleviate the problems.

There are 1.7 lakh dairy cooperative societies (DCS) at village level having 1.6 crore milk producers affiliated with 218 milk unions. About 850 lakh litres milk per day is procured including from private dairies.

However, the value of milk procured from DCS is to the tune of Rs 120 crore per day. For weekly and 10 days payment cycle, the substantive amount is to be disbursed to lakhs of milk producers spread over varied geographical areas.