JKMPCL demands release of pending payment for supplying milk

Srinagar: - July 19, 2019. JKMPCL, apex Dairy Cooperative organization of J&K, has demanded release of pending payment from Indian Army.

In a statement, JKMPCL said that under the prevailing circumstances, it is impressed upon by this organization as to how may we continue milk supplies to different Army stations if payments are kept on hold anymore.

As on 3rd of July 2019 District Administration Srinagar suddenly close-down one of the units of this organization at Milk Plant Cheshmashahi Srinagar while processing of 50000 litres of milk for next-day supplies to Civil markets as well as Army stations.

This factory-closure activity was attempted without mentioning any reason and even not pondering of spoilage of 50000 litres of milk collected from farmers thereof. Presently, payment to the tune of Rs 250 lakhs is due from Army in favour of this organization on account of milk supply.

Unfortunately, these due payments are not being released by the Army HQ due to interim order passed by the High Court of Srinagar wherein status quo is being enforced on the release of payment. The order has been passed in connection with some petition filed by handful of spurious elements.

Thus, working capital deficit of this organization is mounting day by day and we’re unable to pay milk bills towards associated farmer members who are pouring milk to us on daily basis.

In light of this, more than 100 farmers from different regions of Kashmir valley met to discuss the hardships faced by them due to non-payment of their milk bills on 19th of July 2019, Friday at 11:00 AM at Milk Plant Cheshmashahi Srinagar.

JKMPCL is the apex dairy cooperative organization of J&K state with a network of more than 20000 milk producers across the state associated with us through 400 village dairy co-operative societies. The organization and associated societies are registered and functioning as per the J&K self-reliant cooperative act’1999. The prime motive of our concern is to provide remunerative price of milk to our producer members (value for many) and quality products to our customers (value for money).

JKMPCL has emerged as the farmer centric dairy cooperative organization of J&K state and has transformed to financially sustainable and continuously growing organization. JKMPCL has contributed its role to the larger extent in development of dairy sector in J&K state by way of automation of milk collection at village level vis-à-vis creation of adequate milk chilling facilities in the catchment areas. These activities have directly benefitted milk producing farmers as they are getting printed information on the quality of their milk, its rate and total amount due on real time basis thereby increasing the transparency and accountability in the system.

Prior to the establishment of JKMPCL, milk producer farmers used to sell their milk to middlemen who in turns used to sell the milk to nearby markets. In this process, the middlemen making huge profit by selling milk at higher price to consumer and usually pay only around 40-50% to milk producer members. Prices were not based on proper testing of milk and a general rate was paid irrespective of the quality of milk. Such type of activities discourages milk producer members to improve their milk production also quality of milk. However, the situation is drastically changed after establishment of JKMPCL. During 2004- 05, milk producer members of the states were getting around Rs. 8-9 per liter which increased to around Rs. 31-35 per liter of milk during this year.

JKMPCL has enabled itself to provide assured market for milk producers as payment for milk is released on a 10-day cycle basis which is inclusive of society commission (1.5% over & above of milk bill) for Village Dairy Cooperative Society. Milk payment is directly released into the bank account jointly operated by Chairman & Secretary of the society. Apart from paying remunerative milk procurement prices to farmers, JKMPCL also provides annual bonus and dividend on shares to the shareholders (Registered Dairy Cooperative Societies) out of annual profit earned.

JKMPCL is also supplying Balanced Cattle Feed of BIS Type-II standard on no-profit no-loss basis as input services to member societies/milk producers under the brand name of ‘Amul Nutri Gold’ or ‘Amul Power Dan’. JKMPCL has established itself as a uniquely model for rural development and especially for the women farmers by linking the producer to the market by eliminating the exploitative middlemen.

As per the policy of Ministry of Defense, Govt. of India, this organization has been designated as sole supplier of milk to all stations under Army HQ Srinagar. Award of Army contract in favour of this organization would be much beneficial for all the stakeholders associated with this organization particularly milk producing farmers. Because this initiative will make us to dispose higher volumes of milk vis-à-vis, it will enable us to further enhance milk procurement prices favouring producer farmers. Additionally, more employment opportunities shall be created for rural as well as urban youth. As a matter of fact, some fallacious elements out there are striving to hamper this developmental initiative.