The decision of the Andhra Pradesh government has brought to an end to Ongole Dairy’s forty-year milk operations. With the launch of Amul Dairy operations in Prakasam district, the milk supply to Ongole Dairy witnessed a steep decline from 30,000 litres to 4,000 litres. Hence, in a meeting which was chaired by the Chairman of the Provisional Governing Council and the State Dairy Development Corporation MD Ahmed Babu, it has been decided that Ongole Dairy assets be leased to Amul. Despite strong opposition from dairy farmers and union leaders, the decision was taken for the benefit of farmers, said Ahmed Babu, the chairman of the governing body. However, the farm unions have opposed the decision to forfeit Ongole dairy assets worth crores and have geared up to hold a large-scale agitation.
Ongole Dairy assets in Amul’s hands
The interim governing body decided to lease 30 crores worth Ongole Dairy machinery and milk powder factory to Amul Dairy. Due to Amul Dairy operations in Prakasam district, the milk supply to Ongole Dairy witnessed a steep decline from 30,000 litres to 4,000 litres and it was decided to discontinue the milk supply. In other words, the Ongole Dairy has been shut permanently. It is known that the past governments spent crores of rupees to protect Ongole Dairy, which also included the share of farmers. Ongole Dairy already has machinery and valuable assets worth crores, and Prakasam district farmers have strongly protested against leasing all of them to Amul Dairy. Looks like, even the government isn’t backing down from its proposal. Even, opposition parties have been criticizing the conspiracy to expand Amul not just in Prakasam district, but across the state, over the next three months which in a way is harmful to co-operative dairies.
What will happen to Ongole Dairy assets?
Dairy farmers’ union leaders are now concerned as the interim governing body hasn’t clarified regarding what would happen to Ongole Dairy assets. Though farm unions have demanded the details regarding the lease of Ongole Dairy assets, machinery and milk powder factory to Amul Dairy, the interim governing body has been criticized for ignoring the decision. Farmers have also raised complaints against the governing body for their failure in clarifying about the arrears paid to Ongole Dairy farmers. Farmers across the district seem to be strongly opposed to the closure of Ongole Dairy, a co-operative sector built by farmers, and the leasing of assets to Amul Dairy.
Beneficial for farmers?
Ahmed Babu, chairman of the governing body, said the decision was taken in the good interest of dairy farmers and employees, reminding them that the Ongole Dairy is running in severe losses. He even stated that only 4,000 litres of milk is being supplied to Ongole Dairy, instead of its actual capacity of 3.5 lakh litres per day. Ahmed Babu assured that Ongole Dairy was not likely to last long and with Amul Dairy a higher price would be paid for milk collected from dairy farmers, which is an additional ₹ 5 per litre of milk than all other dairies. On the other hand, despite the strong opposition from farmers over leasing Ongole Dairy to Amul, the opposition lambasted the state government for saying that the decision was taken for the benefit of the farmers.
