Claiming that the state government is attempting to support Amul in expanding its influence in Maharashtra by transferring the state’s cooperative milk brand Mahanand to the National Dairy Development Board (NDDB), farmers’ organizations and opposition political parties have voiced their opposition to the decision.
The board of directors at Mahanand Dairy has approved a resolution to transfer control of Mahanand to the NDDB.
“The decision to hand over Mahanand to NDDB is against the interest of the state’s farmers. It will only help Amul expand in Maharashtra. The Maharashtra government should have saved Mahanand to help farmers get better realisation for their milk,” said Ajit Nawale, leader of the Akhil Bharatiya Kisan Sangh.
Mahanand Dairy operates under the Maharashtra Rajya Sahakari Dudh Mahasangh Maryadit (MRSDMM), the apex federation of milk cooperatives at the district and block levels in the state, established during Operation Flood in 1967. Amul, on the other hand, is the brand associated with the Gujarat Co-operative Milk Marketing Federation (GCMMF), a federation encompassing all milk cooperatives from Gujarat.
In contrast to Gujarat and Karnataka, Maharashtra lacks a singular prominent milk brand in the co-operative sector. The state is home to over 300 milk brands, spanning both the private and co-operative sectors. The intense competition among these brands for a significant market share results in substantial margins granted to distributors, ultimately translating to lower prices for farmers.
“The state governments of Karnataka, Kerala and Tamil Nadu have developed their own co-operative milk brands Nandini, Milma and Avin, respectively, and opposed the entry of Amul in their states,” said Nawale.
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The opposition parties, Shiv Sena and Congress, allege that the decision to hand over Mahanand to NDDB is intended to favor Gujarat’s Amul.
Challenges Faced by Mahanand Dairy:
Mahanand has transformed into an unprofitable entity, struggling to meet the salary obligations of its employees. While it once achieved a peak daily milk collection of 11 lakh litres, the dairy now only collects 70,000-90,000 litres of milk per day.
As per insiders in the dairy industry, Mahanand faced challenges such as operational inefficiencies and excessive staffing due to political patronage. The dairy struggled to disburse salaries to its employees for several months.
“We have proposed that the current board of directors be retained after handing over Mahanand to NDDB,” said an office bearer of Mahanand, who requested not to be identified.
Earlier, Maharashtra had handed over Jalgaon Milk Co-operative to NDDB, which then made it profitable and subsequently returned it to the local management.
