Cooperative milk dairies to take shelter under Companies Act

VIJAYAWADA: In what could be a severe jolt to the government's efforts to take over the cooperative milk societies, major cooperative dairies in the state have resolved among themselves to get registered under the Companies Act. This could bring an end to the government's interference in the relatively rich cooperative milk societies.
According to sources, the managements of Krishna, Guntur, Kurnool, Nizamabad, Karimnagar, Rangareddy and Nalgonda district cooperative milk producers societies (popularly known as district dairies) have decided to shift to the Milk Producer Companies Act to enjoy greater autonomy and complete freedom from political pressures.
Curiously, the governing bodies of these dairies have joined hands, setting their political and regional affiliations aside to take on the government. Sources said the government's recent move for a fresh Act to enhance its control over the cooperative dairies has triggered a debate among the milk producers and made them jump into the Companies Act to protect themselves from too much meddling by government.
Though there are apprehensions about the monopolisation of power by the top management, the incumbent governing bodies of all the six dairies have decided to go ahead with fresh registration of their societies under the Companies Act. Already, the Visakhapatnam Milk Producers Society (Visakha Dairy) has changed its registration under the Companies Act. If dairies like Krishna, Guntur (Sangam), Nalgonda and Rangareddy (Mother) also go for the switch over, it could be a major setback for the government's proposed milk mission programme.
During early 2006, then YSR government, tried to appoint special officers for all the district cooperative dairies as a majority of them were headed by Telugu Desam Party leaders. It brought an ordinance by taking over the managements of milk dairies. A majority of the milk societies, which were governed by Model Act (considered to be a historic Act that was brought in by NT Ramarao), have opposed the government's move and launched a legal battle. The long-drawn legal battle came to an end recently when the Supreme Court struck down the ordinance and upheld the autonomy of the dairies. But the state again started discussions over new legislation to control the dairies.
"It is clear that the government is serious on gaining full control of the milk societies. It is against the spirit of the cooperative movement," said Guntur district milk producers' society chairman and Ponnur legislator Dhullipalla Narendra Kumar. Referring to the monopolization of power at the top under the Companies Act, Narendra said it was a misconception. Criticising the government for making repeated attempts to interfere in the activities of the dairies, Krishna district dairy chairman M Janakiramaiah said the government was out to destroy the cooperative dairies.
While each of the six major societies procure more than 1.5 lakh litres of milk a day, the annual turnover of each district dairy is around Rs 250 crore.