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Co-operatives direct to open accounts of milk producers

New Delhi: The Centre Government has directed to the co-operatives banks to ensure the opening of the bank accounts of all the milk producers and farmers for cashless transaction by 30th January, 2017 in a meeting with the bank officials here on Dec 23,2016.

Similarly, the Centre has also directed GCMMF and Amul to ensure 100% milk producers accounts to be opened by 30thDecember, 2016.

Specific instructions have been issued 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 producer’s bank account at the earliest. Low penetration of nationalized banks and co-operative bank accounts in rural areas need adequate financial support with appropriate safe guards.

Responding promptly to the prevailing situation of reported payment problems, Radha Mohan Singh reviewed and directed to take appropriate action to alleviate the problems. Meeting with Mother Dairy, Gujarat Cooperative Milk Marketing Fed (GCMMF) /Amul, Delhi Milk Scheme and like co-operative is taken at regular intervals.

In order to take stock of the prevailing situation, Secretary , Animal Husbandry Dairying and Fisheries, Devendra Chaudhry has accordingly convened a series of meetings and initiated actions for streamlining the payment system to Milk producers and even sale of milk to consumers through cashless transactions primarily.

There are 1.70 lakh Dairy Co-operative Societies (DCS) at village level having 1.6 crore milk producers affiliated with 218 milk unions. About 850 lakh litres per day Milk is procured including from private dairies. However, the value of milk procured from DCS is to the tune of rupees 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.

Using the window of opportunity opened by the demonetization decision, it is high time to accelerate the opening of bank accounts of all those unbanked milk producers to make it cashless and digital sooner than later. Eventually, transparency saving habits, financial enclosure etc. would be benefiting milk producer in multiple ways.

The situation of easing the payment to milk producers is being reviewed and monitored periodically by the Government.