Amul has halted milk collection in Andhra Pradesh due to disputes with the YSRCP government. This suspension affects districts like Tirupati, Divuru and VISAR, following allegations of mismanagement and corruption related to the state’s dairy modernization initiative.
Background of the Dispute
In a significant development, Amul has suspended milk collection in Andhra Pradesh’s Tirupati, Divuru, and VISAR districts due to disputes with the state government, led by the Yuvajana Sramika Rythu Congress Party (YSRCP). The conflict arises from concerns over Amul’s adherence to state policies, issues with the management and utilization of infrastructure investments made by the previous administration, and the economic impact on local dairy farmers. The suspension has disrupted milk supply and raised public concerns about the future of dairy farming in the region. Negotiations are ongoing to resolve these issues and resume operations.
Government’s Investment and Objectives
The Andhra Pradesh government’s decision to hand over dairy operations to Amul was part of a larger initiative under former Chief Minister Chandrababu Naidu’s administration. The aim was to modernize the state’s dairy industry. The government invested heavily in infrastructure and machinery for dairy collection centers, totaling approximately Rs. 250 crores, and allocated Rs. 700 crores to build and equip dairy facilities across 11,800 villages.
Challenges and Decline in Milk Collection
Recent developments have led to a noticeable decline in milk collection volumes. The daily collection, which was previously 3.90 lakh liters, has now reduced to 3 lakh liters. This decrease has caused concerns among local cooperative federations and dairy farmers, who are struggling to deal with the disruptions.
Mismanagement and Corruption Allegations
The transition to Amul was intended to boost efficiency and modernize the dairy sector. However, the current situation has raised serious questions about the handling of assets and investments. There are reports of mismanagement and corruption, with government-funded machinery and buildings now reportedly idle or underutilized.
Impact on Cooperative Dairies
The state’s cooperative dairies, which were once thriving, are now facing severe disruptions. Amul’s operations in Andhra Pradesh have faced criticism for failing to meet operational targets and mismanagement practices. The situation has significantly affected local dairy farmers and consumers.
Leased Assets and Financial Issues
Amul was granted a lease on 21 bulk milk cooling units and 27 acres of land for dairy operations in Aliuru and Stradapalli. However, with a remaining debt of Rs. 182 crores and no guarantee of resuming operations, the future of these facilities remains uncertain.
Calls for Investigation and Resolution
Local leaders and stakeholders are calling for a thorough investigation into the misuse of public funds and the mismanagement of dairy assets. They urge the YSRCP government to address these issues and seek appropriate remedies to restore stability to the region’s dairy sector.
For now, dairy farmers and consumers in Andhra Pradesh are left navigating the consequences of this ongoing dispute, awaiting a resolution that will hopefully restore the stability and efficiency of the state’s dairy industry.
