Non-cash transactions on rise in dairy sector

NEW DELHI: The ministry of agriculture stated that the percentage of farmers with bank accounts has increased from 49.27% to 63.42% following the demonetization. It increased cashless transactions to farmers from 23.82% to 72.25% since November.

The value of the milk procured by village level dairy cooperative societies is to the tune of Rs 120 crore per day, it said in a release. For weekly and 10 days payment cycle the substantive amount is to be disbursed to lakhs of milk producers spread over varied geographical areas.

In a media statement, the ministry stated that only 27.75% farmers are being paid through cash. According to the ministry, there are 1.70 lakh Dairy Co-operative Societies ( DCS) at village level having 1.6 crore milk producers affiliated with 218 milk unions. Of the total milk procurement of 850 lakh litres per day, co-operative sector procures about 425 lakh litres per day and balance by the private sector.

It added that Amul has been specifically directed to ensure 100% milk producers accounts to be opened by December 30, 2016. Similarly, other co-operatives have been directed to ensure the opening of 100% accounts of milk producers and farmers by January 30, 2017.

“Responding promptly to the prevailing situation of reported payment problems, the Union Minister of Agriculture and Farmers Welfare, Radha Mohan Singh has regularly reviewed and directed to take appropriate action to alleviate the problems. Meetings with Mother Dairy, Gujarat Cooperative Milk Marketing Federation (Amul), Delhi Milk Scheme and other State Co-operative Dairy Federations are taken at regular intervals,” said the ministry in its statement.

Further, the sale of milk has gone up by 2.81% in December 2016 as compared to December 2015 and the overall sale of milk from April- December 2016 has gone up to 328.91 lakh litres per day as compared to 321.43 lakh litres per day in April- December 2015.