The board of directors at Mahanand Dairy, a once-profitable venture under the Maharashtra government, has sanctioned a resolution to transfer the dairy’s control to the National Dairy Development Board (NDDB). However, milk producers in the State are expressing concerns and alleging that the government and the board have decided to facilitate Amul’s expansion in Maharashtra.

Earlier, the State government had hinted that the State was considering handing over Mahanand to the Union Government through the NDDB, admitting that dairy was facing an existential crisis as the co-operative milk sector is in a tight spot because of aggressive marketing by private players.  “There is an immense rise in the private sector’s share in the State’s milk business. The private sector is using various modern marketing techniques to increase sales and expansion. This has an impact on the co-operative sector and their sales,” the State government had admitted.

“The most affected is the Mahanand, the apex body (in the milk sector) and the institution is not even able to take care of daily expenses,” said Maharashtra Animal Husbandry and Dairy Development Minister, Radhakrishna Vikhe Patil, while answering a written question in the State Assembly last year.  The Government admitted that Mahanand has landed in a financial crisis due to “various reasons”.  The minister claimed that other co-operative milk dairies in the State are not facing any financial crisis like Mahanand.