Goa Dairy has filed a petition before the High Court of Bombay at Goa challenging entry of SUMUL in the state.
The Goa Dairy has opposed the entry of Gujarat-based Surat District Cooperative Milk Producers Union Limited (SUMUL) on the ground that it is not a multi-state co-operative and so it cannot be set up in the state of Goa. Another ground on which the Goa Dairy is opposing the entry of SUMUL is that it has not been given permission by the state registrar.
In 1983 a tripartite agreement was signed between agricultural departments of the Union government, Goa government and Goa Dairy, restricting any other dairy establishment setting up business in Goa and the Goa Dairy sources said they would likely to oppose SUMUL on the ground of a tripartite agreement signed.
The Goa Dairy was declared a cooperative in 1983 by applying a three-tier Anand Milk Union Limited (AMUL) pattern that consists of village level cooperative societies, district cooperative societies and state / national cooperative societies.
A tripartite agreement was signed between then Indian Dairy Corporation (now National Dairy Development Board, NDDB), Union government and Goa government and the agreement had made it mandatory to all milk producing farmers in Goa to sell the milk produced by them only to Goa Dairy through the village dairy.