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MILKFED, the leading name of dairy business in Punjab, is serving nationwide quality milk & dairy products through its network of offices and supply channels.


According to the Annual audit report of the Indian Audit and Accounts Department, Sector 17, the Chandigarh Municipal Corporation was indifferent in respect of its income sources. The civic body had failed to collect rent to the tune of ‘1.4 crore from Vita and Verka booths operating on its land since 2008. Even the finance department of UT administration in 1998 had issued directions to the Punjab State Cooperative Milk Federation Limited, Sector 34, for depositing the rent of the Verka booths with the MC, the civic body didn’t find out a clue.

It has been found out from the Audit report that despite the MC had failed to collect their rent from the booths, their allottees were on the way of making quick money by doing brisk business against the selling of daily of other daily needs besides the sale of the Verka products, even most of the booths were found to be providing STD/PCO services to the consumers.

Milkfed – Measures taken by the State Government of Punjab and Milkfed which may protect the market of Milkfed against Amul  in Punjab

Lately, the Chief Minister of Punjab, Parkash Singh Badal on Feb 24, 15 had announced a slew of incentives which included the bringing off the power tariff rates applicable in dairy, fishery, goatry and piggery, balancing with the agricultural sector and also the advancing soft loans to the beneficiaries of goatry and piggery at interest rates equivalent to the dairy sector.

Further, he added that the eligible beneficiaries of the allied farming sector will be getting the power bills on the reduced tariff the existing Rs.7.75 per unit to Rs.4.57 per unit starting from the coming cycle. The Chief Minister also announced that the Milkfed will be paying the uniform price to the milk procurement to the milk producers throughout the year irrespective of every region of Punjab.

Further, the State Government would be providing a 50 % subsidy on all the components of two to six local or domestic cow breeds dairy units owing to the promotion of indigenous breeds.

Amul, one of the largest milk cooperative will be starting to sell fluid milk in Punjab, where at the beginning   30,000 liter of milk will be sold out in the markets across the regions of Amritsar, Gurdaspur and Batiala.  Despite Amul which is presently sending pasteurized and standardized milk in bulk to its own milk plants in Delhi, Verka not facing the competition at present is feeling the heat.

It has been cited by the Managing Director of Milkfed, Dilraj Singh that the Amul is eventually feasting on the share of Milkfed and selling the milk easily which has been procured from the contractors other than Milk fed which goes to the doorstep of each and every small farmer for the purpose of collecting milk, processing and finally selling it to its consumers.

The Managing Director of GCMMF, owner of Amul Brand had told of the Hindustan Times that there is a huge scope according to the Survey which was done across the regions of Punjab. As such they will be initially start from the border belt regions, namely, Batala, Gurdaspur and Amritsar. Interestingly, for withstanding Amul in Batala, Milkfed is in full swing and have been offering the same rates for milk as the Amul . Together with, Verka is planning to launch milk having 30 days of shelf life.

Verka which is having an annual turnover of Rs.2150 core is a tenth of Amul’s Rs.22000 turnover. Moreover Verka can process only 13.7 lakh liters of milk per day as compared to 1.8 crore liters of per day of Amul. As such Milkfed is absolutely worried that is cash-rich competitor can pump enormous amount of money in business.

In a word, it may be concluded that the incapability of the Chandigarh Municipal Corporation of the collection of rent from the Verka and the Vita booths of Milkfed had led to the deficiency of   Rs.1.4 crore. Also the slew of incentives taken by the Chief Minister of Punjab in view of agricultural diversification had affected the Dairy Industry in Punjab as well in various ways. But what is going to affect the dairy industry in Punjab is an Amul’s recent initiative of beginning the selling of fluid milk.

As such Milkfed has been offering the same price as Amul to its consumers for holding the market of Punjab.