DINDIGUL: Over 502 milk cooperative societies in Dindigul district have gone into liquidation in the last several years due to poor management skills, lack of enough members (milk farmers), and rise in the number of private dairy companies.
According to official records, a total of 755 milk cooperative societies have been registered under the District Cooperative (Dairy) Department in Dindigul. Of them, 178 milk cooperative societies currently supply milk to Aavin (Dindigul), 75 societies remain dormant with no milk production for the past six months, and 502 others have gone into liquidation with no financial transactions in the last several years.
Speaking to TNIE, K Anaikutti, Secretary of Nathan Koil Milk Cooperative Society, said, “One of the primary reason is poor management skills including financial management skills. Milk farmers are the primary source of milk, and if their payment is not settled properly, they will approach other societies.” He further pointed out that several farmers often approach other societies due to delayed payments.
“Besides, for the past few years, private milk companies have been coming up aggressively. Hence, chairman and secretary of milk societies should ensure proper payment for their members (farmers),” he added. When contacted, an official from the Cooperative Department (Dairy Development) of Dindigul zone also blamed poor administrative skills and competition from rival milk societies for the rise in liquidation of cooperative societies.
“Many of these cooperative societies have poor organising skills particularly after new office bearers assume office. However, we do not shut down cooperative societies for any reason. If a group of milk farmers decide to start a milk cooperative society, we will check for any society under liquidation in the region and help them to revive the existing one,” he said, adding that two such societies were revived in the past one year alone.
