Tamil Nadu government not in favour of subsidising milk tariff
Tamil Nadu State government had not supported the subsidy in the milk tariff to the cooperative dairy sector. Milk and Dairy Development department Minister K.T. Rajenthra Bhalaji said, ’We have in the past requested the government to provide us with such support. But there has been no such practice.”
While CM Palaniswami had to take a holistic view of the financial position of government, taking into account the question of tariff subsidy. Due to that Minister reacted that why his department not seek tariff subsidy to the State transport Corporations and Tamil Nadu Generation and Distribution Corporation.
He also said “I will convey this to the Chief Minister,” he said.
Meanwhile, the daily procurement of milk is nearly 33 lakh litres, the rise in prices will take the annual bill by 480 crores. The Tamil Nadu Cooperative Milk Producers’ Federation (TCMPF) and 19 District Milk Union will be forced to face losses, asserted officials of the State government and the Federation.
During 2018-2019 by the report of Police Note Dairy Development, the Federation and 15 Districts Union reported “tentative profit.” And also four other districts will able to make a turnaround this year with the increase in the selling price.
The officials also said “Of late, the focus of the cooperative dairy sector has been on increasing its profitability by selling more by-products than milk per se.”