The impending takeover of the Mahanand milk brand in Maharashtra has kicked up a political storm, with allegations and counter-allegations flying thick and fast. However, the move was afoot for a long time. Several factors have culminated to lead to this development.
All over the world, technological innovations are playing a crucial role in transforming the dairy industry. This includes advancements in dairy farm management, milk processing, packaging, and supply chain logistics. Technologies like automation, Internet of Things and artificial intelligence are being employed to enhance efficiency, improve product quality and ensure safety. These technologies also contribute towards better farm management practices, allowing for higher productivity and sustainability. Additionally, the adoption of cold chain technologies ensures that dairy products retain their freshness and nutritional value during transportation, storage and distribution.
While fresh milk dominates the Indian consumer canvas, there is a significant shift towards value-added dairy products like cheese, yogurt, flavoured milk and probiotic drinks. These products offer greater value margins and cater to the evolving consumer preferences for health, convenience, and variety. The demand for these products is being driven by increasing health awareness, the rising middle class and changing dietary habits. Dairy companies are investing in new product development and marketing strategies to capture this growing segment, diversifying beyond traditional milk products.
At a glance, it is seen that the dairy industry in India achieved the market size of Rs.16792 billion in 2023. It is projected to grow to around Rs.50000 billion by 2032, according to a projection prepared by the IMARC Group. As per the National Cooperative Database (NCD) of the Ministry of Cooperation, the total number of functional dairy cooperative societies in Maharashtra was 11219 as on 27 July 2023). The total milk production in the state over the last five years increased from 11102 thousand tons (2017-18) to over 14304 tons (2021-22). The milk production in the country increased by 22.80 per cent in the past five years. Uttar Pradesh, which accounted for 15.72 per cent of the total, maintained its lead over other states. This has been revealed in the basic animal husbandry statistics for 2022-23, which was released in Guwahati on the occasion of the National Milk Day last year. UP was followed by Rajasthan (14.44 per cent), Maharashtra (10.11 per cent), Madhya Pradesh (8.73 per cent), Gujarat (7.49 per cent) and Andhra Pradesh (6.70 per cent) as leading milk producing states in the country. The statistics covers milk, egg, meat and wool production in the country, based on animal integrated sample survey conducted between March 2022 and February 2023. It was released by Union minister for fisheries, animal husbandry and dairying Parshottam Rupala.
According to Rupala, the total milk production in the country is estimated as 230.58 million tons during 2022-23, registering a growth of 22.80 per cent over the past 5 years from 2018-19. The production has increased by 3.83 per cent during 2022-23 over the estimates of 2021-22. In the past, the annual growth rates varied between 6.47 per cent and 5.77 per cent during the five years.
At the centre of the controversy in the state is the Maharashtra Rajya Sahakari Dudh Mahasangh Maryadit, the apex federation of district and taluka milk unions established to implement the Operation Flood programme in Maharashtra. The main objectives of MRSDMM was to procure milk from the member milk unions at remunerative rates and distribute it to the consumers after processing at a reasonable tariff. MRSDMM was conceived to be working as a vital link between the milk producers and consumers and working for the economic development and upliftment of the farmers in rural areas. After making a spectacular beginning and performing well for a long time, the affairs of the sector started deteriorating.
The National Dairy Development Board (NDDB) came actively in the picture in 2022 when the issue was highlighted on political platforms. When dairy development minister Radhakrishna Vikhe Patil informed the state assembly that the Maharashtra government was unable to run the dairy any longer. Hence, he said, Mahananda dairy will be handed over to the NDDB, a statutory body with its main office at Anand in Gujarat.
Vikhe had said, “We did not want to hand over Mahananda dairy to a private trust or company. Therefore, it is decided to hand it over to the NDDB. The talks are in the final stage. However, NDDB has told us that they will only accommodate 350 Mahananda employees out of total 940. Mahananda Dairy is very much in distress and even unable to pay salaries to its employees.”
As planned, 19 directors of Mahanand have resigned. The NDDB has sought an assistance of over Rs. 257 crore from the state government to run its operations. The board of directors of Mahanand had approved a proposal last month to allow Mahanand to be run by the NDDB. As Mahanand operations will be run from Gujarat, opposition parties in the state have adopted an aggressive stance over this development.
This minister’s statement ignited passions since there has been clamour that industry in the state is being shifted to Gujarat. The fact that the president of Mahanand is a brother-in-law of Vikhe Patil has assumed significance against this backdrop. Allegations have been made that chief minister Eknath Shinde and both his deputy CMs are conspiring to sell 50 acres of valuable ‘Mahanand’ land to industrialist Adani.
The NDDB has drawn up a comprehensive plan for Mahanand revival. It has been submitted to the state government. As per this plan, Rs.253 crore is needed to be shelled out by the government as a soft loan or share capital. This amount is planned to be utilised so that the employees will be paid to retire voluntarily and for restarting the existing Mahanand system. Mahanand has 940 employees at present and 530 of them offered the option of voluntary retirement. Around 14 million litres of milk is collected daily in Maharashtra. Over 11 million litres of this quantum is procured by private brands.
The final phase of the takeover plan will begin soon, though its timing is uncertain in view of the Lok Sabha elections a few weeks ago. Though the issue is gathering political steam, the neglect of the entity is overlooked. If the dairy business is successful in other state-run enterprises, why not in Maharashtra? This question is to be faced now.
A Column By
Dilip Chaware – Senior Editor
A media professional for 43 years, with extensive experience of writing on
a variety of subjects; he is also a documentary producer and book author.
