Karnataka Milk Producers Reel Under Cash Crunch

INDIA - Demonetisation has hit the 24 lakh milk producers across Karnataka hard.
calendar icon 16 January 2017
clock icon 1 minute read

Ever since the note ban came into effect, they are reeling under cash shortage. While many of them are yet to get their payment from milk co-operative societies, others are finding it difficult to take time off to visit the banks situated in remote locations. They are normally paid weekly or once in a fortnight.

“Several societies are yet to pay the farmers in Mandya as the cash withdrawal limit is restricted to Rs 24,000 per week post-ban. Most of the societies have savings account,” said Kadaluru Ramakrishna, Chairman, Mandya Milk Manufacturers’ Union Ltd (MANMUL).

He told Express that Mandya, the largest milk producing district in the State, has 1,170 milk producers’ cooperative societies. Over 1.1 lakh dairy farmers supply close to 8 lakh litres of milk to them.

Mr Prabhakar, Secretary to one of the milk co-operative societies in Ramanagara district, said there are over 30,000 milk producers and 175 milk societies.

“Earlier, we used to pay the milk producers in cash every week or once in 15 days. We would withdraw money from the banks and distribute them among milk producers. But after the banks fixed the maximum withdrawal limit at Rs 24,000 week, we were left with no other option but to transfer money to their individual account,” he said.

Source: The New Indian Express

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