Madhya Pradesh: National Dairy Development Board Demands ₹3,900 Crore From Govt In Form Of Grants

Bhopal (Madhya Pradesh): A hurdle has cropped up in the MoU between the National Dairy Development Board (NDDB) and the MP Dairy Federation.

After the milk collection increased following the MoU, the NDDB increased the demand for money. According to sources, NDDB demanded Rs 3,900 crore from the Federation.

As the state government is not in a position to give such a huge amount, there may be hassles in the MoU between the government and NDDB.

The pact between NDBB and Federation was inked on April 13. The government fixed the target for collecting milk from farmers from 12 lakh litres to 24 lakh litres. The government had to invest Rs 1,500 crore for five years for the purpose.

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Union Home and Cooperation Minister Amit Shah who was at the event advised the state government to increase milk collection. After Shah’s instructions, the target for collecting milk was increased to 50 lakh litres.

To fulfil the target, the NDDB demanded a revision in rates, which will be Rs 5,400 crore. After the talks between Federation and NDBB, the amount has been decreased to Rs 4,500 crore.

Now, the NDDB is demanding Rs 3,900 crore out of Rs 4,500 crore from the government. Initially, it was decided that the investment will be made through loans, but the NDDB is demanding the money in the form of grants.

The government has been told that if it is unable to invest this amount, all Dugdh Sanghs will not be brought within the periphery of profits. Most of the Dugdh Sanghs are making profits.

According to sources, the reason for the hassle between the NDDB and the government has come to light. NDDB is not ready to disclose how much profit each Dugdh Sangh will make after the government invests the amount.

The NDDB is not providing any information about the profit that will be earned every year. Since it is not providing the information, the file relating to the demand for increasing money after the hike in collection is not going ahead.

According to sources, the NDDB was given the responsibility for marketing, planning and management of Dugdh Sanghs in the state after receiving instructions from the Central Government.

The demand for such a huge amount by the NDDB has become a problem with the government. It is not easy for the government to give such a huge sum.