Consequent
upon the Central Governments decisions of demonetization, certain unintended
impacts have been observed especially in the sectors thriving upon sheer cash
transactions. In this regard, non-availability of funds to the co-operative
banks for making payments to Milk producers/farmers by dairy co-operative against
the milk supplied by them came to the notice of the Government.
Responding
promptly to the prevailing situation of reported payment problems, the Union
Minister of Agriculture and Farmers Welfare, Shri Radha Mohan Singh has
regularly reviewed and directed to take appropriate action to alleviate the
problems. Meetings with Mother Dairy, Gujarat Cooperative Milk Marketing Fed
(GCMMF) /Amul, Delhi Milk Scheme and other State Co-operative Dairy Federations
are taken at regular intervals.
In
order to take stock of the prevailing situation, the Secretary Animal
Husbandry, Dairying and Fisheries, Shri Devendra Chaudhry has accordingly convened
a series of meetings and initiated actions for streamlining the payment system
to Milk producers and even sale of milk to consumers through cashless
transactions primarily.
GCMMF/Amul
has been specifically directed to ensure 100% milk producers accounts to be
opened by 30th December, 2016. Similarly, other co-operatives have
been directed to ensure the opening of 100% accounts of milk producers/farmers
by 30th January, 2017.
Specific
instructions have been issued to all the agencies such as National Dairy
Development Board, Mother Dairy, Delhi Milk Scheme and all state Dairy
co-operative federations for ensuring direct payment to milk producer’s bank
account at the earliest. Low penetration of nationalized banks and co-operative
bank accounts in rural areas need adequate financial support with appropriate
safe guards. This department vides D.O. letters dated 06.12.2016 have taken up
the matter with the Department of Economic Affairs and Reserve Bank of India to
provide necessary funding support to the cooperative banks in rural areas with
appropriate safeguard to protect the interest of milk producers and for timely
payment of the milk supplied by them.
It
is to be noted that there are 1.70 lakh Dairy Co-operative Societies (DCS) at
village level having 1.6 crore milk producers affiliated with 218 milk unions.
About 850 lakh litres per day Milk is procured totally, of which co-operative
sector procures about 425 lakh litres per day and about 425 lakh litres per
day is procured by private sector. The value of the milk procured by Village
level DCS is to the tune of rupees 120 crore per day. For weekly and 10 days
payment cycle the substantive amount is to be disbursed to lakhs of milk
producers spread over varied geographical areas.
Using
the window of opportunity opened by the demonetization decision, it is high
time to accelerate the opening of bank accounts of all those unbanked milk
producers to make it cashless and digital sooner than later. Eventually,
transparency saving habits, financial enclosure etc. would be benefiting milk
producer in multiple ways.
The
situation of easing the payment to milk producers is being reviewed and
monitored periodically by the Central Government.
As
per information received from NDDB and 23 major State Co-op dairy federations,
the status of cashless payment to milk producers is as below:
|
Participating
agencies i.e
NDDB Dairy
Services and 23 State Milk Federations
|
No of Farmers (Nos in Lakh)
|
Details of payment done (amount Rs in Crore)
|
|
Total
|
with bank account
|
without bank account
|
% farmers having bank A/c
|
Total
|
through Bank accounts
|
through Cash
|
% cashless Transaction
|
|
Pre-
Demonetization (1- 8th Nov 2016)
|
31.64
|
15.59
|
16.05
|
49.27 %
|
₹ 215.23
|
₹ 51.28
|
₹ 153.77
|
23.82 %
|
|
Post-Demonetization
(9th Nov 2016 to 18 Jan 2017)
|
88.99
|
56.43
|
32.56
|
63.42 %
|
₹ 1,146.60
|
₹ 828.39
|
₹ 318.21
|
72.25 %
|
The above table
shows that:-
1.
The percentage of farmers with bank accounts has increased from 49.27%
to 63.42%.
2.
The cashless transaction to farmers after demonetization has increased
from 23.82% to 72.25%.
3.
Due to close follow up, now only 27.75% farmers are being paid through
cash, balance through bank accounts. Further that, the sale of milk has gone up
by 2.81% in December 2016 as compared to December 2015 and the overall sale of
milk from April- Dec 2016 has gone up to 328.91 lakh litres per day as
compared to 321.43 lakh litres per day in April- Dec 2015.
It is evident
from the above facts that situation regarding making cashless payment to the
farmers has considerably improved over last two months and there is no negative
impact of demonetization.
*****
AK
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