Notice served on six milk societies’ boards in Salem

The Deputy Registrar (Dairy) on Saturday served notice on the boards of six primary milk producers’ cooperative societies that were not functioning properly as per the Cooperative Act.

In Salem district, there are 810 primary milk producers’ cooperative societies with over 49,000 members. On an average, five lakh litres of milk are procured per day from the members. Every month, ₹49.50 crore is deposited directly into the society’s account.

According to the Cooperative Societies Act, for the fiscal year 2022–23, 50% of the society’s net profit was distributed to its members as bonus and dividend. This year, ₹ 2.25 crore was provided to society members. As an incentive, the society members who supplied milk to the societies received ₹3.28 crore.

Through Aavin, ₹3 was provided as a subsidy for one kg of cattle feed. Fifty per cent of the subsidy was provided for cattle insurance. But some members of society provide their milk to private dairies, which was against the Act.

Salem District Deputy Registrar (Dairy) P. Senthil Kumar stated that communication has been sent to society members supplying milk to private dairies companies seeking their explanation and have taken steps to remove them from the society’s membership. If they were removed from the society, they would not be allowed to join again as members and milk from them would not be procured.

Similarly, notice was served to supersede the boards of six societies and disqualify its board of directors for acting against the interests of their members. Mr. Senthil Kumar said that farmers, who are members of societies, must supply milk to Aavin.