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Demonetisation: Amul to start paying milk producers via bank accounts

Author: PTI
Publication: The Economic Times
Date: November 22, 2016
URL:   http://retail.economictimes.indiatimes.com/news/food-entertainment/grocery/demonetisation-amul-to-start-paying-milk-producers-via-bank-accounts/55553317

Already, 60 percent of Amul's milk producer members have bank accounts and the cooperative is taking steps to open new ones for those who do not have it.

Dairy major GCMMF, which sells products under the Amul brand, today said it has taken all necessary steps to pay its milk producer members directly into their bank accounts.

Already, 60 percent of its milk producer members have bank accounts and the cooperative is taking steps to open new ones for those who do not have at present, it said.

"In view of the demonetisation of currency notes by central government, we have made necessary arrangement to pay milk producer members for their milk price through direct credit in their bank account," Gujarat Cooperative Milk Marketing Federation (GCMMF) Chairman Jethabhai Patel said.

About 60 percent of milk producers already have bank accounts, "but, due to some vested interests, the payment was made in cash", he said in a statement.

The cooperative is in the process of opening bank accounts of those milk producers who do not have them at present, he said, adding that GCMMF has asked all dairy unions to help farmers open their accounts in the next couple of months.

GCMMF and its 18 associated milk unions are paying around Rs 450 crore on a weekly basis to 36 lakh milk producers through 18,500 milk cooperatives in Gujarat, Patel added.

Noting that rural milk producers are facing shortage of cash due to demonetisation of currency notes and restriction by RBI on District Cooperative Banks, Patel said, "However, central and state governments have made alternative arrangements with the help of RBI for cash disbursement through District Cooperative Banks to milk producers."

This will definitely help milk producers meet their daily expenses related to animal husbandry and other requirements, he hoped.

Patel also said there has been no impact of demonetisation of currency notes on milk procurement and sale of milk in the market so far. "In fact, milk procurement of member unions of GCMMF has increased," he added.

The cooperative has nearly 60 processing plants, of which 40 are in Gujarat only. There are 18 member unions of GCMMF associated with more than 36 lakh farmers across 18,600 villages of Gujarat.
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