State government to revive ailing HP Milk Fed. recurring financial losses


State government would revive the ailing Himachal Pradesh Milk Federation Ltd. (HPMFL), a state public sector unit from recurring financial losses as it run couple of milk chilling plants in the state.

This was stated by Rural Development and Panchayati Raj Minister Anil Sharma while replying to joint query raised by Maheshwar Singh and Govind Singh Thakur  in the state assembly today.

Disclosing that HPMFL was rendering book value loss of Rs. 26.49 crore, he said that the government had made provision of  Rs. 13.50 crore grant-in-aid in the budget outlay for year 2013-14 to make the pending payment of cattle rearers after procuring milk compared to Rs. 12 crore financial grant in year 2012-13.

Mr. Sharma said that liabilities of milk fed has mounted upto Rs. 4,80 crore to make the payment of milkmen as more than 50,000 milk producers belonging to Shimla, Kullu and Mandi district were providing milk to this unit. He said that firms did not remitted the payment to them on daily basis.

He said that state government has increased the procurement price of milk from Rs. 17.50 to Rs. 18.50 per liter in the recent budget to help the people earning their livelihood from this vocation. He said that last BJP rule had also increased the procurement price of milk to benefit the farmers but it worsen the financial losses of this unit.

“The financial condition of this unit further deteriorated during the last rule which increased procurement price by Rs. 4 per liter of milk without making provisions of matching grant for this hike”, Minister said.

He said that milk chilling plants running by this state unit have a capacity to consume 67,000 liter per day milk, which was only earning profit in the sale of milk while rest of milk manufactured products were recurring loss to this unit.

The government also informed that state unit does not fixed any target to procure daily quota of milk as it was being procuring milk from the people at selected places.

HPMFL recently introduced first dry milk pack product of half kilogram in open market as supply of 24,000 quintal milk powder has been made available in its outlet chain in the state and moreover it was providing supply of about 7,500 quintal to all 18,352 anganwaris in state.

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