Milk co-op unions not keen on tie-ups | india | Hindustan Times
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Milk co-op unions not keen on tie-ups

india Updated: Aug 28, 2006 01:22 IST

PRIVATE sector participation in milk collection and processing isn’t going to be a simplistic affair in Uttar Pradesh. One of the key players eyeing milk collection and processing activity in UP is Reliance Retail.

“UP and Bihar certainly figure prominently in our plans. Our foray in the dairying sector will be in a phased manner. However, nothing has been finalised as yet”, RIL president (Corporate PR) Parimal Nathwani told HT.

RIL’s foray will be as a joint venture partner in the entire milk collection and processing value chain..

Chairman of Lucknow Milk Producers Co-operative Union Ltd, Ganesh Shankar said, “We did not allow Amul to make a dent in our market share in the milk processing sector in UP. As regards RIL plans to tie up with milk co-operatives for its foray into milk collection and processing activity, our view is that the milk co-operative unions in the State are not only traditionally strong but also have sustainable milk collection, processing and delivery models not requiring private partnerships at any level”.

Uttar Pradesh is the largest producer of milk in the country with the installed milk processing capacity of more than 89.47 lakh metric tonnes per day. About 30 per cent of the processed milk was being supplied to Delhi markets while the rest was being consumed within the State, official sources here said.

However, barely 5 per cent of the total milk processing capacity in Uttar Pradesh was in the organised sector while 95 per cent of the remaining processing capacity was in the unorganised sector, leaving huge scope for private sector participation,  he added.
(With inputs from Anupam Srivastava )