‘We not only sell milk but also give profit to farmers’

Dairy production is a major subsidiary activity of armers. This edition of Hard Talk by Gurdeep Singh Mann uncovers the factors behind the decline in milk production vis a vis the rising temperature in summer.  The onus lies on the government-owned Verka Milk Plant to provide unadulterated dairy products. Rupinder Singh Sekhon, general manager, Verka Milk Plant, Bathinda, dwells on the issue

Why is Verka not as aggressive as other private milk companies selling milk in and around Bathinda?

The answer lies in your question itself. Since Verka is not a private firm, it is not as aggressive as the private companies. Being part of the cooperative department of Punjab Government, our thrust is not only to sell milk, but also to provide maximum profit to the farmers as well. This is the reason why unlike the other private players, we offer the lowest margin to the shopkeepers and businessmen. We never promote our brand, which is actually helping many farmers of Punjab. But despite this cut-throat competition, we have achieved a steady growth and try our best to retain customers.

What are the ways adopted by Verka to counter the aggressive marketing by milk sellers?

We have already set up two milk booths in Model Town Phase-I and Model Town Phase-III and the process is on to set up more such booths at petrol pumps and in other commercial areas. We are investing a huge sum to completely overhaul the system of procuring milk and preparing products. The USP of these booths is that we will run them on our own, instead of handing them over to private hands.

What is Verka Milk Plant, Bathinda, doing to catch up with the current market needs?

This plant was set up in 1974. To introduce modern machinery, we now need a new building with a completely different infrastructure. With an expenditure of nearly Rs 45 crore, the automated modern dairy plant and ice-cream centre is being constructed, adjoining the old building. It is likely to be completed before the end of this year. The entire process of procuring milk and preparation of milk products would be computerised with minimal manpower. Even the automated milk collection units in the villages would be increased from 150 to 400 soon. Setting up of 19 more bulk milk chilling (BMC) centres is also in the pipeline. Also, Punjab’s second largest ice-cream plant is being set up in Bathinda and the ice-cream prepared here would be sold at tourist places in Rajasthan as well.

Why should a farmer prefer selling milk to Verka, rather than to a private player?

We give up to 85 per cent margin to the farmers. Farmers from 556 villages of Bathinda, Mansa and Muktsar are associated with us. We offer machines and infrastructure (not land) to help them set up village- level societies or Sabha. The Sabha directly purchases milk from the farmers from where it is sent to 22 BMCs and then to five chilling centres located in Rampura, Bhikhi, Sardulgarh, Talwandi Sabo and Badal village and then to the Bathinda plant for further processing.

How many litres of milk is procured by the Bathinda Milk Plant and what are its other products ?

Our milk production during the summer is 65,000 to 70,000 litres per day. During the winter, it reaches 1.25 lakh litres per day. Our forte is preparing ghee which is exported to Arabian countries. Flavoured milk and cheese of the best quality are prepared in Patiala. Tetra-packed products and ice -cream are prepared at the Chandigarh plant of Verka and sweets in Mohali.

Why do people complain that very little quantity of Verka products are available during the festive season ?

There is a reason behind this. We do not use preservatives and prepare only that much quantity which can be sold off and consumed within the stipulated seven-day period. We often increase the quantity of products but we usually remain short of it since our demand far exceeds the supply. If someone fails to find any of the products, including the quite economical lassi for Rs 5, people may complain to us and the booth owner could be held accountable for it.

You are computerising the purchase of milk from farmers. How will it change the system?

Farmers need not depend upon manual calculation of either the society members or its staff. They would get a short message service (SMS) on their cell phones about the quantity, fat and other ingredients of milk sold for the day and how much money would be credited into their account for milk everyday. The milk scanner too is being installed at Bathinda in the next few days at a cost of nearly Rs 65 lakhs which would reveal every constituent, including fat, solids-not-fat (SNF) and even check adulteration and water.

What in your opinion is used by farmers, private players or others for adulteration of milk these days?

As per my knowledge and experience, people in and around Bathinda are using water to increase the quantity of milk. Those who mix something deadly or intoxicating are the big fish and highly connected outsiders, preparing products in bulk during the festive season.