Sirsa farmers claim losses as milk collection firm makes sudden exit

Farmers from Punjab, Haryana, and Rajasthan have claimed that a private company caused them heavy financial losses by suddenly stopping milk collection without any notice.

According to Lakhwinder Singh Aulakh, state president of the Bharatiya Kisan Ekta (BKE), the company had encouraged the farmers in 2004 to invest in dairy farming. The farmers built large sheds, bought animals and took bank loans to supply milk to the company. However, in 2018, the company suddenly stopped milk collection, leaving the farmers in crisis.

In 2022, after efforts by the BKE, the company resumed milk collection. The farmers once again invested money to restart operations by buying new animals, vehicles, and equipment. But on May 17, 2024, the company again stopped collecting milk from Sirsa without any prior information. This led to a second major loss for the dairy farmers.

The farmers said the company had earlier promised to buy milk directly from small and large farmers and not from big traders. But now, officials were reportedly favouring large milk traders and rejecting milk from small suppliers.

There are also allegations of corruption. The farmers claim that officials are working in groups and taking commissions, allowing low-quality milk from big traders while rejecting genuine suppliers. The officials who were removed from other companies for corruption were now working here and making profits.

When the farmers met the company officials in Moga, they were told that the company was facing losses and might shut down the milk business completely. The farmers feared that their money had got stuck and more losses might occur if the company closed.

The BKE has announced that they will send a detailed complaint to the company’s head office abroad, exposing corruption and negligence. They have also warned that if the milk collection in Sirsa is not restarted soon, they will start a protest.