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THIRUVANANTHAPURAM, Aug 13

KERALA Co-operative Milk Marketing Federation (Milma) proposes to launch an aggressive campaign for marketing of milk and milk products through a joint venture company to be floated along with Mother Dairy Foods, a subsidiary of National Dairy Development Board (NDDB).

Milma and NDDB will sign a memorandum of understanding for this purpose on August 31, according to Ms K.R. Gowri, the State Agriculture Minister.

She told newspersons that the tie-up would help the State co-operative to retain its core competence at a time when multinational companies are seeking to make their presence felt by partnering with local dairies.

A number of dairies in the State have been discussing tie-ups with multinational players in the field.

NDDB would hold 51 per cent and Milma the rest of the equity in the new venture company, called Mother Foods.

Currently, Milma has a capacity to process 7.25 lakh litres of milk a day. This would be enhanced to 1.35 million litres a day.

Milma would continue to do the procuring, processing and packing of milk. The new company would sell Milma products through its marketing network.

NDDB has appraised a Rs 35-crore project for processing and marketing of surplus milk being procured by Milma through the primary co-operatives.

It has granted Rs 25 crore to the State Government towards its efforts in keeping Kerala free of cattle disease.

The Minister refuted reports that Mother Dairy Foods proposes to collaborate with a US-based company for implementing the Kerala project.

The NDDB subsidiary has been discussing with some American company on transfer of technical knowhow only, she said.

On whether the price of packed milk would come down under the new dispensation, the Minister said that prices would not go up.

Insurance scheme: Meanwhile, according to Mr S. Subiah, Secretary, Animal Husbandry, the scope of the cattle insurance scheme sponsored by the Department would be enlarged to cover animal healthcare and assistance in breeding.

The insurance company would bear the cost for further insemination and possible anti-fertility treatment if the animal does not test positive in pregnancy tests even after three inseminations. Medical costs would be directly paid by the insurance company.

According to Mr Subiah, this is the first such project of its reach and scope being implemented in the country. The premium payable would be Rs 625 per animal.

Of this, a third would be provided by the local bodies and the Government would provide Rs 100.

Thus, the farmer will have to pay only Rs 317 for a cover of Rs 10,000 per animal. There will be district-level review committee for redressal of complaints, if any.

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