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DAIRY PRODUCTS

Amul and KMF’s Nandini’s bids to operate DMS lower than reserve price
Thursday, 30 May, 2019, 12 : 00 PM [IST]
Our Bureau, Bengaluru
Amul, managed by the Gujarat Co-operative Milk Marketing Federation (GCMMF), and Nandini (which is under the aegis of the Karnataka Milk Federation [KMF]) are now keen to supply to the state-owned Delhi Milk Scheme (DMS).

“It is ascertained that the bids submitted by dairy cooperatives Amul and Nandini to operate DMS on a long-term lease are lower than the reserve price, and according to a senior agriculture ministry official, the government is now exploring other options to revive the loss-making firm,” said a media agency report.

In 2015, the Union Cabinet had given the go-ahead for corporatisation of DMS. The bids were invited for leasing out the DMS, which has milk production and packaging capacity of five lakh litre per day, besides a network of 1,298 outlets in the NCR (National Capital Region).

“The official stated that the government received only two offers from Amul and Nandini, but did not divulge the bid value,” said the media report.

In the case of KMF, it reported surplus milk production and was scouting for domestic market supplies.

“DMS was to be offloaded to one of the cooperatives. Unfortunately, the bids did not fructify. The offer that we got through tenders was much less than the reserve price and was not even negotiable,” said the official.

The media report said, “Emphasising the need to revive the DMS, the official said other options need to be worked out, and the cabinet has to take a decision on this matter.”

DMS was established in 1959, with the primary objective of supplying wholesome milk to Delhi citizens at reasonable prices, as well as for providing remunerative prices to milk producers. It has 800 employees.

DMS has been procuring raw or fresh milk from Punjab, Haryana, Uttar Pradesh, Rajasthan and Bihar. Besides processing and supplying milk, DMS is also manufacturing and marketing yoghurt, ghee, butter, paneer, butter milk and flavoured milk.
 
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