Loss-ridden Vellore Aavin plans big schemes from March

Corruption and wrong policies undertaken by earlier general managers allegedly resulted in the dairy incurring an accumulated loss of Rs 20 crore.

The last GM, SK Murali Prasad, was suspended following a surprise Deepavali eve raid by the Vellore vigilance and anti-corruption officials. They had seized a whopping Rs 14.85 lakh from the dairy premises.

Thereafter, the dairy’s apex body - TN Cooperative Milk Producers Federation – undertook a series of measures that included appointing persons with known integrity as top bosses in the debt-ridden unions.

Vellore dairy was also benefitted by the federation allowing it to convert milk to ghee instead of other milk products, resulting in the dairy signing an agreement with the Chennai federation to supply 100 tonnes of ghee every month.

“Prior to Pongal, the federation also allowed the debt ridden dairies, including Vellore, to directly sell milk to private parties that would ensure a profit of 70 paise per litre,” an official said. “We are now in the process of fixing up bulk buyers and sales will hopefully start within a week.”

Moreover, the Vellore dairy now procures around 3.8 lakh litre milk daily against the 4.6 lakh litre during the flush season. “The reduced quantity ensures less milk for conversion to other products as such conversions leads to loss. It costs the dairy Rs 8 to convert one litre of milk to a product,” officials added.

“With the federation now procuring 1.85 lakh litre milk daily from the Vellore dairy, as against the earlier 1.35 lakh litre, chances of the dairy coming of the red are very bright,” officials averred.