Finance Ministry orders probe into NDDB functioning

NDDB was created in 1965 under Kurien8217;s chairmanship at the invitation of the then prime minister Lal Bahadur Shastri to promote, finance and support producer-owned and controlled organisations. The organisation was brought under an Act of Parliament 37 of 1987. Its programmes and activities seek to strengthen farmer co-operatives and support national policies that are favourable to the growth of such institutions. Fundamental to NDDB8217;s efforts are co-operative principles and the Anand Pattern of Co-operation.

Kurien says the present-day functioning of the body flouts these objectives. Some of his allegations are:

8226; NDDB is required to follow the co-operative strategy evolved at Anand referred to as the Amul Model, where the entire value chain, from milk production, procurement, processing and marketing, remains under the ownership and management of farmers8217; representatives. But today, the NDDB, under Amrita Patel8217;s chairmanship, is building its own empire. NDDB wants to own dairies, and control marketing through their direct and indirect subsidiaries.

8226; The indirect subsidiaries of NDDB like Mother Dairy Limited in Delhi, Mumbai, Hyderabad and Ahmedabad are companies, not co-operatives, and have been started without government approval.

8226; In the name of innovation, joint ventures and new generation co-operatives, NDDB is creating the processing and marketing structures under NDDB8217;s ownership, which means under government ownership. The dairy farmers or their federations have no say.

8226; NDDB is now getting into competition with dairy co-operatives. As a government body mandated to promoted the Amul model co-operative and a public financial institution, is it proper and legal on NDDB8217;s part to get into competition with its lenders8212;the dairy cooperatives?

8226; If NDDB does not follow the co-operative strategy it amounts to contempt of Parliament and the dairy farmers of India lose their biggest asset8212; the brand.

8226; NDDB finances should be audited by CAG, which is not the case at present.

8226; Quoting from Zuivel, a Netherlands publication which Rabo Bank helped to publish in English, Kurien pointed out the bank8217;s admission that it has been active in India since the last seven years and has been advising NDDB regarding the continued development of co-operative dairies. Kurien questioned the type of advice NDDB has received or is receiving.

8216;Kurien8217;s departure was unfortunate8217;

VADODARA: Sanat Mehta, former state finance minister, in a statement released on Tuesday said the forced departure of milkman Verghese Kurien was unfortunate.

Mehta said that whatever be the differences, for the Father of the Milk Revolution who had improved the lives of thousands of Gujarat farmers, the manner in which he was forced to resign from GCMMF remains unfortunate. Mehta said after Kurien8217;s departure the question remained as to who could be a worthy successor to Kurien who would have a progressive outlook, and someone who would not succumb to government pressure on the issue of dairy development. Mehta pointed out that Amul still remains one of the few Swadeshi brands with an international presence and the ability to be in the competitive milk-dairy market.