Mahanand Dairy Board Resigns to Facilitate NDDB Takeover, Seeks Funds for Revival

The latest development in the highly controversial Mahanand Dairy takeover saga involves the voluntary resignation of the dairy's board of directors. This move aims to streamline the transfer process, facilitating Mahanand Dairy's transition to the National Dairy Development Board (NDDB). On Wednesday, a significant majority of 18 out of 21 directors resigned from their positions. The subsequent priority is to ensure the procurement of essential funds required for the revival of the dairy.

During the 13th meeting of the Board of Directors of Maharashtra Rajya Sahakari Dudh Mahasangh Maryadit, Chairman Rajesh Parjane, MLA Manikrao Kokate, and 16 other directors resigned. "The survival of the dairy is crucial as it provides significant support to Maharashtra's farmers. The resignations follow the resolution passed last month. The Development Project Review (DPR) by the NDDB was discussed, indicating that the existing Board of Directors cannot interfere in the affairs of the NDDB. The board has assisted other diaries like Jalgaon Dudh Sangh, and we anticipate similar support for Mahanand Dairy," said Kanhuraj Bagate, Managing Director of Mahanand Dairy.

The survival of Mahanand Dairy has become increasingly challenging. With high labor costs and low earnings, the overheads amount to approximately Rs. 35 to 40 per liter, making the milk unaffordable for many consumers. In order to alleviate the financial strain and facilitate the dairy's revival, we have chosen to resign voluntarily from our positions on the board of directors.

NDDB has made it clear that they will only proceed with the takeover if there is no interference from the directors. Rather than dissolve the board entirely, resigning seemed to be the more prudent course of action. Had we not resigned, the agreement between NDDB and the State would have been jeopardized, potentially delaying the sanctioning of funds and worsening Mahanand Dairy's situation. NDDB will later determine whether to reinstate any of the resigned directors.

The board's role is to work for the greater good, not for personal financial gain. With NDDB's intervention under government oversight, we are hopeful for the dairy's future. We will monitor the situation closely, especially in light of the upcoming elections, and await further developments. 

The next step is to secure approval from the state and obtain the necessary funds. Mahanand is seeking a soft loan or capital of Rs. 253 crore to cover outstanding salaries of Rs. 130 crore and the remaining amount for the dairy's revival, including the installation of new technology and marketing expenses. “We cannot ask for government funds and it is not even possible. Otherwise, like us, they have to keep giving funds to all the cooperative organizations- be milk or sugar," added Bagate.

Bagate also dismissed claims of transforming the organization into a Gujarat-based entity like Amul and assured that Mahanand Dairy belongs to Maharashtra and its farmers. NDDB will act as a consultant, providing professional assistance to ensure the dairy's revival within three years. According to the proposal submitted by the state government and Mahanand, the government will provide Rs. 253.57 crores in assistance, soft loans, or grants.

Reportedly, the failure of Mahanand can be attributed to a lack of vision, staff, and operational mismanagement. Despite offering high-quality milk, the market for Mahanand Dairy has dwindled due to increased competition from brands like Amul and others in the local market.

Priya Bharat Mitke, an activist who advocated for the due wages of Mahanand dairy employees, said, "It is a positive development. For the past seven months, we have not received salaries. We urge the state to approve the proposal and provide the necessary funds so that both employees and farmers receive their dues."