Sirsa, Haryana: The Sirsa Vita Milk Plant has come under pressure after dairy farmers alleged that payments worth nearly ₹15 crore have remained pending for almost two months, triggering protests and demands for an independent inquiry into the functioning of the cooperative.
The issue has raised concerns among milk producers over delayed payments, procurement policies and transparency in operations, even as the plant management maintains that the dues will be cleared once pending government payments are received.
Farmers Allege Payment Delays
The Bharatiya Kisan Ekta (BKE) submitted a memorandum to the Haryana Chief Minister, alleging that the cooperative milk union has failed to release timely payments to dairy farmers.
According to the farmers’ organisation, delayed payments have strained cash flows for livestock owners, many of whom depend on regular milk income to meet expenses related to cattle feed, labour, veterinary care and farm operations.
Farmer representatives also claimed that several private dairy companies are currently offering higher milk procurement prices than Vita, making the delayed payments an additional burden for producers.
Questions Raised Over Milk Procurement
The farmers’ body also questioned the milk procurement figures reported by the plant.
According to BKE leaders, seasonal heat stress generally reduces milk production during summer months, making the reported procurement volumes difficult to reconcile with prevailing production levels in the district.
The organisation alleged irregularities in milk procurement and sought a detailed investigation into procurement records and quality monitoring systems.
However, these allegations have not been independently verified.
Allegations of Operational Irregularities
The memorandum submitted by the farmers’ organisation also raised concerns over milk quality monitoring, procurement practices and administrative functioning.
Among the issues highlighted were alleged manipulation of quality records, replacement of experienced personnel with temporary staff in key operational positions, and concerns regarding procurement documentation involving neighbouring regions.
The organisation further alleged inadequate monitoring of inventory losses involving milk and dairy products and questioned expenditure on operational maintenance.
Based on these concerns, the farmers’ body has demanded an impartial investigation into the plant’s functioning and appropriate action if any irregularities are established.
Management Attributes Delay to Pending Government Payments
Responding to the allegations, Sirsa Vita Milk Plant Chief Executive Officer Dinesh Mehta acknowledged that approximately ₹15 crore remains payable to dairy farmers.
According to the management, two payment instalments have already been released, including one during the past week, while four instalments are still pending.
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The CEO stated that the cooperative is awaiting nearly ₹13 crore under the Midday Meal Scheme, and farmer payments will be cleared immediately after those funds are received.
Management maintained that the payment delay is primarily linked to pending receivables rather than financial distress within the cooperative.
Plant Rejects Adulteration Claims
The management also rejected allegations regarding milk adulteration.
According to plant officials, the Sirsa facility currently procures approximately 60,000-65,000 litres of milk per day, with every consignment undergoing quality testing based on standard parameters, including milk fat content, before acceptance.
Officials further stated that procurement prices are determined according to the pricing policy followed across the Vita network, and any revision in milk procurement rates would be implemented uniformly across all cooperative plants.
Timely Payments Critical for Dairy Farmers
Industry experts note that prompt payment remains one of the most important factors influencing farmer loyalty towards cooperative dairies.
Unlike crop farming, dairy farming requires continuous expenditure on feed, fodder, veterinary care and labour, making uninterrupted cash flow essential for maintaining productivity.
Delayed payments can encourage milk producers to shift supplies to private processors offering quicker settlements and competitive procurement prices.
Need for Stronger Cooperative Competitiveness
The situation at Sirsa highlights the increasing competition between cooperative dairies and private milk processors across India.
Experts believe cooperative institutions must ensure timely payments, transparent procurement systems, competitive milk prices and efficient financial management to retain producer confidence and sustain milk procurement.
Strengthening governance, improving financial liquidity and enhancing operational transparency will be critical to maintaining the long-term credibility of cooperative dairy institutions.
Outlook
While the Sirsa Vita Milk Plant has assured farmers that pending dues will be released after receiving outstanding government funds, the episode underscores the financial challenges faced by some cooperative dairy institutions.
Industry observers believe resolving payment delays quickly and addressing farmers’ concerns through transparent communication and efficient financial management will be essential to restoring producer confidence and ensuring uninterrupted milk procurement in the region.
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