Khammam, Telangana : The future of Khammam Vijaya Dairy, one of Telangana’s long-standing cooperative dairy units, has become uncertain following reports that the state government is considering shifting its operations to Warangal. The proposal has sparked concern among dairy farmers, employees, and opposition parties, who fear it could disrupt rural livelihoods and weaken the cooperative dairy network in the region.
A Historic Cooperative Dairy
Established on a 10-acre campus in Indira Nagar, Khammam, the dairy was inaugurated in November 1977 by former Chief Minister Jalagam Vengala Rao. Operated by the Telangana Dairy Development Cooperative Federation, the plant was designed to process 20,000 litres of milk per day and has served as an important procurement and marketing centre for dairy farmers in the undivided Khammam district for nearly five decades.
Today, the dairy reportedly supports the livelihoods of around 50,000 milk producers through an extensive procurement network.
Extensive Milk Procurement Network
According to officials, the Khammam dairy operates:
- Around 280 milk collection centres
- Six Bulk Milk Cooling (BMC) Centres located at:
- Kothagudem
- Yellandu
- Kamepally
- Kallur
- Sathupalli
- Yerrupalem
This network enables daily milk collection from thousands of smallholder dairy farmers before transportation for processing.
Concerns Over Proposed Shift to Warangal
Reports indicate that dairy operations may be shifted from Khammam to Warangal. If implemented, industry observers believe the move could have several consequences:
- Increased transportation distance for raw milk.
- Higher logistics and refrigeration costs.
- Potential decline in milk quality if collection-to-processing time increases.
- Greater operational expenses for the cooperative.
- Uncertainty regarding employment for dairy workers.
- Reduced accessibility for milk producers in Khammam district.
Farmer organisations argue that transporting milk from Khammam to Warangal for processing, while simultaneously supplying finished products back to Khammam markets, could increase overall production and distribution costs.
Political Opposition Intensifies
Nelluri Koteswara Rao criticised the reported proposal, alleging that senior district ministers—including Bhatti Vikramarka, Ponguleti Srinivasa Reddy and Tummala Nageswara Rao—had failed to safeguard the cooperative dairy.
He further alleged that deliberate reductions in milk procurement and product sales were being used to portray the dairy as financially unviable. He also claimed that plans for establishing 60 additional milk collection centres had not received adequate government support.
These allegations have not been independently verified.
Allegations Over Valuable Dairy Land
Opposition leaders have also expressed concern over the future of the dairy’s land.
According to BJP leaders, valuable land previously associated with Vijaya Dairy in Secunderabad had been leased to a private entity, raising fears that a similar course could be followed for the Khammam property.
Read More: Haryana’s Sirsa Vita Milk Plant Faces Farmers’ Protest Over ₹15 Crore Payment Delay
No official announcement has been made confirming any proposal to lease the Khammam dairy land.
Farmer Organisations Demand Modernisation
Donthu Rambabu urged the state government to retain dairy operations in Khammam rather than relocate them.
Farmer representatives have demanded:
- Modernisation of processing facilities.
- Expansion of procurement infrastructure.
- Timely payment to milk producers.
- Increased investment in cooperative dairy development.
- Protection of employment at the dairy.
They argue that strengthening the existing facility would be more economical than relocating operations.
Industry Perspective
From a dairy industry standpoint, relocation of an established milk processing plant requires careful assessment of:
- Milk procurement efficiency.
- Cold chain infrastructure.
- Transportation economics.
- Processing capacity utilisation.
- Impact on producer cooperatives.
- Consumer pricing.
- Long-term sustainability of the cooperative model.
Experts note that cooperative dairies function most efficiently when processing plants are located close to milk-producing regions, reducing transit time and preserving raw milk quality.
Government Position Awaited
As of now, the Telangana government has not officially announced a decision regarding the closure or relocation of Khammam Vijaya Dairy. Until a formal policy is issued, the reported plans remain under discussion.
The issue has nevertheless become significant for the cooperative dairy sector, as any restructuring of procurement and processing operations could affect thousands of dairy farmers, employees, and consumers across the Khammam region.
The coming weeks are expected to determine whether the government proceeds with relocation, modernises the existing facility, or adopts an alternative strategy that balances operational efficiency with the interests of cooperative milk producers.
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