Thiruvananthapuram: The Kerala government has dissolved the Malabar Regional Co-operative Milk Producers’ Union (MRCMPU), one of the three regional unions under the Kerala Co-operative Milk Marketing Federation (Milma), citing alleged financial, administrative and operational irregularities.
The order was issued by the Director of Dairy Development on September 18, following which the Deputy Director of Dairy Development in Wayanad assumed charge as administrator of the union.
Kasaragod milk procurement among grounds cited
According to the government order, one of the key issues involved the procurement and processing of milk at the Kasaragod Dairy.
The order cited a loss of around ₹27.45 lakh following the procurement of milk that was suspected to be substandard. Reporting on the order said the milk was processed after being mixed with other milk without the required quality checks, resulting in the loss of a substantial quantity of milk.
The order also referred to alleged irregularities involving dairy-product stocks at the Malappuram Dairy, with discrepancies reportedly valued at around ₹84.45 lakh. The allegations included the removal of dairy products, including ghee, through manipulated invoices and gate passes.
Questions over expenditure and subsidiary accounts
The government action also cited questions surrounding expenditure related to the inauguration of the Malappuram Dairy and expenditure associated with securing a grant.
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Another issue concerned the Malabar Rural Development Foundation (MRDF), a subsidiary institution associated with the Malabar union. The Dairy Development Department reportedly raised concerns over the statutory auditing and presentation of the foundation’s accounts.
The government order said the existing managing committee could not be allowed to continue amid concerns over further legal, financial and administrative lapses, according to reports.
Milma chairman challenges decision
K S Mani, chairman of Milma, has disputed the government’s action and said the union would pursue legal remedies.
Mani alleged that the dissolution was politically motivated and argued that the government was targeting unions controlled by the Left Democratic Front ahead of the forthcoming Milma board election. The allegation has been rejected by the state government; Animal Husbandry Minister Bindhu Krishna has denied that political considerations were behind the decision.
The political significance of the move stems from the structure of Milma’s regional unions. The federation has three regional unions. The Thiruvananthapuram union was also dissolved in July, while the Ernakulam union is led by a UDF-backed panel, according to current reports.
Second regional union placed under administration
The dissolution of MRCMPU follows the earlier action involving the Thiruvananthapuram Regional Co-operative Milk Producers’ Union.
The latest development places another major regional Milma union under administrative control while the allegations and the legality of the government’s decision are contested.
The Malabar union operates dairy facilities including the Wayanad, Kannur and Malappuram dairies, serving a significant part of northern Kerala’s milk market. The union’s own published information lists processing facilities and operations across the region.
The matter is now expected to move into the legal and administrative process, with the union leadership indicating that it will challenge the government’s decision.
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