​Dairy companies find hassle free way to pay the farmers

Dailry milk cooperatives such as Karnataka Milk Federation, Mother Dairy and Amul are expecting to overcome the problem by transferring the money of the farmers to their bank accounts directly.
  • Franchise India Team Editor
Restaurant India

Dairy milk cooperatives seem to be very happy about the demonetisation of the higher Indian currency notes, which led to the boost of banking transactions. Dailry milk cooperatives such as Karnataka Milk Federation, Mother Dairy and Amul are expecting to overcome the problem by transferring the money of the farmers to their bank accounts directly.

According to ET, Rakesh Singh, Cooperative managing director, Karnataka Milk Federation said, "We already disburse 970 crore annually — under the motivational fee to farmers since the past one year and will start making the weekly payments too via bank accounts."

Generally the Dairy companies pay the milk-supplying farmers on weekly basis that too in cash, now they will do the same, once in two-three weeks but in place of cash, they are going to transfer the amount directly to their bank account in order to avoid the hassle.

RG Chandramogan, MD of Hatsun Agro, said, "We have made no cash transfers, except for few old people who are unable to go to bank. Initially, there was resistance from farmers but we wanted to get them away from the clutches of money lenders."

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