September 6, 2011

To ensure the restoration of Delhi Milk Scheme (DMS) to a profit making entity like Mother Dairy, a Parliamentary panel has requested the Indian government to consider minimum support price (MSP) for milk and financial support to DMS.

The Parliamentary Standing Committee on Agriculture In its 24th report focusing on animal husbandry, dairy and fisheries, the Parliamentary Standing Committee on Agriculture urges the Indian government to consider the MSP to ensure that farmers are not only adequately compensated but are also satisfactorily earning from it.

The panel has also requested to revert with its views in three months.

On Delhi Milk Scheme (DMS), the panel said that DMS is continuing to suffer losses year after year "due to mismanagement and lack of plant and machinery."

According to DMS, which caters to the milk and dairy products requirement of the National Capital Region, they are not functioning at its optimal best stark contrast to other players.

The panel also mentioned that the government has been toying with the idea of corporatisation of DMS for quite some time but without success.

The panel remarked that instead of time consuming corporatisation, DMS can be, in the opinion of the Committee, turned around by a one –time infusion of capital for acquisition of state-of-the-art machinery and equipment.