Minister, MLAs demand probe into Visakha Dairy

Vijayawada : A serious discussion took place in Legislative Assembly on Wednesday over alleged irregularities in Visakha Dairy.

Raising the issue in the House, MLA Palla Srinivasa Rao expressed concern over Visakha Dairy functioning as corporate entity instead of cooperative body. He alleged that the dairy with a turnover of Rs 2,000 crore is suffering losses due to irregularities. Over 2.5 lakh dairy farmers supplying milk to the dairy are being looted by the management.

The MLA said that as the chairman, vice-chairman and directors belong to same family, they are misusing dairy funds by setting up a trust. He said the dairy management is paying less amount to farmers and alleged that the management used the money meant for welfare of farmers for winning elections. He demanded an inquiry into the irregularities through a House committee. Visakha East MLA Velagapudi Ramakrishna Babu said the dairy management turned the cooperative body into a corporate dairy and amassed huge wealth. The management of the dairy is in the hands of one family and they are looting the money. He demanded the government to take back land Rs 400 crore which belongs to Visakha Dairy.

Agriculture minister K Atchannaidu said that the cooperative tribunal gave verdict against the dairy in 2004 and the issue has been pending with High Court. He demanded an inquiry on reducing the purchasing price of milk. He said a House committee should be formed to prome irregularities of the dairy.