Hyderabad: Vijaya Dairy in Telangana is facing financial difficulties due to a shortage of funds and declining product sales. The dairy, which previously made profits and paid dividends to the government, now struggles to pay farmers on time for the milk it collects daily. The payments, which used to be made every 15 days, are now delayed, with around Rs 120 crore in pending bills.
Additionally, the government subsidy of Rs 4 per liter, promised to farmers since 2014, hasn’t been paid for three years, causing further strain.
Vijaya Dairy produces ghee, milk powder, butter, curd, and other products. However, sales have slowed in the last six months, leading to surplus stock and waste. Although some ghee is sold to companies in Mumbai, local temples in Telangana are not purchasing Vijaya Dairy products, despite government orders.
The new Mega Dairy built in Ravigram, Rangareddy district, is also not fully operational yet, adding to the financial burden with a yearly interest payment of Rs 31.99 crore on the loans taken for its construction.
