Autonomy promises turnaround of Aarey

Faced with mounting losses and heavy competition from private and co-oprative sectors, management of Aarey, Asia's first government-run dairy has sent a proposal to Maharashtra government to make it a complete autonomous body.

“If the government gives a go-ahead, we will be able to take decisions on our own. We can use our huge land bank for commercial purpose and have our own distribution network and brand to make this dairy self-sufficient and profitable,” said top dairy officials.

As per the data available with the government, Aarey products are in demand but it is losing ground in this highly competitive market.

 

Making things worse is resistance from an influential political lobby controlling a large number of co-op dairies, due to which the revival of Aarey is not getting on track despite a government resolution (dated November 11, 2002) directing dairy co-ops to takeover Aarey’s milk producing centres on a 30-year lease.

Aarey officials believe if the dairy gets a status of an autonomous body, it will be able to sustain and take important strategic decisions according to the prevailing market conditions.

“At present, we have to take approval for each and every decision which is time consuming. By the time a decision is taking our products lose ground in highly competetive market. For example, as per market demand we require a high-volume bottling plant as we don’t have such capacity. Due to high bidding price government denied the bids and in the process we lost our market,” explains a senior dairy official.

In greater Mumbai milk scheme we have 91 Aarey Sarita and energee centres, due to heavy competition from private players they are facing financial loss, to help them out we have allowed them to sell pure drinking water bottes and non-dairy products, he said.