After 28 years of losses, Sikkim Milk posts eight straight years of profits!
In these times of depressed economies and failing public sector undertakings, Sikkim Milk Union continues to impress. A loss-making unit for the first 28 years of its existence till the year 2006-07, Sikkim Milk has now posted profits for eight consecutive years! At the 19th Annual General Body Meeting of the Sikkim Cooperative Milk Producers Union Ltd held yesterday, it was announced that the turnover of Sikkim Milk Union has grown from Rs. 3,733 lakhs in the year 2013-14 to Rs. 4,417 lakhs in the year 2014-15, an 18.32 % growth. The profit before depreciation was Rs. 65.23 lakhs. The depreciation claimed was 9.51 Lakhs and the tax payable is Rs. 16.91 Lakhs. The net profit after depreciation and tax stands at Rs. 38.82 lakhs which is 27.7% higher than the previous year.“The turnover of business achieved in last eight years was more than seven times, almost eight fold growth in eight years when compared to 2006-07,” an official press communiqué informs. This is a substantial achievement given that the Union had been incurring losses till 2006-07, for about 28 years of its operation, and had an accumulated loss of about Rs. 200 lakhs.
Sikkim Milk’s success has been spread wide. For instance, the milk procurement price was Rs. 8.50 per litre in the year 2007 and is now an average of Rs. 32 per litre. The Union has distributed price difference incentives as bonus to the tune of more than 190 Lakhs to the farmers in the form of cash and Rs.85 Lakhs in the form of shares and other benefits in addition to their price and about Rs. 55 Lakhs as ex-gratia to the employees as additional incentive to their performance since 2007 till date.
Managing Director Dr. P. Senthil Kumar presented the audited annual accounts for the year 2014-15 and the business development plan and future plans of the Sikkim Milk Union at the AGBM, further informing that during the year, the procurement price was revised by 28.20% with a hike of Rs. 6.60 per kg from the earlier procurement price of Rs. 23.40 per kg for the minimum acceptable quality of milk.
All the village milk cooperative societies are now being provided with testing facilities, cooling facilities and the required utensils including the newly opened collection centers.
Employee Leave Encashment Fund and Employee Gratuity Fund have been subscribed continually with the LIC and a life insurance-cum-savings scheme introduced to provide confidence among the employees and to avoid future liabilities of the Union.
The AGBM was informed that as of 2014-15, Sikkim Milk Union was managing 296 societies covering both registered and unregistered. During the year, total milk procured from the village milk cooperatives was 59,84,272 kg.