CM YS Jagan Mohan Reddy to lay stone for Chittoor dairy restoration works today

Chittoor: The Chittoor dairy, which had a significant history but closed two decades ago, is now set to be revived under the management of Amul dairy. The AP government has decided to hand over the dairy to Amul on a 99-year lease. Chief Minister YS Jagan Mohan Reddy will lay the foundation stone for the renovation works of the dairy in Chittoor on Tuesday.

The Chittoor dairy was established by the AP government in December 1969 with a milk procurement capacity of 6,000 litres and 60 employees.

In 1988, it was transformed into the Chittoor District Cooperative Milk Producers Union. Over the years, the dairy expanded its operations and began procuring 2.50 lakh litres of milk daily from 823 primary cooperative societies of milk producers and the Chittoor District Milk Producers Union Limited.

The dairy played a crucial role in supporting the livelihoods of numerous small and marginal farmers in Chittoor district who depended completely on it.

Initially, the dairy also established a factory for milk products and auxiliary industries, generating substantial employment opportunities. The government allocated 52.23 acres of land for the dairy’s development.

However, as time passed, the dairy faced intense competition from private dairies due to which its milk procurement capacity declined significantly, leading to substantial losses. By March 31, 2022, the accumulated losses amounted to Rs 40.82 crore. Consequently, the government decided to liquidate the dairy in 2003.

Efforts were made subsequently to revive the dairy, with multiple political parties including the restoration of the Chittoor dairy in their manifestoes. During his padayatra in 2019, YS Jagan Mohan Reddy promised to restore the dairy after coming to power.

Upon discovering that the dairy had very few assets remaining, the government determined that restoration was not feasible and opted to hand it over to Amul dairy from Gujarat which already has an agreement with the state government and conducting its operations in the erstwhile Chittoor district.

Following the Bhumi Puja, the dairy is expected to resume operations in approximately 10 months. Amul plans to invest Rs 385 crore in the restoration of Chittoor dairy. Initially, an ice-cream plant will be established at an estimated cost of Rs 150 crore, with the production of additional products to follow gradually. Once fully restored, the dairy is projected to provide direct employment opportunities to 5,000 individuals.