Southern States - Karnataka   

SHIMUL chief denies charges

By Our Special Correspondent

SHIMOGA July 21. The President of the Shimoga Milk Union Limited (SHIMUL), H.Lokeshappa, has denied that the unit is incurring loss because of the "mismanagement".

In a press release here on Saturday, he said the SHIMUL had been earning profit continuously for the past three years. He was reacting to the allegation of the District BJP Secretary and former Director of the SHIMUL, Nevane Seetharam Bhat, in this regard.

Procurement price was increased by Re.1 a litre from this year to shift the profit directly to the milk producers, he said.

Mr. Lokeshappa said if the unit was incurring loss it was because of excess milk production during the harvest season and the modifications being introduced in the supply of milk and its products to the neighbouring States. Besides, it had been decided to cut the procurement price by 60 paise to avert the possible declaration of "milk holiday" in view of the excess production of the milk.

It was decided to go in for a Toyota Qualis after the Government allowed disposing of the old car. The new vehicle was purchased for the convenience of the staff considering the jurisdiction of the SHIMUL, he said.

Though the Government had given approval for the appointment of 17 personnel, the recruitment had been deferred in view of the financial position of the SHIMUL, Mr. Lokeshappa said.

Referring to the proposed foreign tour by the directors of the SHIMUL, he said it had been postponed in view of the harvesting season. He clarified that the KMF and the SHIMUL would bear 25 per cent each of the expenditure of the foreign tour while the rest would be borne by the directors.

The management of SHIMUL was engaged in taking up several programmes to promote the sale of milk and other milk products keeping in mind the interest of the milk producers and also the situation created by the entry of private dairies in the local milk market, he said.

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