Netas milk more margin demand of distributors

MUMBAI: Leading milk producer Amul’s woes boiled over on Wednesday as the issue of increased distributor margins spiralled to a violent head. Five trucks were set ablaze at various locations across the state. The matter, which was simmering for days, has evoked a free-for-all with political parties jumping into the fray and resorting to violence to intimidate independent distributors.
A section of distributors has demanded a raise in commission from the standard 80 paise per pouch to 10% of the MRP. Unable to recover input costs, retailers have been overcharging customers by up to one or two rupees per litre.
A leading distributor said, “The issue of increased commission could have been settled across the table. But it is now heading out of control with certain political parties using pleas, threats and force to prevent us from stocking Amul milk,” he said. “I am ferrying goods to the Malad-Dahisar stretch with police vans in tow.”
On Wednesday, the MNS’s Thane chief Hari Mali admitted that his men had set “four or five” Amul vans afire across Ghatkopar, Vikhroli, Shahapur and Padgha. “We will continue to do so. Aside from marking up distributor margins, we want Amul to revoke the unfair terms it is imposing on dealers. Vendors are not being allowed to stock other brands of milk. Moreover, they are forced to pay for consignments in advance,” Mali said. “Breakage or leakage is not compensated either. How can they to run their business?” Mali heads the Akhil Maharashtra Doodh Vikreta Sangh that is exhorting vendors to stop sale of this brand.
Distributors said a meeting with Shiv Sena failed to arrive at a solution. “We would like Amul to raise our commission to Rs 1.50 per pouch,” says Paras Mehta of Shree Jain Dairy in Kandivli. “It has remained stagnant for years. It is a fair demand, considering how costs of power and storage have risen.”
Amul’s sales and marketing manager Amal Bhattacharya, who is based in Anand, declined comment. The Mumbai office refused to respond.