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NT Bureau
Chennai, Mar 14:

        AIADMK general secretary J Jayalalithaa today said Chief Minister M Karunanidhi had not explained the reason for the milk price hike and faulted him for not 'appropriately responding' to her statement on the issue.

        In a statement here, the AIADMK chief said that when she assumed office in 2001, the State-owned Tamilnadu Milk Producers Cooperative Federation (Aavin) and other district producers unions were in a shambles.

        'The milk unions also had a payment overdue of Rs.35 crore to the members,' the leader of the opposition said and added that as a result of these circumstances, Aavin was pushed to the brink of closure.

        A loan of Rs 28 crore advanced to Aavin during the previous DMK regime was made a grant and the interest component was also waived. 'All payments due to milk producers were made and Aavin also started yielding profits because of the efficient administration during my regime.'

        Jayalalithaa also said that out of the 17 milk producers union, 15 were profit- making during 2003-04 and payments were made promptly to milk suppliers without any delay.

        'But now in the DMK rule, the overdue payment to milk producers is on a constant rise.'

        Besides this, there is scarcity of other dairy products and the prices of such items were increased according to some news reports, she alleged.

        Despite severe financial crunch, an outstanding of Rs 35 crore which accrued during the previous DMK regime was disbursed to Aavin producers and Aavin also made profits.

        'Though the procurement price was raised by a rupee from 1 June 2004, we took care not to burden the poor and the common man,' the AIADMK general secretary said.

        In just nine months DMK rule, the administration of Aavin, which was put on rails during the AIADMK regime, had deteriorated, she said. The prices have been increased and burden has been passed onto the people, Jayalalithaa said and added that this was condemnable and demanded that the hike be reversed.

        It may be noted that the price of milk sold by Aavin in the State was hiked by Rs 1.25 a litre for all varieties. The procurement price was also raised from Rs 10.50 to Rs 12 per litre.

        The price of milk sold by private dairies in the State was increased by a rupee in February.