While the BJP accused Goa Dairy of sabotaging milk production, the latter had charged the BJP with trying to finish the dairy, one of the largest undertakings in the co-operative sector, after the ruling party failed to take control of it. It all began when on January 7 with a government notification allowed SUMUL, which markets the popular milk and dairy products brand of the same name, to set up procurement operations in Sattari, Sanguem, Canacona and Quepem sub-districts, which account for the biggest chunk of milk production in Goa.

"We have to make Goa self-sufficient in milk production... If there is competition, dairy farmers will definitely benefit from the better rate they will get for the milk they produce. We do not intend to do injustice to Goa Dairy, but I believe competition is needed to improve things in the dairy (sector)," Goa Chief Minister Laxmikant Parsekar said, after announcing the decision.Goa, with a resident population of 1.5 million and a floating population of nearly four million tourists, consumes anywhere between 350,000-500,000 litres of milk every day.

Of this demand, the Goa Dairy, with its present infrastructure and procurement network was able to process approximately 90,000 litres of milk every day at its facility in Kurti, Ponda, which was not even a fourth of the requirement, during the peak tourism season.

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