Milk Vita on the verge of collapse
Selim Reza, Sirajganj :
Milk Vita, the largest milk-producing company in the country, is now reportedly on the verge of collapse due to extensive corruption and irregularities allegedly committed by its former Chairman, Sheikh Nadir Hossain Lipu.
It has been alleged that Lipu embezzled crores of taka from the company by leveraging the power of the recently ousted autocratic Awami League government.
His dominance within the organisation reportedly silenced dissent, with no one daring to challenge his actions.
As a result, Milk Vita, the country’s largest liquid milk-producing and marketing company – and a cooperative organisation under the Bangladesh Milk Producers Co-operative Union Limited – now faces numerous challenges and is struggling to function effectively.
It has been further alleged that Sheikh Nadir Hossain Lipu shut down Milk Vita’s state-owned feed production plant to promote and market feed produced by a particular private factory.
The closure of this feed factory led to the widespread distribution of substandard feed from Lipu’s favoured company.
Consequently, hundreds of dairy cattle, including milk-producing cows, fell ill or died from various diseases, causing significant losses to dairy farmers in the region.
Meanwhile, Lipu and his associates reportedly amassed crores of taka through the sale of this inferior feed.
To ensure nutritious and balanced feed for millions of cattle in Shahjadpur and Ullapara upazilas of Sirajganj district – areas known as grazing lands – Milk Vita established a cow feed production plant at Lahiri Mohanpur in Ullapara in 2014 at a cost of Tk 27 crore.
The factory had the capacity to produce five metric tonnes of feed per hour and operated on a non-profit basis to benefit association (Samity) members. Dairy farmers could purchase feed at reduced prices, with the costs deducted from milk payments.
The project gained popularity in a short time for maintaining high-quality standards, leading to healthier cattle and increased milk production. However, in 2016, Chairman Lipu closed the plant, citing alleged policy and technical issues, despite no such issues existing.
It is claimed that Tk 6.5 crore of the factory’s funds was misappropriated by Lipu. Furthermore, farmers were forced to purchase cattle feed from a private company, Rumi Feed, at higher prices.
This feed was reportedly substandard, resulting in illness and death among cattle and a decline in milk production.
Farmers and Milk Vita officials who opposed these actions faced harassment and punitive transfers.
Employees claim they were pressured into distributing Rumi Feed to dairy farmers despite knowing its poor quality.
Abul Hossain, a dairy farmer from Shahjadpur, stated, “The cow feed produced by Milk Vita’s factory was of excellent quality.
We relied on it for two years before the factory was suddenly shut down. After that, we were forced to purchase low-quality Rumi Feed.”
Another farmer, Hanif Sarkar, added, “If we didn’t buy Rumi Feed, Milk Vita refused to accept our milk. Many of our cattle fell ill and even died due to the poor quality of the feed, and milk production dropped significantly.”
On condition of anonymity, some employees revealed, “At the time, in-charges were pressured to sell Rumi Feed. Those who resisted faced harassment or were transferred to other locations. We had no choice but to comply.”
Dr Babul Akhter, manager of Milk Vita’s cow feed factory, stated, “The former chairman deliberately closed the feed production unit and introduced Rumi Feed for marketing. Some officials were compelled to distribute it to farmers.”
Deputy General Manager Shariful Islam Talukder commented, “The feed production unit was officially closed due to alleged policy and technical issues. However, no technical problems actually existed. The matter is currently under investigation.”
Commander Zahirul Alim, President of the Interim Management Committee of Milk Vita, remarked, “The allegations of corruption against the former chairman are being investigated.
Plans are underway to resume production at the feed factory. Once operational, farmers will once again have access to high-quality feed, which will help restore milk production to previous levels.”
The honest officers, employees, and milk suppliers of Milk Vita have urged the interim government and the Anti-Corruption Commission (ACC) to take legal action against those responsible for the corruption and irregularities that have brought the company to its knees.