KARACHI, Feb 17: The Sindh government has rejected the proposal of leasing out or privatizing the Karachi Milk Plant (KMP) and directed the Idara-i-Kisan, a Lahore-based organization having struck a deal with the government to run the plant as a joint venture, to develop infrastructure for the collection and transportation of milk as required under the agreement on the Indus Dairy Development Project.

The provincial government has also turned down another proposal of shifting the plant from its present location, near Hassan Square, Karachi, to Hyderabad or Badin.

The proposal was based on contention that the two cities were so close to Karachi that the plant's output could be transported to the metropolis within a couple of hours once the milk-collection system was streamlined on the pattern of that of a similar plant being run by the Idara in Punjab, insiders confided to Dawn.

The Sindh government's decision came at a meeting of the Review Committee for the Revitalization of the KMP. The meeting was presided over by Additional Chief Secretary (Planning and Development) Ghulam Serwar Khero and attended by senior officials concerned, besides representative of the Idara.

The plant, which falls under the livestock and fisheries department, is aimed at providing hygienic milk to consumers in Karachi and ensuring that the poor farmers raising livestock in remote areas of Sindh could have access to market. It was established in 1965 with the assistance of Unicef, FAO, World Food Programme and the government of New Zealand.

The KMP has a pasteurization capacity of 75,000 litres of milk daily in a three-shift operation. However, it had to be closed down in 1980 due to mismanagement and failed marketing.

In November 1996, the Sindh government signed an agreement with the Idara to revive the project. An investment of Rs50 million, including Rs10 million supposed to be contributed by the Idara-i-Kisan, was pledged.

However, the plant could be made operational only in December 2004 after the Idara struck a deal with the Engro Pakistan viz-a-viz processing of raw milk. At present, approximately 30,000 litres of processed milk is being packed at the KMP and marketed with the brand name of 'Buffalo Fresh'.

According to a report, there are 10,397 registered KMP members - 2,147 in Badin, 1,283 in Thatta, 1,421 in Sanghar, 4,121 in Mirpurkhas and 1,425 in Hyderabad - having a collective number of 67,217 animals.

Their total milk production capacity is 0.205 million litres per day out of which the MKP is offered a regular supply of 0.153 million litres. In addition, an NGO has offered supply of 36,000 litres of milk per day provided a proper collection system is adopted by the Idara.

It is learnt that Thatta and Badin had been selected as 'pilot districts' for procuring milk but the Idara-i-Kisan did not pay due attention to the management and system.

Resultantly, its activities remained confined to Thatta district where farmers had agreed to supply up to 3,000 litres of milk per day. The farmers complained of non-cooperation on the part of the Idara and withdrew their offer although the officials concerned in the district kept assuring the organization that they could manage a regular supply of 10,000 to 12,000 litres per day within a period of three months if proper facilities were extended in this regard.

Amiruddin Bokhari, chief executive of the Idara-i-Kisan, based in Lahore, visited Karachi and Hyderabad recently and after holding meetings with field officers, decided to change the organization's milk procurement policy for Sindh.

He took the initiative of engaging an NGO operating in Tando Mohammad Khan which has offered a bulk supply of 36,000 litres per day at a competitive rate. The rate will be worked out mutually, according to informed sources. Mr Bokhari said that the Idara was engaged in negotiations with the Engro Pakistan for the processing of the milk to be supplied by the NGO.