Hats off to Hatsun!

Hatsun Agro has left its mark during this demonetization drive. This is the largest private sector dairy Company in India based in Chennai. On a daily basis, his company buys about 28 lakh litres per day (LLPD) of milk for 3.10 lakh farmers. This is purchased at an average cost of Rs 26 per litre and this means that he has to make daily payments to farmers amounting to Rs.7.3 crore.

If we thought that farmers get paid only in cash, Hatsun will change this thought process. The payment is mad every ten days and payment to each farmer is credited in his/her bank account. Daily invoices of the quantity of milk supplied and the price corresponding to its fat and solids-not-fat (SNF) content are made.

The sales collections are also credited to Hatsun’s bank account on a daily basis.  Right from farmers, distributors, transporters or employees; every payment at Hatsun is made through cheques or bank transfers; there is no cash payment at all.

That is why when Modi announced this demonetization on 8th November, the Chairman of Hatsun did not have a single brow of worry on his forehead. While we know Amul as a pioneer when it comes to co-operative milk, Hatsun is the first dairy company in India to have this complete “white” system of business. In fact Amul is learning to do things the Hatsun way and it is forcing trade unions disbursing some Rs.450 crore per week to 18,500 village societies to enable direct bank transfers.