Amaravati, Jul 21 (IANS): In a move aimed at giving fillip to the dairy industry in Andhra Pradesh, the state government on Tuesday signed a Memorandum of Understanding (MoU) with cooperative giant Anand Milk Union Limited (AMUL).

The MoU signed in the presence of Chief Minister Y.S. Jagan Mohan Reddy at his official residence is expected to give a boost to the empowerment of women self-help groups by encouraging the milk cooperatives in the government sector.

Terming Andhra Pradesh as the gateway to the South, the Chief Minister said that joining hands with AMUL will help the women groups and dairy farming in the cooperative sector with an opportunity and exposure to world class infrastructure, technology and marketing opportunities which would improve their standard of living and self reliance of women.

The MoU was signed by Special Chief Secretary Agriculture, Animal Husbandry and Dairy Development, Poonam Malkondaiah and AMUL Chennai Zonal Head Rajan.

Jagan spoke to Gujarat Cooperative Milk Marketing Federation, Managing Director RS Sodi, and Chairman of Sabarkant District Cooperative Milk Producers Union Limited, Sambalbhai Patel through video conference.

It was during his 3,648 km padayatra that the dairy farmers had told him about the exploitation of dairy units to benefit the private company Heritage Food (owned by the family of former Chief Minister and TDP president Chandrababu Naidu).

The price of one liter water bottle was Rs 22 and one liter bottle of milk was sold at the same price as the government of the day exploited the dairy sector in the cooperative sector to the hilt to benefit Heritage Foods. All dairies under the State Diary Cooperative Federation have been put in the red, said a statement from the Chief Minister's Office.

Though the State stands fourth in milk production, only 24 per cent was going to the organised sector. The partnership with AMUL will help farmers to get good price and women groups, it added.