Hundreds of farmers in Hospet, Vijayanagar, have been swindled in a ₹9 crore scam involving donkey milk. A company from Andhra Pradesh promised them huge returns, claiming that donkey milk was a rare medicinal commodity. Farmers poured in their savings, hoping to make a fortune, only to be left facing major losses as the company’s fraudulent operations were uncovered.
The company targeted farmers by offering a “donkey-rearing package” at ₹3 lakh, which included three female donkeys and their foals. Farmers were promised ₹2,350 per litre of donkey milk, with payments made every 10 days. Many farmers bought multiple units, seeing this as an opportunity to earn significant profits.
The scam revolved around an Andhra Pradesh-based company that marketed donkey milk as a “miracle product,” said to have medicinal properties and benefits for children and asthma patients. They claimed donkey milk was used in the production of medicines, soaps, and cosmetics, creating the illusion of a booming market with high demand.
Inflated Prices and Misleading Claims
As part of the agreement, the company sold donkeys at an inflated price of ₹1 lakh each, much higher than the usual market price of ₹20,000 to ₹30,000. Farmers were assured that each set of donkeys could produce 1.5 liters of milk daily, with the company collecting the milk directly from them.
The company’s misleading claims led many farmers to believe they were entering a highly profitable and unique business, but suspicions arose when the company placed unusual conditions on milk production. If the milk output exceeded 2 liters, the agreement would be canceled, and the farmers would forfeit their money. Similarly, if production fell below 1.5 liters, the company promised to replace the donkeys.
Farmers Left in Financial Ruin
Around 300 farmers, mainly from Hospet and surrounding districts like Koppal, Ballari, and Haveri, invested their hard-earned money in this venture. With over ₹9 crore collected, the farmers grew suspicious when their promised profits failed to materialize. Upon closer inspection, many farmers noticed inconsistencies in the company’s operations and pricing of the donkeys.
Farmer associations quickly raised the alarm, questioning the legitimacy of the company’s claims and the unusually high prices charged for the donkeys. Several farmers filed complaints with the district authorities, fearing that the company was simply collecting money and would disappear, leaving them stranded with no way to recover their investments.
Investigation and Legal Action
The Vijayanagar District Administration launched an investigation into the company’s practices. Authorities found that the company was operating without a valid trade license, raising further red flags about its legitimacy. Officials visited the company’s office in Hospet and sealed the premises, halting operations until the investigation is complete.
According to Deputy Commissioner MS Divakara, the company is now under scrutiny for not holding the necessary permits to operate legally. The company’s documents are being examined, and authorities have vowed to take strict action if the company is found guilty of defrauding the farmers.
What’s Next for the Farmers?
Farmers across Vijayanagar are now demanding justice and repayment of their investments. With ₹9 crore at stake, many are calling for stronger regulations and more oversight to prevent such scams from happening again. The district authorities have pledged to ensure that those responsible for the scam are held accountable, while also warning others about the risks of falling for such get-rich-quick schemes.
For now, the focus remains on recovering the farmers’ money and preventing further damage, as hundreds of livelihoods have been thrown into uncertainty. This scam serves as a harsh reminder of the dangers posed by fraudulent schemes and the vulnerability of farmers seeking new opportunities to improve their income.
