NFC in a fix over goats business that brings loss every Dashain

KATHAMDU, Aug 31: Public sector enterprise Nepal Food Corporation (NFC) has been in a dilemma whether to purchase goats for the upcoming Dashain festival or not, after it realised that it has been incurring losses every year in the goats business.



The dilemma has intensified amid a dispute between NFC board members and the Ministry of Commerce and Supplies (MoCS), which wants the state-owned food supplier to remain in the business if not for profit just for the sake of timely intervention in the market. In absence of any mechanism to control the prices of goats when the demand soars in the festival season, MoCS apparently wants to keep its options open and NFC to foot the bill.[break]



Most NFC board members are against continuing with the goat business due to uninterrupted spell of losses every year. However, secretary of MoCS Purushottam Ojha has already directed the NFC management to buy goats so that the government can intervene in the market, which remains a monopoly of private traders.



“We are still indecisive over purchasing goats for the coming Dashain as board members and the ministry are having contrary views on the matter,” Hari Narayan Shah, general manager of NFC, told Republica.



In a recent meeting, most board members raised the question of rationality in the purchase of goats, which leaves NFC with millions of rupees in losses. According to Shah, MoCS has directed the corporation to purchase 3,000 to 6,000 goats during the coming Dashain and assigned a few veterinary doctors to take care of the health issues of the goats in the warehouse.



“We are calling the board meeting within a week to finalize the issue,” said Shah.



NFC has claimed that it suffered a loss of Rs 3.6 million last year in the trading of goats during Dashain festivals as 250 goats died before they were sold. National Vigilant Center has been investigating the case of the reported mass death of goats.



“We can´t intervene in the market by purchasing a few thousand goats when there is a demand for many thousands more during the festival. And, there is no point in purchasing goats if NFC suffers huge losses by selling them,” said a board member.



The board members however maintained that NFC can´t control the market price only by supplying the goats in Kathmandu valley alone.



Shah said he will call the board meeting within a week. According to private traders, demand for goats is in the range of 60,000 to 65,000 (including 15,000 mountain goats) during Dashain.

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