Farmers in Nepal have taken to the streets, demanding long-overdue payments of nearly Rs 3.5 billion from both the government-owned Dairy Development Corporation (DDC) and private dairies. According to the Central Dairy Cooperative Association Limited Nepal, DDC alone owes about Rs 1 billion, while private dairies have failed to clear Rs 2.5 billion. DDC has not paid farmers since February, despite receiving a Rs 600 million government loan last year. Some large private dairies reportedly owe up to Rs 300 million each. Farmers say they are not protesting by choice but out of desperation, as they struggle to feed their livestock, repay loans, and meet daily expenses. On Sunday, angry farmers staged a sit-in at the DDC headquarters in Lainchaur, Kathmandu, where they clashed with police. They accuse dairies of delaying payments under various pretexts, while the government remains silent. Nepal has around 600,000 cooperative-affiliated farmers supplying 1.2 million litres of milk daily, or 1.8 million litres including the informal sector.
Farmers in Chitwan earn over RS 65 million by selling seeds
DDC buys about 200,000 litres a day, injecting nearly Rs 10 million into rural households. Yet, despite the economy’s dependence on this sector, farmers are not paid for months. Officials from the National Dairy Development Board have downplayed the crisis, saying payments will be settled before Dashain. But farmers from districts including Chitwan say they have been waiting for six months without receiving a single rupee for their produce. This crisis exposes the apathy of the state toward farmers who are the backbone of the country’s dairy economy. The government is quick to set prices—Rs 65 per litre as the minimum rate for milk—but turns a blind eye when private dairies pay less, or when illegal imports from India undercut Nepali producers. Such imports, often sold below the government-set price, have flooded the market and pushed domestic producers to the edge. Farmers in Chitwan alone produce 350,000 litres daily but are forced to sell at lower prices—and even then, payments are withheld. More than 40,000 farmers in the district are now in distress.
This is not just about delayed payments but about survival. The cost of producing milk has risen sharply, with feed, fodder, and veterinary expenses increasing, while farmers are not even recovering production costs. Many are considering abandoning dairy farming altogether. If that happens, the consequences will not be limited to farmers but will threaten the country’s food security. The government must wake up and act. DDC and private dairies must immediately clear all pending dues. Stricter measures are needed to block illegal imports that distort the market. Authorities must ensure that farmers receive the set price of milk, not less. Beyond this, farmers need subsidies for feed and veterinary care, timely payments, and protection from market manipulation. These steps are essential to support rural livelihoods and ensure every household in Nepal continues to have milk on the table. Farmers have been patient for far too long—it is time to end the neglect.
