With the rise in the price, farmers and dairies will share the hiked price at the ratio of 69 percent and 31 percent or Rs 2.76 per liter and Rs 1.24 per liter respectively.
The panel led by DN Pathak, executive director of Dairy Development Board (DDB), was formed on July 6 to recommend the government on price hike analyzing the cost of production of milk.
"The panel´s meeting held on Monday recommended hiking the price keeping in view the sharp rise in cost of production over the last two years," said Pathak. It has also recommended that the government provide 50 percent discount on interest of loans and cattle insurance premium to the farmers.
Pathak said the DDB will forward the recommendations to the Ministry of Agriculture and Cooperatives (MoAC) after discussing it on Friday.
The new price has been recommended after the panel calculated that cost of production has soared by 33.83 percent over the past two years. The DDB had conducted a field study in ten districts including Ilam, Morang, Chitwan, Kavre, Syangja, Rupandehi and Dang in 2007 to assess the farmers´ cost of milk production. On the basis of the prices of cows and buffaloes, feeds and other inputs, the study found that the cost per liter of milk stood at lowest Rs 13.68 per liter in Morang and Rs 20.45 per liter, the highest, in Dang district.
"The study found that the average cost of production stood at Rs 17.20 per liter in 2007 and it also suggested offering Rs 19.66 per liter to the farmers," Pathak added.
Pathak also urged dairies, especially private dairies, to improve milk quality along with the increase in the price.
However, Ajab Lal Yadav, the chairman and general manager of Dairy Development Corporation (DDC), said given the open market system in the country DDC is free to adjust the price of milk on its own.
"We will fix the price ourselves considering the interest of both farmers and the consumers. It is not mandatory to implement the price recommended by the DDB," Yadav told myrepublica.com.
prabhakar@myrepublica.com
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