Responding to the demands of farmers and recommendation of a study committee, the MoAC directed the Dairy Development Corporation (DDC) -- the state owned dairy producer and Dairy Development Board (DDB) -- the dairy regulator, to implement the new price.
“The price revision was made keeping in view the rising cost of production of milk. Of the total increment, farmers will get Rs 2.76 per liter from dairy industries and the industries are free to fix selling prices on their own,” Minister of Agriculture and Cooperatives Mrigendra Kumar Singh Yadav told myrepublica.com. “The new prices will come into effect immediately.”
A high-level panel had recommended the MoAC to increase milk price by Rs 4 per liter, which the farmers and the industries will share in 69:21 ratio. The committee, led by DN Pathak, executive director of DDB, comprised senior officials from Department of Livestock Service, Department of Food Technology and Quality Control, Nepal Agriculture Research Council, Dairy Development Corporation (DDC), Nepal Dairy Association, Central Dairy Cooperatives and Consumer Interest Protection Forum. The panel was formed on July 6 to recommend the government to increase price of milk by analyzing the cost of production of milk.
The ministry also decided to recommend concerned ministries regarding the other demands of the farmers.
“We will approach to the concerned ministries to press our other demands,” said Dhakaram Aryal, chairman of Central Dairy Co-operatives.
The panel had also recommended the government to provide 50 percent discount on interest against loan and cattle insurance premium to give relief to the farmers.
The DDB had carried out field study in ten districts, including Ilam, Morang, Chitwan, Kavre, Syangja, Rupandehi and Dang in 2007 to assess the cost of milk production.
On the basis of prices of cows and buffaloes, feeds and other inputs, the study had found that the cost per liter of milk was the lowest at Rs 13.68 per liter in Morang and the highest at Rs 20.45 per liter in Dang.
The study had found that the average cost of production stood at Rs 17.20 per liter in 2007. It had recommended the government to offer Rs 19.66 per liter to the farmers.
The new price has been recommended on the basis of the nationwide study carried out in 2007, considering the rise of production cost by 33.83 percent over the last two years.
However, DDC has been maintaining that it is free to revise the prices of dairy products on its own.
prabhakar@myrepublica.com
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