KATHMANDU, June 9: The Dairy Development Corporation (DDC) is preparing to sell 600 metric tons of dairy products at adjusted prices due to a growing stockpile, which has created payment delays to farmers.
To ease the surplus, DDC has announced price adjustments for 300 metric tons of unsalted butter and 300 metric tons of skimmed milk powder. Issuing a public notice on Sunday, the DDC called for interested buyers to submit proposals to the DDC central office in Lainchaur within seven days. Proposals must include VAT-inclusive pricing for the desired quantity. DDC also mentioned it would assist buyers seeking to export these products with the necessary government recommendations.
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According to DDC, the corporation currently holds 850 metric tons of butter and 900 metric tons of skimmed milk powder in stock. With storage facilities, both owned and rented, at full capacity, DDC is seeking to clear space as quickly as possible through this price adjustment initiative.
In the past, DDC had also resorted to similar measures when excess stock made it difficult to clear dues to the dairy farmers. This year, DDC’s outstanding payments to the farmers have surpassed Rs 1 billion, according to Agriculture and Livestock Development Minister Ramnath Adhikari. The Central Dairy Cooperative Union also claims that farmers are awaiting about Rs 4 billion from private dairies and Rs 1 billion from DDC.
Despite requests made to the government to facilitate daily milk sales through the Nepal Army, Nepal Police, and Armed Police Force to ease surplus pressure, DDC spokesperson Nilkantha Gautam stated that no action has been taken yet.
The dairy industry typically sees peak milk production from mid-October to mid-April, and reduced supply during the lean season from mid-April to mid-September. However, industry operators report that this year's lean season saw a 10 percent increase in milk production compared to previous years, contributing to the continued stock buildup.
