As part of its plan to re-start business in Pokhara after a hiatus of eight years, DDC had recently signed an agreement with Panti Dairy to sell fresh milk in the lake city within a month.[break]
However, local dairies have joined hands to bar the state-owned dairy producer from re-entering Pokhara. They have formed a team to put pressure on officials of different ministries, DDC and National Dairy Board, among others, to bar the state-owned dairy from entering Pokhara.
The team is currently in Kathmandu.
Members of the team have already met Suraj Vaidya, president of Federation of Nepalese Chambers of Commerce and Industry (FNCCI). According to members of the team, Vaidya has expressed solidarity with the entrepreneurs´ protest.
Pokhara Chamber of Commerce and Industry (PCCI) has already opposed DDC´s plan to re-enter Pokhara, saying that local dairies cannot compete with state-owned DDC which enjoys state privileges.
DDC had pulled out of Pokhara in 2004, selling its milk processing plant to Sujal Dairy for Rs 63.4 million. Since then, the number of dairy producers in the lake city has increased from four to eight.
Siyaram Singh, general manager of DDC, said market expansion in Pokhara is a part of their strategy to reduce surplus of fresh milk.
Daily demand for fresh milk in Pokhara hovers over 35,000 liters.
Narayan Koirala, general secretary of PCCI, said DDC´s latest move was against the policy of privatization of public enterprises initiated by the government in 1991.
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