Agriculture minister pledges to cut DDC milk payment period to 25 days

KATHMANDU: Minister for Agriculture, Forest and Environment Gita Chaudhary has pledged to shorten the time taken to pay dairy farmers for milk supplied to the Dairy Development Corporation (DDC).

Speaking in the House of Representatives, Minister Chaudhary said the payment period has already been cut from eight months to three months and will be reduced further. "The payment period will be reduced to 25 days by the last week of Bhadra," she said.

Chaudhary told MPs that the DDC’s financial burden has grown because of a large stock of milk and dairy products, high processing costs, administrative expenses, weak management and an ageing organisational structure. She said 235 milk cooperatives currently supply milk to the corporation nationwide and that, over the past two months, the DDC has concentrated on clearing farmers’ dues.

She added that managerial and financial reforms of the corporation have been prioritised to improve its finances, manage the market and regularise payments to farmers. The ministry plans to seek a government loan of Rs 400 million to settle outstanding payments to dairy producers and to establish a new processing plant.

By RSS