KATHMANDU, Sept 1: Farmers across the country have taken to the streets after being denied nearly Rs 3.5 billion in payments for milk sales, with both the government-owned Dairy Development Corporation (DDC) and private dairies failing to clear dues. The delay has left farmers struggling to feed livestock, repay loans, and cover household expenses.
According to Ram Prasad Acharya, General Secretary of the Central Dairy Cooperative Association Limited Nepal (CDCAN), about Rs 1 billion remains unpaid by DDC and Rs 2.5 billion by private dairies. “Deprived of their rightful dues, farmers have been forced to protest,” he said. DDC has not released payments since February, despite a Rs 600 million government loan last year intended to ease its cash crunch.
Protect Interests of Domestic Farmers
Large dairy industries also owe substantial sums, with some individual companies reportedly defaulting on as much as Rs 300 million. “From government to industry, farmers are being squeezed,” Acharya said, stressing that the protests are driven by necessity, not choice.
On Sunday, farmers staged a sit-in outside DDC’s central office in Lainchaur, Kathmandu. Scuffles broke out after police prevented them from entering the premises. Farmers accuse dairies of deliberately delaying payments under various pretexts while the government remains silent.
Nepal has around 600,000 cooperative-affiliated farmers who supply 1.2 million liters of milk daily, a figure that rises to nearly 1.8 million liters when including the informal sector. The state’s minimum support price is Rs 65 per liter. DDC alone purchases about 200,000 liters daily through cooperatives, injecting nearly Rs 10 million into rural communities.
Prahlad Dahal, president of the Nepal Dairy Association, downplayed the crisis, saying member dairies owe only around Rs 300 million, mostly concentrated in Koshi and Bagmati provinces. The National Dairy Development Board (NDDB) has pledged to coordinate with dairies to ensure payments are cleared before Dashain. “Although farmers claim Rs 3.5 billion, the actual figure is closer to Rs 3 billion,” said NDDB Executive Director Rajendra Prasad Yadav.
Nepal produces over 2.6 million metric tons of milk annually, supported by more than two million milking cows and buffaloes. Yet, an NDDB study shows the cost of production ranges between Rs 45.37 and Rs 67.07 per liter—driven by rising prices of feed, fodder, and veterinary care—leaving many farmers with returns that barely cover their expenses.
