Key Takeaways:

• Farmer dues cut by Rs 52 crore; arrears down to Rs 20 crore
• Daily milk collection target: 150,000 litres, up from 65,000
• Stocks reduced: milk powder 120 tonnes, butter 125 tonnes
• Exports launched: ghee to Dubai; talks on cheese, peda to Asia

KATHMANDU, SEPTEMBER 3 The Dairy Development Corporation (DDC), which has been struggling with arrears and unsold stocks, says it has reduced outstanding payments to farmers by Rs 52 crore in four months and is now targeting daily milk collection of 150,000 litres. DDC currently collects around 65,000 litres a day and plans to expand collection centres and improve distribution to add another 85,000 litres. General Manager Dr Sharan Kumar Pandey said the corporation is working to restore farmer confidence by ensuring regular payments while expanding production and sales. When he assumed office on April 18, DDC owed farmers Rs 72 crore and held large stocks of dairy products. Arrears have now fallen to Rs 20 crore, while stocks have been cut sharply, milk powder to 120 tonnes and butter to 125 tonnes. Pandey said the corporation had paid farmers around Rs 70 crore in three and a half months, adding: 'We are working to move to monthly payments and eventually payments every 15 days.' DDC has already exported 500 kg of ghee to Dubai and signed an agreement to export 50,000 kg annually. Talks are under way to export cheese and peda to South Korea, Malaysia and Japan. In Kathmandu, DDC has opened 15 dedicated sales outlets, boosting daily turnover from Rs 50–60 lakh to nearly Rs 1 crore. Daily milk sales in the capital have risen from 60,000 litres to 72,000 litres, while collection has increased from 50,000 litres to 65,000 litres. The corporation plans to introduce sliced cheese and expand production in Pokhara as part of its strategy to grow markets outside Kathmandu. Despite progress, DDC faces major challenges. It has 800 employees and carries Rs 1.26 billion in debt. Pandey said the corporation aims to repay the debt within 18 months, with Rs 3 crore already repaid, while tighter spending and financial discipline are being introduced to make DDC self-reliant.