Agriculture ministry forms task force to fix milk price

Kathmandu, August 14

Ministry of Agriculture and Livestock Development (MoALD) has formed a task force to revise the milk price.

The ministry has formed an eight-member task force today led by Babu Kaji Panta, acting executive director of National Dairy Development Board (NDDB), in line with its plan to raise the milk price. Other members of the task force comprise MoALD representative Resham Gyawali as well as representatives from Nepal Dairy Association, Dairy Industry Association, Central Dairy Cooperative Association Ltd, Dairy Development Corporation, Department of Livestock Services, and technical officer of NDDB.

The task force has been given nine different areas to work on. According to MoALD, the task force has been directed to determine the price fixation indicators analysing the investment based on geography and farmer’s business category. Similarly, the task force has to find out the total cost of milk transportation and storage along with the seasonal impact on milk production. The task force has also been directed by the ministry to analyse the quality of milk while determining the new price in the market.

The ministry has further directed the task force to study the current situation of national and international dairy markets, to study the milk price of last two years, to analyse the last five years’ trend of milk price in the national and international markets as well as the impact of milk price adjustment on consumers.

While the ministry has not set any deadline, it has asked the task force to conclude its study and submit a report with recommendations to MoALD as soon as possible. Based on the recommendations, the ministry will table a proposal for increasing milk price at the Cabinet.

Although the ministry has earlier said that the price of milk could go up as soon as August 18, the task force is likely to take more time to complete its study and submit its recommendations.

After the milk shortage hit the market during this lean season, industrialists have requested MoALD to raise milk price. Farmers have also been demanding that milk price be revised as it has been two years since the government set the basic price of milk.