Milk price may go up by Rs 10 per litre

Kathmandu, August 16

The government is likely to raise milk price by up to Rs 10 per litre targeting the rise in cost of milk production for farmers in recent years.

Babukaji Panta, acting executive director of the National Dairy Development Board (NDDB), who is also the coordinator of the task force formed by the Ministry of Agriculture and Livestock Development (MoALD) to review milk price, told The Himalayan Times that preparations are under way to raise milk price by up to Rs 10 per litre.

On Wednesday, MoALD had formed an eight-member task force under the coordination of Panta in line with its plan to revise milk price. The other members of the task force include 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.

“Farmers had been demanding that the milk price be raised by up to Rs 10 per litre and our preliminary study has shown that their demand is logical. But we are still holding consultations with other stakeholders on this front,” informed Pant.

As per Panta, the committee will soon submit its report to the government recommending that the milk price be increased in favour of farmers. Panta confirmed that even after the revision, farmers will get 69 per cent of the raised price of milk, while dairies and milk distributors will get the remaining amount like they are getting now.

Similarly, Narayan Devkota, chairperson of Central Dairy Cooperative Association, said that the government should increase milk price by Rs 10 per litre as the price has not been revised since more than two-and-a-half years.

“The government is reluctant to raise milk price though inflation has hit every sector. However, we are optimistic that milk price will be raised by at least Rs 10 per litre this time around,” said Devkota.