Kathmandu— Representatives from the Nepal Agricultural Cooperatives Central Federation Limited (NACCFL), Sana Kisan Bikash Laghubitta Bittiyasanstha Ltd (SKBBL), and the Dairy Development Corporation (DDC) signed a cooperative agreement on August 14th in Kathmandu to streamline the milk supply chain and address payment delays for farmers. The agreement establishes a framework for consistent delivery of 15,000 liters of milk daily from cooperatives to the DDC, beginning August 17th, while also committing the DDC to settle outstanding payments within one month. This collaboration seeks to improve income for dairy farmers, boost production, and enhance Nepal’s self-sufficiency in dairy products.

Agreement Details

The tri-party agreement outlines specific responsibilities for each organization involved. NACCFL and SKBBL will coordinate the supply of 15,000 liters of milk per day through their network of affiliated cooperatives and members. The DDC is responsible for receiving this supply and ensuring prompt payment to farmers for all previously received deliveries within a one-month timeframe. A key provision of the agreement emphasizes maintaining both the quantity and quality of milk as measured at the initial collection points, with provisions made for efficient milk convergence.

Stakeholder Expectations

DDC General Manager Dr. Saran Kumar Pandey voiced optimism that the agreement would be a significant step forward for Nepal’s dairy sector. He expressed confidence in its potential to drive development and improve outcomes for farmers. Khem Bahadur Pathak, chair of SKBBL, echoed this sentiment, stating that the initiative would contribute to increased farmer incomes, enhanced production levels, and greater self-sufficiency within the industry.

Cooperative Network Capacity

Yekaraj Upreti, president of NACCFL, described the agreement with the DDC as a historic moment for Nepali dairy farmers. He highlighted that the organization currently collects 47,000 liters of milk daily through its central federation network, demonstrating an established infrastructure capable of supporting the new supply commitment.

Focus on Payment Resolution

A primary objective of the agreement is to resolve longstanding issues related to delayed payments to dairy farmers. By formalizing a clear payment schedule and establishing accountability among the involved parties, the initiative aims to provide financial stability for those engaged in milk production.

The implementation of this tri-party agreement will be closely monitored to assess its impact on the dairy supply chain and farmer livelihoods. Further developments are expected as the DDC begins receiving the agreed-upon daily milk supply starting August 17th.

(With inputs from RN)

Originally published on abcnews.com.np.