Kathmandu— Nepal’s Agriculture, Forest and Environment Minister, Geeta Chaudhary, has pledged to significantly shorten the timeframe for payments to dairy farmers for milk purchased by the Dairy Development Corporation (DDC). Responding to questions in Parliament on Friday, she stated that payment periods have already been reduced from eight months to three months, with a goal of reaching 25 days by late September. The commitment comes as the DDC faces financial challenges stemming from overstocking, high processing costs, and management issues.

Financial Challenges Facing DDC

Minister Chaudhary acknowledged that the DDC’s financial liabilities have increased due to several factors including a large surplus of milk and dairy products, elevated milk processing expenses, administrative overhead, ineffective management practices, and an outdated infrastructure. The corporation currently relies on 235 milk cooperatives nationwide for its supply.

Focus on Farmer Payments

For the past two months, the DDC has prioritized addressing outstanding payments to farmers, according to Minister Chaudhary. She indicated that managerial and financial reforms are being prioritized in an effort to improve the corporation’s overall financial health, enhance market management, and ensure consistent farmer payments.

Planned Investments

The Ministry plans to secure a Rs 400 million loan from the government to cover outstanding payments owed to dairy farmers. These funds will also be allocated towards establishing a new milk processing plant, aiming to address both immediate financial obligations and long-term production capacity.

Minister Chaudhary’s announcement signals a renewed focus on resolving payment issues within Nepal's dairy sector and improving the financial stability of the DDC.

(With inputs from RN)

Originally published on abcnews.com.np.