KATHMANDU: The National Dairy Development Board (NDDB) has recommended the Ministry of Agriculture and Livestock Development (MoALD) to increase the price of milk by Rs 10 per liter.
NDDB Executive Director Dr. Rajendra Prasad Yadav said the decision to increase the price of milk was reached following extensive study.
MoALD can increase the price of milk through a ministerial decision if it deems NDDB’s recommendation valid. The price of milk is Rs 76 per liter in the market currently.
“A meeting of stakeholders, including NDDB, Department of Livestock Service and farmers recommended an increase in the price. The decision will benefit farmers,” said Executive Director Yadav, adding, of the proposed hike, Rs 7 per liter will go to farmers and Rs 3 per liter to dairy industries.
The NDDB claimed that farmers were discouraged by the rising cost of production of milk over the last two years and low return on the produce.
Executive Director Yadav said that it was necessary to increase the price of milk as the price of feed, grains, cows, buffaloes had also increased, and farmers were not getting justified return on investment and labor.
According to the Nepal Dairy Association, if the ministry decides to increase the price as per the recommendation, the consumer price of milk will be Rs 86 per liter.
At present, the price of 1,000 ml of processed milk is Rs 76 and that of 500 ml is Rs 38, said Radha Krishna Sapkota, president of Nepal Dairy Association.
Stating that the recommendation of Rs 10 increment was justified, Sapkota said it was necessary to increase the price to save farmers and dairy industries.
According to private sector estimates, 6 million liters of milk is produced daily when the production is high. Of that, about 50 percent of the milk goes for sale in the market but the share of that milk is only 17 percent milk in the official channel.
The government last increased the price of milk by Rs 6 per liter to Rs 76 in early 2020.