KATHMANDU: The government has directed concerned authorities to clear approximately Rs 3 billion in outstanding payments owed to dairy farmers by the end of the current fiscal year.
The Ministry of Agriculture and Livestock Development held a meeting today with the Nepal Dairy Association, the umbrella organization representing private dairy industries, and issued a directive for immediate payment of the dues.
Dairy farmers across the country have been struggling financially after long delays in receiving payments for milk supplied to privately-run dairy companies.
Ministry spokesperson Mahanand Joshi emphasized that failing to clear the dues could negatively impact both milk production and its supply in the market. He stated that the government is committed to ensuring timely payments and supporting the dairy sector.
“The government has been offering various subsidies and technical support to the Nepal Dairy Association to promote milk and dairy consumption across all provinces,” Joshi said.
The state-owned Dairy Development Corporation (DDC) has already paid around Rs 900 million to farmers—covering dues up to Poush 20, 2081—and is currently processing the remaining payments.
In addition to supporting the dairy sector, the Ministry is also providing subsidies for livestock and crop insurance, seeds, fertilizers, and agricultural equipment.
Farmers’ organizations have repeatedly called for timely payments. Ganesh Prasad Timilsina, President of the National Peasants’ Coalition, stressed the need for stricter government oversight of the dairy industry.
“Dairy companies, which profit from milk produced by farmers, must be held accountable. The government should ensure that farmers are paid what they are owed without delay,” Timilsina said.
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