DDC, private dairies hike milk price

DDC, private dairies hike milk price
eKantipur.com, 29-Jun-07

Dairy Development Corporation (DDC), a major state-owned dairy supplier and private dairy operators have increased milk price to Rs 29 per liter for the lean season (mid-February to mid-August) across the country effective from Saturday, a concerned official said.

They also decided to fix the milk price at Rs 28 per liter for flush season -during mid-August to mid February. National Dairy Development Board (NDDB), an apex policymaking body of the dairy sector, had recommended milk price last month at Rs 28 per liter for flush season and Rs 29 for lean season from existing Rs 26 per liter. But DDC had defied the recommendation and had increased the milk price at one rupee less per liter than what was recommended.

“We decided to increase the price of milk by Rs 2 or Rs 3 per liter depending on the seasons” said Ram Kumar Khadka, president of Nepal Dairy Association (NDA), an umbrella organization of private dairy operators. He ruled out the possibility of increasing the price of milk products soon as their prices was increased just a couple of months back. Private dairies reached the decision to hike milk price at a gathering held in Kathmandu on Friday.

A meeting of board of directors of DDC has also decided to increase the price to Rs 29 per liter from Rs 28. Likewise, the price of whole milk has been set at Rs 32 per liter for flush season and Rs 33 for lean season.

In the earlier decision, DDC had increased only Rs 2 per liter from existing Rs 26 per liter for all seasons effective from June 15th for Kathmandu Valley, while keeping the price unchanged outside the Valley.

The new adjustment was made in response to the government's decision and increased purchase price of milk, said Raghav Kishore Bhattarai, acting deputy general manager of DDC.

A government initiated meeting of stakeholders including high-ranking government officials held on June 21st at Ministry of Agriculture and Cooperatives (MoAC) had decided to maintain price uniformity and had asked DDC to rollback its previous decision to increase the price that was one rupee less per liter than the recommendation.

While private dairies also kept the milk price unchanged at Rs 26 per liter as a protest against DDC's decision, they exerted pressure on the government to intervene in the market. DDC, private dairies hike milk price