Milk will cost Rs 38 for a half-litre packet from Saturday as the farm gate price has increased. Currently, it costs Rs 35 for a half-litre packet of milk.
Dairy Development Corporation (DDC) has agreed to increase the price of milk by Rs 6 per litre to Rs 76 per litre after the continuous pressure from dairy cooperatives and private dairies.
Out of this increased price, farmers will get Rs 4.16 more per litre for a total of Rs 52.46 per litre. Dairy processing companies will get Rs 23.54 per litre, up by Rs 1.84 from earlier, the DDC said in a press note.
Earlier, the DDC had hiked the milk price on August 17, 2017.
The DDC has decided to revise the price upward after receiving the green signal from the Ministry of Agriculture and Livestock Development on Thursday, according to the state-owned dairy. “The corporation had proposed the ministry to hike the price to provide relief to milk producers, who have been complaining of a sharp rise in production costs in the past two years,” it confirmed, adding that the ministry’s green signal to jack up the price has helped increased the share of farmer take home money.
Currently, the domestic market is dominated by the Dairy Development Corporation that captures a 40 per cent market share in the country’s dairy business and acts as a market maker.
The Central Dairy Cooperative Association and private dairies have been since for the past few months pressuring the government to hike the milk price by Rs 6 to Rs 10 per litre. They had also warned the government of protest, if the price was not increased.
Nepal produces 2.25 million tonnes of milk daily, of which half is consumed at the local level, one-third is sold by farmers directly to their customers, whereas the rest is packaged and labeled for sale through business outlets, according to the DDC, according to the National Dairy Development Board. “Of the total milk produced in the country, Kathmandu Valley consumes around 60 per cent as the demand for milk in the Valley stands at 500,000 litres daily.”
The government has recently banned the powdered milk imports, and rise in demand with the start of the festival season, and also due to ongoing lean season – from April to September when the milk production drops by 15 per cent – Valley is witnessing the shortage of milk.
The DDC produces powdered milk at its plant in Biratnagar, apart from two private companies – Chitwan Milk in Bharatpur and Sujal Dairy in Pokhara – also produce powdered milk. The total production of the three factories stands at 1,700 tonnes to 1,800 tonnes annually, according to the board.
Dairy Development Corporation (DDC) has agreed to increase the price of milk by Rs 6 per litre to Rs 76 per litre after the continuous pressure from dairy cooperatives and private dairies.
Out of this increased price, farmers will get Rs 4.16 more per litre for a total of Rs 52.46 per litre. Dairy processing companies will get Rs 23.54 per litre, up by Rs 1.84 from earlier, the DDC said in a press note.
Earlier, the DDC had hiked the milk price on August 17, 2017.
The DDC has decided to revise the price upward after receiving the green signal from the Ministry of Agriculture and Livestock Development on Thursday, according to the state-owned dairy. “The corporation had proposed the ministry to hike the price to provide relief to milk producers, who have been complaining of a sharp rise in production costs in the past two years,” it confirmed, adding that the ministry’s green signal to jack up the price has helped increased the share of farmer take home money.
Currently, the domestic market is dominated by the Dairy Development Corporation that captures a 40 per cent market share in the country’s dairy business and acts as a market maker.
The Central Dairy Cooperative Association and private dairies have been since for the past few months pressuring the government to hike the milk price by Rs 6 to Rs 10 per litre. They had also warned the government of protest, if the price was not increased.
Nepal produces 2.25 million tonnes of milk daily, of which half is consumed at the local level, one-third is sold by farmers directly to their customers, whereas the rest is packaged and labeled for sale through business outlets, according to the DDC, according to the National Dairy Development Board. “Of the total milk produced in the country, Kathmandu Valley consumes around 60 per cent as the demand for milk in the Valley stands at 500,000 litres daily.”
The government has recently banned the powdered milk imports, and rise in demand with the start of the festival season, and also due to ongoing lean season – from April to September when the milk production drops by 15 per cent – Valley is witnessing the shortage of milk.
The DDC produces powdered milk at its plant in Biratnagar, apart from two private companies – Chitwan Milk in Bharatpur and Sujal Dairy in Pokhara – also produce powdered milk. The total production of the three factories stands at 1,700 tonnes to 1,800 tonnes annually, according to the board.
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