After DDC, pvt dairies raise price by Rs 8 a ltr

- SUMAN BASHYAL, Kathmandu
After DDC, pvt dairies raise price by Rs 8 a ltr

Dec 31, 2014-

A day after state-owned Dairy Development Corporation (DDC) hiked milk price by Rs 8-10 per litre, private dairies on Wednesday decided to hike milk price by Rs 8 per litre, effective from Thursday. With the latest decision, customers will have to pay Rs 64-Rs 66 per litre for a litre of milk supplied by private sector dairies.

Prahlad Dahal, general secretary of Dairy Association of Nepal, said a meeting of dairy industries across the nation decided to hike the price. “DDC has always been hiking the prices without consulting us, but we have to follow suit as we have to pay the same price to farmers,” he said.

DDC is the market leader in the dairy sector.

The private dairies have not yet hiked the price of othAer dairy products, but they said a price rise is inevitable following the significant rise in the milk price. “The price of yogurt, paneer, cheese and ice cream, among others, is likely to be hiked by 14-15 percent,” said Dahal.

In the last six years, milk prices have doubled. The average price of low fat milk was Rs 30 per litre in 2008. Over the last nine months, DDC hiked the milk price thrice, while private dairies did it twice.

Meanwhile, consumer rights activists on Wednesday submitted a memorandum to the Prime Minister’s Office, stating the milk price hike hits consumers hard. “The ministry of Agriculture Development directed the DDC to raise the prices only to serve the interests of diary industries and cooperatives in the name of increased production cost,” said Prem Lal Maharjan, president of National Consumer Rights Forum. He said the government should take measures to decrease the production cost of the farmers.

Despite increased demand for milk, milk production has remained largely stable, according to the Central Dairy Cooperatives’ Association. “The government should encourage farmers by providing subsidies on fodder and development of hybrid animals, among others,” said Narayan Devkota, president of the association. “Due to higher production cost, many farmers are leaving the business.”

According to the association, farmers supply 400,000 litres of milk worth Rs 20 million daily across the country through 64 cooperatives. However, the daily requirement is estimated at 600,000 litres.

Published: 01-01-2015 09:23

User's Feedback

Click here for your comments

Comment via Facebook

Don't have facebook account? Use this form to comment