Nepal faces milk deficit of 400,000 litres a day: NDA

- POST REPORT, Kathmandu

Feb 6, 2015-

Nepal faces milk deficit of 400,000 litres a day, thanks to low domestic production, according to Nepal Dairy Association (NDA).

To address the deficit, the association has urged the government to import improved breeds of quadrupeds from neighbouring countries to boost milk production. It also demanded subsidy to the farmers.

Speaking at a programme here on Friday, NDA President Sumit Kedia said annual milk output growth stands at 4 percent, while the demand is rising by 8 percent.

The country produces an estimated 4.8 million litres of milk daily, half of which is consumed by farmers themselves, 15 percent sold to dairies and 35 percent goes to local markets, according to the association.

Kedia urged for the expansion of artificial insemination programmes, stressing on

the need for reducing production costs.

The NDA demanded the government revise the Dairy Development Policy 2008, stating the policy aims at levying the dairy sector instead of providing subsidies. Kedia urged the government to form a proper working guideline.

Besides, the association demanded implementation of a provision barring dairies from taking back their unsold products from the market. The Dairy Development Board has earlier prepared a directive in this regard, but it is yet to be endorsed by the Ministry of Agriculture Development.

The association said increasing milk price in the name of relieving farmers was not enough to increase the supply. Kedia asked the government to provide subsidies on animal feeds and other logistics to encourage farmers in the business.

Provisions of soft loan, expansion of animal insurance, provision of grazing lands and capacity building of farmers were among other demands of the dairy producers. As per the NDA estimate, the dairy sector contributes 9 percent to the GDP. Dairies have invested around Rs 15 billion, providing direct employment to 20,000 individuals.

NDA concerned about DDA plan

Nepal Dairy Association (NDA) has expressed concern about the Dairy Development Corporation’s plan to purchase “overvalued” Chitwan Milk. According to the association, the state enterprise is preparing to purchase the company for Rs 1.10 billion, claiming the value of the plant is not more than Rs 600 million. “It is not appropriate for the government to acquire a crisis-ridden company, it should rather provide facilities declaring the company sick,” said NDA President Sumit Kedia.

Published: 07-02-2015 10:07

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