DDC hikes milk price by Rs 2 per litre
KATHMANDU, DEC 02 -
State-owned Dairy Development Corporation (DDC) has hiked milk price by Rs 2 per litre, effective from Saturday. In the last 20 months, the price has been raised by Rs 10 per litre.
The DDC board on Friday decided to raise the milk price, considering higher production cost. However, new rates for farmers are yet to be fixed.
As per the revised price, skimmed (blue packet) milk and non-skimmed (green packet) milk will cost Rs 50 per litre and Rs 58 per litre, respectively. A 500-ml blue packet will cost Rs 25 and the green packet Rs 29. DDC had last revised the prices on Jan 31.
DDC General Manager Siya Ram Prasad Singh said the price was revised based on increased cost of production. He said higher petroleum and electricity prices compelled DDC to jack up milk price again.
According to DDC officials, the burden of higher fuel and electricity prices was passed on to the consumers to help the corporation sustain. “Powder production cost has surged by 50 percent,” Singh said.
Farmers, however, are yet to get the benefit of the price hike. Singh said they have formed a committee to determine new rates to farmers. The committee includes representatives from farmers and the Ministry of Agriculture Development.
“DDC will revise the rates to farmers once the committee submits it report recommending the hike,” Singh said, adding the corporation will fix new rates to farmers by March. At present, farmers are receiving Rs 32.60 a litre on an average.
DDC holds around 40 percent share in the total milk supply in the domestic market. About 100,000 farmers, through 1,200 milk cooperatives, supply milk to the corporation.
The demand for milk exceeds 800,000 litres a day, while the supply stands at around 400,000 litres. DDC supplies 150,000-200,000 litres and around 40,000-50,000 litres is imported from India. Rest is supplied by private dairies.
At present, DDC produces milk from its processing plants in Balaju, Biratnagar, Hetauda, Butwal, Kohalpur, Dhalkebar in Janakpur
and Attariya in the Far Western Region.
The corporation also produces powdered milk from its Chitwan plant.
Source: Tht Kathmandu Post
