DDC hikes milk prices by Rs 4-6 per litre

KATHMANDU, JAN 31 -

The Dairy Development Corporation (DDC) on Monday hiked milk prices by Rs 4-6 per litre.

As per the revised rate, which comes into from Tuesday, standardised (skimmed) milk and full-cream (non- skimmed) milk will cost Rs 48 per litre and Rs 56 per litre, respectively. Consumers have to pay Rs 2 more for 500-ml standardised milk available in blue packet, and Rs 3 more for 500-ml full-cream milk available in green packet.

DDC General Manager Siya Ram Prasad Singh said the price was revised so as to provide farmers with extra incentives and manage the increased cost of production.

He, however, said a large portion of the hiked price will go to farmers. “Around 65-80 percent of the increased price will go to farmers, five percent to retailers as commission and rest will used by DDC for managing cost,” said Singh. Farmers had been receiving Rs 30 per litre on an average from the DDC, but with the price revision, they will now get Rs 32.60 per litre, said Singh, adding that the corporation started paying the new rate to farmers from Monday.

According to the corporation, it has been facing short supply of milk as farmers have been compelled to quit their business due to low market price for their product.

On top of that, they are also coping with increased prices of cattle and fodders and high worker wage. “Recent fuel price rise has added to their woes,” said Singh, adding that the milk price revision was necessary in order to help farmers sustain.

Of late, the DDC has also been facing the increasing cost of production due to the recent rise in petroleum prices, load shedding and other administrative costs, according to Singh.

However, consumers in Nepalgunj will be paying less for milk. According to the

corporation, it has increased the price of standardised milk and full-cream milk by Rs 2 per and Rs 4 per litre, respectively, in Nepalgunj.

DDC had last revised milk prices around 10 months ago.

Source: Kantipur