Government preparing to adjust price of milk

KATHMANDU: The government is preparing to make adjustments in the price of milk.

The Ministry of Agriculture and Livestock Development had formed a committee to carry out a study to that connection after the Central Dairy Cooperative Association Limited Nepal requested for increasing the price of milk reasoning that they were not getting even the cost of investment of the milk by selling milk in its present price.

The Ministry is making adjustment to the milk price based on the Committee’s recommendations.

The report states that the farmers are compelled to sell milk bearing loss as the price of milk has remained the same for two and half years whereas the price of animal feed and fodder has sky-rocketed during the period.

Although the price of milk was adjusted every year in the past, it has not happened for the past two and half years. Farmers have been selling milk for Rs 53 per litre at present.

The report states that the farmers bear loss of Rs 4 per litre when they sell milk at its current rate.

It is stated in the report that the price of milk needs to be adjusted in tune with the time as the price of veterinary medicine, the salary and allowances of the person tending the cattle, transport cost and the price of other goods and equipment has shot up.

The report recommends increasing the price of milk by Rs 10 per litre. The consumer has to pay Rs76 per litre at present.

If the price is adjusted as per the Committee’s recommendation, the farmer will get Rs 60 per litre while the consumers will have to buy Rs 86 per litre. Out of the Rs 10 per litre price increment following the adjustment, the farmer gets Rs 7 while the dairy entrepreneur gets Rs 3.

The farmer will make a profit of Rs 3 per litre after deducting the investment price after the implementation of the new price based on the report.

The Committee prepared the report after consulting with the dairy farmers and dairy entrepreneurs in Ilam, Jhapa, Sunsari, Morang, Saptari, Sarlahi, Bara, Makawanpur, Kavre, Chitwan, Nawalparasi, Rupandehi, Kaski, Banke, Surkhet, Kailali and Kanchanpur districts.

The dairy industry contributes 5 percent to the GDP of the country. The annual milk production in the country has reached 2 million 301 thousand tonnes.

Forty percent of this production is cow milk and 60 percent is buffalo milk.