INSUBCONTINENT EXCLUSIVE:
KATHMANDU, FEBRUARY 20Just a year after raising the price of milk by Rs 14 a litre, the government is again gearing up
to hike its price by Rs 10 per litre.
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The Ministry of Agriculture and Livestock Development has already submitted the proposal to
hike the milk price prepared by a committee formed under the coordination of National Dairy Development Board to the Cabinet, according to
Dairy Industry Association President Rajkumar Dahal.
"Milk price is likely to be revised this week after the Cabinet
approves the proposal," Dahal told THT.As per the National Dairy Development Act and Policy, the market price of milk can be adjusted only
every two years.On 11 February 2022, milk price was increased between nine rupees and Rs 14 per litre, depending upon the fat content.But
DIA had unilaterally increased milk price by Rs 14 a litre from Rs 86 a litre on December 31
However, the association rolled back its decision after the MoALD formed a committee under the coordination of NDDB to examine the grounds
for price adjustment in all seven provinces.After studying all aspects, including the cost to the farmers, market price and consumers'
purchasing power, the committee has prepared the report suggesting that the price of milk be raised by Rs 10 per litre, informed Acting
Executive Director of NDDB Balak Chaudhary."Despite legal provisions stating that milk price should be adjusted every two years, we have
decided to increase the price this year considering the external and internal reasons," Chaudhary told THT.According to him, the cost of
doing business has gone up significantly due to skyrocketing fuel price, increase in bank interest rates, and inflation
Moreover, milk production has also declined this year due to global warming
"We suggested hiking milk price this year to avoid milk farmers switching to other professions, which could invite serious problems," he
said.According to the association, milk production has slumped by 30 per cent.Meanwhile, National Consumers Forum President Prem Lal
Maharjan said the proposal was a gross violation of the Dairy Act and Policy and if approved would hit consumers hard."Rather than milk
farmers, I think the price hike will only benefit private companies," he said, adding that the Cabinet should reject the proposal that will
only be in the interest of industrialists.A version of this article appears in the print on February 21, 2023, of The Himalayan Times.
This article first appeared/also appeared in https://thehimalayantimes.com