November 23: The government is preparing to increase the prices of processed milk and dairy products. The Dairy Development Corporation (DDC) has taken the initiative to hike the prices of dairy products in consultation with the Ministry of Agriculture and Livestock Development, Dairy Development Board, Nepal Dairy Association, Dairy Industries Association, Department of Livestock Services and other stakeholders.

The decision to hike the prices was taken in the wake of the rise in prices of cattle feed amid Covid-19 pandemic. Due to the crisis created by the pandemic, production cost of milk and milk products has been increasing day by day.

The Dairy Development Corporation has fixed the price of processed milk at Rs 72 per litre for the producers. Similarly, the price of curd has been fixed between Rs 90 to Rs 100 per litre depending on the quality of the product while the price of ghee has been fixed at Rs 815 per kg.

Information officer at the DDC, Balak Chaudhary, said that they are consulting with stakeholders about the price hike but are yet to reach a decision regarding how much they shall increase the price. Chaudhary estimates that the price of milk products is likely to increase by Rs 8 to Rs 10 per litre.

Milk producers and farmers have been complaining that they are not getting the right price of their produce due to inflation.  They argue that they will be at a loss unless the price is increased.

It is estimated that around 2.4 million metric tons of milk is produced in Nepal annually.