Saturday, August 22, 2009

Milk Price Hike Dispute Continues

DDC hikes Rs 2 per litre; co-op wants just the double

Dairy Development Corporation (DDC) has increased the price of milk by Rs 2 per litre. However, Central Dairy Cooperative Association Nepal (CDCAN) has demaded that it hike the price by Rs 4 per litre of raw milk.

CDCAN director Lok Bahadur Khadka said the association has no problem with the commercial price but it wants a hike in the raw milk that is sold by farmers. "We need a hike of Rs 4 per litre," he added.

"If DDC does not heed our demand, CDCAN will seal the DDC central office along with complete halt of dairy products distribution from today," Khadka said.

The Ministry of Agriculture and Cooperatives (MoAC) has directed DDC to hike the milk price from yesterday but DDC did not follow the ministry's directive.

"It just made a fragile increment of Rs 1 per half litre -- that is Rs 2 per litre -- and which does not the meet the directive of the ministry," Khadka complained.

When DDC appeared reluctant to implement the new rate, the dairy cooperatives' association started its protest on August 18.
CDCAN, the umbrella organization of dairy farmers and milk cooperatives has planned to stop all dairy supplies from Friday and padlock DDC's central office and regional offices.
The association has also demanded its representation in the DDC board and mandatory contribution of Rs 0.5 per litre to the Dairy Development Fund.

MoAC decided to increase the milk price by Rs 4 per litre, dividing benefits between farmers and dairy industries. "Farmers should get Rs 2.76 hike and dairy industries Rs 1.24," the cooperatives association said.

As per a protest programme on August 21, farmers and dairy cooperative officials participated in a two-hour protest organised from 10 am in DDC offices at Balaju, Hetauda, Biratnagar, Butwal and Kohalpur.


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