DDC struggles to pay farmers amid backlog of powdered milk and butter

KATHMANDU: The Dairy Development Corporation (DDC) is grappling with difficulties in compensating dairy farmers due to a significant backlog of powdered milk and butter.

Despite procuring 140,000 litres of milk daily from farmers across various districts, the DDC is facing challenges as only 90,000 litres are being sold in the market.

Rajendra Prasad Adhikari, Deputy General Manager and Information Officer at DDC, revealed, "We procure 4.2 million litres of milk from farmers every month, but only around 2.7 million litres are sold. The problem arises due to a shortfall of powdered milk equivalent to 1.5 million litres of milk every month."

"We are accumulating butter and powdered milk equivalent to approximately 50,000 litres of milk daily," he added. With the arrival of the summer season, the DDC anticipates an increase in yogurt sales.

Adhikari further elaborated that the DDC currently has a stockpile of 900,000 kilograms of powdered milk and 700,000 kilograms of butter, valued at Rs 1.25 billion.

The DDC procures milk from 43 districts through its chilling centers and various cooperatives, distributing it to consumers nationwide. With 64 chilling centers established across the country, the DDC plays a crucial role in the dairy industry's supply chain.