Biratnagar Dairy Project Faces Payment Crisis Amid Surplus Stock

Biratnagar. The Dairy Development Project in Biratnagar has reported that it still owes over 110 million rupees to dairy farmers in the eastern region. According to the project, approximately 119.6 million rupees in milk payments remain outstanding.

The project stated that it has already paid about 244.15 million rupees to farmers from the end of Shrawan to mid-Chaitra of the current fiscal year. Acting Project Chief Nabin Kishor Sharma stated that all dues up to the end of Ashoj have been cleared, and payments for the subsequent period are pending.

According to him, the project is facing cash flow issues due to a surplus of 94 metric tons of milk powder and 70 metric tons of butter, valued at approximately 120 million rupees. He noted that the inability to sell these products has made it difficult to pay farmers on time.

Milk collection in Biratnagar has also declined. The project reported that daily collection has dropped from approximately 15,000 liters to between 10,000 and 11,000 liters. Of the collected milk, about 5,000 liters are used for various dairy products, while the remainder is processed into powder and stored.

Due to the decrease in milk collection, the project is now producing milk powder only two days a week. The lack of market management and stagnant sales have led to rising inventory levels, which is directly impacting payments to farmers.