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Review panel recommends to increase price of milk

KATHMANDU: The milk price recommendation committee has suggested increasing milk price by 9 to12 per cent. The committee formed to review the milk price submitted its report to the Ministry of Agriculture and Livestock Development on Monday
The ministry on Wednesday last week had formed an eight-member task force led by BabuKajiPanta, acting executive director of National Dairy Development Board (NDDB), in line with its plan to hike the milk price.
The committee has recommended to increase milk price by 9 to 12 per cent based on the milk production season, said TejBahadurSubedi, spokesman at the Ministry of Agriculture and Livestock Development. The committee has recommended fixing two different prices for lean and flush season, Subedi said. This is the first time that a price recommendation committee suggested to fix two types of prices of milk considering the production seasons.
“The Ministry will fix the milk price through internal discussion by analysing the report submitted by the committee to be implemented at the earliest,” he said. He said that the government would fix the milk price considering the consumers and respecting the farmers’ labour and the production cost. Currently, the Dairy Development Corporation (DDC) is selling a litre ofstandard milk (3 per cent fat with 8 per cent solids-not-fat) at Rs. 70 and cow milk (3.5 per cent fat and 7.8 per cent SNF) and whole milk (5 per cent fat and 8 per cent SNF) at Rs. 90 per litre.
Panta said that the committee had recommended increasing milk price by analysing the inflation rate of the last two-three years, production cost, including labour cost, milk processing cost and the increasing price of feeds. “We suggested the government to implement two types of milk prices considering the production season. The price of milk will be higher in the lean season (low production season) and this will encourage the farmers to increase production due to high price,” Panta said.
The government had hiked prices of milk byRs. 4 to Rs. 10 per litre two years ago.

Published Date: Monday, August 19th, 2019 | 07:14 PM

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