Nepal’s Ministry of Finance has approved a $4.5 million loan to the Dairy Development Corporation (DDC) to resolve outstanding payments to dairy farmers. This decision follows significant farmer protests over unpaid dues and aims to settle a total debt of approximately $45 million. The loan, pending final approval from the Council of Ministers, will provide critical financial relief to the dairy sector.
The Ministry of Finance in Nepal has authorized a $4.5 million loan to the Dairy Development Corporation (DDC) to address outstanding payments to dairy farmers. This significant financial decision follows a proposal from the Ministry of Agriculture and Livestock Development and is pending final approval from the Council of Ministers.
The loan is intended to resolve long-standing issues related to unpaid dues owed to dairy farmers. Initially, $75,000 was allocated for the current fiscal year, but with the recent approval, an additional $3.9 million will be transferred from the Ministry of Agriculture’s annual budget, bringing the total loan amount to $4.5 million.
Finance Minister Bishnu Prasad Paudel confirmed that this financial aid is aimed at helping the DDC settle its debts to farmers who have been protesting over unpaid dues for months. The decision follows discussions between Deputy Prime Minister and Finance Minister Paudel, Agriculture Minister Ram Nath Adhikari, and DDC officials to address the urgent need for payment settlements.
Farmers have been increasingly vocal in their demands, with protests intensifying earlier this year. In May, they presented a memorandum to then Minister for Agriculture and Livestock Development Jwala Kumari Sah, calling for immediate government action. As of mid-May, the DDC reportedly owed $13.7 million to dairy farmers, with total debts, including those owed by private dairies, reaching approximately $45 million.
The proposal for the $4.5 million loan will be submitted to the Council of Ministers for final approval. Once the Cabinet approves it, the government will disburse the funds, providing crucial relief to struggling dairy farmers in Nepal.
