As dairy farmers continue to hope to get thier outstanding dues settled before Dashain, which begins next Thursday, October 3, the National Dairy Development Board (NDDB) and dairy industries have locked horns over 'unslod stock'.
While dairy industries have claimed they cannot settle farmers’ outstanding payment due to unsold stock, the NDDB has refused to believe it.
The government-owned Dairy Development Corporation (DDC) reportedly has the highest outstanding dues amounting to around Rs 1.66 billion.
Rajendra Prasad Yadav, Executive Director of the NDDB, said at an event in Kathmandu on Wednesday, September 25, that misleading information has been disseminated to avoid fulfilling the financial obligations towards farmers.
“The dairy industry has presented incorrect data regarding the products’ stock,” said Yadav, accusing the dairies of halting payments to farmers under various pretences.
"The DDC does not have any stock, nor do the dairies associated with the Nepal Dairy Association or the Dairy Industry Association," Yadav added.
However, the dairy industres have challenged Yadav to prove the allegations made against them.
Rajkumar Dahal, president of the Dairy Industry Association (DIA), urged the NDDA to carry out the inspection of their warehouses through the Department of Commerce.
“The government has displayed hostility towards the private sector-owned dairies,” Dahal said. “While the state-owned industry receives loan assistance in times of trouble, private dairies face unjust accusations.”
Dahal said that the dairy industry currently holds 2,500 tonnes of dairy products, including butter and powdered milk in stock, noting, “We are ready to sell them to anyone interested since we do not prefer storing goods purchased on credit for a long time.”
Rajendra Prasad Adhikari, Acting General Manager of the DDC, also stated that the board can review their stock if it wishes to verify the information.
While the DDC owes farmers approximately Rs 1.66 billion, private dairies have yet to pay over Rs 2 billion, according to NDDB.
While the Nepal Dairy Association (NDA) claims that its members have already paid the farmers, the Dairy Industries Association (DIA) claims that Rs 2 billion remains unpaid.
To address its mounting dues, the government has provided a loan of Rs 600 million for the DDC, to settle the outstanding payments of farmers before Dashain.
