Dairy Farmers Warn of Protests Over Rs 4 Billion in Unpaid Dues

Dairy farmers have complained of not receiving payment for milk supplied to processors, prompting the Central Dairy Cooperative Association of Nepal to announce a phased protest from August 20 if the dues remain unsettled.

The 31st board meeting of the association, held in Chitwan, decided to launch the protest after repeated talks failed to yield results. Association Chairperson Ambar Bahadur Kunwar said that despite multiple discussions with stakeholders, there has been no indication that the outstanding payments will be cleared.

According to Kunwar, the Dairy Development Board owes farmers across the country more than Rs 3 billion while private dairy companies owe Rs 1 billion for a total unpaid dues of Rs 4 billion. He said the association will convene a gathering of district cooperative chairpersons on August 20 to decide further protest programs.

 “We want dairy farmers to be respected, not humiliated,” Kunwar said. “That is why we have decided to take to the streets.”

The association has accused the government of failing to implement an 11-point agreement reached earlier. Kunwar said the Dairy Development Board has not paid farmers since mid-January, while private dairies have not cleared dues since mid-November last year.

Speaking at a press conference after the meeting, Association General Secretary Ram Acharya said they plan to publicly classify dairies into those that have cleared payments and those that have not, along with the amounts owed. “Some companies have been paying, but many haven’t. We will name them and make the dues public,” Acharya said.

The association has given dairy processors one week to settle the payments. “We will send formal letters to the companies and give them until August 20. If they fail, we will protest,” Acharya warned.

Association Vice-Chairperson Bhagirath Timilsina accused dairy processors of disregarding farmers who rely on milk sales for their livelihoods. Secretary Thaneshwar Sapkota expressed frustration over delays, saying that farmers are being pushed into hardship due to the indifference of both the government and the private sector.

Milk is produced in 64 districts of Nepal, with district-level dairy cooperatives operating in 36 districts. Across the country, 1,872 dairy cooperatives produce 1.3 million liters of milk daily. These cooperatives involve 600,000 households, while more than 3 million farmers are engaged in dairy production, according to the association. -- RSS