Kathmandu: The Ministry of Finance has agreed to propose an investment of NPR 600 million in the Dairy Development Corporation (DDC) under certain conditions, allowing the Ministry of Agriculture and Livestock Development to present the proposal to the Cabinet. This funding is intended to assist the DDC in immediately paying the outstanding amounts owed to farmers for their milk.

Initially, only NPR 10 million had been allocated for loan investment in the DDC for the current fiscal year. However, the Ministry of Finance has now agreed to reallocate an additional NPR 590 million from the budget assigned to the Ministry of Agriculture, bringing the total loan investment to NPR 600 million. Once the proposal is approved by the Cabinet, the government will proceed with the loan investment in the DDC.

Farmers have been demanding payment for the milk they have supplied, but the DDC has been unable to fulfill these payments. This issue has been the subject of multiple discussions between Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel, Agriculture Minister Ramnath Adhikari, and officials from the DDC.