Government Allocates Rs. 30 Crore Loan to Dairy Development Corporation (DDC) to Settle Outstanding Dues to Dairy Farmers

The government has decided to extend a loan of Rs. 30 crores to the Dairy Development Corporation (DDC), aiming to alleviate its financial strains and enable the payment of outstanding dues to dairy farmers. With the DDC currently grappling with a deficit surpassing Rs. 1.20 Arba, it has been unable to fulfill its obligations towards farmers, prompting the government's intervention. The Ministry of Finance's Budget and Program Division has orchestrated the provision of this loan from the budget allocated for the Ministry of Agriculture, emphasizing the urgency to address the pressing financial challenges faced by the DDC.

The Dairy Development Corporation, wholly owned by the government, remains indebted to farmers to the tune of nearly Rs. 1 Arba, highlighting the severity of the financial predicament. Despite possessing assets valued at approximately Rs. 1.10 Arba, the corporation's prolonged deficit operation has impeded its ability to compensate farmers adequately. This financial strain has sparked unrest among farmers, compelling the Ministry of Finance to sanction concessional loans to the DDC in order to honor its obligations and restore stability to the dairy industry.

Efforts to address the DDC's financial woes have intensified, with officials from both the Ministry of Finance and the DDC collaborating to ensure the effective disbursement of the Rs.30 crores loan. Prime Minister Pushpa Kamal Dahal's directive to promptly settle dues to dairy farmers underscores the government's commitment to resolving the crisis.