Kathmandu, 19 Asar: The Dairy Development Corporation (DDC), which was recently facing severe financial crisis likened to a “white elephant,” is claimed to have been successfully revitalized within the first 100 days under the leadership of Prime Minister Balendra Shah’s government. Due to the direct interest of Prime Minister Shah, initiatives and directions from the Minister of Agriculture, Forestry and Environment Gita Chaudhary, and active efforts in market management, the corporation has made notable progress during this period.
Frequent leadership changes within the institution had previously hampered progress. The post of General Manager, which had remained vacant for a long time, was filled through ministerial-level decisions with the appointment of the Ministry’s Undersecretary Dr. Sharan Pandey. After assuming office, he prioritized settling outstanding payments to farmers within three months.
The DDC’s earlier condition was very dire. Although it collected milk from farmers, payments used to be delayed by 8 to 9 months. However, this outstanding period has now been reduced to three months. There had been widespread practices of employees using thousands of rupees worth of milk and ghee for free against regulations, incurring unnecessary transportation costs, and showing little attention to quality—all of which eroded consumer trust. Over the past 100 days, these distortions have been addressed, and the corporation has succeeded in restoring its professional image.
The reform efforts began following a 9-point directive issued during the first week of Jestha by Agriculture Minister Chaudhary, aimed at improving overall management of the DDC. The minister instructed the public disclosure of accounts over the past five years, collection of arrears, mandatory implementation of electronic attendance, and immediate elimination of unlawful staff benefits. In line with these directives, the corporation has tightened administrative and financial discipline.
According to sources close to Prime Minister Shah, the most significant progress of the DDC is visible in the timely payments to farmers and price increases. The payment delay period has been reduced from 8 months to three months. “In the last two months, from 20 Baisakh to 19 Asar, the institution has paid NPR 415 million to farmers,” the source stated. Efforts are underway to further reduce the payment cycle to 25 days by the first week of Bhadra. Previously, the DDC owed farmers approximately NPR 600 million.
To encourage farmers, the milk purchase price per liter has been raised from NPR 65 to NPR 66, which is expected to rebuild farmers’ trust in the institution. Prime Minister Shah’s influence and the unified cabinet have also played a crucial role in promoting DDC products through public campaigns. Shah’s messaging about local production and DDC’s quality has attracted consumers toward government products.
