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As DDC Releases Rs 120 Million to Stranded Farmers, Private Dairy Debt Balloons to Rs 3 Billion

Nepal's dairy industry payment crisis persists as massive private sector arrears overshadow the state corporation's latest daily repayment efforts.

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As DDC Releases Rs 120 Million to Stranded Farmers, Private Dairy Debt Balloons to Rs 3 Billion

The state-owned Dairy Development Corporation (DDC) has disbursed Rs 120 million to dairy farmers in a strategic initiative aimed at liquidating its long-standing payment backlogs. According to official data released by the Corporation, the newly cleared Rs 120 million accounts for a segment of the total outstanding liabilities, which hover around Rs 580 million accumulated over the past four months. The Ministry of Agriculture, Forest and Environment confirmed that following the enforcement of systemic structural and operational reform packages designed to rescue the DDC's balance sheet, the state enterprise has managed to maintain a rolling daily disbursement of approximately Rs 10 million to primary producers. Despite this recent capital injection, a massive fiscal gap remains, with the DDC still owing roughly Rs 460 million to farmers nationwide. The crisis is heavily compounded within the broader market, as private dairy processors across the country grapple with their own severe cash-flow deficits. Reports indicate that private sector entities owe an estimated Rs 3 billion to dairy farmers, highlighting a pervasive liquidity crunch that continues to threaten the financial sustainability of Nepal’s agricultural supply chain.

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