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Government sets minimum price of unprocessed milk at Rs 56.4 per litre

KATHMANDU: The government has fixed the minimum price of unprocessed milk as per the demand of farmers to hike the price of milk.

A meeting of the Council of Ministers on Monday (January 30) fixed the minimum price of unprocessed milk at Rs 56.4 per litre, according to Government Spokesperson Gyanendra Bahadur Karki. Prior to this, the price of unprocessed milk was Rs 49.52 per litre.

The farmers had been demanding a hike in price of milk since a long time stating that the price of cattle feed and cost of production had gone up.

However, the farmers’ demand have only been partly addressed by the price adjustment. They had been demanding a hike of at least Rs 15 to Rs 20 per litre in the context that the production cost of a litre of milk has reached Rs 63.

The government increased the price of milk upon the recommendation of a committee formed to adjust the price of milk. A report prepared by the committee had recommended the government to increase the price of milk by Rs 10 per litre.

The report states that the farmers had to bear loss of Rs 4 per litre while selling milk at the rate before the recent adjustment. The report further states that the price of milk needs to be adjusted with time as the price of veterinary medicine, the salary and allowances of the person tending the cattle, transportation cost and the prices of other goods and equipment have shot up.

Although the price of milk used to be adjusted every year in the past, it had not been increased for the past two and half years.

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