Dairy Industry Turmoil: Farmers Seek Government Intervention Amid Financial Crisis
Source: The DairyNews
Amidst a mounting economic crisis, Nepalese dairy farmers are grappling with plummeting sales, expensive livestock feed, and delayed payments from dairy producers. Troubled by financial hardships, Binod Kumar Lamichhane, a dairy farm owner, faces challenges in managing daily expenses and has joined the protests initiated by farmers demanding government support.
Lamichhane, proprietor of two cow farms producing 500 liters of milk daily, disclosed that a private dairy owes him Rs350,000 for the last two months. The economic downturn has significantly impacted the dairy industry, exacerbating problems for farmers who have been awaiting payments for over six months.
Protests initiated by the National Peasants' Coalition Nepal have gained momentum, with representatives from all seven provinces converging in Kathmandu. State-owned Dairy Development Corporation has sought a bailout of Rs300 million from the government to address its financial crisis, citing a backlog in payments to farmers due to low sales and excess inventory.
The Ministry of Agriculture and Livestock Development has acknowledged the corporation's request and is positive about arranging the bailout fund. The ongoing economic challenges have prompted the dairy sector to seek urgent government intervention to stabilize the industry.
As farmers grapple with financial uncertainty, Lamichhane shared his concerns about repaying a loan of Rs35 million, resorting to selling his wife's jewelry to manage animal feed expenses. The protests are set to continue until farmers receive their due payments, and a sit-in is planned at Maitighar Mandala on March 4.
Farmers emphasize the severity of their situation, citing the impact of the lumpy skin disease that led to the deaths of over 50,000 cattle across the country last year. The financial strain, combined with the challenges posed by the ongoing economic crisis, underscores the urgent need for government intervention to support the beleaguered dairy industry and its farmers.
Protests initiated by the National Peasants' Coalition Nepal have gained momentum, with representatives from all seven provinces converging in Kathmandu. State-owned Dairy Development Corporation has sought a bailout of Rs300 million from the government to address its financial crisis, citing a backlog in payments to farmers due to low sales and excess inventory.
The Ministry of Agriculture and Livestock Development has acknowledged the corporation's request and is positive about arranging the bailout fund. The ongoing economic challenges have prompted the dairy sector to seek urgent government intervention to stabilize the industry.
As farmers grapple with financial uncertainty, Lamichhane shared his concerns about repaying a loan of Rs35 million, resorting to selling his wife's jewelry to manage animal feed expenses. The protests are set to continue until farmers receive their due payments, and a sit-in is planned at Maitighar Mandala on March 4.
Farmers emphasize the severity of their situation, citing the impact of the lumpy skin disease that led to the deaths of over 50,000 cattle across the country last year. The financial strain, combined with the challenges posed by the ongoing economic crisis, underscores the urgent need for government intervention to support the beleaguered dairy industry and its farmers.
23.09.2024
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