Finance Ministry Approves Rs600 Million Loan to Dairy Development Corporation to Settle Farmers' Dues
Source: DairyNews.today
The Ministry of Finance has authorized a significant financial package aimed at supporting the Dairy Development Corporation (DDC), with the approval of a Rs600 million loan. This decision follows a proposal submitted by the Ministry of Agriculture and Livestock Development, which now awaits the Council of Ministers' approval.
The loan is intended to address the long-standing issue of outstanding payments owed to dairy farmers. Initially, Rs10 million was allocated to the DDC as a loan for the current fiscal year. However, with the Finance Ministry's recent approval, an additional Rs590 million will be transferred from the Ministry of Agriculture's annual budget, bringing the total loan amount to Rs600 million.
The secretariat of Finance Minister Bishnu Prasad Paudel confirmed that this financial assistance is designed to help the DDC settle its debts to farmers, who have been protesting for months over unpaid dues. The move comes after Deputy Prime Minister and Finance Minister Paudel, Agriculture Minister Ram Nath Adhikari, and DDC officials held discussions to address the urgent need for payment settlements.
Farmers have been vocal in their demands, with protests intensifying earlier this year. In May, they submitted a memorandum to the then Minister for Agriculture and Livestock Development, Jwala Kumari Sah, pressing for immediate government action to clear their dues. As of mid-May, the state-owned DDC reportedly owed Rs1.83 billion to dairy farmers, with total debts—including those owed by private dairies—amounting to approximately Rs6 billion.
The proposal for the Rs600 million loan will now be submitted to the Council of Ministers. Once approved by the Cabinet, the government will proceed with disbursing the funds, offering much-needed relief to the struggling dairy farmers.
The secretariat of Finance Minister Bishnu Prasad Paudel confirmed that this financial assistance is designed to help the DDC settle its debts to farmers, who have been protesting for months over unpaid dues. The move comes after Deputy Prime Minister and Finance Minister Paudel, Agriculture Minister Ram Nath Adhikari, and DDC officials held discussions to address the urgent need for payment settlements.
Farmers have been vocal in their demands, with protests intensifying earlier this year. In May, they submitted a memorandum to the then Minister for Agriculture and Livestock Development, Jwala Kumari Sah, pressing for immediate government action to clear their dues. As of mid-May, the state-owned DDC reportedly owed Rs1.83 billion to dairy farmers, with total debts—including those owed by private dairies—amounting to approximately Rs6 billion.
The proposal for the Rs600 million loan will now be submitted to the Council of Ministers. Once approved by the Cabinet, the government will proceed with disbursing the funds, offering much-needed relief to the struggling dairy farmers.
23.09.2024
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