Dairy Development Corporation has successfully reduced its outstanding dues to farmers and shortened the payment gap by increasing sales and bringing internal reforms.
The Dairy Development Corporation (DDC) has improved payments of farmers by increasing its sales revenue. They did this through internal reforms, aggressive marketing, and selling stock that was stored. In the last three months, the corporation succeeded to reduce the farmer dues from Rs 72 crore to around Rs 35 crore.
Payment Delay Cut from 7 Months to 2-3 Months
Previously, farmers had to wait up to 7 months to get their money. Now, DDC has brought this delay down to just 2 to 3 months. The corporation is currently working with a target to reduce this waiting time to only one month very soon.
Under the leadership of Agriculture, Forestry and Environment Minister Gita Chaudhary, the corporation has started many reform works. They increased their income by selling stored powdered milk and butter.
Specifically, DDC sold 600 metric tons of powdered milk and 450 metric tons of butter from its stock. Because of this, their daily sales revenue went up from Rs 60 lakh to Rs 90 lakh. The corporation announced to use 100 percent of this extra money only for paying the farmers.
Cutting Costs and Improving Sales
To prioritize farmer payments, DDC has cut down its non-essential expenses. They also opened 8 dedicated sales counters in Kathmandu Valley by partnering with private sector.
Along with this, DDC is strictly working to collect outstanding money that others owe them. They also stopped giving subsidized milk and ghee to their employees, which saved around Rs 3 crore annually. This extra saving also made it easy to pay farmers on time.
Interestingly, DDC did not take any kind of soft loan or grant from the Government of Nepal for these improvements. All of these payments was solved using their own money earned from internal changes and smart marketing. DDC is now fully focused to bring the payment gap down to just one month.
AI Disclaimer: This article was originally published on https://bajarkochirfar.com. It has been translated with the help of AI. For the best understanding and accurate facts, we recommend reading the original Nepali version.
