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Nepali govt for single milk price

Monday, 25 June 2007


KATHMANDU, June 24 (Xinhua): The Nepali government has decided to fix the price of milk at 29 Nepali rupees per liter throughout the year, local newspaper The Kathmandu Post reported today.
This decision was made on receiving severe pressure from private dairies.
The Ministry of Agriculture and Co-operatives (MoAC) Thursday organized a meeting attended by high-ranking government officials, representatives from private dairy producers, state- owned Dairy Development Corporation (DDC) and farmers.
On the basis of the recommendation, MoAC has directed the Nepal Dairy Development Board (NDDB), a semiofficial institution, to maintain consumer prices of milk at 29 rupees per liter round the season.
MoAC has directed the NDDB to annul its previous decision to enforce dual pricing of milk for different seasons and fix single consumer price.
The NDDB on June 3 once decided to raise prices of milk by 3 rupees in lean season and 2 rupees in flush season. The differential rate of price rise had made consumer price of milk to stand at 28 rupees per liter in flush season (mid-August to mid- February) and to 29 rupees for lean season (remaining period of the year), from 26 rupees per liter.
The government has also directed state-owned dairy company DDC to raise consumer prices of milk to the same level, and make the new rates effective throughout the country.
The June 3 NDDB decision effective from June 14 was not observed by DDC, not raising the prices of milk to the level specified by the board. ( One US dollar equals about 65 Nepali rupees.)