The Ministry of Finance has agreed to provide a Rs 60 crore loan to the Dairy Development Corporation.

The Dairy Development Corporation (DDC) would receive a Rs 60 crore loan from the Ministry of Finance, subject to certain requirements. The Deputy Prime Minister and Finance Minister, Bishnu Prasad Paudel, was asked to pay the outstanding sum owed to milk farmers by Agriculture and Livestock Development Minister Ramnath Adhikari. As a result, the sum has been accepted to be provided with conditions by the Ministry of Finance.

In order to obtain a loan from the Ministry of Agriculture in the same amount, the Ministry of Agriculture and Livestock Development has consented to present a proposal to the Council of Ministers. For the time being, DDC will need to utilize this sum to provide the farmers the remaining amount of milk. It has been decided to submit a cabinet proposal to transfer an extra Rs 59 crore from the allocated amount to the Ministry of Agriculture and invest a total of Rs 600 crore in loans, since there is a budget arrangement of Rs 1 crore under the name of DDC for the current financial year.

 The government will lend money to the institute when the Cabinet approves the proposal in this regard. Before Dashain, Minister of Agriculture and Livestock Development Ramnath Adhikari has pledged to give dairy farmers the remaining cash. The Ministry of Agriculture and Livestock Development will get loan assistance of 600 million from the Council of Ministers with financial agreement.

The dairy producers owing Rs. 1.54 billion when the officer took over on June 31. The cash was given to the farmers until August 15th by Surya Paudel, Joint Secretary of the Ministry, who was dispatched to oversee the DDC after generating over 390 million from the sales of butter and powdered milk.