Even with a Rs 25 crore rebate, DDC was unable to cover the cost of the milk.
Despite providing a concessional sum of Rs 25 crore, Agriculture and Livestock Development Minister Ram Nath Adhikar stated that the Dairy Development Corporation (DDC) has not been able to pay the farmers the amount of milk that they are due.
The minister stated that although the ministry has handed DDC 25 million rupees, it has not yet paid 1.5 million rupees during a meeting with journalists on Tuesday.
He said that DDC purchases milk on credit from farmers at a rate of 65 rupees a litre and sells it for an extra 130 rupees. The milk is also used to make butter. He added that DDC possesses dairy items (powder, butter) in store that are valued at Rs. 25 crores.
In a similar vein, he declared that the amount of the agricultural insurance payment could not be agreed upon with the Ministry of Finance. According to the official, sugarcane growers have already threatened to protest if Dasain does not pay the sum due.
He claimed that in a few of years, the ministry had withdrew billions of dollars in grants, and he said that they were directed to investigate whether or not the money had been invested appropriately.