Confusion over dairy farmers getting paid before Dasain

It was said that the funds would be available immediately after the decision of the Council of Ministers to grant the loan. Farmers were also confident that the loan would be cleared soon," said an official of the Ministry of Agriculture, "but it's been two weeks, so far nothing has happened except sending the file from one agency to another. Dasain has come, there is a doubt whether the farmers will get the arrears. After 23 days it is Phulpati. Meanwhile, there is a government holiday for about a week. "That's why the possibility of getting payment before Dasain is getting less and less," said the officer, "it seems that the promise of Agriculture and Livestock Development Minister Ramnath Adhikari to pay before Dasain will be limited to promises."

Agriculture Minister Adhikari repeatedly requested Finance Minister Bishnu Prasad Paudel to provide loans after the arrears owed to farmers reached billions of rupees. On the initiative of the minister, Finance Minister Paudel agreed to a loan of 600 million with conditions. The Council of Ministers had decided to grant the loan with the consent of Artha. "In the financial year 081/82, the Ministry of Finance will approve immediate investment of 600 million rupees to DDC to improve the technology and expand the business in order to manage the cash flow for the purpose of paying the remaining amount to the raw milk supplier farmers of the Dairy Development Institute," said the decision.

On August 21, the day after the decision of the Cabinet, Prime Minister KP Sharma Oli wrote on Facebook that a loan of Rs 60 crore was approved to DDC so that the amount could be spent only to pay the milk arrears to the farmers. "We have heard time and again that farmers are not getting paid for milk. Why is there a loss even if the milk is sold at a higher price than the farmer? Why is it that the farmers are not getting paid?' Prime Minister Oli wrote, 'Milk Development Institute should give money to the farmers first. And only other expenses should be incurred. If this happens even now, the government will not tolerate it.'

Although the Prime Minister expressed interest in paying the farmers, the funds have not been released from the treasury until two weeks have passed. The file is circulating in the ministry for disbursement of loan amount. Once the money is deposited in the DDC account, it should be sent to 7 projects. After that money should be sent to the irrigation center, cooperatives, private firms," ​​said an official of the ministry, "only then will it be in the hands of the farmers."

There are some procedures before the funds are credited to DDC's account. A letter from the Cabinet should be sent to the DDC after the decision of the Cabinet to grant the loan. Then the DDC should again send the letter to the Ministry of Finance through the Ministry of Agriculture. According to Agriculture's letter, the Ministry of Finance again sends a letter to the Credit Office. DDC has to do tamsuk for loans. Then the credit flows. Now the letter has just made sense.

All these procedures must be completed before depositing in DDC's account. After the money comes to the DDC, it has to go through 4 more steps before it reaches the hands of the farmers," said the official of the ministry. "Since all these processes have to be completed, the chances of the farmers getting the arrears payment before Dasain are low." Agriculture has assigned two employees to look after the issue of loans. But it is said that there is still a delay.

DDC General Manager Surya Prasad Paudel said that the loan letter did not reach the Ministry of Finance through the Ministry of Agriculture. As Dasain is approaching, preparations are being made to send it directly to the cooperative as soon as it is deposited in the DDC account, he said. "When money is sent to the farmers, the projects, irrigation centers, cooperatives and then only the farmers get it. The route was too long, there was confusion as to whether the farmer would get it or not," said Director General Paudel, "that's why it is prepared to send it directly to the cooperative after it is deposited in the DDC account." The Cabinet has already decided to give loans to DDC to pay the farmers. All that is left is to complete the formal process, Artha also agrees that the farmers should be paid immediately,' said Bhattarai, 'Disbursement will be made after the completion of the process.'

Bhattarai asked the Joint Secretary of the Financial Sector Management and Institutional Coordination Division under the Ministry of Finance to understand more about the letter from Agriculture. Mainali also said that the amount to be received by the farmers has gone ahead. We have already given a loan of 32 million in June. Even now the decision has been taken by the Council of Ministers. There is no problem in giving a loan,' said Mainali, 'the disbursement will be done after the process is completed.'

DDC has taken a loan of 65 crores three times from the government. It has been decided to give an additional loan of 600 million. 1 billion 120 million is due to be paid by DDC to the farmers till June. It is said that about 17 crores of July and 17 crores of August are due. All this has reached 1 billion 66 million that the farmers should get. But DDC has prepared to send 80 crores before Dasain if the government provides the loan. According to DDC, out of this amount, the loan amount given by the government is 600 million and the remaining 200 million is the amount of milk products sold daily.

DDC has been collecting milk from more than 46 districts including Kavre, Sindhupalchok, Ilam, Morang, Panchthar, Butwal, Kapilvastu, Taulihwa through cooperatives. About 2 lakh farmer families are involved in those cooperatives.