Nepal’s DDC Clears Dairy Dues, Private Processors Report No Pending Payments

The Dairy Development Corporation (DDC) of Nepal has announced the settlement of outstanding payments owed to private milk processors, ending a prolonged financial strain on many operators in the country’s dairy value chain. Officials confirmed that all overdue dues have now been released, and private processors have reported no pending payments, a move that has brought relief to the dairy sector ahead of the country’s peak consumption season. (Kathmandu Post)

According to the DDC, the backlog arose from earlier delays in budget approvals and cash flow constraints within the parastatal body, which purchases bulk milk from private processors for distribution under institutional and retail programmes. Dairy stakeholders had flagged these arrears as a stress point, noting that delayed payments disrupted working capital, constrained procurement from farmers and threatened supply continuity. With the dues now cleared, processors say they are in a better position to procure milk from farmers without liquidity hindrances and stabilise local markets.

Private dairy companies reported that the DDC’s payments included amounts owed for milk deliveries made over the previous months, and that the regularisation has strengthened trust between the public corporation and private sector partners. The move is expected to boost confidence among dairy farmers — many of whom sell to private processors — since processors can now honour payments downstream without delays stemming from upstream financial bottlenecks.

Analysts in Nepal’s dairy market say that clearing dues ahead of increased seasonal demand — particularly during festivals and seasonal consumption peaks — will help ensure smooth procurement, uninterrupted production of fresh milk and dairy products, and broader price stability. They also note that strong cash flows are critical for processors to invest in quality, cold chain maintenance and market expansion, all of which have long been impeded by payment uncertainties.

The resolution of outstanding payments positions Nepal’s dairy sector to better manage seasonal demand cycles and supports ongoing efforts to expand milk collection networks, improve processing capacities and strengthen linkages between farmers, private processors and the DDC. Dairy industry observers say that such cooperative financial seriousness can reinforce sector credibility, attract private investment and help align Nepal’s dairy value chain with regional quality and efficiency benchmarks.

Sopurce : Dairynews7x7 Feb 21st 2026 Read full story here

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