Dairy Development Corporation (DDC) has started making daily payments of around Rs 10 million to dairy farmers as part of a reform and recovery plan introduced by Geeta Chaudhary.
The move comes after mounting concerns over delayed payments to milk producers linked to the state-owned dairy sector.
Rs 120 Million Already Cleared
According to officials:
- Total outstanding dues over the last four months stood at approximately Rs 580 million.
- Around Rs 120 million has already been paid to farmers.
- The corporation is preparing to clear dues equivalent to one full month by the end of June.
Authorities stated that daily milk transactions and sales operations are now functioning regularly, allowing the corporation to gradually release pending payments.
Remaining Rs 460 Million to Be Paid in Installments
Officials confirmed that the remaining outstanding amount of nearly Rs 460 million is expected to be cleared over the next two months.
Geeta Chaudhary said that improved operational cash flow and ongoing dairy sales are helping stabilize the payment cycle.
She added that:
- Remaining dues will be transferred in installments
- Farmer interests are being prioritised
- Government agencies are coordinating to resolve the payment crisis
Relief for Dairy Farmers
The delayed payments had created financial pressure for many dairy farmers dependent on regular milk income for:
- Feed purchases
- Animal healthcare
- Loan repayments
- Household expenses
The government’s payment initiative is expected to provide temporary relief and restore confidence among milk producers supplying to the cooperative and public dairy network.
Read More: Dairy Cost Control Becomes Critical as Farmers Face Rising Expenses
Dairy Sector Faces Financial Challenges
The situation highlights broader structural challenges affecting state-supported dairy systems in several developing economies, including:
- Cash flow shortages
- Rising operational costs
- Weak market pricing
- Supply chain inefficiencies
- Delayed farmer payments
Industry observers note that maintaining timely payments is critical for sustaining milk procurement and preventing disruptions in dairy supply chains.
Focus on Restoring Financial Stability
The ministry stated that reforms are being implemented to strengthen:
- Dairy sales operations
- Financial management
- Payment systems
- Coordination between dairy agencies and farmer groups
Analysts believe consistent payment discipline will be essential for rebuilding trust between dairy cooperatives and milk producers in the coming months.
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