Agreement signed to buy milk produced by farmers of Bakaiya

By Our Correspondent,Hetauda, May 12: At a time when dairy farmers of Makwanpur are facing problems such as milk holiday and low price for their produce, among others, it has been ensured that there will be no problem in the sale of milk produced by farmers of Bakaiya Rural Municipality of East Makwanpur.

The agreement has been signed between the rural municipality and a dairy industry for the purchase and sell the milk produced by farmers within Bakaiya Rural Municipality for 10 years.

With the agreement, the farmers who are raising cattle in the rural municipality have become excited.

A 10-year agreement has been signed between Office of the Bakaiya Rural Municipality and Shivapuri Fresh Dairy Industry located at Changunarayan Municipality-5, Kharipati of Bhaktapur regarding the purchase of milk produced in Bakaiya Rural Municipality.

The agreement has been signed by Chairman of Bakaiya Rural Municipality Dharmaraj Lamichhane, on behalf of the rural municipality, and Bishwo Ram Khadka, on behalf of the industry.

As per the agreement, the rural municipality should provide 7,000 litres of milk to the industry daily. 

Chairman Lamichhane said that 7,000 litres of milk will be provided daily at present and that there is an agreement to provide all the milk produced within the rural municipality to the industry in the future.

He said that now there is no problem of selling products from farmers within the rural municipality. With this agreement, the sale of milk produced within the rural municipality has been ensured.

In the agreement, it is stated about the price, quality of milk and quantity to be provided to the industry.

According to the agreement, the industry should transport milk from Milk Chilling Centre in the village industrial grams established by the rural municipality located in Bakaiya Rural Municipality-7.

Mahesh Shrestha, chief administrative officer of the rural municipality, said that the Agricultural Produce Collection and Sales Service Centre, which is established under the municipality, plays a coordinating role in purchasing milk from the dairy cooperatives within the municipality and selling it to the industry.

The industry will pay the price of quality condensed milk as specified in the contract at the rate of Rs. 71.5 per kg of fat, Rs. 35.5 per kg of SNF and Rs. 37.50 per kg of TS.

As per the agreement, if the government of Nepal increases the price of raw milk, the price can be adjusted by mutual agreement of both parties, said Shrestha.

Chairman Lamichhane said that the agreement regarding the purchase and sale of milk was an important decision for the commercial production of milk in the rural municipality.

Shrestha said that the agreement would be implemented gradually by preparing a procedure related to the operation of the milk chilling centre, and said that the milk would be sold to the industry as per the agreement from May 14, 2024.

It has been agreed that after the industry received the details of milk sales, the payment from the 1st to the 15th of the month should be made within the 25th day of the same month and from the 16th to the end of the month should be paid in one lump sum in the next month.

If the industry does not pay within the specified time, then the compensation should be paid at a rate of 15 paisa per litre, he said.