Kathmandu: The state-owned Dairy Development Corporation (DDC) has strengthened quality control measures for raw milk following directives from the Office of the Prime Minister and Council of Ministers (OPMCM), leading to improved milk quality and stricter enforcement of procurement standards.
According to DDC General Manager Dr. Sharan Kumar Pandey, the corporation has revised its procurement standards for milk fat and Solid-Not-Fat (SNF) content while removing suspicious milk consignments from the supply chain. The corrective measures were introduced after the Prime Minister’s Office instructed the corporation to address quality concerns and ensure compliance with national food safety standards.
Action After Quality Tests
The reforms follow laboratory tests conducted by the Department of Food Technology and Quality Control (DFTQC), which found that DDC milk contained fat and SNF levels below those declared on product labels.
Following the findings, the Prime Minister’s Office directed the DDC to take action against those responsible and implement immediate corrective measures to prevent similar incidents in the future.
Prime Minister’s Press and Research Expert Deepa Dahal said the government had instructed the corporation to strengthen quality assurance and accountability throughout its milk collection and processing system.
Officials Face Disciplinary Action
As part of the reforms, the head of the Bharatpur Chilling Centre in Chitwan has been removed from the post, while explanations have been sought from managers of other chilling centres within three days.
The DDC has also removed laboratory employee Manahari Sharma from his position after allegations of irregularities. The corporation said additional disciplinary action will be taken after reviewing the explanations submitted by the concerned employees.
3,000 Litres of Adulterated Milk Destroyed
The corporation said around 3,000 litres of substandard and adulterated milk were destroyed after laboratory testing identified quality issues.
According to the DDC, milk quality received from dairy producers has become more consistent since the stricter inspection system was introduced.
Farmer Payments Improve
The DDC also reported significant progress in clearing outstanding payments to dairy farmers.
The payment period for 235 dairy cooperatives has been reduced from eight months to three months, with the corporation aiming to shorten the payment cycle to 25 days by the first week of Bhadra.
General Manager Pandey said the DDC has disbursed approximately Rs 400 million to dairy farmers over the past two months.
Sales Rise Following Public Confidence
The corporation said demand for DDC products has increased substantially after Prime Minister Balendra Shah publicly endorsed DDC dairy products.
According to the DDC, overall sales have risen by more than 50 percent compared to the previous year. Ice cream production has resumed after being suspended, while yogurt production and sales have increased by 75 percent.
The appointment of 10 new distributors is expected to generate an additional Rs 5 million in daily sales, while daily revenue has already increased by approximately Rs 2 million. The corporation aims to raise daily revenue to Rs 13 million from the month of Shrawan.
Expansion and Export Plans
The DDC is also preparing to expand its domestic and international operations.
The corporation is in the final stages of signing an agreement to export at least 50 metric tonnes of ghee annually to Gulf countries, a move expected to generate around Rs 50 million in annual turnover. Preparations are also underway to begin exporting ghee to China.
To increase production capacity, the DDC plans to establish a new cheese production plant in Pashupatinagar, Koshi Province, while reviving the Nagarkot cheese production centre in Bhaktapur, which has remained closed for the past decade.
In addition, the corporation plans to introduce a web-based digital membership and online milk procurement system and expand dedicated DDC sales outlets across the Kathmandu Valley.
Institutional Reform Underway
General Manager Pandey said several government agencies are conducting studies to identify structural and operational challenges within the corporation.
Based on the findings, the DDC has already begun implementing a three-month institutional reform action plan, with additional reforms to be introduced as further recommendations emerge.
