Now, it is dairy cooperatives Vs milk producers.

The associations of dairy cooperatives, on Saturday, agreed to withdraw the ongoing protest after private and state-owned dairies promised to settle the outstanding dues up to mid-January, by April 3.

An agreement was signed between the Ministry of Agriculture and Livestock Development, three dairy associations—Central Dairy Cooperative Association, Nepal Dairy Association and Dairy Industry Association—and the state-owned Dairy Development Corporation, to settle the dues by the promised date.

However, the National Peasants' Coalition Nepal, the association of dairy farmers, said they were not part of the agreement and have decided to continue the protest.

“It’s a one-sided agreement. We were not invited to the talks,” said Ganesh Chandra Timilsina, president of National Peasants' Coalition Nepal.

“We [farmers] have decided to continue the protest. On Monday, as part of our protest, we are holding a rally in Ratnapark, Kathmandu.” The farmers' coalition plans to organise a march with a strength of 6,000 people.

On Saturday, the dairy companies agreed to purchase milk from cooperatives as they had been doing before, to prevent milk holidays. As sales plummeted sharply, dairy companies in breach of agreement with farmers have been buying milk in reduced quantities prompting the latter to throw milk in the streets.

Meanwhile, the ministry has agreed to facilitate the export of milk and dairy-related products by amending the export procedures through the upcoming budget in May end.

The government has also agreed to continue the agriculture and livestock insurance programme.

On February 22, dairy farmers decided to launch their agitation over non-payment of their dues by dairy companies.

In a statement, both state-owned and private dairies said that the ongoing economic slowdown has dampened dairy demand, resulting in stopped cash flow and rising liabilities to farmers as products remained unsold for the last five months.

The Dairy Development Corporation owes Rs950 million to dairy farmers for the last two months, especially to the farmers in eastern Nepal.

Amid ongoing protests, the state-owned Dairy Development Corporation has sought a bailout fund from the government.

“We have received a request letter from the corporation to provide them with a loan of Rs300 million. Accordingly, we have requested the finance ministry to arrange the bailout fund,” Sabnam Shivakoti, spokesperson for the Ministry of Agriculture and Livestock Development, told the Post in a recent interview.

“The finance ministry, which is studying the loan proposal, looks positive.”

“Hopefully, the fund will be released next week.”

In its letter, the corporation said that due to low sales, dairy products have been piling up in its warehouses. As a result, they were unable to pay the farmers. The corporation has also said that from April onwards, demand for milk and dairy products would increase and sales pick up.

“The proposed fund would address the corporation’s financial crisis to some extent,” said Shivakoti.

Timilsina, the leader of the farmers' organisation, said they wouldn’t trust the government and the dairy associations.

“On several occasions, the association has promised to settle the farmers’ dues. But payments are pilling up.”

“This is another false promise,” he said.

After Monday’s rally, the farmers' coalition said it would unveil further protest programmes to exert pressure on the government.

Among several demands, a farmer group has also asked the government to pay the promised compensation for the damage caused to their cattle by lumpy skin disease.

More than 50,000 cattle have died from the lumpy skin disease that affected all of the country's 77 districts last year, causing billions in losses to the farmers.

The insurance amount is also yet to be paid.

“Until the government agrees to our demand, the protest will continue,” said Timilsina.

Farmers say that amid high inflation, without receiving payments, they face challenges in managing household expenses and feeding the livestock.

Commercial dairy producers say they are unable to pay the interest on their loans.

In some districts, farmers have dumped the milk in the street to protest against the government.

“The private and state-owned diaries owe farmers Rs7 billion. The dues have been piling up since August last year,” said Amar Bahadur Kunwar, president of the Central Dairy Cooperative Association.

As per the agreement, the farmers who have not received payments from August will get their dues paid until mid-January, by April 3.

The dairy development corporation has assured it will clear farmers' debts by clearing its stocked goods, Kunwar said.

According to the state-owned dairy’s proposal to the government, demand for dairies would increase from May-end and that they would be able to sell their unsold products by then.

Kunwar said, “It is not a good idea to protest even after the agreement with the government.”

Amid farmers' concerns that they were excluded in Saturday’s negotiation, Kunwar said, “They are also the farmer's representatives.”