KATHMANDU: During the Cabinet meeting held on Tuesday (June 9), Prime Minister Balendra Shah and other ministers were seen being distributed products from the Dairy Development Corporation (DDC). Cheese, paneer, butter, yogurt, and milk fudge manufactured by DDC were distributed to the Cabinet members by Geeta Chaudhary, Minister for Agriculture, Forestry, and Environment.

DDC, which has failed to pay farmers for their milk and is almost always drowned in losses, has recently been under investigation by the Nepal Police’s Central Investigation Bureau (CIB). Not only were the products of this institution—which is currently under scrutiny—distributed to the ministers, but publicity was also generated claiming that Minister Chaudhary raised an agenda in the meeting stating that DDC’s products must be promoted, even as questions continue to be raised regarding the quantity and quality of these dairy items.

Information issued by Chaudhary’s secretariat mentions that she raised the issue in the Cabinet meeting that priority should be given to promoting DDC’s products. The notice also states that Prime Minister Shah “sent a strong message” to increase the consumption of domestic goods by promoting and publicizing DDC’s products.

On May 16, Prime Minister Shah posted a photo on his personal Facebook page showing him eating Yak cheese produced by DDC. This sent a message that the government was actively engaged in promoting DDC. Following that, public interest in DDC’s products increased. DDC also reported that inquiries and demand for its products began to rise after the Prime Minister’s promotion.

Prime Minister Balendra Shah. Photo Source: Prime Minister Shah’s Facebook page

While Prime Minister Shah and Minister Chaudhary have engaged in promotion, questions regarding quality, quantity, and other issues have been raised against DDC, which remain unresolved. The investigation regarding this has not concluded.

The CIB has stated that its investigation into the overall matters of DDC is ongoing. CIB Chief and Additional Inspector General of Police (AIG) Manoj KC says, “We are investigating by collecting DDC’s documents, which include matters ranging from sales to production.” He states that details cannot be made public yet as the investigation has not reached a conclusion.

On May 27, a CIB team arrived at the DDC central office in Lainchaur. The team seized DDC’s documents and is currently investigating them. Before the investigation could reach a conclusion, the government itself has taken the initiative to promote DDC.

DDC is a state-owned corporation of Nepal. It works to collect, process, and distribute milk, and produce dairy products. DDC has been functioning in accordance with its objective to purchase milk from farmers and provide quality dairy products to consumers.

Products of the Dairy Development Corporation

In a laboratory test conducted by the National Dairy Development Board, the milk being sent to the market by 29 dairy industries in the Kathmandu Valley was found not to be in compliance with standards. Between July 17 of last year and January 26 of this year, the Board collected 784 packets of milk, each measuring 500 milliliters, from the market and tested them at a laboratory in Hariharbhawan, Lalitpur. In that test, deficiencies were also found in DDC’s milk.

The test conducted by the Board showed that the quantity and quality of DDC’s milk were alarming compared to dairies operated by the private sector. In the laboratory, 56 packets of milk produced by DDC, each measuring 500 milliliters, were tested. Among them, 24 packets were found to be short of 500 milliliters. The fat quality in 32 packets and the SNF (Solids-Not-Fat) in all 56 packets did not meet the required standards.

Prime Minister Balendra Shah with DDC products. Photo: Prime Minister’s Secretariat

Sharan Kumar Pandey, Joint Secretary at the Ministry of Agriculture, Forestry, and Environment and also the General Manager of DDC, states that nothing can be said at the moment regarding the ongoing investigation into DDC. “An investigation is underway following a complaint; since it is a matter of investigation, nothing can be said right now,” he says.

Consumer rights activists state that it is inappropriate for the government itself to engage in promotion before the investigation into DDC, which is being probed by a government body, is concluded.

Bishnu Timilsina, General Secretary of the Forum for Protection of Consumer Interest and an advocate, says that questions will be raised when the government engages in promotion while DDC is under investigation.

He says, “An investigation is ongoing at DDC, and the fact that the government itself is rushing to promote it before the investigation into what irregularities exist is concluded creates suspicion.”

Timilsina states that since solving the problems seen in the price and quality of dairy products is the responsibility of the government itself, the government must show urgency to conclude DDC’s investigation quickly.

“Let the government complete the investigation soon and bring the truth about DDC out to the public,” he says.