Supreme Court orders government to clear dairy farmers’ dues

The Supreme Court of Nepal has issued a strong directive, ordering the government to immediately settle outstanding payments owed to dairy farmers. The ruling, made public on Sunday, stems from a writ petition filed after farmers were left unpaid for months, with the Dairy Development Corporation (DDC) and private companies owing approximately Rs7 billion.

The court found that the prolonged non-payment by dairy industries and the DDC infringes upon farmers' constitutional rights to property, social justice, and a dignified life. Justices Nahakul Subedi and Sunil Kumar Pokharel stated that the government has a duty to address this situation urgently.

In its order, the apex court directed the Ministry of Agriculture, Forests and Environment to implement a June 30, 2024 agreement. This agreement mandates the DDC and private dairy firms to clear all dues, establish a system for future regular payments, and actively promote the dairy sector's development. The government is also tasked with making necessary policy, legal, and administrative adjustments to ensure compliance.

The dairy sector is a vital source of livelihood for an estimated three million families across Nepal. The court's intervention aims to protect these livelihoods and uphold the constitutional rights of farmers who are crucial to the nation's agricultural economy.

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The failure to make timely payment of outstanding amounts owed to milk-producing farmers appears to have seriously violated their constitutionally guaranteed rights to property, social justice and a dignified life.