DDC Prepares to Export Ghee to China and Gulf Markets as Farmer Dues Fall

Kathmandu, August 18, 2026 — Nepal’s state-owned Dairy Development Corporation (DDC) is preparing to export its dairy products, including ghee, to China and Gulf countries as it works to expand sales and improve its financial position.

Agriculture, Forest and Environment Minister Geeta Chaudhary informed Parliament that DDC’s dairy product sales have recently increased by 35 percent.

DDC Has 130 Tonnes of Ghee in Stock

DDC currently holds a significant stock of dairy products, including:

• 130 metric tonnes of ghee, worth around Rs 24 crore

• 150 metric tonnes of milk powder

The planned exports to China and Gulf markets could provide DDC with additional outlets for its products while helping manage its existing stock.

Farmer Dues Reduced

DDC still owes around Rs 35 crore to farmers associated with 235 dairy cooperatives.

However, the corporation has reduced its payment cycle significantly.

Previously, farmers could wait up to eight months for payment. The period has now been brought down to around two to three months, with the government aiming to reduce it further.

DDC has already paid Rs 60 crore between Baisakh 20 and Bhadra 20, according to Minister Chaudhary.

Why Has DDC Been Struggling?

The government has attributed DDC's financial problems mainly to weak financial discipline and a lack of effective leadership.

Efforts are now underway to improve the corporation's management, recover outstanding payments from the market and ensure more regular payments to farmers.

The government also expects stronger sales and potential exports to help improve DDC's financial condition.

What About Imported Milk Powder?

Responding to questions about the sale of Indian milk powder in Nepal, Minister Chaudhary said the import of dairy products that are produced domestically is legally restricted.

The government maintains that such restrictions are intended to protect Nepal's domestic dairy production and farmers.