The Dairy Development Corporation has increased the retail prices of milk by Rs4.50 to Rs7 per 500 ml starting Friday.

As per the new rates, 500ml standard milk (blue packet) with 3 percent fat will cost Rs42.50; 500ml cow milk (yellow packet) with 3.5 percent fat Rs51; and 500ml full cream milk (green packet) with 5 percent fat will cost Rs57, in Kathmandu. Their current prices are Rs 38, Rs 45 and Rs 50, respectively.

Similarly the price of a 500ml packet of tea milk with 1.5 percent fat has gone up to Rs40 from existing Rs35.

These prices are slightly lower outside Kathmandu as fixed by the corporation’s regional milk supply schemes.

The corporation announced the new prices at a press conference organised in Kathmandu on Thursday.

The corporation raised the price of standard milk after the government increased the rate at which it buys raw milk from farmers from minimum Rs6.52 per litre to Rs8.56 per litre.

A Cabinet meeting on January 31 had decided to increase the price of raw milk. The current rate at which farmers sell raw milk to DDC is Rs 49.52 per litre. After the hike, farmers can sell raw milk to DDC at Rs 56.4 per litre.

The government fixed the price on the basis of 4 percent milk fat and 8 percent milk solids-not-fat (SNF).

The corporation said that the price of processed milk has been increased in line with the hike in petroleum products, inflation, and increased administrative costs.

“The price of other dairy products produced by the corporation will also go up gradually,” said Sanjib Jha, chief of planning, human resource and market management department at the corporation, at the press conference.

The price hike will be applicable only in processed milk and milk products produced by DDC and will not affect the private sector dairies and their products, according to the corporation.

“The government intervenes in the dairy market to keep the price of milk and milk products in check. When the government fixes the price of such products produced by DDC, it limits price fluctuation in the private dairy sector,” said Rajendra Adhikari, deputy general manager of DDC. “It also ensures fair prices to both the consumers and the farmers.”

The corporation has increased farmer’s price, the price at which farmers sell milk and milk products to the corporation, for different dairy distribution projects accordingly.

Various Milk Supply Schemes under the DDC have increased the farmer’s price accordingly to cap the final price at Rs 56.4 per litre.

The Kathmandu Milk Supply Scheme has increased the farmer’s price by Rs6.52-Rs 6.54 with the increased price of milk per litre fixed at Rs 56.04-Rs 58.08.

The Biratnagar Milk Supply Scheme has increased the farmer’s price by Rs6.52-Rs6.60 per litre while Hetauda Milk Supply Scheme has hiked the same by Rs6.52-Rs6.94 per litre.

And the Lumbini Milk Supply Scheme made a hike of Rs6.54-Rs6.90 per litre while Janakpur Milk Supply Scheme has increased the farmer’s price by Rs7.26 per litre.

Similarly the Nepalgunj Milk Supply Scheme has hiked the farmer’s price by Rs8.30-Rs8.56 per litre while the Dhangadhi Milk Supply Scheme increased the same by Rs8.56 per litre.