Court orders government to ensure dairy farmers are paid on time
Summary
The Supreme Court has ordered the government to set up a system to ensure dairy farmers are paid regularly, citing repeated delays and unresolved dues worth billions of rupees. The verdict comes after farmers faced severe financial pressure as milk sales slowed and dairy stocks piled up nationwide.
Key Points
- The Supreme Court told the government to create a mechanism to ensure regular payment of dairy farmers under agreements reached with stakeholders in 2024.
- At the time the petition was filed, dairy farmers were owed about Rs7 billion by private dairy companies and the state-owned Dairy Development Corporation.
- The court said the government must not let agreements become a way to suppress farmers' concerns and also ordered awareness campaigns on dairy-related laws and support measures.
- Dairy companies said they have cleared dues and are working toward shorter payment cycles, while exporters are seeking overseas markets to reduce stocks.
