Illegal imports from India prevent fair milk price in Nepal

Dairy farmers have complained that they are not receiving the price set by the government for their milk, as locally produced milk is unable to get a fair market price due to dairy products imported from the Indian border region.

They said that private dairies are buying milk at a lower price, and they are forced to sell their milk cheaply due to the lack of alternatives.

Kishor Bagal, President of the Chitwan District Dairy Producers Cooperative Association, said that the government has set the price of milk with 4 percent fat and 8 percent SNF (Solid-Not-Fat) at Rs 65 per liter, excluding operational costs. However, private dairies have been collecting milk at Rs 3 less than this price. 

Nepali farmers are suffering because milk and dairy products are currently being imported at a cheaper price. Bagal said that despite over 40 major dairy companies in the country importing milk from 115 dairy cooperatives in the district, farmers are forced to sell milk at a price lower than the state-set price.

The district produces 350,000 liters of milk daily. Out of this, 150,000 liters are consumed by industries outside the district. He said that farmers, who have not received payment for milk for the past six months, have been told that if they do not receive the price they mentioned, they will halt milk supply starting tomorrow. Currently, farmers in the district have not received payments totaling over Rs 800 million.

Since Bhadra (mid-August-mid-September), dairy farmers have not received payment from the Dairy Development Corporation (DDC) or private companies. He said that the DDC still owes Rs 350 million. There are currently over 40,000 dairy farmers in the district. Farmers are worried because the state has not shown interest in solving their problems.

Source: Dairynews7x7 March 5th 2025 My republica