Nepal Dairy Farmers Face Low Milk Prices Despite Rising Retail Costs

Dairy farmers in Nepal's Dang district are struggling with rising production costs while receiving relatively low prices for raw milk, even as consumers pay higher prices for milk and dairy products.

According to a report by Nepal News, farmers supplying milk to dairies receive up to NPR 75 per litre for buffalo milk and NPR 65 per litre for cow milk. However, dairy businesses sell milk to consumers for as much as NPR 100 per litre.

Farmers Demand Fair and Transparent Pricing

Gopal Khanal, who operates Green Laxmi Cow and Buffalo Farm in Rampur, Ghorahi, said that increasing expenses for animal feed, fodder, medicines and labour are putting pressure on farm incomes.

Farmers argue that the prices they receive have not kept pace with rising production costs. They have also raised concerns about their limited participation in decisions concerning milk prices.

Retail Prices of Dairy Products Increase

While farmers continue to face pressure on their earnings, the prices of several dairy products have increased in Ghorahi.

According to the report, the local business committee set the following prices, effective October 15:

• Curd: NPR 140 per litre
• Paneer: NPR 900 per kg
• Ghee: NPR 1,450 per kg

The price increases have intensified concerns about the gap between farmgate returns and the prices paid by consumers.

Calls for Scientific Cost Assessment

Farmers are demanding a scientific assessment of milk production costs, greater transparency in the pricing structure and representation in the price-setting process.

They have also called for transportation expenses to be considered when calculating the returns farmers receive from milk sales.

The issue highlights a critical challenge for the dairy value chain: ensuring that retail prices adequately reflect production and distribution costs while providing fair returns to producers.

Source: Read full story here 25 Oct, 2026 Edited and Reported by

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