Nepal lifts ban on select dairy imports from India
Nepal has recently lifted a partial ban on the import of specific dairy products from India, notably whey and certain varieties of cheese. This decision follows a bilateral agreement reached during the Nepal-India Inter-Governmental Committee (IGC) meeting on Trade, Transit, and Cooperation to Combat Unauthorised Trade held in Kathmandu in January 2025.
The initial ban, imposed in February 2024 by Nepal's Ministry of Agriculture and Livestock Development, targeted imports of buttermilk, cheese, butter, pasteurised milk, and other dairy products, primarily from Indian brands like Amul. The move aimed to protect local dairy farmers and ensure timely payments for their milk. However, the government has now revised its stance, allowing specific businesses to import products that are either not produced domestically or are produced in limited quantities. Interested businesses must apply for approval before importing.
Domestic production of whey in Nepal is negligible, and many varieties of cheese are not produced locally. Local manufacturers have struggled to meet the quality and quantity standards demanded by major consumers like hotels, restaurants, and airlines. For instance, Pizza Hut has expressed willingness to purchase domestically produced cheese if it matches the quality of imported varieties.
Industry Insight
The partial lifting of the ban is seen as a pragmatic approach to balance the protection of local dairy farmers with the need to meet market demand and maintain trade relations with India.
Source : Dairynews7x7 May 31st 2025 The Kathmandu Post