Dairy farmers in Nepal, particularly in Chitwan, are struggling to receive the government-mandated milk price due to the influx of illegally imported dairy products from India. The Dairy Development Corporation (DDC), a government entity responsible for milk procurement and distribution, along with private dairies, has failed to provide timely payments, leaving farmers with unpaid dues exceeding Rs 800 million. Farmers have threatened to halt milk supply if their demands are not met.
Nepali dairy farmers, particularly in Chitwan, are struggling to receive the government-mandated price for milk due to illegal dairy imports from India. The Dairy Development Corporation (DDC), a state-owned enterprise responsible for milk procurement and distribution in Nepal, and private dairies have failed to provide fair compensation, forcing farmers to sell at lower prices. Farmers claim they are now owed over Rs 800 million in unpaid dues and are threatening to halt milk supply if their demands are not met.
Kishor Bagal, President of the Chitwan District Dairy Producers Cooperative Association, stated that the government has set the price of milk containing 4% fat and 8% SNF (Solid-Not-Fat) at Rs 65 per liter, excluding operational costs. However, private dairies have been purchasing milk at a price Rs 3 lower than the government rate. This price drop is largely attributed to the influx of cheaper dairy imports from India, which have disrupted Nepal’s local dairy market.
Despite the presence of over 40 major dairy companies in Nepal and 115 dairy cooperatives in Chitwan, local farmers struggle to secure fair prices. Chitwan alone produces 350,000 liters of milk daily, with 150,000 liters being supplied to industries outside the district. However, due to payment delays, many farmers have not received compensation for their milk sales since Bhadra (mid-August to mid-September). The DDC still owes Rs 350 million to farmers, worsening their financial hardships.
Currently, over 40,000 dairy farmers in Chitwan depend on milk sales for their livelihoods. Many have expressed frustration over the government’s lack of action in addressing their concerns. In response, farmers have warned that if they do not receive payments or fair pricing, they will halt milk supply starting tomorrow.
The illegal import of dairy products from India continues to undercut Nepali farmers, highlighting the need for stricter trade regulations and government intervention to protect the domestic dairy industry. Farmers are now urging authorities to take immediate steps to control imports and ensure fair pricing, or they will be forced to take drastic measures to safeguard their livelihoods.