Nepal has lifted its partial ban on select dairy imports from India, specifically allowing whey and certain types of cheese. The decision was made during the Inter-Governmental Committee (IGC) meeting on Trade, Transit, and Cooperation to Combat Unauthorised Trade between Nepal and India, which took place in Kathmandu, Nepal. The IGC is a bilateral platform that facilitates trade discussions and cooperation between the two nations. This move reflects Nepal’s strategy to meet domestic demand while supporting local dairy farmers.
The government of Nepal has officially lifted its partial ban on the import of select dairy products from India, specifically including whey and certain cheese varieties. This decision follows trade negotiations at the Nepal-India Inter-Governmental Committee (IGC) meeting held in Kathmandu, which focused on trade, transit, and curbing unauthorised trade between the two neighboring nations.
The IGC is a bilateral platform designed to enhance trade relations and cooperation between India and Nepal. During the January 2025 session, both sides addressed critical concerns, leading to Nepal’s decision to ease import restrictions that had been in place since February 2024.
Nepal’s Ministry of Agriculture and Livestock Development had initially enforced the ban on dairy products such as pasteurised milk, cheese, butter, buttermilk, and others—mostly from Indian brands like Amul—to protect local dairy producers and ensure timely payments to farmers. However, a shortage of domestically produced whey and specific cheese types, especially those used by hotels, restaurants, and airlines, prompted a policy review.
Under the revised policy, Nepalese businesses can now apply for government approval to import dairy products that are not widely produced locally or are in short supply. This includes whey, which has negligible domestic production, and cheese varieties that do not meet the required standards of quality and quantity.
For instance, multinational food chains like Pizza Hut have stated their readiness to purchase Nepali-made cheese—provided it meets the standards of imported alternatives. The revised import policy aims to bridge the gap between protecting domestic producers and fulfilling market demand.
The move is seen as a balanced and strategic step to maintain consumer supply chains while continuing to support the local dairy industry.
Also Read: How Indian Dairy Imports Are Affecting Nepal’s Local Milk Prices
