Tapping milk markets

A better supply chain between dairy farmers, DDC and exporters of dairy products is the need of the hour.

Nepal’s dairy sector has for long been under financial strain. The cost of milk and milk products has spiked so much that many households have cut down on (or entirely stopped) their consumption. The price of processed milk, which was Rs76 a litre in January 2022, has climbed up to Rs120 a litre. Dairy products from Uttar Pradesh of India that are comparatively cheaper (INR62 or Rs100 a litre) are also smuggled into the country. As a result of reduced demand and steady imports of cheap products, the state-owned Dairy Development Corporation now has a stockpile of 600 tonnes of butter and 500 tonnes of powdered milk, and the farmers are yet to get Rs580 million the cash-strapped DDC owes them. Farmers, dismayed by the delays in payment, have often had to take to the streets.