Milk Prices Rise in Nepal Amidst Export and Shortage

Kathmandu. Some time ago, Nepali milk farmers used to argue that dairy entrepreneurs could not pay farmers because of unsold stock. They used to claim that they could not pay farmers because they had to process and store milk. Now the situation is the opposite. Nepali entrepreneurs are gradually getting less milk, and the existing stock is running out. Nepali entrepreneurs are getting less milk as milk from the Terai region is being sent to India. On the other hand, Nepal's production is also finding a place in the international market. In the first week of Bhadra, ghee from the Dairy Development Corporation (DDC) was exported to Dubai. As per the agreement between Rato and Chandra-Surya International Company and DDC, 600 kg of ghee was exported to Dubai in the first lot. DDC has stated that ghee worth 550,000 rupees was exported in the first consignment. As per the agreement, the target is to export at least 50,000 tons of ghee annually to the Dubai market. Therefore, the stock that Nepali entrepreneurs and DDC had to hold due to lack of market at one time is running out. Although this has brought good benefits to the Nepali economy, the cost for consumers in the domestic market is increasing. In the last few months, the prices of dairy products in the Nepali market have been increasing.

Farmers and traders started sending milk to India because they get a higher price in India compared to Nepal.