KATHMANDU, Oct 29: The government’s preparation to open the import of milk and milk products has been stalled following opposition from the Nepali Congress (NC) of the ruling coalition.
According to a request from Minister for Industry, Commerce and Supplies, Damodar Bhandari, Prime Minister KP Sharma Oli intended to facilitate this import. However, sources indicate that the Prime Minister has halted the process due to opposition from the NC.
The NC has argued that the import of milk and milk products should not be permitted at this time, citing a substantial stock available in the country. According to sources, if the NC ministers in the government were supportive, the import of these products could proceed immediately. However, the proposal has stalled because the NC is not prepared to move forward, despite the proposal being ready for approval.
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According to data from the Dairy Development Corporation (DDC), approximately 500 metric tons of butter and 450 metric tons of powdered milk are currently available, alongside 2,000 metric tons of butter and 1,500 metric tons of powdered milk, from private dairy industries across the country. The Nepal Dairy Association has urged the Ministry of Agriculture and Livestock Development (MoALD) and the Ministry of Industry, Commerce and Supplies to reconsider the decision, expressing concern that opening imports will adversely affect dairy farmers in Nepal.
The MoALD had previously decided to suspend imports of such products on February 15, 2024, citing a significant increase in domestic milk production. The ministry sent a letter to the Department of Food Technology and Quality Control, directing them not to issue import permits until further notice.Additionally, a complete ban was placed on importing skimmed milk, sugar or other sweeteners, dairy whitener, and milk powder. There is also a ban on importing curdled or uncured products, including butter and ghee, as well as processed and unprocessed foods.
If the import of dairy products continues, the country will face an average loss of Rs 2 billion annually. In the fiscal year 2022/23, imports of milk and dairy products totaled Rs 2.28 billion, including cheese worth Rs 310 million and butter worth Rs 60 million. In the previous fiscal year, 2021/22, dairy imports amounted to Rs 1.81 billion.
In fiscal year 2020/21, dairy products worth Rs 1.67 billion were imported, while in 2019/20, imports reached Rs 2.3 billion. Since mid-July, dairy products valued at Rs 323.2 million have been imported, with a significant portion consisting of unpasteurized baby milk powder, which alone accounted for Rs 302.3 million, alongside other imports such as cheese and butter.
