Nepali dairy farmers are facing a crisis that threatens their livelihoods and the very sustainability of local milk production. Dairy farmers in Chitwan have complained about the adverse impact that illegal imports of dairy products from the bordering region of India are having on the domestic dairy producers. The illegally imported dairy products are being sold at prices below what the government has set for the milk produced by domestic farmers. According to farmers, these imports flooding the Nepali market have pushed down prices and are preventing farmers from receiving fair prices. The failure of government authorities to protect the legitimate interests of farmers is already driving farmers away from their profession. As this situation is likely to further aggravate, it is high time for the government to take concrete actions to protect the interests of Nepali farmers.
The government has set a price for milk, which stands at Rs 65 per liter for milk with 4 percent fat and 8 percent Solid-Not-Fat (SNF). The decision is aimed at safeguarding the interests of local farmers. Despite this pricing regulation, farmers complain that private dairies are purchasing milk from farmers at Rs 3 less than the price set by the government. Additionally, the illegally imported milk is further distorting the market price, as milk is being imported at a much cheaper price. Kishor Bagal, the President of the Chitwan District Dairy Producers Cooperative Association, has voiced serious concerns about the situation. Over 40 major dairy companies in Nepal are currently sourcing milk from 115 cooperatives in Chitwan alone. The Chitwan-based dairy cooperatives produce 350,000 liters of milk daily. While the farmers are being forced to sell milk at prices lower than those stipulated by the government, the issue is compounded by the fact that they have not been paid for their dairy supply for over the past six months. It is said that the state-owned Dairy Development Corporation (DDC) and private companies owe farmers a total of over Rs 800 million, with the DDC alone owing Rs 350 million. According to Bagal, over 40,000 dairy farmers in Chitwan alone are suffering as a result of this situation.
Farmers in Chitwan earn over RS 65 million by selling seeds
The government must step in and protect the interests of local farmers who form the backbone of Nepal’s dairy industry. There needs to be stricter enforcement of laws regarding illegal imports of dairy products. The price disparity between locally produced milk and imported dairy products cannot continue unchecked. The government must ensure that the price set for milk is respected by both private dairies and cooperatives and that farmers are compensated fairly and timely. It is equally important that the DDC and private dairies settle the outstanding dues to the farmers without further delay. The Armed Police Force (APF) personnel deployed in the bordering region must also keep a close vigil to check the illegal import. These moves will not only restore trust in the system but also help farmers overcome the financial hardships they are facing. The government authorities concerned must work towards addressing the issues faced by dairy farmers and protect their interests. Failure to do so will only drive farmers away from their profession. The time to act is now.
