Despite the government's year-old ban on the import of certain dairy products, such items are reportedly flooding the market, prompting domestic dairy farmers and industry stakeholders to draw the government's attention.
The Nepal Dairy Association (NDA) and the Central Dairy Cooperative Association Nepal (CDCAN) have jointly appealed to authorities, ranging from the police administration to the Minister for Agriculture, to strictly enforce the ban on the import of prohibited dairy items.
NDA President Prahlad Dahal stated that a formal request was submitted to the Ministry a week ago. On February 15, 2024, the government directed the Department of Food Technology and Quality Control to halt the import of nine types of dairy products. However, stakeholders claim these products are still widely available in the market. They suspect that the open borders have allowed the illegal entry of these banned items.
According to the Ministry’s directive, the banned products include skimmed milk, whole milk powder (WMP) without added sugar or sweeteners, powdered milk, butter (with or without sugar), ghee, churpi (hardened cheese), processed cheese (non-grated or non-powdered), and all forms of grated or powdered cheese. The Nepal Dairy Association and other related bodies reiterated their demand to stop the illegal import of these banned items and informed the concerned government agencies accordingly.
Dahal pointed out that despite the official ban, such dairy products are being sold openly across the country. He remarked that the situation is adversely affecting the market for domestically produced dairy goods. He added that such imports are happening due to the perceived necessity of these products in five-star hotels and resorts in Nepal. However, he clarified that only small quantities have been officially allowed, and that most of the influx is taking place through illegal channels, which is hurting local dairy businesses. He also noted that this illegal trade impacts government revenue and raises costs for hotel operators.
To provide a temporary solution to the issue of domestic dairy surplus, the Ministry had issued a ministerial-level directive to suspend all dairy imports until further decisions are made.
In the fiscal year 2023/24, Nepal imported dairy products worth Rs 500.5 million. Among these were skimmed milk worth Rs 81,000, sugar-free dairy products worth Rs 38.998 million, whey and modified or unmodified dairy items (with or without added sugar or sweeteners) valued at Rs 25.505 million, butter worth Rs 40.460 million, ghee worth Rs 1.039 million, grated or powdered cheese amounting to Rs 17.117 million and other fully banned products, and Rs 387.307 million worth of other dairy items. According to government data, in the first eight months of the current fiscal year, dairy products worth Rs 40 million have already been imported.
Previously, in October 2024, when India halted the issuance of BIS (Bureau of Indian Standards) certification to Nepali businesses, the Government of Nepal had considered relaxing the dairy import ban. However, Ministry of Agriculture spokesperson Matina Joshi Baidhya confirmed that there has been no progress on that front so far. Meanwhile, hotel operators continue to report difficulties caused by the import restrictions.
