Nepali Dairy Farmers Gain from Rising Milk Prices in India

With milk prices rising in India, Nepali dairy producers are finding better market opportunities across the border, reversing a trend that previously saw cheaper Indian milk flooding Nepal and squeezing local producers. Earlier seasons forced Nepali farmers to struggle with surplus or process excess milk themselves due to illegal imports; this year, higher Indian milk prices have made Nepali milk competitive, reducing cross-border smuggling and supporting domestic sales.

Ambar Bahadur Kunwar, President of the Central Dairy Cooperative Association, noted the price gap — Indian milk is only about 46 paisa more expensive per litre than Nepali milk, and when transport costs are factored in, it discourages inflows of Indian milk, giving Nepali producers breathing room in the market.

In parts of Nepal such as Chitwan, local cooperatives report that all produced milk is now being sold, in contrast to past years when surplus often led to “milk holidays” (pauses in milk collection). Milk processing units that were once overwhelmed with inventory or forced to slow intake are now operating with better sales flow, although total milk production remains slightly below last year’s levels.

The improved pricing environment not only helps Nepali farmers secure fairer returns for their milk but also stabilises local dairy markets amid seasonal consumption variances. This development could strengthen livelihoods in rural dairy communities and reduce the pressure of imported volumes that once dominated during peak seasons.

Source : Dairynews7x7 Jan 30th 2026 Read full story here