The Government of Nepal has announced significant policy updates affecting the dairy sector, following months of advocacy by the Dairy Farmer Association Nepal and other stakeholders. These changes are expected to positively impact thousands of dairy farmers across the country.
Key Policy Changes
1. Increased Minimum Support Price
The Ministry of Agriculture has approved a 15% increase in the minimum support price for raw milk, effective from the start of the new fiscal year. This brings the minimum price from NPR 65 to NPR 75 per liter, providing much-needed relief to farmers facing rising input costs.
2. Subsidized Feed and Fodder Program
A new subsidy program will provide up to 30% reduction in the cost of cattle feed for registered dairy farmers. The program will be administered through local agricultural offices and cooperatives. Farmers with fewer than 10 cows will receive priority access to the subsidized feed.
3. Veterinary Service Expansion
The government will deploy 500 additional veterinary technicians across rural areas by mid-2026. Mobile veterinary clinics will be introduced in 50 districts, providing free basic health checkups and vaccinations for dairy cattle. This addresses a long-standing demand from our association.
4. Cold Chain Infrastructure Development
A NPR 2 billion investment has been approved for building cold chain infrastructure in dairy-producing regions. This includes 200 new milk chilling centers, 50 bulk milk coolers, and upgraded transportation vehicles with refrigeration. The goal is to reduce milk spoilage, which currently wastes an estimated 10% of production.
DFAN's Role in Policy Advocacy
These policy changes are the result of sustained advocacy efforts by DFAN over the past two years. Our team submitted detailed policy proposals, organized farmer rallies, and held multiple meetings with government officials at both provincial and federal levels.
DFAN President remarked, "These policy changes represent a significant step forward for Nepal's dairy industry. While there is still much work to be done, we are encouraged by the government's responsiveness to the needs of dairy farmers."
What This Means for You
Members are encouraged to contact their local DFAN chapter to learn how to benefit from these new policies. Information sessions will be held in all provinces during January and February 2026 to help farmers understand the registration and application processes for the various subsidy programs.