KATHMANDU, Nepal – The economic slowdown has turned Nepal’s dairy industry and farmers upside down, from falling sales to rising livestock feed costs.
The problems have worsened after dairy producers suspended payments to hundreds of farmers nationwide for more than six months.
“We must regularly buy composite feed, fodder, paddy straw, vitamins, and veterinary services. They are not available on credit,” said Lamichhane, who joined the farmers’ protest earlier this week.
“I have a loan of Rs35 million and am concerned about how to repay it. I sold my wife’s jewelry to cover the costs of animal food. But what next?” he inquired.
On February 22, the National Peasants’ Coalition Nepal, a farmer organization, declared a protest against the government. Representatives from all seven provinces, particularly commercial farmers, have arrived in Kathmandu.
The state-owned Dairy Development Corporation has sought government bailout funds amid ongoing protests.
“We received a request letter from the corporation to provide them with a loan of Rs300 million. We have asked the finance ministry to arrange the bailout fund,” said Sabnam Shivakoti, spokesperson for the Ministry of Agriculture and Livestock Development. “The finance ministry, which is studying the loan proposal, looks positive.”
The corporation stated in its letter that dairy products were piling up due to low sales. As a result, they were unable to repay the farmers. The corporation has also stated that demand for milk and dairy products will rise in April, increasing sales.
“The proposed fund would address the corporation’s financial crisis to some extent,” Shivakoti said in a press release.
Farmers say they have been severely affected by the lumpy skin disease. Last year, more than 50,000 cattle died from the lumpy skin disease that affected all 77 districts of the country, resulting in billions of dollars in losses for farmers.
“If we are not paid now, we will be completely ruined,” Lamichhane said.
