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Farmers struggle with low milk prices as consumers pay more

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KATHMANDU: Dairy farmers in Ghorahi are struggling as they are unable to secure prices that reflect their hard work and investment. The current pricing structure remains problematic, with producers receiving low returns while consumers are forced to pay high prices.

Farmers are demanding transparency regarding the costs and profit margins involved in the supply chain from production to the end consumer. Gopal Khanal, who operates the Green Laxmi Cow and Buffalo Farm in Rampur, stated that dairies pay a maximum of Rs 75 per litre for buffalo milk and Rs 65 per litre for cow milk.

However, these same businesses sell the milk to consumers for up to Rs 100 per litre. ‘Farmers are not even included in the price-setting process,’ Khanal said.

While the costs for feed, fodder, medicine, and labor continue to rise, the price paid to farmers has not adjusted accordingly, leading to a decline in their income. Despite these challenges for farmers, dairy businesses have increased the prices of processed products.

As of Oct. 15, the local business committee in Ghorahi set the price of curd at Rs 140 per litre, paneer at Rs 900 per kg, and ghee at Rs 1,450 per kg. Farmers are now calling for a scientific calculation of production costs and a guaranteed role in the price-setting mechanism to ensure their interests are represented.